Everyday I’m looking at press releases and the financials of companies looking for potentially good stocks. Most everyday, I find nothing. Here are a few of today’s notes and notable news stories and the kinds of things I look at on a daily basis. Most days are lipstick on a pig news coming from the mainstream financial media. Sometimes, you just want to throw your pen at the monitor and say, “I give up” and walk away from the trading station and the constant stream of BS masquerading as news you can make investing decisions from. I had one of those days today.
General Electric (GE) stock traded higher today after JPMorgan analyst Stephen Tusa changed his rating on the stock for the first time in two and a half years. Tusa lifted his rating to “neutral” from “underweight” saying that the “known unknowns” surrounding the company are now easier to quantify.
“Key to the story, in our view, is the outcome of ‘known unknowns’ in near term, which are better understood and around which debate is more balanced, as opposed to being overlooked by most bulls in the past,” Tusa said. “We now believe a more negative outcome one these liabilities (equity dilution is one) is at least partially discounted, and it’s possible the company can execute its way through an elongated workout that limits near-term downside.”
Many analysts are stating that the bottom is finally in for GE stock. What a dumb and irresponsible call to make IMO.
I wonder if the analysts that say a bottom is in for GE stock are putting their own money at stake or just their clients? There’s no way someone should be calling a bottom in GE stock after just today’s price action. GE stock may begin the long process of chopping out and putting in a bottom, but to call a bottom in GE right now is way premature and nobody should be trading money like that. Scientists say the universe is made up of Protons, Neutrons, and Electrons. They forgot to mention Morons.
XPO stock targeted by short sellers Spruce Point who issued a Strong Sell rating in a report entitled “Trucking Ridiculous; End of the Road” with 40-60% intermediate downside risk and up to 100% long-term downside. CRAP! We are down -50% in the XPO position since I added to the long-term buy and hold portfolio! XPO was a buyout rumor play as I wrote here back in December of 2017. Screw you guys who bashed me for no longer following rumors in 2018. Stuff like this is why! It was probably a fake rumor started by XPO to pump it’s stock, ok, I’m not saying that’s for real, I don’t know and don’t want to get sued by XPO but suffice to say, NO MORE BUYOUT RUMORS trading for me! I’m dumping this POS from the long-term buy and hold portfolio!
Juniper (JNPR) investors were hopeful that Amazon (AMZN) would revive its business as AWS had been purchasing Juniper routers. However, that looks wishful thinking by Juniper bulls as Amazon’s AWS has been replacing some of its Juniper routers and switches with its own custom-designed hardware over the past few quarters.
Reality check peeps. Then end-game of Amazon (AMZN) is to eventually replace ALL high-margin products sold either through AWS services or over their Amazon consumer products website, with their own in-house Amazon made products! Haven’t you noticed that more and more products are being made by Amazon itself?! Eventually, Amazon is going to expand and become a manufacturer of most lucrative consumer products. Remember, Jeff Bezos is an a**hole which is proven by the fact that he bought a failing Democrat leaning newspaper just so he could attack the President. It takes a pretty big arrogant a**hole to do something like that which is why you should buy Amazon stock because everybody knows that it’s the biggest exploiting corporate globalist aholes that win. BEZOS IS GOING TO RULE THE UNIVERSE!
AbbVie announced a $5 Billion increase to its stock repurchase program. Right because who doesn’t like a company who is buying back shares with investors money, while its insiders are selling at the same time? From a share-structure perspective, this stock’s carved in butter.
Clovis Oncology (CLVS) announced CHMP granted a positive opinion for a new indication of Clovis Oncology’s Rubraca® (rucaparib) tablets as maintenance treatment for women with relapsed ovarian cancer.
CLVS has the best PR writers. Every PR seems so amazing yet the stock keeps trending lower over the long-run. Perhaps they should stop diluting shares each year or maybe if you’re on a beginning-of-year diet, you don’t mind a shrinking piece of a growing pie.
CTI BioPharma (CTIC) announces restructuring plan of laying off half of workforce to save cash for lead drug trial.
After going from 11.4 million shares outstanding to more than 61 million shares outstanding over the last 6 years with nothing to show for it, the company fires half its workers, dims the lights and bets it all on one last shot on a drug trial. Oh, you like to live dangerously too?
Diffusion Pharmaceuticals announces a 1-for-15 reverse stock split to comply with the Nasdaq for a continued listing on the exchange.
In 2013, the stock has 23,000 shares outstanding. Today it has more than 51 million shares outstanding and no earnings to show. So let me get this straight. Let’s dilute the shares down to a value of $0.20 and increase the shares outstanding to over 51 million, then let’s reverse stock spit the shares back up to a higher price which reduces the outstanding shares too. Diluting shares and then reverse splitting them back up over and over again should be illegal IMO. It’s shuck and jive at its finest.
Gardner Denver (GDI) acquired MP Pumps for $58 million. Diluting stock to overpay for a company, to boost stagnant revenue, thereby increasing the Debt to Equity ratio to more than 1.08, in a rising rates environment with an economy that is slowing, what could go wrong?
PPG Industries (PPG) said today that it plans to invest in “automated dispense cell manufacturing” for automotive parts and accessories. However, it’s not disclosing how much it plans to invest to investors. So exactly what is this fancy sounding “automated dispense cell manufacturing”?
Check out this description:
“Dispense cell technology enables PPG to dramatically accelerate production and approval of paint batches for vehicle original equipment manufacturers (OEMs) and component suppliers. The technology allows coatings components to be automatically drawn from storage vats in the correct proportions and mixed directly in their shipping containers, vastly simplifying and increasing the efficiency of the coatings manufacturing process.”
So it’s mixing paint in a vat. How many of their 47,200 employees does it take to mix paint in a vat? I guess that depends if it’s outsourced to India or Mexico.
“PPG recently launched an APAD dispense cell operation at its San Juan del Rio, Mexico, coatings facility and will begin production on an additional cell in 2019 in Sriperumbudur, India.”
Disclosure: I proudly disclose that I hold no position in any of these stocks, although I have a secret desire to hold shares in Amazon.