KKR – KKR & Co. L.P. broke today its two weeks long tight range and thus confirmed start of a new short term momentum which has potential to reach 18.3 zone within the next few trading days. Initial stop is 17.20.
BUY-1.3128 TAKE PROFIT-1.3201
Sell 0.9989 Take pofit 0.9974
At $1.36/share, CBK trades less than 0.10 times its annual revenue and less than 2 times its annual EBITDA. Peers trade at least 0.40 times their annual revenue and at least 4 times their annual EBITDA.
I decided to sell this stock.
IDTI – Integrated Device Technology is consolidating in a three months long symmetrical triangle with upper and lower trend lines converging on the 25.5 area a break of which could lead to new short term momentum.
After splitting itself into two, HP Inc., and HPE are doing better on the markets than when the company was one. HPE is the better of the two and is still trading at a discount. At a 12.5x P/E and 11x forward P/E, the company is growing through acquisitions. HP’s management has yet to prove itself. On January 17, HPE bought SimpliVity for $500M. This is Nutanix’s (NTNX) space. For HPE shareholders, the cost is always a concern. Did it pay too much? Does this purchase make HPE more competitive against Nutanix? The cost is low for HPE, which has $9.39 in cash per share and a book value of $18.56/share. Strategically, paying too much for an asset is an expensive mis-direction for management. If HPE proves it will grow market share in the IaaS space, ten the stock will move up, accordingly. Wait and see.
HP Inc., is the value trap of the two split firms, HPQ and HPE. At a 9.6x P/E and forward P/E, the stock is around 25 – 30% cheaper than its enterprise unit sibling. HPQ faces eroding profits from the PC market and the printing market. There is some potential for HP in both segments. In the PC market, HP entered the budget market by building and selling Chromebooks. This allowed the company to leverage its channels and get its brand name recognition. It upsold premium laptops after that. The HP Spectre is a solid, elegant, build that should keep the PC business strong. Printing is another business facing downside. People do not print hard copies at home. In business, HP is putting its focus on commercial printing and secure printers. DesignJet, or large format print, accounts for 15% of print revenue. 3D printing has a very long sales cycle. The stocks peaked and fell 2-3 years ago – see SSYS or DDD – yet HP has time to grow its distribution, sales, and design tools. Its primary target is manufacturing.
JPMorgan Chase earned $1.71, beating estimates by $0.27 a share, but traders took profit after the report. The tangible book value rose from $48.13 to $51.44 per share. CEO Dimon is the winner from the stock’s gains. He bought up the stock in 2012 for under $35. JPM paid Dimon ‘just’ $28M last year, which is a steal. Expenses did not rise Y/Y. Only the credit card revenue drop is the noticeable underperformer. In 2016 the Square (SQ) IPO is a notable issuance done by JPM. This year, companies like Snapchat’s IPO and others suggest more revenue from stock sales for businesses. The markets unit performed well. Revenue of $4.5 billion was the highest on record and was up 24% year-over-year. Fixed income revenue grew 31%. Looking ahead, higher rates and tax cuts will spur the economy and lending activity. JPM has value at these levels, but if it dips to $66 - $75 a share, accumulate this stock.
Accusations from the U.S. government that Fiat cheated on emissions are absurd. After dropping to around $9.50/share, FCAU stock is making back its losses. The stock just be corrected from the $11+ peak. At a forward 5.2 times P/E and 9x P/E, the stock is cheap, though not as cheap as Ford (F) at a P/E basis. The DoJ needs conclusive evidence that Fiat cheated. At a time when VW faces billions in fines and a drop in sales, why would Fiat risk cheating, too? The investigation takes away the momentum from the stock. The easy money was made, so now that the stock is trading at better value, patient investors may accumulate the stock if it dips again in the $9.00 range.
Previously a buy last year, Western Digital is still marching higher. Like Seagate (STX), WDC benefits from the multi-year shift from mechanical hard drives to solid state drives in PC devices. The problem with storage suppliers is that the product is a commodity. Prices are eroding and the SSD storage market is not growing strongly. Prices are dropping fast, supporting demand but eating into profits. WDC may report good results but the company gives few reasons to issue a positive outlook this year. Demand for consoles is slowing which will hurt hard disk demand. PC demand is falling. At under a 10x forward P/E, WDC is cheap but may get cheaper in the months ahead.
At a 15.4x P/E, Amgen is undervalued when its ~ 35% EPS growth this year is considered. Investors should also think of Amgen as a core biotech holding. The other is AbbVie (ABBV). Amgen is managing its mature brands while building a foundation of growth with new product launches. Non-GAAP profit margin grew from 38% to 53% in 2016. It is aiming for profit margin of 52% - 54% by 2018. Amgen has drugs in preclinical - phase 3 treating heart failure, arthersclerosis, and oncology. In the neuroscience space, it has drugs undergoing study treating Alzheimer’s Disease and migraine. Amgen’s cash flow is strong, the proof of which is found in the yearly dividend increases. This rose between 15 % - 31% annually since 2011. AMGN’s uptrend, which began at $135/share in November, is holding up. Consider this stock as a core holding.
Scheduled to report earnings this week on January 27, AbbVie’s ER could reverse the stock’s drop that began in July 2016. The stock is fairly valued, but investors fret over the company’s ability to raise drug prices without government asking questions. On January 20, the company said it would raise the price of Humira by over 8%. This drug is used to treat rheumatoid arthritis. Competition for the drug is looming. If the courts rule against AbbVie, look out. ABBV is building its leaderhips in hematologic malignancies. It launched imbrvica in 2013 and venetoclas in 2016. ABBV’s cash flow is stable. It is raising dividends by 12% in 2017 to $0.64 per share. In 2013, it paid $0.40 per share. For now, drug price limitations are scaring investors but when the cloud overhang leaves, the stock will appeal to investors looking for a core drug stock holding.
Commvault Systems, Inc. Technology Application Software Inst Own 92.10% Short Float 1.35% Commvault Systems, Inc reports tomorrow before the market closes. Near a year ago, CVLT price reversed, and is now in a very sharp uptrend. Right before the report, the price has stopped near the important range of $52/$58, while investors are set to expect it to climb till $68/$71. Today, we’ll take a small position on CVLT with the stop loss around $50 and the target at $69. https://stocktwits.com/RbfxResearch Завтра, перед открытием, отчитывается Commvault Systems, Inc. Уже почти год, как цена на CVLT совершила разворот и находится в широком ап-тренде под 45 градусов. Сейчас мы видим, что к отчёту цена вплотную встала на важном ценовом диапазоне 52 - 58$ за акцию, и инвесторы готовы искать в ней ликвидность в районе 68 - 71$. Сегодня мы наберём небольшую позицию по CVLT со стопом в районе цены 50$ и целью в районе 69$ за акцию.
BankUnited, Inc. Financial Regional - Mid-Atlantic Banks Inst Own 99.70% Short Float 1.93% The US Regional Banks Long 1:4 portfolio paid off nicely before the Presidential Elections, the ROI being around 135%. Looks like now it’s time again to open new positions on regional banks stocks, as they’re likely to make new record highs. BKU is the best candidate, being that its investment yield has been growing for 4 years in a row. Besides, this stock is not that far from its high ($38) yet, roaming around the support level of $34/$36. https://stocktwits.com/RbfxResearch В преддверие выборов президента США мы сумели неплохо (порядка 135% ROI) заработать нашим портфелем US Regional Banks Long 1:4. Сейчас, на наш взгляд, можно снова начинать открывать позиции по региональным банкам в расчёте на то, что акции пойдут обновлять свои исторические хаи. BKU, со своим ростом доходности для инвесторов уже четвёртый год подряд, является отличным кандидатом. Также стоит упомянуть, что он уже достаточно отошёл от своего хая в 38$ за акцию, как раз к зоне поддержки - 34-36$ за акцию.
The Boeing Company Industrial Goods Aerospace/Defense Products & Services We’ve already got a small long position on BA at $132, which we opened back in August, right before the price left its range between $120 and $135. However, today, before the report, we’ll increase this position within the buy&hold portfolio, as the news are mostly positive, especially those regarding new contracts with the Asian countries. https://stocktwits.com/RbfxResearch У нас уже есть небольшая позиция по BA в лонг, по цене 132$ за акцию, которую мы сумели набрать в августе, перед тем, как стак вышел из своей аккумуляции (120 - 135$). Сегодня, перед предстоящим отчётом, мы будем добирать нашу лонг позицию по BA в портфель buy&hold. Мы основываемся на положительном информационном поле вокруг компании, и особенно на новостях о новых больших контрактах на поставку их новейших лайнеров в течении следующих трёх лет в страны Азии.
Abbott Laboratories Healthcare Medical Appliances & Equipment Abbott Laboratories reports tomorrow before the market opens. As we see it, Healthcare sector is still weak, as it was late last year, and it’s quite likely this earnings report season will mark another heavy downtrend. This is why we’ll be going short on ABT today, and in case the price falls below $35 after the report, we’ll increase this position, our target being at $29/$31 per share. https://stocktwits.com/RbfxResearch Завтра, перед открытием, отчитывается международная компания Abbott Laboratories. На наш взгляд, сектор Healthcare сейчас всё так же слаб, как и во вторую половину прошлого года, и есть большая вероятность, что этот сезон отчётов станет отправной точкой к новому даунтренду во всём секторе. Сегодня мы наберем небольшую позицию по ABT в шорт, и, в случае, если после отчета цена опустится ниже 35$, будем добирать позицию с дальней целью в районе 29 - 31$ за акцию.
HFC breached the horizontal support line on falling RSI and trends lower. In addition, the stock just breached the 50 MA line in a bearish manner. Previously, HFC breached the 20 MA line in a bearish manner as well. The protective stop for HFC is put above the consolidation, while the target lies at the next horizontal support line.
IONS breached the horizontal support line after a period of tight consolidation and is trending lower on falling RSI. In addition, the stock breached the 50 MA line in a bearish manner, suggesting the continuation of the downside trend. The protective stop for IONS is put above the consolidation, while the target lies at the next horizontal support line.
BRO breached the horizontal support line and trend lower on falling RSI. In addition, the stock just breached the 50 MA line in a bearish manner, suggesting the continuation of the downside trend. The protective stop for BRO is put above the 20 MA line, while the target lies halfway to the next horizontal support line.