Monthly Archives: December 2017

Top 5 Oil Stocks To Own For 2018

Conservative news heavyweight Matt Drudge took a brutal swipe at former White House chief strategist Steve Bannon on Wednesday over Bannon’s support for far-right Alabama Senate candidate Roy Moore, who is now embroiled in a sexual misconduct scandal.

In a tweet, Drudge linked to a Daily Beast story that said Bannon recently had second thoughts about supporting Moore. “A lesson on leaving politics to the professionals,” Drudge wrote.

On the Drudge Report, the highly-trafficked website that Drudge operates, the banner headline read, “BANNON TURNS ON JUDGE WHORE?”

A person with knowledge of the situation confirmed to CNN that, in the face of the growing scandal surrounding Moore, Bannon had asked confidants about whether he should continue supporting the embattled candidate. But Bannon ultimately decided to continue backing Moore, the person said.

The split between Drudge and Bannon is emblematic of a larger trend in right-wing media. Since the Washington Post first reported that Moore had pursued teenagers as a man in his 30s, media personalities on the right have been torn on how to respond. Breitbart has been unapologetic in its coverage, deploying staffers to Alabama who have sought to discredit the Post’s reporting. Many others have also sought to cast doubt on the allegations. But the Drudge Report and more traditional conservative news websites have been far more critical.

Top 5 Oil Stocks To Own For 2018: Talisman Energy Inc.(TLM)

Advisors’ Opinion:

  • [By Jayson Derrick]

    On the other hand, the analysts are Underweight on Eni SpA (ADR) (NYSE: E), Repsol Oil & Gas Canada Inc (USA) (NYSE: TLM) and OMV AG given their asset bases, which offer an inferior risk to reward profile and limited differentiation in cost reductions.

Top 5 Oil Stocks To Own For 2018: Williams Partners L.P.(WPZ)

Advisors’ Opinion:

  • [By Ben Levisohn]

    In a release after the close on Monday, Williams and Williams Partners (WPZ) made several announcements, including: 1) outlining managements plan to financially reposition and simplify the franchises GP/LP structure in an ~$11.4 billion transaction (not subject to any additional approvals), 2) adjustments to Williams and Williams Partners’ dividend and distribution payouts, 3) initiating a ~$2+ billion William equity raise to fund a further Williams investment in Williams Partners, 4) noted other potential upcoming changes, including the sale of ~$2 billion in non-core assets in 2017, and 5) provided several forms of updated 2017 guidance…

Top 5 Oil Stocks To Own For 2018: Magellan Midstream Partners L.P.(MMP)

Advisors’ Opinion:

  • [By Dustin Parrett]

    Magellan Midstream Partners (NYSE: MMP) is a $17.56 billion company that transports and distributes petroleum. MMP is shaping up to be one of the best 2017 oil stocks.

  • [By WWW.THESTREET.COM]

    In the Lightning Round, Cramer was bullish on Treehouse Foods (THS) , TG Therapeutics (TGTX) , Kinder Morgan (KMI) , Magellan Midstream Partners (MMP) , Chesapeake Energy (CHK) and Arconic (ARNC) .

  • [By Matthew DiLallo]

    For perspective, two of the highest rated MLPs by credit rating agencies are Magellan Midstream Partners (NYSE:MMP) and Enterprise Products Partners (NYSE:EPD). Recently, their leverage ratios were 3.5 times and 4.4 times, respectively. While both Magellan Midstream and Enterprise Products have seen their leverage ratios creep higher in recent quarters due to the oil market downturn and growth spending, neither is a concern.

  • [By WWW.MONEYSHOW.COM]

    My more conservative income recommendation from a year ago, Magellan Midstream Partners (MMP), rose by 13% while yielding over 4%.

    Following last year’s excellent results, Magellan Midstream remains my Top Pick for income investors for the coming year.

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team view the strength of corporations as most important in proving that stocks can handle current valuations. Find out what they’re telling their investment club members about Arconic (ARNC) , Apple (AAPL) and Magellan Midstream Partners (MMP) . Get a free trial subscription to Action Alerts PLUS.

Top 5 Oil Stocks To Own For 2018: Range Resources Corporation(RRC)

Advisors’ Opinion:

  • [By Paul Ausick]

    Range Resources Corp. (NYSE: RRC) dropped about 4.1% Friday to post a new 52-week low of $15.33 after closing at $15.99 on Thursday. The stock’s 52-week high is $36.40. Volume of about 8.5 million was about 15% above the daily average. The increase in natural gas drilling rigs this week is not good for companies like Range Resources that are gas-weighted producers.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Wednesday was Range Resources Corp. (NYSE: RRC) which traded downabout 12% at $17.90. The stocks 52-week range is $17.68 to $43.60. Volume was about 25 million versus the daily average of 5.6 million shares.

  • [By Paul Ausick]

    Range Resources Corp. (NYSE: RRC) is rated Buy with a lowered price target of $43. The 2017 EPS estimate has been lowered from $0.85 to $0.68, and the 2018 estimate waslowered from $1.60 to $1.52. Shares closed at $27.34 on Friday, in a 52-week range of $27.07 to $46.96, and the consensus price target is $46.42. Range Resources is a Jefferies Franchise Pick.

  • [By Paul Ausick]

    Range Resources Corp. (NYSE: RRC) dropped about 0.3% Friday to post a new 52-week low of $15.91 after closing at $15.95 on Thursday. The stock’s 52-week high is $39.64. Volume of around 5 million was about a third below the daily average. The forecast for natural gas demand is low and the front month contract is at its lowest point of the year. Shares have reversed their direction and are on track to post a daily gain of about 0.8%.

  • [By WWW.THESTREET.COM]

    Range Resources (RRC) was upgraded to outperform at BMO. $44 price target The valuation is more attractive, as business fundamentals are improving, BMO said. 

Top 5 Oil Stocks To Own For 2018: Marathon Oil Corporation(MRO)

Advisors’ Opinion:

  • [By Paul Ausick]

    Marathon Oil Corp. (NYSE: MRO) dropped about 1.1% Monday to post a new 52-week low of $11.40 after closing Friday at $11.53. The 52-week high is $19.28. Volume was about 40% lower than the daily average of about 13.7 million shares. The company had no specific news.

  • [By Ben Levisohn]

    Marathon Oil (MRO) tumbled to the bottom of the S&P 500 today after oil tumbled after data pointed to higher inventories of crude.

    Agence France-Presse/Getty Images

    Marathon Oildropped 8.7% to $14.87, while the S&P 500 fell 0.2% to 2,362.98, as Front Month Nymex Crude futures for April delivery slid 5.4% to $50.28., leading some to wonder if the price oil could drop below $50 a barrel.

    It wasn’t just Marathon that got clipped as the eight worst-performing stocks in the S&P 500 came from the energy sector, including Murphy Oil (MUR), which fell 6.7% to $25.87, Devon Energy (DVN), which slid 6.5% to $40.72, and Chesapeake Energy (CHK), which stumbled 6.1% to $4.94. No surprise, then, that the Energy Select Sector SPDR ETF (XLE) slumped 2.6% to $69.65.

    The oil rout began after the U.S. Energy Information Administration reported that U.S. oil inventories rose by 8.2 million barrels to reach $518.4 million, a record level.

    Marathon Oil’s market capitalization fell to $12.6 billion today from $13.8 billion yesterday. It reported a net loss of $2.1 billion on sales of $4.1 billion in 2016.

  • [By Dustin Blitchok]

    Marathon Oil Corporation (NYSE: MRO) was upgraded from Neutral to Positive at Susquehanna on Friday after the oil giant sold off its Canadian subsidiary for $2.5 billion and bought 71,000 acres of oil fields in New Mexico for $1.1 billion.

  • [By Paul Ausick]

    Marathon Oil Corp. (NYSE: MRO) dropped about 1.6% Friday to post a new 52-week low of $11.41 after closing Thursday at $11.59. The 52-week high is $19.28. Volume was about 30% lower than the daily average of about 13.7 million shares. The company had no specific news.

  • [By Shanthi Rexaline]

    The bulking up strategy did not work well for the company over the years, as it saw its market share dwindle and profitability erode. In 1982, in a diversification bid, the company picked up Marathon Oil Corporation (NYSE: MRO) and renamed itself as USX.

  • [By Jon C. Ogg]

    Marathon Oil Corporation (NYSE: MRO) shares were up a whopping 209.9% at $18.08 on Wednesday, and the 70.5 million shares at the close was almost 5 times normal trading volume. Marathon Oil has a consensus analyst price target of $18.12 and a 52-week trading range of $6.52 to $18.55. The company has a total market cap of $15 billion.

Top 10 Financial Stocks To Invest In 2018

Taxes needn’t be tough. When you boil it down, if you’re preparing your taxes, you compile everything you can deduct and try to save as much as you can.

But thieves know that they can get into your financial life by pressing the fear and hacking buttons. Although everybody wants some money back from the IRS, almost no one wants to hear from the agency.

Swindlers also know that they can tap the mother lode of financial information through your tax forms. Once they steal your information, they can do anything from get fake refunds to opening up credit cards. They also sell your information to other thieves.

That’s why you need to be more vigilant than ever during tax season. You need to zealously guard your information — and tell your preparer to do the same. Here are the four worst tax scams, according to the IRS, and what you can do to protect yourself.

Shutterstock

Top 10 Financial Stocks To Invest In 2018: Deutsche Bank AG(DB)

Advisors’ Opinion:

  • [By Diane Alter]

    The New York Times first reported that Frontier Airlines is prepping for an initial public offering. The Denver, Colo.-based low-cost carrier has hired Deutsch Bank (NYSE: DB), JPMorgan Chase & Co. (NYSE: JPM), and Evercore Partners Inc. (NYSE: EVR) to handle the IPO. The airline started the process late last year when it approached a number of bankers.

  • [By Lisa Levin]

    Monday afternoon, the non-cyclical consumer goods & services sector proved to be a source of strength for the market. Leading the sector was strength from Deutsche Bank AG (USA) (NYSE: DB) and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE: BBVA).

  • [By WWW.THESTREET.COM]

    Today, Deutsche Bank (DB) pretty much signals an all-clear based on that call and says things are indeed getting better. So there are buyers all over the place.

Top 10 Financial Stocks To Invest In 2018: Diamond Hill Investment Group Inc.(DHIL)

Advisors’ Opinion:

  • [By Joe Tenebruso]

    Diamond Hill Investment Group (NASDAQ:DHIL) reported first-quarter results on April 26. The investment management company is benefiting from a seemingly relentless bull market despite shifting competitive dynamics within its industry.

Top 10 Financial Stocks To Invest In 2018: Barclays PLC(BCS)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Banco Santander (SAN) : “I prefer Barclays (BCS) , but let’s wait and see what the other banks have to say”

    ProLogis (PLD) : “I am not a fan of that group right now, but that one is best of breed.”

  • [By Jon C. Ogg]

    Barclays PLC (NYSE: BCS) was raised to Overweight from Equal Weight at Morgan Stanley. Its American depositary sharesclosed up 2.6% at $11.36 on Thursday and were indicated up 1.2% at $11.50 on Friday. The52-week range is $6.76 to $12.05.

Top 10 Financial Stocks To Invest In 2018: Wells Fargo & Company(WFC)

Advisors’ Opinion:

  • [By Gregg Greenberg]

    Stocks of Wells Fargo (WFC) were up 4% last year, outperforming both the broader market and the overall financial sector. Erik Oja, equity analyst at S&P Capital IQ, said the megabank will shine even brighter in 2016 once higher interest rates kick in.  

     

    "We think Wells Fargo is best poised to benefit from higher rates due to its large deposit base and industry-leading loan growth," said Oja, adding that he expects much higher revenue growth in the coming year after a recent slowdown.

  • [By JJ Kinahan]

    Elsewhere yesterday, the SPX telecom sector was the strongest, climbing 1%. Shares of Verizon Communications Inc. (NYSE: VZ), for example, climbed higher by 1.8% after a Wells Fargo & Co (NYSE: WFC) analyst upped VZ stock to “outperform” from “market perform,” noting the impending rollout of its next-generation 5G network.

  • [By Zacks]

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  • [By Sarfaraz Khan]

    In addition to this, Warren Buffett has also built sizable positions in a number of major US banks.Wells Fargo (NYSE:WFC), U.S. Bancorp (NYSE:USB)and Goldman Sachs (NYSE:GS)have the leading positions in Berkshire Hathaways portfolio. In fact, Wells Fargo is Berkshire Hathaway’s second largest stock holding. In addition to this, Berkshire Hathaway also owns $5 billion worth of Bank of Americas preferred shares and warrants to buy 700 million of the banks ordinary shares at just $7.14 (current price $22.10) anytime until September 2021. These banks are positioned to become the biggest beneficiaries of the increase in interest rates. To get an idea of how this might happen, consider Bank of Americas forecast in which it predicted a $7.5 billion boost to annual net interest income following a 1-percentage-point increase in interest rates.

  • [By WWW.THESTREET.COM]

    Look no further than the 0.8% gain of Wells Fargo (WFC) on the day when it issues a release saying customer interactions with tellers year over year for the month of October were down 10% and new credit card applications “continued their downward trend with applications down 50% year over year,” in part because of reduced marketing spend but also because, again quoting WFC, “a full-month impact of customer reaction to the sales practices settlement.” (Wells Fargo is part of TheStreet’s Action Alerts PLUS portfolio.)

Top 10 Financial Stocks To Invest In 2018: Old Second Bancorp Inc.(OSBC)

Advisors’ Opinion:

  • [By Lisa Levin]

    Friday afternoon, the financial sector proved to be a source of strength for the market. Leading the sector was strength from Wins Finance Holdings Inc (NASDAQ: WINS) and Old Second Bancorp Inc. (NASDAQ: OSBC).

Top 10 Financial Stocks To Invest In 2018: Greenlight Capital Re Ltd.(GLRE)

Advisors’ Opinion:

  • [By Jim Robertson]

    Note that hedge fund mogul David Einhorn has been a director ofthe predecessor company since May 2006. Mr. Einhorn co-founded, and has served as the President of, Greenlight Capital, Inc., since January 1996. Funds managed by Greenlight are some ofthe Companys principal stockholders. Since July 2004, Mr. Einhorn has served as Chairman of the Board of Greenlight Capital Re, Ltd (Nasdaq: GLRE).

Top 10 Financial Stocks To Invest In 2018: Old National Bancorp Capital Trust I(ONB)

Advisors’ Opinion:

  • [By kiplinger]

     Old National Bancorp (ONB) is a 181-year-old financial institution with 195 branches, mainly in the Midwest. The stock, which is still down by about one-third from its prerecession high, trades at just 13 times projected 2016 earnings and yields an attractive 3.4%. If interest rates ever rise, the bank should benefit from a widening spread between its cost of funds and the interest rates borrowers pay.

    It’s a favorite of David Dreman, author of the classic 1980 book Contrarian Investment Strategy. His philosophy: “We believe that the markets are not perfectly efficient.” Some stocks, in other words, are judged by the market to be cheaper than their actual worth.
  • [By Ben Levisohn]

    The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.

Top 10 Financial Stocks To Invest In 2018: Potlatch Corporation(PCH)

Advisors’ Opinion:

  • [By Lisa Levin]

    Here is the list of stocks going ex-dividend on Friday.

    Douglas Dynamics Inc (NYSE: PLOW) – $0.2350 dividend, 2.9183 percent yield
    Tiffany & Co. (NYSE: TIF) – $0.4500 dividend, 2.6758 percent yield
    PulteGroup, Inc. (NYSE: PHM) – $0.0900 dividend, 1.7078 percent yield
    Leidos Holdings, Inc. (NYSE: LDOS) – $0.3200 dividend, 3.0851 percent yield
    Tupperware Brands Corporation (NYSE: TUP) – $0.6800 dividend, 4.1756 percent yield
    Hudson Pacific Properties Inc (NYSE: HPP) – $0.2000 dividend, 2.36

Top 10 Financial Stocks To Invest In 2018: Tanger Factory Outlet Centers Inc.(SKT)

Advisors’ Opinion:

  • [By Shauna O’Brien]

    Jefferies announced on Wednesday that it has cut its rating on Tanger Factory Outlet Centers Inc. (SKT).

    The firm has downgraded SKT from “Buy” to “Hold,” and has lowered the company’s price target from $40 to $35. This price target suggests an 8% upside from the stock’s current price of $32.22.

    Analyst Omotayo Okusanya commented: “We expect near-term headwinds for the mall and outlet mall segment as tenant sales growth appears to be slowing.”

    “At SKT, development yields on two projects have also been reduced. Further, rising interest rates negatively impact our DDM-derived PT. Our lowered PT of $35 represents a 10% total return over the next-twelve-months (NTM); we are downgrading to Hold,” added the analyst.

    Tanger Factory Outlet shares were mostly flat during pre-market trading Wednesday. The stock is up more than 5% YTD.

  • [By WWW.THESTREET.COM]

    In the Lightning Round, Cramer was bullish on Palo Alto Networks (PANW) , Cisco Systems (CSCO) , Tanger Factory Outlet Centers (SKT) and Consolidated Edison (ED) .

Top 10 Financial Stocks To Invest In 2018: SL Green Realty Corporation(SLG)

Advisors’ Opinion:

  • [By Nelson Hem]

    “Manhattan on Sale? That’s the Case With Two Cheap REITS” by Andrew Bary discusses whether Manhattan-focused real estate investment trusts Vornado Realty Trust (NYSE: VNO) and SL Green Realty Corp (NYSE: SLG) could rally as the New York market firms. Both trade at a discount to the value of private-market property deals, says the article.

Horizon Pharma: Primary Care Segment Remains A Burden And Should Be Sold

Horizon Pharma (HZNP) made solid progress over the last six months. The primary segment stabilized in Q2 and Q3 after a disastrous first quarter while the orphan and rheumatology segments continue to perform well with all products growing sequentially in Q3 (except for Procysbi, but the sequential decline was related to the divestment of EMEA rights). Management only briefly commented on the primary care business and confirmed in the Q&A part of the call that all options are on the table, including the sale of the business, and I continue to believe that this would be the best possible outcome for the company and a catalyst for the stock as it would complete the companys transformation to an orphan/specialty-only pharma company. The teprotumumab-related comments were also encouraging, and the company now believes the market opportunity for this product candidate is much larger than initially thought.

Q3 report not good enough to push the stock materially higher

The third-quarter report was a solid one considering expectations heading into it. The company beat the analyst revenue consensus by $12 million, and most orphan and rheumatology products posted solid Y/Y and sequential growth. Procysbi was the only exception (I’m not really counting Buphenyl and Lodotra given their small contribution) with a sequential decline in sales, but the decline is related to the divestment of EMEA rights earlier this year, which Horizon estimated would reduce this years sales by approximately $15 million. Krystexxa and Ravicti continued to deliver healthy sequential and Y/Y growth while Actimmune net sales also grew sequentially and Y/Y, marking a return to growth for this product.

Source: Horizon Pharma earnings reports

The primary care business performed in line with the companys expectations but posted a sequential and Y/Y decline in net sales. Given the markets reaction to the earnings announcement, it appears that this segment remains a burden on Horizons share price and the companys valuation, which remains depressed despite the significant improvements in the orphan/rheumatology segments and the reduced reliance on primary care sales (from 59% of total net sales in Q3 2016 to 35% of total net sales in Q3 2017). Management barely talked about the segments performance on the earnings call and clearly indicated in the Q&A part of the call that all options are on the table, including a potential sale. It remains to be seen whether the company is able to get rid of this segment, but reading between the lines, there is no doubt that this would be managements first choice if they are given one.

I believe that selling the primary care business would be the best decision the company can make in the near-term, and I believe it would lead the market to revalue the stock based on the potential of the orphan and rheumatology segments. It would also provide a cash infusion that the company could redirect to orphan/specialty M&A.

Krystexxa sales team expansion on track, 50%+ growth in 2018, TRIPLE and RECIPE trials to lead to expanded utilization and better competitive position in the long run

It was not surprising to hear management talk about Krystexxa extensively on the earnings call. The onboarding of additional 100 people is on track to finish in Q4, which will enable the company to cover approximately 75% of the rheumatology market and to expand into the nephrology market. The expansion into nephrology should be a significant growth driver in 2018 and beyond as it effectively doubles the market opportunity, as the company estimates the addressable market is now 100,000 patients, up from 50,000 previously estimated for rheumatology. Only 1,500 to 2,000 patients will be treated with Krystexxa in 2017, which translates to 1.5% to 2% market penetration, and means Krystexxa can reach $400 million in annual sales by reaching 5-6% market penetration. Based on the data Selectas (SELB) SEL-212 reported to date (and discussed in my recent article on Selecta), the $400 million estimate and 5% market penetration seem appropriate, but absent a competitor like SEL-212, Krystexxas peak sales potential would be substantially higher.

Source: Horizon Pharma presentation

But Horizon is not sitting on its hands and waiting for SEL-212 to reach the market and kill Krystexxa. Horizon reported the initial data from the TRIPLE trial, which showed that adding a tolerizing dose of Krystexxa between the first and second biweekly administration leads to a significant reduction in the rate of infusion-reactions less than 1% compared to 26% observed in the phase 3 trial. Out of 315 doses of Krystexxa administered, only one mild infusion reaction occurred in a single patient, which did not meet the criteria for anaphylaxis. Horizon is seeking to update the label to include the new safety data based on the additional analysis of phase 3 clinical trials, post-marketing safety data, and data to-date from the TRIPLE trial.

Horizon also reported that another investigator-initiated trial, called RECIPE, will evaluate immunomodulation with CellCept. This is obviously the companys reaction to SEL-212 and, according to management, significant physician interest. The use of immunosuppressive agents has already yielded some positive results. An open-label study evaluated 7 organ transplant recipients with gout. These patients were on immunosuppressive therapy and only 1 of the 7 patients developed anti-drug antibodies and the other six patients proved to be persistent responders. Its a small sample, but indicative of a potential positive outcome with the use of immunosuppressing agents. And after all, SEL-212 achieved solid results on its own by incorporating SVP-Rapamycin into the treatment regimen.

Teprotumumab could become Horizons largest product in the 2020s

With all the attention the primary care segment is getting, most investors are forgetting the companys transformation. That transformation started with Vidara (Actimmune) acquisition in 2014 and a pivot toward marketed orphan products and teprotumumabs acquisition earlier this year marks another important milestone – this was the first acquisition of a development-stage asset. Horizons initial projection was that teprotumumab has $250 million in peak sales potential in the U.S. and that there are approximately 10,000 patients in the U.S. Since the acquisition, the company has done additional research and now believes that the number of patients could be as high as 20,000 and that the peak sales opportunity could be a multiple of the initial estimate. Additional research will be conducted over the next few months after which the company will come out with new market size and peak sales estimates.

Horizon announced the enrollment of the first patient in the phase 3 trial in late October, which was slightly ahead of schedule (previous guidance was by year-end), and based on management comments, it appears there is excitement in the community regarding teprotumumab and enrolling 76 patients should not be that hard. We should see the results from this trial in 2H 2019 and an approval and launch by mid-2020. Teprotumumab has Orphan Drug Designation, Fast-Track, and Breakthrough Status Designation, which should allow faster turnaround time at the FDA and a quick approval.

And this is a trial that has a high probability of success. There are no major changes compared to the phase 2 trial and the efficacy in the phase 2 trial was robust with clear separation from placebo. We can see in the chart below that placebo barely moves when it comes to the primary endpoint and that teprotumumab achieves strong response early on.

Source: Horizon Pharma presentation

Given Horizons history with drug pricing, I do not believe that they will underprice teprotumumab. I think the likely annual price of the drug will be at least $200,000, which puts the addressable market in the U.S. to at least $2 billion based on 10,000 patients and to as high as $4 billion based on 20,000 patients. It stands to reason to expect sales to be considerably above $250 million, especially if teprotumumab repeats the results from the phase 2 trial. I think teprotumumab could become Horizons largest product in the 2020s.

And as a reminder, in addition to teprotumumab, the company is conducting several clinical trials with Actimmune (phase 1 and phase 2) in cancers, which, if successful, could significantly boost Actimmunes sales in the 2020s. However, without seeing any supportive data yet, I cannot rely on Actimmune to create additional value for Horizon and label-expansion remains a free call option at this point.

We should see Horizon make additional deals in 2018

Horizon ended Q3 with $625 million in cash and equivalents and gross debt of approximately $2 billion. The company should end 2017 with roughly $700 million in cash, which doesnt give it too much capacity to do additional deals (up to $500 million based on management comments), but in-licensing of development-stage assets, like the one with teprotumumab earlier this year, is possible as it does not require substantial upfront commitments like an outright acquisition, and the payout is potentially larger (but so are the risks). The capacity could improve if the company completes the sale of the primary care business. The market is still not treating Horizon as a company that has a pipeline, and I expect that to change as it adds additional pipeline assets and once it, hopefully, sells the primary care business and completes the transformation to an orphan/specialty-only company.

Conclusion

It wasnt easy being a Horizon shareholder over the last two years, but I believe the company is heading in the right direction. The primary care business is still a burden and might keep the valuation depressed for a while longer, but I believe the market will eventually reward the progress in other areas. The sale of the primary care business is the most important potential catalyst for Horizon in the near-term, though there are no guarantees that a deal will happen. Continued execution on the orphan/rheumatology side and additional M&A are the upside drivers for the stock in the following quarters while the main risk remains on the primary care side.

This article (edited for changes that happened in the meantime) was available to Growth Stock Forum subscribers on November 6. Please consider joining our growing community where I publish regular and detailed updates on Horizon Pharma and other stocks in my Coverage Universe. To receive e-mail notifications for my public articles and instablogs, please click the follow button. I am looking forward to working together.

Disclosure: I am/we are long HZNP, SELB.

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.

About this article:ExpandAuthor payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.Tagged: Investing Ideas, Long Ideas, Healthcare, BiotechnologyWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

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trading strategies: Vanguard Short-Term Corporate Bond ETF(VCSH)

Advisors’ Opinion:

  • [By Todd Shriber, ETF Professor]

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  • [By WWW.GURUFOCUS.COM]

    For the details of SWISS RE LTD’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=SWISS+RE+LTD

    These are the top 5 holdings of SWISS RE LTDiShares Core S&P 500 (IVV) – 1,641,300 shares, 34.54% of the total portfolio. Shares added by 6.79%SPDR S&P 500 (SPY) – 1,003,200 shares, 20.97% of the total portfolio. Shares reduced by 34.15%iShares MSCI EAFE (EFA) – 2,800,100 shares, 15.78% of the total portfolio. Shares added by 170.34%iShares 1-3 Year Credit Bond ETF (CSJ) – 1,659,000 shares, 15.1% of the total portfolio. New PositionVanguard Short-Term Corporate Bond ETF (VCSH) – 937,000 shares, 6.48% of the total po

trading strategies: Aphria Inc. (APHQF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Check out Part 2 of this article, where Phillips shares a look at some other notable transactions announced last week, featuring Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE), Aphria Inc (OTC: APHQF), Invictus MD (OTC: IVITF) and more.

  • [By Keith Speights]

    As increasingly more marijuana growers entered the market and more states allowed residents to legally grow marijuana, cannabis prices dropped throughout 2016. Wholesale marijuana prices late in the year were roughly half the levels of 12 months earlier. Will this trend continue — and possibly hurt leading marijuana stocks including Aphria (NASDAQOTH:APHQF),Aurora Cannabis (NASDAQOTH:ACBFF), Medical Marijuana,Inc.(NASDAQOTH:MJNA), and even GW Pharmaceuticals (NASDAQ:GWPH) in the process?

  • [By Sean Williams]

    This rapid growth in legal pot has create quite the demand for marijuana stocks. The seven largest marijuana stocks by market cap have all put on a show over the past couple of years. Here are those seven “green giants” listed with their market caps as of March 17, 2017, along with their trailing one-year total returns.

    GW Pharmaceuticals (NASDAQ:GWPH): $3.0 billion, up 64% Canopy Growth Corp. (NASDAQOTH:TWMJF): $904 million, up 259% Aphria (NASDAQOTH:APHQF) $440 million, up 381% Aurora Cannabis (NASDAQOTH:ACBFF): $482 million, up 299% AXIM Biotechnologies (NASDAQOTH:AXIM): $562 million, up 1,720% Corbus Pharmaceuticals (NASDAQ:CRBP): $450 million, up 431% Medical Marijuana (NASDAQOTH:MJNA): $221 million, up 254%

    As you can see, these are some hefty valuations — and some exceptionally strong moves higher on the heels of marijuana’s expansion. With the exception of GW Pharmaceuticals, every one of the largest marijuana stocks has at least tripled in value over the trailing 12 months, with cannabinoid-based drug developer AXIM Biotechnologies skyrocketing more than 1,700%!

  • [By Javier Hasse]

    While biotechs like GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH) and Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) only lost 0.45 percent and 0.36 percent respectively, other companies experienced a large tumble. CANOPY GROWTH CORP COM NPV (OTC: TWMJF) lost 4.71 percent, AURORA CANNABIS IN COM NPV (OTC: ACBFF) slipped 2.93 percent, APHRIA INC COM NPV (OTC: APHQF) dropped 1.01 percent, and MassRoots Inc (OTC: MSRT) plummeted an astounding 9.00 percent.

  • [By Todd Campbell]

    While some marijuana companies are turning a profit, many marijuana companies are investing heavily in their businesses, and as a result, continue to lose money. For example, Aphria Inc. (NASDAQOTH:APHQF), a Canadian producer and marketer of medical marijuana, reported a net profit of $1 million over the past 12 months, but medical-marijuana drug developer GW Pharmaceuticals plc (NASDAQ:GWPH) reported a loss of $82.2 million last fiscal year.

trading strategies: Kalytera Therapeutics, Inc. (QUEZF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Kalytera Therapeutics Inc (OTC: QUEZF) closed a C$13.4 million ($10.2 million) tranche of a private placement for the acquisition of Talent Biotechs Ltd.

trading strategies: Nustar Energy L.P.(NS)

Advisors’ Opinion:

  • [By Roberto Pedone]

    One technology player that insiders are active in here is Jive Software (NS), which provides a social business software platform to businesses, government agencies, and other enterprises. Insiders are buying this stock into massive weakness, since shares are down sharply by 43% so far in 2014.

     

    Jive Software has a market cap of $446 million and an enterprise value of $365 million. This stock trades at a fair valuation, with a price-to-sales of 2.68 and a price-to-book of 5.67. Its estimated growth rate for this year is 45.5%, and for next year it’s pegged at 30%. This is a cash-rich company, since the total cash position on its balance sheet is $98.18 million and its total debt is $6.60 million.

     

    A director just bought 260,819 shares, or about $1.71 million worth of stock, at $6.53 to $6.60 per share.

     

    From a technical perspective, JIVE is currently trending just above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently pulled back off its short-term high of $7.14 a share with heavy downside volume flows. That drop has now pushed the stock to right above its 50-day moving average at $6.10 a share.

    If you’re bullish on JIVE, then I would look for long-biased trades as long as this stock is trending above its 50-day at $6.10 a share and then once it breaks out above some key near-term overhead resistance levels at $7.14 a share to its 200-day moving average of $7.43 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 557,678 shares. If that breakout triggers soon, then JIVE will set up to re-test or possibly take out its next major overhead resistance levels $8.50 to $9 a share, or even $9.50 to $10 a share.

    Must Read: 10 Stocks George Soros Is Buying

trading strategies: Sears Holdings Corporation(SHLD)

Advisors’ Opinion:

  • [By Ashley Moore]

    The deal, which was announced on July 20, will allow Sears Holdings Corp.’s (Nasdaq: SHLD) Kenmore home appliance brand to be sold on Amazon. This is the first official time the online retailer has had access to the Sears-exclusive brand. (Some Kenmore appliances were previously sold on Amazon through third-party sellers.)

  • [By Diane Alter]

    From there, Mnuchin joined the hedge fund of his former college roommate Eddie Lampert. Mnuchin remains a director of Sears Holdings Corp. (Nasdaq: SHLD), where Lampert reins as chairman and CEO.

  • [By Keith Fitz-Gerald]

    Sears Holding Corp. (Nasdaq: SHLD) announced a $900 million deal to sell its iconic Craftsman brand to rival tool maker Stanley Black & Decker earlier this week, leading many investors to wonder if it’s time to pony up for a rebound or just hang on.

  • [By Dan Caplinger]

    Yet some solid individual stock gains also helped lift investors’ moods, and Sears Holdings (NASDAQ:SHLD), National Beverage (NASDAQ:FIZZ), and JetBlue Airways (NASDAQ:JBLU) were among the best performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.

The Best 5 DJIA Stocks of 2017

This past year was a very good one for the Dow Jones Industrial Average. The blue-chip index saw 25 of its 30 stocks post share price gains for 2017, and the index closed the year up more than 24%.

There were two big winners in 2017 and three more stocks that posted very solid gains above 40%:

Boeing Co. (NYSE: BA), up 89% Caterpillar Inc. (NYSE: CAT), up 68.9% Visa Inc. (NYSE: V), up 46.1% Apple Inc. (NASDAQ: AAPL), up 46.1% Wal-Mart Stores Inc. (NYSE: WMT), up 42.9%.

A stronger global economy contributed to the fortunes of at least two of these firms. while lower U.S. unemployment and improving wages helped the more consumer oriented companies post their gains.

Boeing

This aerospace and defense giant simply defied gravity in 2017. The stock’s upward trajectory started early and didn’t let up for the entire year. The company will end the year with net new orders of more than 850 and operating cash flow north of $12 billion. The big question, of course, is can the company keep it up through 2018? Could Boeing’s stock price actually nearly double again? That does not seem possible, but the company appears poised for another very good year.

Caterpillar

Like Boeing, Caterpillar benefited from a better global economy this year. Machinery orders have risen and the company should get a further boost from the recent changes to U.S. tax laws. Because U.S. companies can now expense certain capital purchases and a proposal to spend big on the nation’s infrastructure is reportedly on its way from the president’s desk, Caterpillar’s outlook for 2018 is also bright.

Visa

Along with virtually every other financial sector stock, Visa is expected to benefit significantly from the recent changes to the tax laws, primarily from the changes to the tax on repatriated cash. Goldman Sachs announced on Friday that it will take a hit of $5 billion as a result of the new laws, but what it did not say is that once that charge is in the rear-view mirror, the outlook for financial sector stocks is strongly upbeat. And what will Visa and the rest do with all that new cash? Shareholders will be among the first in line and will expect to be rewarded.

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The Worst 5 DJIA Stocks of 2017 Apple

Despite being the world’s most valuable company at around $865 billion, the iPhone maker managed to grow its share price by 46% in 2017. That’s not easy to do, especially with every analyst professional and amateur ready to jump on any signal that the company is doomed doomed, we tell you. Apple, too, has a huge pile of offshore cash that shareholders are going to want to see divvied up in the coming year to include a nice payout for themselves. The big question for 2018 is when Apple will hit $1 trillion in valuation.

Walmart

Walmart did not prove this year that traditional brick-and-mortar retail can overcome the challenge from e-commerce giant Amazon.com. What it did prove, however, is that it could meet Amazon on its competitor’s own turf and not get buried when the dust settled. Walmart invested heavily in its online businesses this year and will probably need to do so again in 2018. But its cash flows have stabilized and appear to be up to the task.