Category Archives: Warren Buffett Stocks

[ June 25, 2016 | Author: admin | Views: 84125 | Weather: | Mood: normal]

JCPenney (JCP) announced that it would look to sell and lease back its quarters today, a decision Citigroup’s Jenna Giannelli and Joshua Joseph demonstrate the department-store chain’s “commitment to not only grow EBITDA but also trim its balance sheet.” They explain: Justin Sullivan/Getty Images JCPenney announced plans this morning to explore the sale of its Plano, Texas headquarters in efforts to reduce its debt burden. We estimate the 1.8mm square foot property is worth somewhere near $250mm, based on a range of lease per square foot and cap rate range assumptions. Recall the property was mortgaged to the $2.2bn real estate term loan back in 2013 and we therefore expect proceeds will be used to reduce the outstanding debt burden of the term loan. These efforts underpin JCPenneys commitment to not only grow EBITDA but also trim its balance sheet. We think the company will continue to opportunistically look to … Continue reading

[ June 21, 2016 | Author: admin | Views: 54419 | Weather: | Mood: normal]

That’s how Citigroup’s Paul Lejuez and team described Tiffany’s (TIF) fourth-quarter earnings and 2016 guidance in a note this morning: Reuters Adj EPS of $1.46 vs cons and our $1.40. Comps -5% worldwide (constant Fx, in line with Holiday results), with the Americas -8% (in line with Holiday), Europe -3% (Holiday -2%), Japan +10% (in line with Holiday), and Asia-Pac -8% (Holiday -9%). Adj op margin +85bps (cons flat) to 24.6%, with GM +220bps (vs cons +60bps) due to favorable product input costs and price increases. and 135bps of SG&A deleverage (ex items; cons 60 bps of deleverage), with dollars -2% (benefiting from Fx and lower marketing and variable labor costs). F16 EPS flat to -MSDs (implying ~$3.64-$3.83) vs guidance of “minimal sales and earnings growth” provided with Holiday sales, cons $3.86 and our $3.76E, based on flat sales (+LSDs in cc), and lower op margin (with stronger GM offset … Continue reading

[ June 21, 2016 | Author: admin | Views: 46248 | Weather: | Mood: normal]

Biotech stocksRegeneron Pharmaceuticals (REGN),Biogen (BIIB),Amgen (AMGN) and Celgene (CELG), among themhave staged nice rallies during the past three months but are still down for 2016. Now, Piper Jaffray’s Joshua Schimmer and team ask: “What’s the trade for the rest of the year?” They answer their own question: Reuters Investors are generally lukewarm on biopharma, and many think we’re finally moving towards a ‘stock-pickers’ environment and away from the group trade that has dominated for much of the past year. Some valuations are viewed as more attractive than others, but with few obvious shorts to be found. Much discussion is on M&A target. Large cap focus: Investors are generally sticking to more liquid names, although we are slowly seeing a return of interest to select small-caps. The general agreement is that fundamentals have changed, biopharma pricing power has eroded, payors/PBMs are wielding considerable power and more uncertainty exists for product outlooks. … Continue reading

[ June 21, 2016 | Author: admin | Views: 88970 | Weather: | Mood: normal]

A late day bounce reduced that the damage, but markets still got beaten up again leaving some strategists scratching their heads. MICHAEL NAGLE/BLOOMBERG NEWS The S&P 500 fell 1.2% to 1,829.08, its fifth consecutive loss, while the Dow Jones Industrial Average dropped 254.56 points, or 1.6%, to 15,660.18. The Nasdaq Composite finished off 0.4% at 4,266.84. The Dow Industrials had been down as much as 2.6% before a late day rumor of that OPEC was willing to start discussing production cuts gave the market a lift. Citigroup’s Robert Buckland and team don’t think we’re in a bear market yet: We revisit a four-phase cycle for corporate bond spreads and equities. At 6 oclock, spreads turn up but equities keep rising, although with increasing volatility. At 9 oclock spreads keep rising and equities start falling. Its a full-on bear market. Top 10 Semiconductor Stocks To Own For 2016: Western Union Company … Continue reading

[ June 21, 2016 | Author: admin | Views: 68413 | Weather: | Mood: normal]

After five weeks of consecutive gains, the major U.S. stock indices closed in the red last week. They were led lower by the Russell 2000, which declined 2%. In the March 14 Market Outlook, I said that a chart pattern in the Russell 2000 targeted an eventual 19% decline to 880 as long as the 1,096 area loosely held as overhead resistance. The small-cap index traded as high as 1,104 on March 21 before closing at 1,080 on Friday. As long as resistance continues to contain on the upside, my 880 target remains valid. Every sector of the S&P 500 finished in negative territory last week except for health care, which gained 1.6%. This was the reverse of the previous week, which saw all sectors finish higher except for health care. [Related -U.S. Lifted The Crude Oil Export Ban, And Exports WentDown] Top 10 Valued Companies To Buy Right Now: … Continue reading