Analyst Actions and Breaking News

Overnight Analyst Actions:

Raised: None

Initiates: None

Cuts: None

Overnight Headlines By Ticker:

PLX Protalix Biotherapeutics Inc

12/27 07:30 Receives confirmation of order for over $24M of alfataliglicerase to treat gaucher patients in Brazil

PTLA Portola Pharmaceuticals

12/27 07:49 Price Target raised to $29 from $20 at Credit Suisse, reiterates Neutral rating

SGEN Seattle Genetics

12/27 08:00 Announces clinical hold on several Phase 1 trials of Vadastuximab Talirine after deaths [SELL NO LONGER COVERING]

12/27 07:55 Trading halted; news pending; to resume trading at 08:30ET

Stock Market Forecast Show For Week Of December 27 2016

The weekly Saturday night stock market prediction show attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators.

The top catalysts and stock picks posted on the GuerillaStockTrading blog are reviewed on the show.

This week’s show features commentary on the so-called “Trump Bump” and what it means for the market going forward. Economic analysis of the US economy shows the economy is not doing good at all and the divergence between the economy and stock market is going to resolve itself in a market correction eventually.

The sell-off in biotechnology stocks is also discussed and why now is a great time to buy biotech stocks.

Calavo Growers Price Target Raised to $75 from $70 at DA Davidson

December 21, 2016: DA Davidson raised Calavo Growers price target to $75 from $70, and they reiterated their Buy rating. DA Davidson FY17 EPS is increased to $2.60 from $2.35 and FY18 EPS estimate is set at $2.85.

December 20, 2016: Calavo Growers beats on earnings coming in at Q4 EPS of $0.53 versus the $0.47 estimate. Revenue also beat coming in at $247.7 million versus the $232 million estimate.

December 19, 2016: Effective January 6th, 2017, Kenneth J. Catchot will resign as President and Chief Operating Officer of Calavo Growers, Inc. (Calavo) and assume a senior management position with FreshRealm, LLC (FreshRealm), in which Calavo holds a 46% ownership interest. FreshRealm is a California-based company that provides an online marketplace and home delivery system offering consumers an assortment of premium meal choices.

Following Mr. Catchots resignation, Lecil E. Cole will serve as Calavos President in addition to continuing to serve as Calavos Chief Executive Officer and Chairman of the Board of Directors.

December 15, 2016: Davidson raised Calavo Growers to a Buy rating from Neutral, and sets a price target of $70. Davidson said they upgraded Calavo Growers on valuation now that the Mexican strike has been resolved.

December 5, 2016: Calavo Growers has formed a beautiful candle over candle reversal as Vertical Group initiates coverage of Calavo Growers with a Buy rating and a price target of $64.

November 11, 2016: Stephens raised Calavo Growers to an Overweight rating from Equal Weight.

November 3, 2016: Calavo Growers acquires 128,000 square feet Riverside, Calif. production facility for $19.4 million. The newly acquired production facility will further enhance the national footprint for the company’s Renaissance Food Group, LLC (RFG) business segment and position the segment to serve its growing customer base across the southwestern United States.

The acquired facility, which totals approximately 128,000 square feet situated on about 11 acres, was previously owned and operated by affiliates of the former Fresh & Easy Neighborhood Markets.

The company described the new facility as nearly turnkey, which will allow RFG to quickly expand capacity and meet growing demand among current and new customers for its fresh, value-added packaged fruit and vegetables, ready-to-eat salads and prepared foods offerings. The facility’s state-of-the-art design allows for an efficient start up, optimal food-safety measures, and quality production flow. Its physical location, in Southern Californias burgeoning Inland Empire region, is highly sought after for its prime interstate and rail access.

The new Riverside facility follows the recent addition of a 209,000 square foot production and distribution center near Jacksonville, Fla. and the new renovation and expansion of the 89,000 square foot manufacturing facility in Houston, Texas.

Total transaction consideration approximated $19.4 million, according to the company. Calavo reported that it purchased the facility through a variable interest entity created to effect a potential like-kind exchange under Section 1031 of the Internal Revenue Code.

Calavo Growers, Inc. is a global avocado-industry leader. The company also procures and markets diversified fresh produce items, ranging from tomatoes to tropical produce. Calavo’s two principal business units – fresh avocados and processed products – supply wholesale, retail, foodservice distributors and operators and industrial. The company’s processed products division manufactures nearly 100 brand name and proprietary flavors of frozen and fresh-refrigerated guacamoles using ultra-high-pressure technology from a new, state-of-the-art 90,000-plus square foot production facility in Uruapan, Michoacán, Mexico. In supermarkets, Calavo’s great-tasting fresh-refrigerated guacamole is available to consumers nationwide. And, consumers of Calavo fresh avocados now span the globe, from Japan to Europe and beyond.

Republicans In Congress Need To Be Re-Educated On International Trade

Barron’s just released a cover story that suggests that President-elect Donald Trump should take steps to make U.S. trade policy freer than it is now after a backslide during the past 15 years. Barron’s goes on to assert that any aggressive push by Trump to hike tariffs will face resistance from a Republican-dominated Congress that has traditionally supported trade liberalization.

Republicans in Congress need to be re-educated on “trade liberalization” else face the end of their political careers at the hands of the American people. Whether you like Donald Trump or not, one thing Trump made clear is that the American people have to take a more active role in holding their elected leaders accountable for the outsourcing of American jobs.

Specifically, make sure that your Republican representative gets educated on why “free trade” (or trade liberalization) hasn’t lived up to the promise by sending them this article I published here. We have new economic data that explains why “trade liberalization” in its current form does not work for the American people. Anyone who is still for “free trade” in its current form is either corrupted by a foreign entity, or simply ignorant about the latest findings in the science of Economics.

China Seeking To Buy US Stock Market In Huge Proof Of Corruption

The Committee on Foreign Investment in the United States (CFIUS) just did the unthinkable last week by deciding there are “no unresolved national security concerns” over the deal to sell the 134-year-old Chicago Stock Exchange to the Chinese.

Every common red-blooded American knows that selling the Chicago Stock Exchange to the Chinese represents the largest national security threat to the US in the last decade. It’s unthinkable that a communist country who is ideologically opposed to freedom and Democracy and who just last week seized an American underwater drone in neutral international waters would be approved by the US government to purchase the Chicago Stock Exchange.

China’s military has repeatedly harassed US ships in international waters over the last year.

How Deep Does the Corruption of the US Government By the Chinese Go?

The US government has apparently been infiltrated by Chinese interests. The fact that the Chinese bought influence and power inside the US government was made evident during both Democrat and Republican administrations who sold out US workers by closing some 60,000 manufacturing plants and moving more than 5 million manufacturing jobs to China since 2001.

Since 2001, China has invested more than $70 billion in the US, including more than $15 billion last year alone according to the China General Chamber of Commerce which operates inside the US. ChicagoBusiness writes

Its Chicago chapter, led by Wanxiang America President Pin Ni, attracted some 400 local politicians and executives to its annual Aug. 3 gala to build business ties between the city and China. Chicago power brokers were there in full force with Mayor Rahm Emanuel, his investment banker deputy, Steve Koch, World Business Chicago CEO Jeff Malehorn and former Mayor Richard M. Daley, who consults on Chinese business through Tur Partners, as well as his brother, former U.S. Commerce Secretary Bill Daley.

The Chinese have demonstrated time and time again that they are not America’s friend. How then could the sale of the Chicago Exchange to a communist government that is hostile towards the US not be a national security threat?

What has been clear during both Republican and Democrat administrations is that people inside the US government are for sale and that’s the textbook definition of corruption.

The Committee on Foreign Investment in the United States (CFIUS) should be investigated for corruption by foreign powers. The people that sit on the Committee need to be examined to see if they received large bank deposits or other “favors” from the Chinese.

Who Sits On the Foreign Investment in the United States Committee

Chaired by the United States Secretary of the Treasury, the Foreign Investment in the United States Committee (CFIUS) includes representatives from 16 U.S. departments and agencies, including the Defense, State and Commerce departments, as well as (most recently) the Department of Homeland Security.

As Secretary of State, Clinton was one of nine voting members of CFIUS in 2010 that approved the sale of uranium to the Russians, which was then approved by President Obama. Money then flowed from the Russian-controlled company Uranium One to the Clinton Foundation. The New York Times wrote about the scheme here.

Let The Chicago Exchange Fail

The Chicago Stock Exchange should be allowed to fail if it can not stay competitive in a free market. Selling every struggling American company to the Chinese is how America slowly gets taken over by a foreign power.

Folks whenever you see a US government agency like CFIUS make an irrational decision that sells America out, chances are you will find a money trail that shows influence and corruption amongst that US government agency. Everybody elected or appointed to a government office is trying to get rich, just like we are, and they are willing to make wrong decisions for America, to achieve that end.

Stock Market Forecast For Week of December 19 2016

A weekly Saturday night financial show that attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators. This week’s show includes commentary on the Fed’s first and only rate hike in 2016, Eli Lilly’s long-acting Basal Insulin that’s now available in the US, takeover rumors circulating about Qorvo, Protalix Biotherapeutics $24 million order to treat Gaucher patients in Brazil, the FDA approval of Vericel’s Maci for the repair of cartilage defects of the knee, Silicon Motion’s supplying of SSD solutions to the Alibaba Group, and more.

Stock Market at All time Highs! Are We In a Giant BUBBLE?

With the stock market hitting all-time highs, everybody wants to know if we are in a giant bubble.

You can’t trade and make money if you’re not in the market. If the fear that we are in a bubble is keeping you out, then you’re not making money.

The honey badger doesn’t care. The honey badger loves to climb walls of worry.

You can get an early read on which way the market is headed by tracking transports. Fedex is a bellwether stock in the transports industry.

The chart of FedEx just did a breakout above 180 and hit a new high. The rising Twiggs Money Flow shows FedEx is under heavy accumulation.

Remember folks, bull markets don’t die of old age, they are murdered by the Fed.

The chart below shows profit margins [blue] are falling as employee compensation [brown] rises.

Since 2015, employee compensation has started to recover as the labor market tightens and corporate earnings are falling (as a % of Net Value Added).

If you look back to the 1960s, you can see that when the labor market reaches capacity, profits fall as labor costs rise. The Federal Reserve intervenes to battle inflation from rising wages which will cause the next recession. The Fed does not usually intervene in a meaningful way until wages rise above 74% of corporate profits. In other words, we have a long way to go regarding rising wages before the Fed is going to hike rates so high that it causes the next recession.

Financial Education posted this video on if we are in a giant bubble. While I don’t agree with everything he says, he does make some good points IMO.

Stock Market Prediction Show For the Week of December 12 2016

A weekly Saturday night show that attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators.

This week’s show features Trump’s comments about bringing down drug prices, the incredible trial results from Bellicum Pharmaceuticals that cured all 35 children in the trial, takeover rumors surrounding Depomed, Hooker Furniture crushing earnings and revenue estimates, the candle over candle reversal on Cytosorbents after they received a new reimbursement code from Germany, Volaris candle over candle reversal after they announced a new flight route called Volaris Costa Rica, Calavo Growers candle over candle reversal after receiving a Buy rating from Vertical Group, and more.

Manpowergroup JP Reiterates Overweight, Price Target $100

December 6, 2016: Analysts are upgrading temporary work hiring with the idea that a Trump Administration will focus on domestic job growth. JPMorgan just reiterated their Overweight rating on ManpowerGroup and set a price target of $100. What I like about ManpowerGroup is their remarkable valuation with a P/E of 14 and a forward P/E of 13.3 even though the stock is already up +22% in Q3.

December 5, 2016: ManpowerGroup’s price target was raised to $109 from $91 at Piper Jaffray. Piper also reiterated their Overweight rating.

October 21, 2016: ManpowerGroup beats on earnings, reporting Q3 $1.87 versus the $1.72 estimate. Revenue also beat coming in at $5.09 billion versus the $4.93 billion estimate.

The CEO says, “As we look to the fourth quarter we are well placed to seize further opportunities across all our brands.”

ManpowerGroup® is the world’s workforce expert, creating innovative workforce solutions for more than 65 years. ManpowerGroup has grown from one office in Milwaukee, Wisconsin in 1948 to a $19 billion business that works with 400,000 clients and 3.4 million associates each year.