Louisiana Pacific: A Lot Of Value In The Wood

Investment thesis

Shares of Louisiana Pacific (LPX) have recently corrected from their all-time high, which presents an unparalleled opportunity for share accumulation as the company's fundamentals have a solid base, and the management pursues a shareholder value-focused approach to capital allocation.

Corporate profile

Louisiana Pacific Corporation is a leading manufacturer of building products; most of which are made from wood and lumber. The company currently has approximately 5,000 employees, with about a fifth being part of labor unions. The company's sales are classified into 6 segments - Siding, OSB, Engineered wood products, South America, Other and Intersegment sales, with Siding and OSB accounting for the majority of revenues (~79 percent). In terms of Adj. EBITDA margins, OSB and Siding also belonged to the most profitable segments - with 21 and 32 adjusted EBITDA margins, respectively. Geographically, most of the company's revenues are originated in the United States (~72 percent) and Canada (~22 percent).

Key takeaways from the latest quarterly earnings call

Reading through the company's latest earnings call transcript, one can quickly find that the company is currently undergoing a business transition from a pure commodity OSB producer to a more diversified cash-generative business. On this front, the key part of the company's strategy is to expand its siding business, with a long-term annual revenue growth target of 12 to 14 percent. Brad Southern, Chief Executive Officer of the company, also sees a favorable demographic trend wave arising from the entry of millennial workforce into the housing market. Lastly, the management identified several areas that present a significant opportunity for a geographic expansion outside the Midwest, including the Eastern shore and the southern and southwest part of the United States, and seems to ready to take action to seize this opportunity.

Improving profitability metrics, strong cash flow growth, and liquidity position

Over the last ten years, the management has gradually lifted the company's profitability metrics from the negative to the positive territory to exceptional figures. The company's trailing twelve months ROA, ROI, and ROE currently total 16, 18, and 24 percent, respectively. Besides rising profitability, the company's financial statements display a remarkable inflection point in net operating cash flow growth. With respect to its balance sheet sum and market capitalization of little over $3.2 billion U.S. dollars, Louisiana Pacific has also a strong cash position, consisting of $678 million excess cash and $350 million of potential incremental debt capacity.

Source: WSJ Quotes

Shareholder-friendly policy

Louisiana Pacific is a company with a shareholder-friendly policy. Last month, the company launched its accelerated $400 million share repurchase program, which is part of a $600 million share repurchase plan authorized alongside with fourth-quarter earnings announcement. As can be observed in the output below, the company started buying back shares just recently - early in 2018. Should the company fully use the program, the number of shares outstanding can decrease by roughly 24 million to 111 million.

Sluggish digital marketing

On the other hand, one thing at which the company seems to be momentarily struggling is digital marketing. Based on SimilarWeb statistics, the company's website traffic has been deteriorating. According to a different website analytics tool - Google PageSpeed Insights - Louisiana Pacific's website speed is average to slow compared to other pages in Google's sample.

Source: Similarweb.com

Source: Google PageSpeed Insights

Valuation

Plugging in Louisiana Pacific's financial statements' figures into my DCF template, the company's shares seem to be severely undervalued. Under perpetuity growth method, with a terminal growth rate of 2 percent, constant 10 percent annual revenue growth over the next five years and 19 percent EBIT margin, fair value of the stock comes at 63 USD. Under the EBITDA multiple approach of a discounted cash flow model, the intrinsic value per share of the company stands roughly at 40 USD if we assume that the appropriate exit EV/EBITDA multiple in five years' time is around 5x.

Source: Author's own Excel model

From a different perspective working with operating earnings multiples, Louisiana Pacific's shares are also tremendously undervalued. Using the Fast Graphs forecasting calculator, with a 25 percent adjusted operating earnings growth rate assumption, the company's intrinsic value by the end of November FY2024 is forecasted to reach up to US$43. This implies a total annualized rate of return upside potential up to 16 percent.

Source: F.A.S.T. Graphs

In the light of revenue variation of Peter Lynch's popular earnings line for the projection of probable per share values of the company, Louisiana Pacific's shares long run potential seems to be skewed to the positive territory. According to my model, assuming 10 percent annual revenue growth, zero percent annual equity dilution factor, a price-to-sales PS ratio of around 1.2x, the company's share price by the end of 2022 could hover around US$38. This scenario suggests an annualized rate of return potential as much as 11 percent in the following years.

Source: Author's own Excel model

Key risks The company's business heavily relies on the condition of North American new home construction and repair market, and any fluctuations or downward changes in the general economy could adversely affect the company's operations and financial results. Despite efforts to grow other business lines, the company still has a high degree of product concentration in OSB - a highly commoditized market - generating more than half of the company's total revenues. The company is subject to various environmental regulations and compliance expenditures that could limit the company's operations and negatively affect financial results. Any breaches of the company's internal information systems or technology could negatively impact the company's reputation and financial results. The company's operations may be harmed by potential shortages of raw materials or increases in raw material costs such as wood fiber. Intense competition could put pressure on the company's profit margins and prevent it from increasing or sustaining its net sales and profitability. Should any of the above-mentioned or other risks materialize, the company's current valuation assumptions might be considerably revised which would diminish the company's implied upside potential. The bottom line

To sum up, Louisiana Pacific is a very niche business in the home construction market. The company has a sound expansion intention which could be accelerated if new home construction is stimulated by a catalyst such as a reversal in tightening interest rate policy or revived digital presentation. Lastly, ongoing shareholder policy indicates that the company has not only a strong financial position but also a great willingness to share its resources with its shareholders.

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: Disclaimer: Please note that this article has an informative purpose, expresses its author's opinion, and does not constitute investment recommendation or advice. The author does not know individual investor's circumstances, portfolio constraints, etc. Readers are expected to do their own analysis prior to making any investment decisions.

FII inflows, Fed rate decision to guide stock movement this week: Experts

In the absence of any immediate key domestic triggers, the equity market is expected to be guided by Fed interest rate decision, foreign fund inflows and crude oil prices in this holiday-shortened week, according to analysts.

Stock markets will remain closed on March 21 for Holi.

"Minor profit-booking is expected given sharp run-up in domestic markets and global factors. However, downside will be capped as emerging markets like India is likely to benefit from strong liquidity and reversal in FII flows. For the week ahead, FED interest rate decision is the key event," said Vinod Nair, Head of Research, Geojit Financial Services.

Besides, movement of foreign funds, rupee and oil would continue to play their part in market trend, the analysts added.

related news YSR Congress releases full list of candidates for Lok Sabha, Assembly polls in Andhra Pradesh Congress announces candidates for 5 reserved Lok Sabha seats in Chhattisgarh BJP steps up its 'Main bhi chowkidar' campaign

During the past week, the Sensex surged 1,352.89 points or 3.68 percent to close at 38,024.32 on Marc h 15.

"On the international front one can keep an eye on Fed's interest rate decision on Wednesday. Overhang on Brexit issue and OPEC's supply cut are likely to hit the domestic market in specific segment," said Debabrata Bhattacharjee, Head of Research, CapitalAim.

"During past fortnight, Indian markets have enjoyed one of the best stretches in the recent memory. FII inflows have crossed Rs 30,000 crore in Feb-March'19 till date resulting in a flood of inflows after 2018 drought.

"Most heartening aspect of the current rally is it is quite broad-based across the sectors. As border tensions appearing to have cooled-off, and global central bankers turned pro-liquidity, Indian markets are in risk-on mood," said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Limited. First Published on Mar 17, 2019 11:22 am

Best Safest Stocks To Invest In 2019

tags:RMCF,CFFN,AT,RQI,MCBC,

Liberum Capital restated their hold rating on shares of Safestyle UK (LON:SFE) in a report released on Monday morning.

Shares of LON SFE opened at GBX 49.95 ($0.64) on Monday. Safestyle UK has a 12-month low of GBX 91.71 ($1.18) and a 12-month high of GBX 325 ($4.19).

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In other Safestyle UK news, insider Alan Lovell acquired 100,000 shares of Safestyle UK stock in a transaction dated Friday, July 20th. The stock was acquired at an average cost of GBX 36 ($0.46) per share, for a total transaction of £36,000 ($46,439.63).

About Safestyle UK

Safestyle UK plc is a United Kingdom-based company engaged in the sale, manufacture and installation of replacement un-plasticized poly vinyl chloride (PVCu) windows and doors for the United Kingdom homeowner market. The Company’s segment includes the sale, design, manufacture, installation and maintenance of domestic, double-glazed, replacement windows and doors.

Best Safest Stocks To Invest In 2019: Rocky Mountain Chocolate Factory Inc.(RMCF)

Advisors' Opinion:

• [By Ethan Ryder]

  Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

• [By Max Byerly]

  Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and Tootsie Roll Industries (NYSE:TR) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Best Safest Stocks To Invest In 2019: Capitol Federal Financial(CFFN)

Advisors' Opinion:

• [By Joseph Griffin]

  People’s United Financial (NASDAQ: PBCT) and Capitol Federal Financial (NASDAQ:CFFN) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

• [By Joseph Griffin]

  BankUnited (NYSE: BKU) and Capitol Federal Financial (NASDAQ:CFFN) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

• [By Max Byerly]

  Dean Capital Investments Management LLC bought a new stake in Capitol Federal Financial, Inc. (NASDAQ:CFFN) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 42,438 shares of the savings and loans company’s stock, valued at approximately $558,000.

• [By Stephan Byrd]

  Capitol Federal Financial (NASDAQ: CFFN) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

• [By Stephan Byrd]

  News headlines about Capitol Federal Financial (NASDAQ:CFFN) have trended positive on Thursday, according to Accern Sentiment Analysis. The research firm ranks the sentiment of media coverage by monitoring more than 20 million news and blog sources. Accern ranks coverage of publicly-traded companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Capitol Federal Financial earned a media sentiment score of 0.31 on Accern’s scale. Accern also assigned news coverage about the savings and loans company an impact score of 47.2593540313148 out of 100, indicating that recent media coverage is somewhat unlikely to have an impact on the stock’s share price in the near term.

Best Safest Stocks To Invest In 2019: Atlantic Power Corporation(AT)

Advisors' Opinion:

• [By Shane Hupp]

  ABCC Token (CURRENCY:AT) traded flat against the U.S. dollar during the 24-hour period ending at 0:00 AM E.T. on February 11th. Over the last seven days, ABCC Token has traded flat against the U.S. dollar. ABCC Token has a total market cap of $0.00 and $0.00 worth of ABCC Token was traded on exchanges in the last day. One ABCC Token token can now be bought for $0.0000 or 0.00000000 BTC on exchanges.

• [By Logan Wallace]

  Media stories about Atlantic Power (NYSE:AT) (TSE:ATP) have been trending somewhat positive this week, Accern Sentiment reports. Accern identifies negative and positive press coverage by reviewing more than twenty million blog and news sources in real-time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Atlantic Power earned a news impact score of 0.14 on Accern’s scale. Accern also gave news articles about the utilities provider an impact score of 47.4126329966204 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the stock’s share price in the near term.

• [By Stephan Byrd]

  AWARE (CURRENCY:AT) traded up 2.3% against the US dollar during the 1 day period ending at 18:00 PM E.T. on September 10th. AWARE has a market capitalization of $0.00 and $101,493.00 worth of AWARE was traded on exchanges in the last day. In the last seven days, AWARE has traded 22.2% lower against the US dollar. One AWARE token can currently be bought for about $0.0038 or 0.00000060 BTC on popular cryptocurrency exchanges.

• [By Ethan Ryder]

  ABCC Token (CURRENCY:AT) traded flat against the U.S. dollar during the 24 hour period ending at 20:00 PM ET on September 23rd. One ABCC Token token can currently be purchased for $0.0000 or 0.00000000 BTC on major cryptocurrency exchanges. ABCC Token has a market cap of $0.00 and $0.00 worth of ABCC Token was traded on exchanges in the last 24 hours. Over the last week, ABCC Token has traded flat against the U.S. dollar.

• [By Logan Wallace]

  ABCC Token (CURRENCY:AT) traded flat against the US dollar during the 24 hour period ending at 7:00 AM E.T. on October 2nd. ABCC Token has a total market capitalization of $0.00 and approximately $0.00 worth of ABCC Token was traded on exchanges in the last 24 hours. In the last week, ABCC Token has traded flat against the US dollar. One ABCC Token token can now be bought for approximately $0.0000 or 0.00000000 BTC on cryptocurrency exchanges.

Best Safest Stocks To Invest In 2019: Cohen & Steers Quality Income Realty Fund Inc(RQI)

Advisors' Opinion:

• [By Joseph Griffin]

  Cohen & Steers Quality Income Realty Inc (NYSE:RQI) declared a monthly dividend on Monday, June 18th, Wall Street Journal reports. Shareholders of record on Wednesday, August 22nd will be given a dividend of 0.08 per share by the real estate investment trust on Friday, August 31st. This represents a $0.96 annualized dividend and a yield of 7.66%. The ex-dividend date is Tuesday, August 21st.

• [By Ethan Ryder]

  First Republic Investment Management Inc. purchased a new position in shares of Cohen & Steers Quality Income Realty Inc (NYSE:RQI) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 32,456 shares of the real estate investment trust’s stock, valued at approximately $390,000.

• [By Max Byerly]

  TRADEMARK VIOLATION WARNING: “Cohen & Steers Quality Income Realty Inc Declares Dividend of $0.08 (RQI)” was first published by Ticker Report and is owned by of Ticker Report. If you are accessing this piece on another site, it was illegally copied and reposted in violation of United States and international trademark and copyright legislation. The original version of this piece can be viewed at https://www.tickerreport.com/banking-finance/4220297/cohen-steers-quality-income-realty-inc-declares-dividend-of-0-08-rqi.html.

Best Safest Stocks To Invest In 2019: Macatawa Bank Corporation(MCBC)

Advisors' Opinion:

• [By Joseph Griffin]

  Associated Banc (NYSE:ASB) and Macatawa Bank (NASDAQ:MCBC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

• [By Max Byerly]

  Chemical Financial (NASDAQ: CHFC) and Macatawa Bank (NASDAQ:MCBC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

• [By Ethan Ryder]

  BidaskClub upgraded shares of Macatawa Bank (NASDAQ:MCBC) from a buy rating to a strong-buy rating in a research note released on Friday morning.

  Separately, Hovde Group set a $11.00 price target on Macatawa Bank and gave the stock a hold rating in a research report on Monday, January 29th.

Santander Consumer USA Holdings Inc (SC) Given Average Recommendation of “Hold” by Broke

Santander Consumer USA Holdings Inc (NYSE:SC) has been given an average rating of “Hold” by the fifteen analysts that are covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $24.30.

Several equities research analysts have issued reports on SC shares. TheStreet raised Santander Consumer USA from a “c” rating to a “b-” rating in a research note on Wednesday, November 14th. Zacks Investment Research raised Santander Consumer USA from a “hold” rating to a “buy” rating and set a $20.00 target price for the company in a research note on Wednesday, January 2nd. JPMorgan Chase & Co. reissued an “underweight” rating and set a $20.00 target price on shares of Santander Consumer USA in a research note on Wednesday, January 16th. Finally, Santander cut Santander Consumer USA to an “underweight” rating in a research note on Wednesday, January 16th. They noted that the move was a valuation call.

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SC stock traded up $0.19 during midday trading on Wednesday, hitting $20.92. 1,949,543 shares of the company’s stock were exchanged, compared to its average volume of 1,668,591. The stock has a market cap of $7.28 billion, a price-to-earnings ratio of 8.24, a price-to-earnings-growth ratio of 0.41 and a beta of 1.07. Santander Consumer USA has a 1-year low of $15.55 and a 1-year high of $21.81.

Santander Consumer USA (NYSE:SC) last posted its earnings results on Wednesday, January 30th. The financial services provider reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.08). The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.16 billion. Santander Consumer USA had a return on equity of 13.10% and a net margin of 13.00%. Santander Consumer USA’s revenue was up 8.9% compared to the same quarter last year. During the same period last year, the business earned $0.27 EPS. As a group, analysts predict that Santander Consumer USA will post 2.63 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, February 21st. Stockholders of record on Monday, February 11th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Friday, February 8th. This represents a $0.80 annualized dividend and a dividend yield of 3.82%. Santander Consumer USA’s dividend payout ratio is currently 31.50%.

In other news, insider Richard Morrin sold 17,546 shares of the firm’s stock in a transaction on Friday, March 1st. The stock was sold at an average price of $20.65, for a total transaction of $362,324.90. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Sunil Sajnani sold 5,946 shares of the firm’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $20.83, for a total value of $123,855.18. Following the transaction, the insider now owns 20,802 shares of the company’s stock, valued at $433,305.66. The disclosure for this sale can be found here. Company insiders own 0.09% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its position in shares of Santander Consumer USA by 4.3% during the fourth quarter. Geode Capital Management LLC now owns 1,088,635 shares of the financial services provider’s stock worth $19,149,000 after buying an additional 44,954 shares during the period. Norges Bank purchased a new position in Santander Consumer USA in the fourth quarter valued at $31,136,000. FMR LLC boosted its holdings in Santander Consumer USA by 5.0% in the fourth quarter. FMR LLC now owns 13,471,613 shares of the financial services provider’s stock valued at $236,966,000 after purchasing an additional 645,255 shares during the period. Amalgamated Bank boosted its holdings in Santander Consumer USA by 5.0% in the fourth quarter. Amalgamated Bank now owns 22,041 shares of the financial services provider’s stock valued at $388,000 after purchasing an additional 1,044 shares during the period. Finally, HRT Financial LLC purchased a new position in Santander Consumer USA in the fourth quarter valued at $182,000.

About Santander Consumer USA

Santander Consumer USA Holdings Inc, a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit.

Read More: Can individual investors take part in an IPO?

India a 'brilliant' growth play, but valuations are expensive: EM equities manager Tim Love

Investment manager Tim Love, who oversees $1 billion of emerging market equities, plans to pause buying of Indian stocks due to their expensive valuations.

Love, an investment director at GAM Holding, told news agency Bloomberg he intends to wait 12 to 18 months to assess the earnings growth of companies.

"India is a growth play generally and it's a brilliant one, but it's expensive as heck" Love told the news agency.

According to Love, emerging markets such as Mexico, Brazil, Turkey and Russia currently appear cheap.

related news No electoral alliance with Congress in any state: Mayawati TRS to kick-start Lok Sabha poll campaign from March 17 Sonia Gandhi accuses PM Narenda Modi of playing 'victim card'

"A dip in stock prices due to geopolitical tensions will be an opportunity to enter and add some Indian stocks," he said.

Massive social spending by the new government and its impact on India's fiscal account is a major risk after the election, Love added.

An MSCI index of Indian equities is currently trading at a 53 percent premium to its emerging market rivals, and 19 percent higher than global equities.

About 7.4 percent of the $953 million of assets managed by GAM Multistock Emerging Markets Equity fund was in Indian equities as of January 31, 2019, as per Bloomberg data. Love plans to increase this share to as much as 20 percent over the next 18 months if valuations decline.

Once the valuation seems right to Love, he plans to raise his stakes in stocks such as Maruti Suzuki India, Mahindra & Mahindra and Reliance Industries, and several mid-sized firms such as KEC International.

At the moment, Love's holdings in India are scattered across banks, financial services companies, and software companies, including HDFC Bank, Axis Bank, ICICI Bank, L&T Finance Holdings, SBI, Infosys, TCS and HCL Technologies.

"India has a consistent democracy, relatively stable politics and yes there should be a premium; but the valuations are pushing 18 times P/E, too high and more expensive than the S&P," the investment manager told Bloomberg.

India's relative non-correlation with global trends is a factor that works in its favour, according to him.

A widening tax base and stable oil prices could provide a cushion against risks to the country's fiscal deficit, Love added.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. First Published on Mar 12, 2019 02:51 pm

Ask a Fool: Should I Buy Marijuana Stocks?

Q: I've seen tons of hype about marijuana stocks. Should I put some of my money into the space, or is it a bad choice?

The marijuana industry is a young and high-potential space, so there's definitely lots of room for long-term growth.

However, it's important to approach this with the right mentality. Investing in any up-and-coming industry is a speculative practice. That is, it's highly risky and you shouldn't invest any money that you aren't prepared to lose -- even if you think a particular company looks like a potential gold mine.

I don't want to discuss any individual companies, but it would be smart to approach investing in marijuana stocks in a similar manner as tech stocks in the late 1990s. Some will probably do wonderfully. People who invested in Amazon.com or Priceline (now Booking Holdings) during the dot-com boom and held on to their shares have made fortunes. People who invested in companies like Pets.com -- not so much.

With that in mind, I'd advise you to do two things if you want to add some marijuana stocks to your portfolio.

First, only use a small portion of your investable assets. If you put, say, 5% of your portfolio in marijuana stocks, that's all you can lose if things go badly. And if one of them turns out to be the Amazon of the marijuana industry, it'll still be enough to produce a significant win.

Second, don't put all of your eggs in one basket. Whatever money you decide to invest in the marijuana industry, spread it among at least three or four reputable companies -- not penny stocks.

If you do those two things, you'll set yourself up to profit if you're right, but at the same time, you won't be devastated if things go badly.

Does Russia's New Drone Pose a Threat to AeroVironment's Switchblade?

AeroVironment's (NASDAQ:AVAV) Switchblade drone is exploding in popularity.

Since its introduction more than a decade ago as a mere mention in a post-earnings conference call, sales of AeroVironment's kamikaze drone have soared to the point where this single product now accounts for roughly 24% of all the revenue AeroVironment books in a year, the company says.  That works out to about $65 million, according to data from S&P Global Market Intelligence. The problem is that such success tends to attract imitators, and this is now the case with Switchblade.

Kalashnikov takes aim at foreign markets that AeroVironment can't sell to. Image source: Kalashnikov.

What is the Switchblade?

The Switchblade is an unmanned aerial vehicle -- but it's also kind of a guided missile. Small enough to carry around in a backpack, the Switchblade launches from a tube like a bazooka, then extends its wings and flies like a drone, guided remotely by an operator on the ground viewing the world through onboard optics. Upon spotting a target, the operator can observe it remotely, or guide the Switchblade in toward the target and detonate a small warhead contained in the drone's nose cone, destroying the target on impact.

Simple, right? Perhaps this simplicity of concept is what has inspired Russia's Kalashnikov, famed for its manufacture of the simple-yet-effective AK-47 assault rifle, to design an imitator to Switchblade.

Unveiled recently at the International Defence Exhibition & Conference in Abu Dhabi, Kalashnikov's "KUB-UAV" claims a top speed of 130 kilometers per hour (70 knots) and an aerial endurance (time the drone can remain airborne) of 30 minutes. A press release quoting Sergei Chemezov, the general director of Russian state-owned arms manufacturer Rostec (which controls Kalashnikov), highlights KUB-UAV's "silence" and "ease of use" as major selling points -- much as AeroVironment advertises the Switchblade as operating on "quiet electric propulsion" and "reduc[ed] level of training required" to use the weapon.

The KUB-UAV is said to be capable of carrying payloads (i.e., bombs) weighing up to three kilograms, but Rostec has not divulged the weight of the weapon itself, nor the weapon's range or flight ceiling. The KUB-UAV is, however, described as measuring 48 x 37 x 6.5 inches. This makes it more than twice as big as AeroVironment's Switchblade, which is only two feet in length, and narrowly cylindrical, prepackaged in its launch tube.

Here's how the stats that have been published compare:

Metric Switchblade KUB-UAV

Range	9-27 miles*	40 miles
Endurance	15+ minutes	30 minutes
Top speed	85 knots	70 knots
Flight ceiling	< 500 feet above ground	?
Weight	2.5 kilograms	?

*AeroVironment describes the Switchblade as being available "with 15 km-45 km options."

Neither AeroVironment nor Rostec/Kalashnikov publishes prices for their kamikaze drones, but a review of published contracts awarded to AeroVironment by the Pentagon suggests the average cost of a Switchblade drone is approximately $70,000. In contrast, The Washington Post quotes Kalashnikov representatives saying that the KUB-UAV will be "very cheap."

What it means to investors

That line may cause investors in AeroVironment stock some concern. After all, even if the KUB-UAV appears to be slower, bulkier, and less transportable than the Switchblade, the more AeroVironment comes to depend on Switchblade to power its sales, the more vulnerable the company's revenue stream will become to competition for those sales.

That said, there's no need for immediate concern. Here's why: Current U.S. law restricts the countries to which AeroVironment may sell the Switchblade, and at present it appears that the vast majority of Switchblade revenue has come from sales to the U.S. Pentagon itself. Outside the U.S., the Switchblade is available to only "a small circle of close allies," reports the Post, which suggests that for the time being, AeroVironment probably isn't very dependent upon international sales of the Switchblade at all.

It's non-U.S. allies to which Rostec and Kalashnikov can be expected to most actively market their KUB-UAV -- "smaller armies" that might want to buy the Switchblade but can't, and that perhaps couldn't afford to buy it even if they were permitted to. This being the case, I'd say the KUB-UAV poses more of a threat to AeroVironment's ability to grow Switchblade sales internationally at some indefinite time in the future, if and when it becomes permissible to make those sales.

Since that day may never come, I honestly don't see the KUB-UAV impacting AeroVironment's business much at all.

A Trade Deal Will Not Make A Dent In Trump's Trade Deficit

&l;p&g;&l;img class=&q;dam-image ap size-large wp-image-76fb67d0793849b8afa69912fb53ffe5&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/76fb67d0793849b8afa69912fb53ffe5/960x0.jpg?fit=scale&q; data-height=&q;586&q; data-width=&q;960&q;&g; A container ship is unloaded at the Port of Oakland in California. The U.S. trade deficit with China broke a record last year as companies raced to import more goods from China ahead of tariffs.&a;nbsp; (AP Photo/Ben Margot, File) photo credit: ASSOCIATED PRESS

How will a trade deal with China make a dent in the ballooning deficit the U.S. has with the rest of the world, led of course by the world&s;s No. 2 economy across the Pacific Ocean?

Even if China promised to double its exports of U.S. agricultural commodities, that would just cut $30 billion in a yawning $419 billion trade gap. It&s;s not even a 10% dent! China is basically importing U.S. raw materials, adding value to those raw materials, and selling them back to the U.S. Who and what is going to change that?

Maybe the U.S. can sell product elsewhere to lower its overall trade deficit?

Oh wait, Europe&s;s economy is shrinking and few see the richest countries in the world growing over 2% anytime soon. By the way, we have a deficit with Europe.

Japan is a zero growth economy, and we have a steady mid-$60 billion deficit with them, too. Maybe we can sell them more LNG and beef (more commodities).

Speaking of commodities, we&s;ve got emerging markets. They&s;re growing. Brazil is inching up and we have a tiny $8 billion surplus with them plus tariffs on their steel. Russia faces sanctions and is not really a market for the U.S. when looked at from a big picture perspective. We don&s;t usually buy their oil. We are not even a big buyer of their aluminum.

&l;img class=&q;dam-image bloomberg size-large wp-image-43344168&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/43344168/960x0.jpg?fit=scale&q; data-height=&q;639&q; data-width=&q;960&q;&g; President Donald Trump has made tariffs the centerpiece of his trade war strategy. Part of the goal of the China trade war is to lower the trade deficit with China, as stated numerous times by the president. Photographer: Alex Edelman/Bloomberg photo credit: &a;copy; 2019 Bloomberg Finance LP

We have a $21 billion deficit with India.

Who does that leave? What major market is increasingly buying Made in the U.S.A. today? Meanwhile, the U.S. economy, the strongest economy in the developed world, keeps buying from abroad. How does 25% tariffs on China change the equation in the trade deficit?

Two years ago we didn&s;t have 10% tariffs on China. Now we do, and the trade gap widens and widens.

&l;strong&g;See: &l;a href=&q;https://www.nytimes.com/2019/03/07/business/us-china-trade-deal.html&q; target=&q;_blank&q;&g;Chinese Officials Becoming Wary Of Quick Trade Deal&l;/a&g; -- The New York Times&l;/strong&g;

&l;img class=&q;dam-image ap size-large wp-image-d6459818440349379bf4adf2ab465ecb&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/d6459818440349379bf4adf2ab465ecb/960x0.jpg?fit=scale&q; data-height=&q;639&q; data-width=&q;960&q;&g; U.S. Trade Representative Robert Lighthizer, center, shakes hands with Chinese President Xi Jinping next to U.S. Treasury Secretary Steven Mnuchin, left, before their meeting at the Great Hall of the People in Beijing, Friday, Feb. 15, 2019. (AP Photo/Andy Wong, Pool) photo credit: ASSOCIATED PRESS

Some U.S. companies feel they cannot compete with China. Not because they are not qualified to do so, but because they are playing baseball and China is playing football. Yet, they are playing the game on the same field.

If Trump thinks the trade deficit is an indicator of his success -- or failure -- in his trade war with China, then one can imagine he will want to hike tariffs to 25%, seeing how previous hikes did nothing to change the supply chain in favor of American manufacturing.

Tim Brightbell, a partner with trade law firm Wiley Rein in Washington, is representing the American Kitchen Cabinet Alliance in (AKCA) its new trade fight with China. They filed a trade claim with the U.S. International Trade Commission on Wednesday. It&s;s not the sexiest industry, but it is one every American has a relationship with as every home, even a mobile home, has cabinetry. The 25 member companies in the AKCA say their sales are falling despite more home building and it is because of Chinese imports.

&q;Chinese imports of kitchen cabinets are a couple billion dollars, but they are up 75% since 2015 and that&a;rsquo;s just in two and a half years,&q; he says. &q;Our trade deficit goes up because we send them the cheaper wood and they send us the cabinets. We are becoming a low-cost assembly worker to Chinese cabinetry. This harms U.S. industries and you can see this in the trade deficit.&q;

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis &l;a href=&q;https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf&q; target=&q;_blank&q;&g;announced yesterday&l;/a&g; that the goods and services deficit with U.S. trading partners was $59.8 billion in December, up $9.5 billion from $50.3 billion in November.

December exports were $205.1 billion, $3.9 billion &l;em&g;less&l;/em&g; than November exports. December imports were $264.9 billion, $5.5 billion &l;em&g;more&l;/em&g; than November imports.

Industrial supplies and materials decreased $2.1 billion in December. Crude oil decreased $0.5 billion. Fuel oil decreased $0.4 billion. Capital goods decreased by $1.7 billion. Civilian aircraft decreased $1 billion. Exports of services decreased by around $500 million to $69.5 billion in December.

&l;img class=&q;dam-image ap size-large wp-image-4108f311ef294b3c8a63309b1909d61f&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/4108f311ef294b3c8a63309b1909d61f/960x0.jpg?fit=scale&q; data-height=&q;605&q; data-width=&q;960&q;&g; Even oil exports are not enough to reduce the U.S. trade gap with China and the rest of the world&s;s major economies. (AP Photo/Matt Slocum, File) photo credit: ASSOCIATED PRESS

Meanwhile, American companies were buying $2.7 billion more in capital goods in December alone. Computer accessories and computers increased by $700 million each. Consumer goods increased by $2.4 billion. Household and kitchen appliances imports rose by another $700 million.

For the year, the U.S. sold $74.2 billion worth of industrial supplies and materials. Crude oil increased by sales to $24.6 billion. Capital goods increased by $28.7 billion.

Overall, year-ending exports of goods increased by $118.5 billion to $1,671.8 billion in 2018. Imports of goods doubled that, up $202.2 billion to $2,563.1 billion in 2018.

As a result, the deficit with China increased $43.6 billion to $419.2 billion in 2018. China bought $9.6 billion less American goods for a total of $120.3 billion but the U.S. bought $34 billion more from China, partially due to companies frontrunning tariffs, for a total of $539.5 billion.

Even European Union trade registered a &l;span&g;$17.9 billion deficit spike to $169.3 billion in 2018. Exports did well, increasing by $35.4 billion to $318.6 billion but once again we bought much more than they did. U.S. imports of E.U. goods rose $53.3 billion to $487.9 billion.

&l;/span&g;

With China, you can say that the U.S. is simply much richer and so of course we can afford to buy much more. Plus we have over two decades of U.S. multinationals assemblying goods there and exporting back home.

But Europe is rich, and they are rushing to buy American. It&s;s a slow growing, if not stagnant, market.

China is the growth story. But they&s;re kind of only shopping here on vacation.

At best, tariffs have become a new source of revenue for the government. They have not nothing to reverse trade trends, judging by the data.

&l;img class=&q;dam-image ap size-large wp-image-760e3b9ffa864b88946da888c388ad13&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/760e3b9ffa864b88946da888c388ad13/960x0.jpg?fit=scale&q; data-height=&q;653&q; data-width=&q;960&q;&g; Soybeans are a major U.S. export to China. If China doubled their imports of American soy -- much to the dismay of their other supplier, Brazil, it would only cut about $12 billion from the trade deficit, around around 2% of the overall gap between the two countries, based on Census data. (AP Photo/Michael Conroy) photo credit: ASSOCIATED PRESS

Given that the trade deficit is the Trump administration&a;rsquo;s main metric for whether trade policy is fair or not, these figures are likely be spur a more hawkish China policy, Panjiva Research analysts said in a note to clients on Thursday.

Until the U.S. can get China to buy more from the U.S., or make U.S. companies richer for doing business in China at the very least, then the risk of tariff escalation cannot be discounted.

&a;ldquo;The (trade) team is still continuing to negotiate because we still have a lot to do,&a;rdquo; Commerce Minister Zhong Shan reportedly said during this week&s;s National People&a;rsquo;s Congress.&a;nbsp; Senior Chinese officials have been taking turns warning that challenges remain in regards to trade, &l;a href=&q;https://www.nytimes.com/2019/03/07/business/us-china-trade-deal.html&q; target=&q;_blank&q;&g;&l;em&g;The New York Times&l;/em&g; reported today from Beijing. &l;/a&g;The worries over trade policy in Beijing is starting to put in doubt plans for President Xi Jinping to meet with Trump in late March or early April to sign a deal, the Times reported.

Wednesday&s;s trade balance data has given the Trump administration another reason to push China towards a deal on&a;nbsp;&l;a href=&q;https://panjiva.com/research/trumps-8-4-billion-agricultural-ask-will-have-to-wait-for-an-answer/24957&q; target=&q;_blank&q;&g;agricultural tariffs&l;/a&g;, too.

According to Panjiva Research, to cut the trade deficit with China back to its 2016 level requires a 63.4% increase in U.S. exports from their 2018 level.&l;/p&g;

Hot Undervalued Stocks To Own For 2019

tags:SJW,LITB,ADSK,MDT,NERV,

There are a number of great companies in the market today. The ModernGraham valuation model selected some of the most undervalued Canadian companies. Each company has been determined to be suitable for the Defensive Investor or the Enterprising Investor according to the ModernGraham approach.

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors.

Celestica Inc. (TSX:CLS)

Celestica is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, low current ratio, insufficient earnings stability or growth over the last 10 years and the poor dividend history. The Enterprising Investor is only concerned with the lack of dividends. As a result, all Enterprising Investors should feel comfortable proceeding with the analysis.

Hot Undervalued Stocks To Own For 2019: SJW Corporation(SJW)

Advisors' Opinion:

• [By Joseph Griffin]

  Aqua America (NYSE: WTR) and SJW Group (NYSE:SJW) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

• [By Max Byerly]

  Citadel Advisors LLC lessened its holdings in shares of SJW Group (NYSE:SJW) by 26.9% during the 2nd quarter, Holdings Channel reports. The fund owned 12,565 shares of the utilities provider’s stock after selling 4,613 shares during the quarter. Citadel Advisors LLC’s holdings in SJW Group were worth $832,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

• [By Lisa Levin] Gainers Comstock Resources, Inc. (NYSE: CRK) shares shot up 52 percent to $7.235 after the company disclosed a deal with Arkoma Drilling L.P. and Williston Drilling, L.P. to buy oil & gas properties in North Dakota. Comstock announced withdrawal of tender offers for outstanding secured notes. MarineMax, Inc. (NYSE: HZO) shares gained 24.2 percent to $21.80 as the company posted upbeat Q2 results and raised its FY18 outlook. Mattersight Corporation (NASDAQ: MATR) shares rose 22 percent to $2.625 after the company agreed to be purchased by NICE Ltd. Chipotle Mexican Grill, Inc. (NYSE: CMG) jumped 21.3 percent to $411.871 as the company reported stronger-than-expected results for its first quarter on Wednesday. Axsome Therapeutics, Inc. (NASDAQ: AXSM) rose 17 percent to $3.10 after the company disclosed a positive outcome of the interim analysis of STRIDE-1 Phase 3 trial of AXS-05 in treatment resistant depression. Ultra Clean Holdings, Inc. (NASDAQ: UCTT) rose 15.9 percent to $18.34 following upbeat Q1 earnings. PCM, Inc. (NASDAQ: PCMI) gained 15.6 percent to $12.20 following Q1 results. O'Reilly Automotive, Inc. (NASDAQ: ORLY) surged 14.4 percent to $260.3901 following upbeat Q1 profit. Concord Medical Services Holdings Limited (NYSE: CCM) gained 13.8 percent to $3.70. Penn National Gaming, Inc. (NASDAQ: PENN) rose 13.5 percent to $29.815 after reporting strong Q1 results. BioTelemetry, Inc. (NASDAQ: BEAT) rose 13.5 percent to $38.30 as the company reported stronger-than-expected earnings for its first quarter. Advanced Micro Devices, Inc. (NASDAQ: AMD) shares rose 13.1 percent to $10.985 as the company reported upbeat results for its first quarter. SJW Group (NYSE: SJW) shares gained 11.8 percent to $63.59 following Q1 results. California Water Service Group made an offer for SJW. Churchill Downs Incorporated (NASDAQ: CHDN) climbed 9.8 percent to $278.40 following Q1 results. CYS Investments, Inc. (NYSE: CYS)
• [By Shane Hupp]

  Los Angeles Capital Management & Equity Research Inc. increased its holdings in SJW Group (NYSE:SJW) by 52.2% during the 2nd quarter, Holdings Channel reports. The firm owned 14,692 shares of the utilities provider’s stock after buying an additional 5,040 shares during the period. Los Angeles Capital Management & Equity Research Inc.’s holdings in SJW Group were worth $973,000 at the end of the most recent quarter.

Hot Undervalued Stocks To Own For 2019: LightInTheBox Holding Co., Ltd.(LITB)

Advisors' Opinion:

• [By Logan Wallace]

  News stories about Lightinthebox (NYSE:LITB) have been trending somewhat positive recently, Accern Sentiment Analysis reports. Accern identifies negative and positive news coverage by analyzing more than 20 million news and blog sources in real-time. Accern ranks coverage of public companies on a scale of negative one to positive one, with scores closest to one being the most favorable. Lightinthebox earned a daily sentiment score of 0.04 on Accern’s scale. Accern also gave news headlines about the technology company an impact score of 46.3507616645709 out of 100, indicating that recent news coverage is somewhat unlikely to have an impact on the company’s share price in the near term.

Hot Undervalued Stocks To Own For 2019: Autodesk, Inc.(ADSK)

Advisors' Opinion:

• [By Max Byerly]

  News articles about Autodesk (NASDAQ:ADSK) have trended positive on Monday, Accern Sentiment reports. The research group scores the sentiment of media coverage by analyzing more than twenty million news and blog sources in real-time. Accern ranks coverage of companies on a scale of negative one to one, with scores closest to one being the most favorable. Autodesk earned a media sentiment score of 0.26 on Accern’s scale. Accern also gave news stories about the software company an impact score of 46.5797902768791 out of 100, indicating that recent media coverage is somewhat unlikely to have an impact on the stock’s share price in the near term.

• [By Garrett Baldwin]

  By submitting your email address you will receive a free subscription to Profit Alerts and occasional special offers from Money Map Press and our affiliates. You can unsubscribe at anytime and we encourage you to read more about our privacy policy.

  Stocks to Watch Today: BABA, HPQ, VMW, SPLK We kick off this morning with an earnings report from Alibaba Group Holding Ltd. (NYSE: BABA). The Chinese e-commerce giant reported adjusted earnings per share of $1.22, a figure that fell short of Wall Street expectations by $0.07. The company was also short of revenue expectations. That said, BABA stock still popped more than 4.2%. Shares of Hewlett-Packard Co. (NYSE: HPQ) are part of a busy day of earnings reports. The California-based firm will report its numbers after the bell Thursday. Wall Street analysts project that the firm will report EPS of $0.50 on top of $14.11 billion. Today, we're bringing you a healthcare stock to buy that could more than double your money in the next two years. Money Morning Defense and Tech Specialist Michael A. Robinson says this the stock what will help people reduce their healthcare costs and investors score huge profits. Here's how you can double your money… Look for additional earnings reports from VMware Inc. (NYSE: VMW), Splunk Inc. (Nasdaq: SPLK), Gap Inc. (NYSE: GPS), Intuit Inc. (Nasdaq: INTU), Ross Stores Inc. (Nasdaq: ROST), Autodesk Inc. (Nasdaq: ADSK), and Hormel Foods Corp. (NYSE: HRL).

  Follow Money Morning on Facebook, Twitter, and LinkedIn.

• [By Logan Wallace]

  Autodesk (NASDAQ:ADSK) had its price target upped by equities research analysts at Credit Suisse Group from $150.00 to $160.00 in a research note issued to investors on Friday, The Fly reports. The brokerage currently has an “outperform” rating on the software company’s stock. Credit Suisse Group’s target price would suggest a potential upside of 1.78% from the stock’s current price.

• [By Stephan Byrd]

  Massachusetts Financial Services Co. MA lessened its stake in Autodesk (NASDAQ:ADSK) by 2.9% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 523,354 shares of the software company’s stock after selling 15,426 shares during the period. Massachusetts Financial Services Co. MA owned 0.24% of Autodesk worth $65,722,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Hot Undervalued Stocks To Own For 2019: Medtronic plc(MDT)

Advisors' Opinion:

• [By Sean Williams, Chuck Saletta, and Brian Feroldi]

  With this in mind, we asked three of our Motley Fool investors to name one healthcare stock they believe could be worth buying right now. Cancer drug developer Exelixis (NASDAQ:EXEL), generic-drug manufacturer Lannett (NYSE:LCI), and medical device megacap Medtronic (NYSE:MDT) all made the cut. 

• [By Brian Feroldi]

  Mazor Robotics (NASDAQ:MZOR) reported its first-quarter results on Monday, May 14. Last quarter, the robotic surgery company's management warned investors that 2018 was going to be a "transition" year because of its decision to strike a significant commercial deal with medical device giant Medtronic (NYSE: MDT). Management said that the deal was a huge win for the company, but it was going to result in "modest revenue growth" in 2018.

• [By Motley Fool Staff]

  Medtronic (NYSE:MDT) and Abbott Labs (NYSE:ABT) are massive companies with their corporate fingers in many different markets. However, each has recently launched revolutionary diabetes devices that are changing how doctors care for their patients. Are these two stocks buys?

• [By Max Byerly]

  Measurable Data Token (MDT) is a PoW/PoS token that uses the SHA256 hashing algorithm. Its launch date was July 13th, 2015. Measurable Data Token’s total supply is 1,000,000,000 tokens and its circulating supply is 411,744,800 tokens. The Reddit community for Measurable Data Token is /r/MeasurableDataToken and the currency’s Github account can be viewed here. The official website for Measurable Data Token is www.mdt.co. Measurable Data Token’s official Twitter account is @MeasurableData and its Facebook page is accessible here.

• [By Brian Feroldi]

  Here's a review of the headline numbers from the company's second quarter:

  Revenue for the period was $13.2 million. This figure was down 15% when compared to the year-ago period. Wall Street expected $17 million in revenue, so this was a significant miss. Management said the decline was caused by lower pricing terms due to its distribution agreement with Medtronic (NYSE:MDT). Gross margin declined 1,330 basis points to 56.1%. Operating expenses dropped 23% to $11.3 million.  Net loss was $3.8 million, or $0.07 per share. Market watchers were expecting a $0.02 loss, so this figure missed the mark, too. Cash balance at quarter end was $108 million. 

  Image source: Getty Images.

Hot Undervalued Stocks To Own For 2019: Minerva Neurosciences, Inc(NERV)

Advisors' Opinion:

• [By Lisa Levin] Gainers Carver Bancorp, Inc. (NASDAQ: CARV) shares jumped 92.1 percent to $7.01. iPic Entertainment Inc. (NASDAQ: IPIC) gained 21.6 percent to $9.73. Baozun Inc. (NASDAQ: BZUN) shares jumped 18.7 percent to $53.49 after reporting Q1 results. World Wrestling Entertainment, Inc. (NYSE: WWE) shares jumped 15.9 percent to $50.50. The company's "Smackdown Live" may not be renewed at NBCUniversal network and the company's "Monday Night Raw" program could be worth three times its current value elsewhere, according to a report for The Hollywood Reporter. Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI) gained 14.7 percent to $ 20.46 after the company issued further details on Phase 3 ADVANCE study of ROLONTIS. Motus GI Holdings, Inc. (NASDAQ: MOTS) climbed 13.4 percent to $5.5009. Endocyte, Inc. (NASDAQ: ECYT) rose 13.3 percent to $ 14.23 after the company announced presentation of Phase 2 data from prostate cancer trial of 177Lu-PSMA-617 at the 2018 ASCO Annual Meeting. Diana Containerships Inc. (NASDAQ: DCIX) gained 12.9 percent to $1.7499 after the company announced the sale of Post-Panamax Container Vessel for $21 million. Essendant Inc. (NASDAQ: ESND) gained 12.7 percent to $12.43. Essendant confirmed receipt of unsolicited proposal from Staples of $11.50 per share in cash. Blink Charging Co (NASDAQ: BLNK) rose 11.8 percent to $8.04 after surging 31.68 percent on Wednesday. OptimumBank Holdings, Inc. (NASDAQ: OPHC) gained 11.5 percent to $5.15. Flotek Industries, Inc. (NYSE: FTK) shares climbed 10.7 percent to $3.74. Farmer Bros. Co. (NASDAQ: FARM) rose 7.9 percent to $25.95 after climbing 7.90 percent on Wednesday. Minerva Neurosciences Inc (NASDAQ: NERV) rose 6.5 percent to $6.93 after Journal of Clinical Psychiatry published positive results of cognitive performance from Phase 2B trial of roluperidone in schizophrenia patients. Williams Partners L.P. (NYSE: WPZ) rose 5.6 percent to $40
• [By Shane Hupp]

  AnaptysBio (NASDAQ: NERV) and Minerva Neurosciences (NASDAQ:NERV) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

• [By Max Byerly]

  Minerva Neurosciences (NASDAQ:NERV) was upgraded by analysts at BidaskClub from a hold rating to a buy rating.

  Nuvectra (NASDAQ:NVTR) was upgraded by analysts at BidaskClub from a hold rating to a buy rating.

2 Reasons Palo Alto Networks Stock Is a Solid Alternative to FireEye

More than once over the course of the past couple of years I’ve touted FireEye (NASDAQ:FEYE) as an underappreciated rags-to-riches prospect. I’m sticking with that stance too. The need for cybersecurity has never been greater, and FireEye has finally found a winning formula with customers. If a barely profitable company and inconsistent stock aren’t quite your thing, however, bigger rival Palo Alto Networks (NYSE:PANW) will plug you into the same basic trend with a lot less stress.

Source: Shutterstock

Indeed, PANW stock has already proven to be a superior performer, blasting to record highs last week on the heels of a huge fiscal Q2 earnings beat.

However, the bullish case for Palo Alto Networks stock has ultimately just became a simple but powerful two-pronged thesis.

Repeat Business

It’s a crowded but complex field, largely led by names like Palo Alto, FireEye and Check Point Software Technologies (NASDAQ:CHKP). All told, the cybersecurity market is worth roughly $140 billion per year. But, the paths to that revenue are numerous, and what technically qualifies as “cybersecurity” can be a bit fuzzy at times.

It’s that fuzziness that actually made FireEye and then Palo Alto what they are today.

At the time it was seen as corporate suicide. FireEye’s early loss-making days were pushed even deeper into the red by a string of seemingly disparate and uncomfortably expensive acquisitions. There was always a method to the madness though. In 2016, the company finally began to weave all those different tools together into one single platform called Helix, and began “renting” cloud-based access to those constantly updated tools rather than selling them as one-time purchases.

That business model has created a recurring revenue machine that’s expected to lead FireEye to its first-ever full-year profit in 2019.

Palo Alto had already borrowed that play from FireEye’s playbook though, even if it applied the idea a bit differently. Rather than offering cloud-based access to cybersecurity tools, much of Palo Alto’s subscription revenue is specifically linked to its hardware, it now accounts for roughly two-thirds of the company’s business.

Clearly, subscription revenue leads to much more certainty regarding cash flows and earnings.

Game-Changing Predictive Product

The other way Palo Alto Networks now offers investors a tough choice: Its Cortex AI product is being called — at least by Palo Alto — “the industry’s only open and integrated, AI-based continuous security platform.”

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The essence of the statement is true, though it also glosses over the fact that FireEye’s threat-detection platform is founded on machine-learning algorithms. Though not ‘open’ to the degree Palo Alto’s Cortex system is, the need for openness remains to be fully seen.

Nevertheless, it’s a development that at least some existing FireEye users will be checking out as an impressive alternative. Some already have, in fact. Managed security services providers BDO, Critical Start, ON2IT, PwC and Trustwave have all already embraced Cortex, even before it had become available to customers.

Jefferies analyst John DiFucci described Cortex AI as a “product stretching further than a typical endpoint detection and response product,” helping to prod his price target on PANW from $249 to $296. BTIG analyst Joel Fishbein agrees, upping his target price on Palo Alto shares, and noting that the company’s new product and comprehensive sales approach “signals its commitment to touching more realms of customer data but also its acknowledgment that clever tactics are necessary to do so.”

It’s difficult to not expect big things from the new product.

Looking Ahead for PANW Stock

There are still risks to be sure, not the least of which is the post-earnings surge that has left PANW stock. As Vince Martin pointed out last week, the 8% gain logged the day after earnings following the 46% rally from the stock’s November low leaves shares ripe for profit-taking. We’re already seeing that profit-taking take shape, although there’s room for more downside.

FireEye and Checkpoint are likely to counter as well. With what and how remains unclear, but no cybersecurity player rests on its laurels for long.

Still, for investors that liked the idea of FireEye but just couldn’t get past its historic losses and thin margins that are likely to persist for the foreseeable future, reliably profitable Palo Alto Networks just became an even stronger prospect.

Just wait for the profit-takers to finish their business before wading into any new PANW position.

As of this writing, James Brumley held a long position in FireEye. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter

Top 5 Performing Stocks To Invest In 2019

tags:EROS,ARW,TKC,NTGR,IPI,

Source: ThinkstockNovember 7, 2017: The S&P 500 closed down 0.05% at 2,589.89. The DJIA closed up 0.03% at 23,554.41. Separately, the Nasdaq was down 0.27% at 6,767.78.

Tuesday was a relatively flat day for the broad U.S. markets with all of the major exchanges starting out strong but slowly fading over the course of the day. Crude oil gave back a little after a strong start to the week. The S&P 500 sectors were mostly positive with a few notable exceptions. The best performing sectors were utilities and consumer staples, up 1.2% and 1.1%, respectively. The worst performing sectors were financials and consumer discretionary, down 1.4%, and 0.6%, respectively.

Crude oil was down 0.2% at $57.22.

Top 5 Performing Stocks To Invest In 2019: Eros International PLC(EROS)

Advisors' Opinion:

• [By Garrett Baldwin]

  The secret to becoming a millionaire, of course, is getting out in front of a major investment trend before it becomes mainstream. In 2017, it was Bitcoin and cryptocurrencies. But this year, it's a taboo investment that is creating millionaires all across North America. Tap into the "green rush," and prepare to become a "Marijuana millionaire." Learn how to get started right here.

  The Top Stock Market Stories for Wednesday U.S. President Donald Trump is facing criticism after threatening to ramp up taxes on Harley-Davidson Inc. (NYSE: HOG). The iconic motorcycle producer said it will move parts of its production overseas in order to avoid tariffs from the European Union. Trump threatened to increase taxes on the firm. "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag," Trump tweeted Tuesday. "I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse – be patient!" Earlier this month, Microsoft Corp. (Nasdaq: MSFT) launched a $7.5 billion takeover of the web-based hosting service GitHub. The acquisition, orchestrated by Microsoft CEO Satya Nadella, brought out critics who claim that GitHub lacks any real profit potential for Microsoft stock. Here's why those critics are wrong… and why MSFT is a buy. Facebook Inc. (Nasdaq: FB) has reversed its policy on cryptocurrency ads. The social media giant says that it will permit marketing from "pre-approved advisers." According to TechCrunch, the company will still ban ads pushing binary options and initial coin offerings. The report goes on to explain that cryptocurrency scams cost customers more than $500 million in just January and February 2018 alone. Four Stocks to Watch Today: ORCL, FB, GOOGL, BA Oracle Corp. (NYSE: ORCL) were largely flat despite a strong earnings report after the bell yesterday. The cloud computing giant reported EPS of $0.99
• [By Motley Fool Staff]

  Eros International (NYSE:EROS) Q4 2018 Earnings Conference CallJun. 27, 2018 8:30 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Harsh Chauhan]

  And the company finally seems to be getting its act together in India; it was earlier criticized for offering a very shallow content library at premium prices when compared to rivals. But cracking the Indian market will be easier said than done for Netflix, as one of India's biggest production houses -- Eros International (NYSE:EROS) -- has now decided to join the video-streaming party.

• [By Ethan Ryder]

  Eros International plc (NYSE:EROS)’s share price was up 6.8% during mid-day trading on Wednesday . The company traded as high as $14.50 and last traded at $14.10. Approximately 936,285 shares changed hands during mid-day trading, an increase of 135% from the average daily volume of 397,949 shares. The stock had previously closed at $13.20.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Eros International (EROS)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 5 Performing Stocks To Invest In 2019: Arrow Electronics, Inc.(ARW)

Advisors' Opinion:

• [By Ethan Ryder]

  Arrow Global Group PLC (LON:ARW)’s share price reached a new 52-week low during trading on Tuesday . The stock traded as low as GBX 222.50 ($2.90) and last traded at GBX 227.50 ($2.96), with a volume of 220924 shares changing hands. The stock had previously closed at GBX 226.50 ($2.95).

• [By Motley Fool Transcribing]

  Arrow Electronics (NYSE:ARW) Q4 2018 Earnings Conference CallFeb. 7, 2019 1:00 p.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Ethan Ryder]

  PNC Financial Services Group Inc. increased its holdings in Arrow Electronics, Inc. (NYSE:ARW) by 29.7% in the first quarter, HoldingsChannel.com reports. The firm owned 19,225 shares of the technology company’s stock after buying an additional 4,405 shares during the quarter. PNC Financial Services Group Inc.’s holdings in Arrow Electronics were worth $1,480,000 at the end of the most recent reporting period.

• [By Stephan Byrd]

  Arrow Electronics (NYSE:ARW) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Arrow Electronics reported better-than-expected results for first-quarter 2018. The figures also came above the mid-point of the company’s guidance ranges and marked year-over-year improvement. Moreover, the electronic component distributor provided an optimistic guidance for second-quarter 2018. We believe that the company’s core strength in providing best-in-class services and easy-to-acquire technologies should drive growth in the long run. Moreover, the company has secured a significant market share through a broad portfolio of products and services, and continued efforts to maximize consumer satisfaction. Additionally, incremental sales from strategic acquisitions and partnerships are expected to boost the top line. However, an uncertain economic environment, high debt burden and competition remain the concerns. Notably, the stock has outperformed the industry in the last one year.”

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on Arrow Electronics (ARW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Lee Jackson]

  This award-winning company looks poised to come in strong for the quarter. Arrow Electronics Inc. (NYSE: ARW) is a worldwide provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.

Top 5 Performing Stocks To Invest In 2019: Turkcell Iletisim Hizmetleri AS(TKC)

Advisors' Opinion:

• [By Lisa Levin]

  Check out these big penny stock gainers and losers

  Losers Big Lots, Inc. (NYSE: BIG) shares fell 9.6 percent to $37.01 in pre-market trading after the company reported weaker-than-expected results for its first quarter and issued downbeat earnings forecast. Tilly's, Inc. (NYSE: TLYS) fell 5.7 percent to $12.98 in pre-market trading after rising 12.69 percent on Thursday. Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) fell 4.2 percent to $6.39 in pre-market trading after dropping 4.71 percent on Thursday. Sunlands Online Education Group (NYSE: STG) fell 4.2 percent to $9.13 in pre-market trading. Safe Bulkers, Inc. (NYSE: SB) fell 4.2 percent to $3.42 in pre-market trading after climbing 12.62 percent on Thursday. Ulta Beauty, Inc. (NASDAQ: ULTA) fell 4.1 percent to $236.80 in pre-market trading. Ulta Beauty reported upbeat results for its first quarter, but issued weak second-quarter earnings and sales guidance. GameStop Corp. (NYSE: GME) shares fell 3.8 percent to $12.70 in pre-market trading. GameStop reported in-line earnings for its first quarter, while sales missed estimates. Workday, Inc. (NASDAQ: WDAY) fell 3.2 percent to $126.85 in the pre-market trading session after the company posted Q1 results. Lumentum Holdings Inc. (NASDAQ: LITE) shares fell 3 percent to $57.15 in pre-market trading
• [By Lisa Levin]

  Check out these big penny stock gainers and losers

  Losers Forward Pharma A/S (NASDAQ: FWP) fell 15.2 percent to $3.51 in pre-market trading after surging 88.18 percent on Tuesday. Pfenex Inc. (NASDAQ: PFNX) shares fell 15 percent to $5.85 in pre-market trading after the company announced an offering of common stock. Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) fell 17.6 percent to $47.75 in pre-market trading after the company reported downbeat results for its first quarter and issued a weak earnings forecast for the second quarter. Container Store Group, Inc. (NYSE: TCS) fell 13 percent to $7.15 in pre-market trading after reporting weaker-than-expected earnings for its fourth quarter. Ardelyx, Inc. (NASDAQ: ARDX) shares fell 12.1 percent to $4.00 in pre-market trading after reporting pricing of public offering of common stock. Boston Scientific Corporation (NYSE: BSX) shares fell 9.8 percent to $27.31 in pre-market trading. Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) fell 6.5 percent to $6.60 in pre-market trading. Target Corporation (NYSE: TGT) shares fell 5.8 percent to $71.02 in pre-market trading. Target reported weaker-than-expected earnings for its first quarter, while sales exceeded estimates. PBF Energy Inc. (NYSE: PBF) shares fell 5.7 percent to $42.42 in pre-market trading
• [By Rich Smith]

  Turkish telco Turkcell Iletisim Hizmetleri (NYSE:TKC) became the latest victim of President Donald Trump's favorite foreign policy tool -- the tariff -- this morning, falling 13.1% (as of 11:40 a.m. EDT) after the United States announced it would double the amount of tariffs imposed on steel and aluminum imported to the U.S. from Turkey.

• [By Rich Smith]

  Turkish telco Turkcell Iletisim Hizmetleri (NYSE:TKC) closed up 11.6% on Thursday after the country's central bank announced a big boost to interest rates -- 24%, or 6.25 percentage points more than previously -- boosting the Turkish lira's value against the U.S. dollar for the third straight day.

Top 5 Performing Stocks To Invest In 2019: NETGEAR, Inc.(NTGR)

Advisors' Opinion:

• [By Rich Duprey]

  The stock of home security camera specialist Arlo Technologies (NYSE:ARLO) had a wild ride after separating from Netgear (NASDAQ:NTGR) with its Aug. 3 IPO. Priced at $16 per share, it advanced, retreated, then jumped to almost $24 before collapsing to $18 following its first earnings report as an independent company.

• [By Max Byerly]

  ValuEngine upgraded shares of NetGear (NASDAQ:NTGR) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning.

  Other analysts also recently issued research reports about the stock. BidaskClub downgraded shares of NetGear from a strong-buy rating to a buy rating in a research report on Tuesday, June 26th. TheStreet downgraded shares of NetGear from a b- rating to a c+ rating in a research report on Monday, August 13th. Raymond James set a $80.00 target price on shares of NetGear and gave the stock a buy rating in a research report on Wednesday, September 5th. Cowen assumed coverage on shares of NetGear in a research report on Monday. They set a hold rating and a $63.00 target price for the company. Finally, Zacks Investment Research raised shares of NetGear from a strong sell rating to a hold rating in a research report on Wednesday, June 27th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $70.40.

• [By Steve Symington]

  Shares of Netgear (NASDAQ:NTGR) fell 11.3%% in September, according to data from S&P Global Market Intelligence, in lockstep with the post-earnings decline of recent spinoff Arlo Technologies (NYSE:ARLO).

• [By Ethan Ryder]

  Silvercrest Asset Management Group LLC lowered its stake in shares of NetGear, Inc. (NASDAQ:NTGR) by 99.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 8,386 shares of the communications equipment provider’s stock after selling 840,960 shares during the quarter. Silvercrest Asset Management Group LLC’s holdings in NetGear were worth $480,000 at the end of the most recent reporting period.

• [By Max Byerly]

  NetGear, Inc. (NASDAQ:NTGR) SVP Tamesa Rogers sold 1,987 shares of NetGear stock in a transaction dated Friday, February 1st. The stock was sold at an average price of $39.45, for a total transaction of $78,387.15. The sale was disclosed in a document filed with the SEC, which is accessible through this link.

Top 5 Performing Stocks To Invest In 2019: Intrepid Potash, Inc(IPI)

Advisors' Opinion:

• [By Dan Caplinger]

  Stocks rebounded on Wednesday, with the Dow Jones Industrial Average climbing back from triple-digit losses early in the session to finish with a modest gain. Market participants were initially nervous because of the continued upward pressure on interest rates and their potential negative impact on the U.S. economy. But later in the day, confidence returned, and the steadfast market reversed course. Several individual stocks had much larger advances. Norfolk Southern (NYSE:NSC), Six Flags Entertainment (NYSE:SIX), and Intrepid Potash (NYSE:IPI) were among the best performers on the day. Here's why they did so well.

• [By Logan Wallace]

  Intrepid Potash, Inc. (NYSE:IPI) insider Robert P. Jornayvaz III purchased 6,900 shares of the firm’s stock in a transaction that occurred on Monday, August 13th. The stock was bought at an average cost of $3.36 per share, for a total transaction of $23,184.00. Following the completion of the purchase, the insider now directly owns 1,206,650 shares in the company, valued at approximately $4,054,344. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website.

• [By Shane Hupp]

  Intrepid Potash (NYSE:IPI)’s share price was down 5.8% on Tuesday following insider selling activity. The stock traded as low as $4.00 and last traded at $4.05. Approximately 1,663,655 shares changed hands during trading, an increase of 53% from the average daily volume of 1,087,289 shares. The stock had previously closed at $4.30.

• [By Ethan Ryder]

  Intrepid Potash (NYSE:IPI) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “INTREPID POTASH, Inc. is the largest producer of potash in the U.S. and is dedicated to the production and marketing of potash and langbeinite, another mineral containing potassium. Intrepid owns five active potash production facilities — three in New Mexico and two in Utah “

• [By Maxx Chatsko]

  While the global fertilizer industry continues to struggle with imbalanced markets, efforts hyper-focused on operational efficiency have begun to pay off for several producers. Investors can count small cap Intrepid Potash (NYSE:IPI) among them.

• [By Max Byerly]

  Get a free copy of the Zacks research report on Intrepid Potash (IPI)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

James River Group (JRVR) Upgraded to Buy by ValuEngine

James River Group (NASDAQ:JRVR) was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating in a report released on Tuesday.

Other research analysts also recently issued research reports about the company. BidaskClub raised James River Group from a “hold” rating to a “buy” rating in a report on Wednesday, February 20th. Compass Point assumed coverage on James River Group in a report on Tuesday, January 15th. They issued a “buy” rating and a $44.00 price target for the company. Zacks Investment Research downgraded James River Group from a “buy” rating to a “hold” rating in a report on Wednesday, January 9th. B. Riley reissued a “neutral” rating on shares of James River Group in a report on Friday. Finally, Keefe, Bruyette & Woods reissued a “mkt perform” rating on shares of James River Group in a report on Monday, November 12th. One analyst has rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the stock. James River Group has an average rating of “Hold” and an average target price of $41.00.

Get James River Group alerts:

Shares of JRVR opened at $41.11 on Tuesday. The stock has a market capitalization of $1.22 billion, a P/E ratio of 17.64 and a beta of 0.57. James River Group has a one year low of $32.64 and a one year high of $43.47. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.14.

James River Group (NASDAQ:JRVR) last issued its quarterly earnings results on Thursday, February 21st. The insurance provider reported $0.56 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.09). The business had revenue of $214.52 million during the quarter, compared to analysts’ expectations of $214.20 million. James River Group had a net margin of 7.21% and a return on equity of 10.22%. On average, research analysts anticipate that James River Group will post 2.53 EPS for the current year.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of Montreal Can raised its stake in James River Group by 88.9% during the fourth quarter. Bank of Montreal Can now owns 752 shares of the insurance provider’s stock valued at $28,000 after buying an additional 354 shares in the last quarter. Meeder Asset Management Inc. raised its stake in James River Group by 1,221.7% during the fourth quarter. Meeder Asset Management Inc. now owns 912 shares of the insurance provider’s stock valued at $33,000 after buying an additional 843 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in James River Group by 38.7% during the fourth quarter. PNC Financial Services Group Inc. now owns 972 shares of the insurance provider’s stock valued at $35,000 after buying an additional 271 shares in the last quarter. Quantamental Technologies LLC acquired a new stake in James River Group during the fourth quarter valued at approximately $89,000. Finally, Hsbc Holdings PLC raised its stake in James River Group by 11.7% during the fourth quarter. Hsbc Holdings PLC now owns 5,724 shares of the insurance provider’s stock valued at $209,000 after buying an additional 600 shares in the last quarter. Hedge funds and other institutional investors own 98.92% of the company’s stock.

James River Group Company Profile

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. Its Excess and Surplus Lines segment underwrites property and liability insurance on an excess and surplus commercial lines basis in all states and the District of Columbia.

Read More: What is Depreciation?

To view ValuEngine’s full report, visit ValuEngine’s official website.

Top 5 Energy Stocks To Buy For 2019

tags:ERF,SXL,BWXT,GEL,CLF,

Shares of Cardinal Energy Ltd (TSE:CJ) have been assigned an average recommendation of “Buy” from the eight research firms that are covering the stock, MarketBeat reports. One analyst has rated the stock with a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokerages that have covered the stock in the last year is C$6.69.

CJ has been the subject of several analyst reports. BMO Capital Markets lifted their price target on shares of Cardinal Energy from C$5.50 to C$6.50 in a report on Friday, May 11th. CIBC lifted their price target on shares of Cardinal Energy from C$6.00 to C$7.00 in a report on Friday, May 18th. Finally, Raymond James lifted their price target on shares of Cardinal Energy from C$5.00 to C$5.50 in a report on Tuesday, April 24th.

Top 5 Energy Stocks To Buy For 2019: Enerplus Corporation(ERF)

Advisors' Opinion:

• [By Matthew DiLallo]

  Crestwood had talked about potentially increasing its distribution this year but decided to hold it flat for 2019. That will allow it to retain more cash to finance some additional expansion projects so that it doesn't negatively affect its financial profile. One of those projects is a $60 million investment to expand its Arrow water gathering system in the Bakken to support the growth of Enerplus (NYSE:ERF). Crestwood couldn't pass up this opportunity since the long-term agreement with Enerplus implies an investment multiple of 4, which is higher than its average project.

• [By Stephan Byrd]

  Enerplus Corp (NYSE:ERF) (TSE:ERF) has been assigned an average rating of “Buy” from the eight analysts that are currently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $16.50.

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on Enerplus (ERF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Max Byerly]

  Enerplus (TSE:ERF) (NYSE:ERF) had its target price hoisted by CIBC from C$19.00 to C$20.00 in a research note published on Friday morning.

  Other research analysts also recently issued research reports about the stock. CSFB upped their price objective on shares of Enerplus from C$17.00 to C$20.00 in a report on Friday, April 13th. GMP Securities upped their price objective on shares of Enerplus from C$17.00 to C$18.00 in a report on Thursday, March 1st. Barclays upped their price objective on shares of Enerplus from C$18.00 to C$20.00 in a report on Monday, February 26th. Canaccord Genuity upped their price objective on shares of Enerplus from C$16.50 to C$17.00 in a report on Monday, February 26th. Finally, Desjardins upped their price objective on shares of Enerplus from C$16.00 to C$17.50 in a report on Monday, February 26th. Seven equities research analysts have rated the stock with a buy rating, The stock has an average rating of Buy and an average price target of C$18.29.

Top 5 Energy Stocks To Buy For 2019: Sunoco Logistics Partners LP(SXL)

Advisors' Opinion:

• [By Logan Wallace]

  ILLEGAL ACTIVITY NOTICE: “Southern Cross Media Group Ltd (SXL) Declares $0.04 Interim Dividend” was published by Ticker Report and is the sole property of of Ticker Report. If you are viewing this report on another site, it was stolen and reposted in violation of US and international trademark and copyright legislation. The legal version of this report can be viewed at https://www.tickerreport.com/banking-finance/4173757/southern-cross-media-group-ltd-sxl-declares-0-04-interim-dividend.html.

Top 5 Energy Stocks To Buy For 2019: BWX Technologies, Inc.(BWXT)

Advisors' Opinion:

• [By Shane Hupp]

  Get a free copy of the Zacks research report on BWX Technologies (BWXT)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Ethan Ryder]

  News coverage about BWX Technologies (NYSE:BWXT) has trended somewhat positive on Friday, Accern reports. Accern scores the sentiment of press coverage by analyzing more than twenty million blog and news sources in real-time. Accern ranks coverage of publicly-traded companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. BWX Technologies earned a news sentiment score of 0.11 on Accern’s scale. Accern also gave news headlines about the technology company an impact score of 44.8987761555585 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the next several days.

• [By Shane Hupp]

  BWX Technologies (NYSE:BWXT) was downgraded by analysts at Bank of America from a “neutral” rating to an “underperform” rating in a research note issued on Friday, The Fly reports.

• [By Stephan Byrd]

  Synovus Financial Corp acquired a new stake in shares of BWX Technologies (NYSE:BWXT) during the first quarter, Holdings Channel reports. The fund acquired 1,892 shares of the technology company’s stock, valued at approximately $122,000.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on BWX Technologies (BWXT)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 5 Energy Stocks To Buy For 2019: Genesis Energy, L.P.(GEL)

Advisors' Opinion:

• [By ]

  Genesis Energy LP (NYSE: GEL)
  Billing itself as a "growth-oriented master limited partnership," GEL concentrates its efforts on providing services around and within refineries primarily located on the Gulf Coast. Management is committed to logical double-digit growth as well as strengthening its distribution coverage. At $20.80 per unit, GEL yields 11.8% and trades at a nearly 40% discount to its 52-week high.

• [By Joseph Griffin]

  Genesis Energy, L.P. common stock (NYSE:GEL) was the target of unusually large options trading on Thursday. Stock investors purchased 2,290 call options on the company. This is an increase of 879% compared to the average daily volume of 234 call options.

• [By Joseph Griffin]

  Stifel Financial Corp cut its stake in shares of Genesis Energy, L.P. common stock (NYSE:GEL) by 1.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 450,749 shares of the pipeline company’s stock after selling 7,788 shares during the quarter. Stifel Financial Corp owned about 0.37% of Genesis Energy, L.P. common stock worth $8,884,000 as of its most recent SEC filing.

• [By Lisa Levin] Companies Reporting Before The Bell Celgene Corporation (NASDAQ: CELG) is projected to report quarterly earnings at $1.96 per share on revenue of $3.46 billion. Aon plc (NYSE: AON) is expected to report quarterly earnings at $2.8 per share on revenue of $2.93 billion. American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) is estimated to report quarterly earnings at $0.81 per share on revenue of $1.75 billion. Alibaba Group Holding Limited (NYSE: BABA) is expected to report quarterly earnings at $0.88 per share on revenue of $9.27 billion. LifePoint Health, Inc. (NASDAQ: LPNT) is projected to report quarterly earnings at $1.13 per share on revenue of $1.62 billion. V.F. Corporation (NYSE: VFC) is estimated to report quarterly earnings at $0.65 per share on revenue of $2.90 billion. Newell Brands Inc. (NYSE: NWL) is expected to report quarterly earnings at $0.26 per share on revenue of $3.05 billion. Titan International, Inc. (NYSE: TWI) is projected to report quarterly earnings at $0.04 per share on revenue of $407.27 million. Boise Cascade Company (NYSE: BCC) is expected to report quarterly earnings at $0.45 per share on revenue of $1.09 billion. Cheniere Energy, Inc. (NYSE: LNG) is estimated to report quarterly earnings at $0.39 per share on revenue of $1.59 billion. Cboe Global Markets, Inc. (NASDAQ: CBOE) is projected to report quarterly earnings at $1.24 per share on revenue of $308.05 million. ITT Inc. (NYSE: ITT) is estimated to report quarterly earnings at $0.73 per share on revenue of $683.96 million. Fred's, Inc. (NASDAQ: FRED) is expected to report quarterly loss at $0.19 per share on revenue of $551.00 million. Virtu Financial, Inc. (NASDAQ: VIRT) is projected to report quarterly earnings at $0.52 per share on revenue of $288.31 million. Cheniere Energy Partners, L.P. (NYSE: CQP) is expected to report quarterly earnings at $0.57 per share on revenue of $1.38 billion. Genesis Energy, L.P
• [By Joseph Griffin]

  Get a free copy of the Zacks research report on Genesis Energy, L.P. common stock (GEL)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 5 Energy Stocks To Buy For 2019: Cliffs Natural Resources Inc.(CLF)

Advisors' Opinion:

• [By WWW.GURUFOCUS.COM]

  For the details of Gallagher Fiduciary Advisors, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Gallagher+Fiduciary+Advisors%2C+LLC

  These are the top 5 holdings of Gallagher Fiduciary Advisors, LLCFifth Third Bancorp (FITB) - 7,424,558 shares, 43.91% of the total portfolio. New PositionUnited States Steel Corp (X) - 3,763,643 shares, 25.82% of the total portfolio. Franklin Resources Inc (BEN) - 1,825,092 shares, 15.42% of the total portfolio. Shares reduced by 2.44%Cleveland-Cliffs Inc (CLF) - 1,780,977 shares, 2.5% of the total portfolio. Shares reduced by 1.33%Finisar Corp (FNSR) - 349,639 shares, 1.39% of t
• [By Motley Fool Transcribers]

  Cliffs Natural Resources Inc.  (NYSE:CLF)Q4 2018 Earnings Conference CallFeb. 08, 2019, 9:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Joseph Griffin]

  Cleveland-Cliffs Inc (NYSE:CLF) was up 5.4% on Wednesday . The stock traded as high as $11.23 and last traded at $11.13. Approximately 15,155,461 shares traded hands during trading, an increase of 27% from the average daily volume of 11,948,496 shares. The stock had previously closed at $10.56.

• [By Tyler Crowe]

  At the beginning of 2018, Cleveland-Cliffs (NYSE:CLF) looked like a company that was finally putting its troubled past behind it. This past quarter and heading into 2019, the iron ore producer thinks it is poised for a great year. Management has been confident enough in its outlook for the year that it has initiated both a dividend and a share repurchase program in the past six months. What's more, the iron ore industry could be headed for a bit of a supply crunch that could significantly boost the prices for Cleveland-Cliffs higher-quality iron ore pellets.