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Novavax Analyst Says DoD Funding Reflects Conviction In Platform, Ability To Deliver On Vaccine

Forest Products IIII - Fri, 05/06/2020 - 18:09

Novavax, Inc. (NASDAQ: NVAX) is landing financing deals that could help to successfully develop a vaccine for SARS-CoV, the virus that causes COVID-19.Novavax's Defense Department Funding The Gaithersburg, Maryland-based biotech said late Thursday that it has been granted funding of up to $60 million by the Department of Defense for manufacturing several components of the vaccine codenamed NVX-CoV2373 in the U.S.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Novavax Analyst: Positive NanoFlu Readout Could Have Driven Increased Conviction The accent on domestic manufacturing is probably due to security reasons, Cantor Fitzgerald analyst Charles Duncan said in a note.Novavax's vaccine consists of stable, prefusion protein antigen made using its proprietary nanoparticle technology and includes its proprietary Matrix M adjuvant.The analyst said he expected funding from government organizations, although Novavax was not part of the "unofficial" list of five finalists for the White House's "Operation Warp Speed."The agreement signals conviction in Novavax's recombinant nanoparticle platform and its potential to deliver an efficacious vaccine for COVID-19, probably due to the recent positive Phase 3 readout for its NanoFlu vaccine, he said. Cantor has an Overweight rating and $45 price target for Novavax shares.In mid-May, the company received an incremental $384 million in funding from the Coalition for Epidemic Preparedness Innovations for its vaccine program."We are genuinely honored at the opportunity to protect our military personnel and their families who have devoted themselves to the needs of U.S. citizens and others worldwide," Novavax CEO Stanley Erck said in a statement. What's Next For Novavax Novavax said as part of the contract it will work with a U.S.-based biologics CDMO to manufacture the antigen component of NVX-CoV2373 for at least 10 million doses of vaccine to be used in Phase 2/3 studies and/or under an Emergency Use Authorization if one is approved by the FDA.It will also work with U.S.-based CDMOs to scale up production and manufacture of the Matrix-M adjuvant component of the vaccine.The company is conducting a Phase 1 study in healthy volunteers, with preliminary immunogenicity and safety data due in July."Forthcoming data this summer should provide a gauge of possibilities and probabilities for moving forward," said Cantor's Duncan. NVAX Price Action Novavax shares were up 2.31% at $45.69 at the time of publication Friday. Related Links:The Daily Biotech Pulse: Adamas Rallies On FDA Acceptance, Oxford Immunotech Reportedly Gets 0M Bid Coronavirus Vaccine Frontrunner Moderna Appoints Former Amgen Executive As CFO Latest Ratings for NVAX DateFirmActionFromTo Jun 2020JP MorganUpgradesUnderweightNeutral May 2020B. Riley FBRMaintainsBuy May 2020B. Riley FBRMaintainsBuy View More Analyst Ratings for NVAX View the Latest Analyst Ratings See more from Benzinga * The Daily Biotech Pulse: Regulatory Delay For Novartis' Multiple Sclerosis Drug, FSD Gets Nod For COVID-19 Study * Novavax Analyst Sees Leading Contender In Coronavirus Vaccine Race(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Trump To Buffett: 'Should Have Kept The Airline Stocks'

Forest Products IIII - Fri, 05/06/2020 - 18:00

U.S. President Donald Trump held a press conference on Friday morning following a jobs report from the Labor Department that blew economist expectations out of the water.In his speech, Trump noted that plenty of smart experts have missed the mark when it comes to the resiliency of the U.S. economy amid the COVID-19 outbreak, and he specifically mentioned Wall Street legend and Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett."Warren Buffett sold airlines a little while ago. He's been right his whole life. But sometimes even somebody like Warren Buffett--I have a lot of respect for him--they make mistakes. They should have kept the airline stocks because the airline stocks went through the roof today and others did too. The whole market went through the roof," Trump said.Buffett On AirlinesBuffett sold Berkshire's entire stakes in Delta Air Lines, Inc. (NYSE: DAL), American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL) and Southwest Airlines Co (NYSE: LUV) back in April near their lowest points of the coronavirus sell-off.At Berkshire's annual shareholder meeting in early May, Buffett said he had been wrong to invest in airline stocks."I just decided that I'd made a mistake...in investing in the airlines business," Buffett said. "It's a very difficult business. The future is much less clear to me how the business will turn out."Since May 1, the four airline stocks Buffett sold are up between 40% and 90% each.Buffett & TrumpBuffett was a supporter of Trump's 2016 election opponent Hillary Clinton, but he has mostly remained silent on Trump since he took office."I'm not in the business of attacking any president, nor do I think I should be," Buffett said in a 2017 interview.On Friday, Trump said Americans who didn't panic and dump their stocks have been rewarded far quicker than many experts anticipated."If people didn't get rid of stocks in their 401(k)s, they're almost even. Think of it," Trump said.Benzinga's TakeA rebound in the stock market and the economy is a huge development when it comes to Trump's re-election prospects come November. Following Friday's rally, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 43.7% since March 23 and now down just 0.4% overall year to date.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning Here's What Elon Musk Thinks About Warren BuffettSee more from Benzinga * How Large Boeing, Delta Options Traders Are Positioning As Economy Reopens * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios * Bartstool's Dave Portnoy Breaks Down About The Importance Of Diversification(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Should You Buy Halliburton Company (HAL)?

Forest Products IIII - Fri, 05/06/2020 - 17:58

We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]

Trump Says Even Buffett Makes Mistakes With His Airline Exit

Forest Products IIII - Fri, 05/06/2020 - 17:45

(Bloomberg) -- President Donald Trump chided Warren Buffett’s recent move to exit his bets on the airline industry.“He’s been right his whole life, but sometimes even somebody like Warren Buffett -- I have a lot of respect for him -- they make mistakes,” Trump said Friday in a news conference at the White House. “They should have kept airline stocks, because the airline stocks went through the roof today and others did too.”Buffett abandoned his investments in four major U.S. airlines in recent months as the coronavirus pandemic swept the nation, curbing travel across the globe. He started piling into the industry in 2016, which went against his previous swearing off of airlines after a tumultuous USAir bet. At the annual meeting of his Berkshire Hathaway Inc. in May, he said the “world changed” for the airline industry.All four companies that Berkshire previously held soared this week after American Airlines Group Inc. said it would boost July flights 74% and jobs data showed an unexpected rebound in hiring. Delta Air Lines Inc. surged more than 40% this week, while American Airlines jumped 90%, Southwest Airlines Co. climbed more than 25% and United Airlines Holdings Inc. advanced more than 60%.Buffett’s assistant didn’t immediately return a message seeking comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Shocking May jobs report, here's why you should 'take all of these reports with a grain of salt'

Forest Products IIII - Fri, 05/06/2020 - 17:39

Erin Gibbs, Gibbs Wealth Management President, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss the May jobs report and Wall Street's reaction.

Hedge Funds Done Buying Genworth Financial Inc (GNW)?

Forest Products IIII - Fri, 05/06/2020 - 17:30

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

'Long Lines And Packed Flights': Casino Stocks Rise Following Vegas Reopening

Forest Products IIII - Fri, 05/06/2020 - 17:11

Casino stock investors received some good news this week as early reports out of Las Vegas suggest the reopening of major casino resorts was met with strong initial demand.However, one analyst said on Friday that Vegas still has a long road to full recovery from its shutdown.What Happened?A number of Las Vegas casinos opened their doors for the first time on June 4, and Bank of America analyst Shaun Kelley said initial demand was so strong that several operators are now opening additional properties ahead of schedule."At 12:01AM on June 4th, Las Vegas casinos officially reopened. From local reports and our channel checks, the demand was strong with long lines and packed flights, similar to most regional gaming markets," Kelley wrote in a note.Why It's ImportantDemand was so strong that Caesars Entertainment Corporation (NASDAQ: CZR) has bumped up its planned opening of Harrah's and MGM Resorts International (NYSE: MGM) is planning to open Excalibur next week.But while the initial surge of Vegas demand was much better than feared, Kelley said room rates will likely suffer significantly in the medium term. Kelley estimates quoted room rates on the Vegas Strip are down 36% in June and 46% in July compared to a year ago, which will negatively impact operator margins. Kelley said the cancellation of Vegas events and conferences will continue to weigh on room rates given these events drive demand for some of the Strip's highest-priced rooms.Even once events ramp back up, Kelley is projecting convention attendance will drop 15% in the second half of the year.Kelley estimates Las Vegas Sands Corp. (NYSE: LVS) will endure the smallest drops in average room rates in the near term, with average rates in June and July falling 23% and 40%, respectively. Wynn Resorts, Limited (NASDAQ: WYNN) has the highest average room rates on the Strip, and Kelley estimates it will endure the largest drop in average rates. He projects 43% and 53% declines in June and July, respectively.Benzinga's TakeStrong initial demand was the first hurdle for Vegas casino stocks to overcome in the near-term. Now that the Strip is reopened, the focus will shift to room rates and margins to determine just how profitable these casino stocks can be in a sub-optimal environment.For investors looking to play the Vegas recovery, Bank of America has the following ratings and price targets for major Las Vegas casino operators: * Las Vegas Sands, Buy rating and $61 target. * Wynn, Buy rating and $95 target. * MGM Resorts, Underperform rating and $15 target.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:Las Vegas Casinos Reopen This Week, And Here's What Investors Should Expect Analyst: Why Penn National And Boyd Could Outperform As US Casinos ReopenLatest Ratings for MGM DateFirmActionFromTo May 2020UBSMaintainsNeutral May 2020Credit SuisseAssumesNeutral May 2020B of A SecuritiesDowngradesNeutralUnderperform View More Analyst Ratings for MGM View the Latest Analyst RatingsSee more from Benzinga * 7 Sin Stocks To Buy During The Coronavirus Shutdown * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

FireEye Inc (FEYE): Hedge Funds Are Snapping Up

Forest Products IIII - Fri, 05/06/2020 - 17:07

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

Zoom in 'early stages' of security deal with Google: CFO

Forest Products IIII - Fri, 05/06/2020 - 16:58

Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Kelly Steckleberg, Zoom CFO, about the latest earnings report.

Is Everbridge, Inc. (EVBG) A Good Stock To Buy?

Forest Products IIII - Fri, 05/06/2020 - 16:47

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

Slack beat expectations, cuts deal with Amazon

Forest Products IIII - Fri, 05/06/2020 - 16:46

Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Slack CFO Allen Shim about its latest earnings report, how the COVID-19 pandemic has created 'a new category,'new customers including Verizon and Amazon and more.

2.5M jobs added in May, unemployment slides to 13.3%

Forest Products IIII - Fri, 05/06/2020 - 16:19

Matt Luzzetti, Deutsche Bank Chief U.S. Economist joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to break down the May jobs report.

Buy United Airlines (UAL) Stock Before Vacationing Restarts

Forest Products IIII - Fri, 05/06/2020 - 16:17

Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]

Is Lyft, Inc. (LYFT) A Good Stock To Buy?

Forest Products IIII - Fri, 05/06/2020 - 16:00

The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]

Carol Tomé Is The CEO & Director of United Parcel Service, Inc. (NYSE:UPS) And They Just Picked Up 344% More Shares

Forest Products IIII - Fri, 05/06/2020 - 16:00

United Parcel Service, Inc. (NYSE:UPS) shareholders (or potential shareholders) will be happy to see that the CEO...

If You Don’t Believe in This Rally, Here Are 8 Things You Could Do

Forest Products IIII - Fri, 05/06/2020 - 15:57

The Nasdaq Composite is showing a positive return for 2020, even though the unemployment rate has hit its highest level since the Great Depression.Source: Shutterstock These two data points do not seem to belong together. They are a head-scratcher.Perhaps the forward-looking Nasdaq "sees" a large dose of good news that is not yet visible to the human eye. Or perhaps the Nasdaq, like most Americans, got so sick of sheltering in place that it decided to go outside and run around for a bit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhatever the reason, the stock market rally has become a delight to most investors recently. But the good vibes are flowing so fast and furiously that some investors may be wondering, "Is this too much too soon? Should we be having this much fun while the unemployment rate is soaring into the stratosphere, millions of businesses are shut down or operating at a loss, the coronavirus pandemic continues, and some of the most meaningful civil unrest since 1968 occurring across the nation?" * 8 Battery Stocks That Will Seriously Power Your Portfolio If you find yourself asking these sorts of questions and if the soaring rally in the stock market is unnerving you because you fear that its rapid gains could quickly give way to rapid losses, then you might also be the sort of investor who is thinking about how to hedge against that possibility. Your Eight-Item Menu for Rally ProtectionGenerally, portfolio hedges that individual investors can implement fall into one of the following categories:* Selling stocks to raise cash* Buying put options* Selling call options* Selling short individual stocks or exchange-traded funds (ETFs)* Buying "inverse" ETFs that bet against a specific stock market index or sector* Buying gold* Buying "volatility" ETFs or exchange-traded notes (ETNs) that bet on rising volatility* Buying long-short ETFs or fundsEach of these hedging tactics can provide some measure of protection during a stock market selloff. That said, hedging a portfolio effectively is not an easy task. Even professional investors struggle to do it well.Hedge No. 1 - selling stocks to raise cash - is the one and only surefire hedging tactic. Because it replaces stocks with cash, it moves some portion of your portfolio out of harm's way. That's why I usually recommend this simple hedge for most investors. If you're genuinely worried about the prospect of a selloff, sell some of your stock holdings. Period.But for those folks who wish to remain invested and not raise cash, the other seven hedging tactics can sometimes produce worthwhile results.For example, the members of my Fry's Investment Report service recently used Hedge No. 5 - Buying "inverse" ETFs that bet against a specific stock market index or sector. Inverse ETFs rise in price when the underlying securities fall in price, so they perform well during market selloffs.Our first try with an inverse ETF produced a rapid 43% gain, which we locked down during the March selloff.Hedge No. 6 - buying gold - is the granddaddy of hedging tactics. Although gold possesses no automatic inverse relationship with the stock market, its price tends to rise when share prices fall … especially if share prices fall a lot.And we are seeing that exact result in the Fry's Investment Report portfolio, as my gold-focused recommendations are producing solid gains amid the stock market volatility.We've been talking about gold a lot here recently in Smart Money, but in this issue I'm not going to focus on gold, inverse ETFs, options, or cash, as most investors are already somewhat familiar with these hedging tactics.Instead, let's focus on one of the hedges from the list above that are somewhat exotic and probably unfamiliar to most investors… The Fear GaugesHedge No. 7 - buying "volatility" ETFs or ETNs that bet on rising volatility - provides an interesting way to hedge a portfolio because they rise in price whenever the stock market falls.The mechanism behind these ETFs is a bit complicated, so let me try to simplify it a bit. When investors talk about volatility as something that can be bought or sold, they usually are talking about the CBOE Volatility Index (VIX).The VIX, also known as the "fear gauge," tries to put a hard number on the average level of fear among stock market investors. To arrive at this hard number, the VIX tracks the pricing of certain put and call options on the S&P 500 Index.When the stock market is falling, investor demand for "protection" increases, which causes option prices to rise. The more that people desire a certain product, the higher the price goes. That's simple supply and demand.So in this case, when option prices rise, the VIX rises.Therefore, a high VIX reading indicates a high level of investor fear and a low reading indicates a low level of fear. When these readings reach extreme levels, either high or low, the stock market tends to reverse direction … at least for a while.Volatility-based ETFs and ETNs enable investors to ride the ups and down of stock market volatility and, hopefully, profit from them.At least three different ETFs/ETNs track the VIX. All of these securities delivered the goods during the stock market's steep slide in March. For example, the ProShares VIX Short-Term Futures ETF (NYSEARCA:VIXY) soared nearly 500% in a matter of days.A gain of that size can come in handy during a stock market selloff. But be forewarned, when the stock market is rising, these securities produce investment results that range from bad to horrible.Prior to the March selloff, each of the securities in the table had tumbled more than 60% during the preceding 12 months.That's what happens when you bet on falling share prices … and they go up instead.These vehicles are not for the faint of heart. Attempting to profit from them is a little bit like trying to transport cases of eggs on the back of a rodeo bull. The whole thing might turn out fine. But if it doesn't, you've got a big mess on your hands.So if you're hoping to profit by using these VIX funds, make sure that your market timing skills are nearly flawless.Or, you can learn more about what we're doing at Fry's Investment Report. We're putting into play not only gold and inverse ETFs, but also Hedge No. 8 - buying long-short ETFs or funds.For more on that, go here.Regards,Eric FryP.S. I've found 40-plus 1,000% or higher stock market winners. I beat 650 of the world's most famous investors (including Bill Ackman and David Einhorn) in a contest. And today I'm revealing my next potential 1,000% winner for free, right here.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. How? By finding potent global megatrends… before they take off. And when it comes to bear markets, you'll want to have his "blueprint" in hand before stocks go south. Eric does not own the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post If You Dona€™t Believe in This Rally, Here Are 8 Things You Could Do appeared first on InvestorPlace.

Hertz’s Possibly Worthless Stock Soars in Risky Recovery Bet

Forest Products IIII - Fri, 05/06/2020 - 15:43

(Bloomberg) -- Hertz Global Holdings Inc. shares are rallying two weeks after the company filed for bankruptcy in an extreme example of the bets investors are making on recovery from the coronavirus pandemic.The car renter’s stock traded as high as $3.70 shortly after the start of regular trading Friday, a 353% surge from Wednesday’s close. Hertz and its rival Avis Budget Group Inc. got a boost Thursday from signs air travel is poised to rebound.Hertz also is likely to benefit from prices of used cars at auctions coming all the way back from a mid-April collapse. Market researcher J.D. Power said Thursday that prices last week were above its pre-virus forecast.Those positives aside, Hertz’s equity holders are still taking on significant risk. Shareholders rarely recover anything from companies that have filed for Chapter 11 because under U.S. Bankruptcy Code, all of a company’s debts must be repaid in full before stockholders recover anything.Buyers of Hertz shares likely are betting on the cheap that the rapid recovery of used-car prices will preserve the value of the rental company’s fleet and leave some money left over for equity holders, said Hamzah Mazari, a Jefferies analyst.Still, he said the bets probably won’t pay off. “There may be some sort of resolution for equity holders in June,” Mazari wrote in an email. “Unlikely. Options market is saying there is a 90% chance it trades back to $0.50 or below.”Billionaire investor Carl Icahn was Hertz’s biggest shareholder when the Estero, Florida-based company sought court protection on May 22. He sold all of his 55.3 million shares on May 26 at a loss of almost $1.6 billion.(Updates with stock trading after the open in the second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Billionaire Jim Simons Snaps Up These 3 Penny Stocks

Forest Products IIII - Fri, 05/06/2020 - 15:40

When billionaire financier Jim Simons makes a move, Wall Street pays attention. Simons is best known as the inventor of quantitative trading, using data crunching algorithms to make market predictions. He put his theories to work in the 1980s, when he founded the Renaissance Technologies hedge fund, and since then has established the best record on Wall Street, averaging a 66% annual return for over 30 years.Ask how he did it, and Simons will likely tell you that he took the emotional factor out of trading. Humans are fickle beasts, but data never lies. Take out the human factor, focus solely on the numbers and their patterns, and you can’t lose. Following this insight, Simons’ fund has brought in $100 billion in profits since 1988, and his personal fortune totals over $20 billion.It’s clear that a smart trader can build an investment strategy just by following Simons’ lead. And right now, the 13F filings show that Simons is buying, among others, penny stocks. These equities, priced below $5 per share, typically offer high upside potentials. Even a small gain in share price – just a few cents – quickly translates into a high yield return. Yes, there is risk involved, but that’s where Simons’ quantitative algorithms come in, to pick the winners.Looking into Renaissance's basket of stocks, we’ve chosen three penny stocks that TipRanks database reveals as a “Buy” and offer solid upside potential. Let’s take a closer look and see what Wall Street analysts have to say.Orbcomm, Inc. (ORBC)We’ll start with a small-cap communications company. Orbcomm controls both ground-based wireless messaging infrastructure and a network of 31 satellites, giving it global coverage. Orbcomm’s network provides machine-to-machine communications, and is heavily involved with Internet of Things. The company boasts 2 million billable subscribers in 130 countries.During the first quarter, Jim Simons' Renaissance upped the ante by 464%, adding 1,150,018 shares of the company to the fund. The fund had first bought into the stock in Q4 2019, with a purchase of 248,000 shares. Its latest buy brought its total holding to over 1.39 million shares, worth $4.8 million.Currently going for $3.43 apiece, some members of the Street believe the share price reflects an attractive entry point.Canaccord's 5-star analyst Michael Walkley sees a bright future for Orbcomm, despite the coronavirus pandemic. He writes of the company, “With a portion of ORBCOMM’s business dedicated to helping its customers transport food and medicine during these uncertain times, a strong piece of the firm’s recurring revenues remains protected… we view the risk-reward as very positive…” The analyst added, "ORBCOMM should be well positioned with its 2.2M subscriber base to drive consistent adjusted EBITDA through its high-margin recurring revenue solutions. Further, its improving cost structure and consolidated platforms should lead to longer-term margin expansion."To this end, Walkley rates ORBC a Buy along with an $8 price target. His target implies a wildly robust upside potential of 133% for the coming year. (To watch Walkley’s track record, click here)Overall, Orbcomm has 4 recent analyst reviews, and all are Buys, making the analyst consensus rating a Strong Buy. The average price target stands tall at $6.88, which suggests the stock has room to double in the next 12 months. (See Orbcomm stock analysis on TipRanks)Arcos Dorados Holdings (ARCO)Next up is Arcos, the master franchise holder for McDonalds in the Latin America & Caribbean region. The company is one of the world’s largest McDonalds franchisees, and lists some 20 countries in its franchise territory. Arcos is the largest fast-food chain in Latin America.Pulling the trigger on ARCO in the first quarter, Renaissance purchased over 563,000 shares. This is a 221% boost to the fund's holding, and brings its stake in the company to nearly $2.6 million.As you can easily imagine, the sudden halt in economic activity imposed to stop the coronavirus spread hit Arcos hard, as restaurants were among the businesses most harshly affected. Arcos saw Q1 earnings turn sharply downward, from a 16-cent Q4 profit that was nearly double the forecast to a 26-cent net loss. The Q1 loss was more than 6x worse than analysts had anticipated. Looking forward, Q2 losses are estimated to reach 70 cents per share.Yet, JPMorgan analyst Ian Luketic believes ARCO's long-term growth narrative remains strong and that its $4.59 share price reflects the ideal entry point. Luketic lays out the clear case for Arcos’ return to profitability in the wake of corona: “As stores are reopened and the company is able to adjust its cost structure, we expect to have more visibility on what to expect from margins going forward. Although margins were at a miss, we don´t expect a major negative reaction as the market is already pricing-in weak margins for 2020 and focus should be on results ahead and potential indicators of consumption pick-up.”Luketic maintains a Buy rating on this stock, and his $5.50 price target implies a 19% upside potential. His is the only recent analyst review on record for ARCO. (To watch Luketic’s track record, click here)Some stocks fly under the radar, and CATS is one of those. Luketic is the only recent analyst review of this company, and it is decidedly positive.Adecoagra SA (AGRO)Last on the list, we have an agricultural holding company. Adecoagra’s subsidiaries operate in crop farming and dairy, along with sugar, ethanol, and even energy production. The company’s field of operations is in Argentina, Brazil, and Uruguay. The company was hit on two fronts – food production and distribution were impacted by the shutdowns, while forced social lockdown policies put a heavy damper on the fuel market’s demand for ethanol. Yet, AGRO’s niche is essential, and the company is expected to benefit quickly as economies reopen. Demand is already beginning to resume for ethanol, as consumers are starting to purchase more automotive fuel. Simons’ algorithms are forward-looking, so maybe it’s no surprise that he bought into this company, picking up 415,131 shares in Q1. This holding is worth $1.9 million. Lucas Ferreira, covering this stock for JPMorgan, noted, “COVID-19 and the oil price decline drove sugar and ethanol prices down by 18%-25% year-to-date and compressed sector valuations and near-term free cash flow generation prospects.” He goes on to add that “the worst seems behind us with domestic ethanol demand surprising to the upside and the gradual reopening to give a further booster to volumes.”Ferreira’s Buy rating comes with a $6 price target that indicates a solid 31% upside potential from the current share price of $4.57. (To watch Ferreira’s track record, click here)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Hedge Funds’ Cashing Out Of Ciena Corporation (CIEN) A Mistake?

Forest Products IIII - Fri, 05/06/2020 - 15:38

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]

Hedge Funds Aren’t Done Buying CRISPR Therapeutics AG (CRSP)

Forest Products IIII - Fri, 05/06/2020 - 15:35

At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]


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