There is a lot of uncertainty surrounding Tesla Motors Inc�(NSDQ:TSLA)�today. Will the company be able to produce enough Model 3�sedans to meet investor expectations? Will the merger with SolarCity cause debt payments to become too high? Will General Motors, with the electric Bolt, win the electric vehicle market? Another uncertainty, I would add is how will a Trump Administration effect Tesla's profitability?
In the analysis below, I will discuss how changes in government policy may impact Tesla. I will assume that Tesla and SolarCity will merge and the combined company will have three divisions: Vehicles (Tesla Motors), solar installation (Solar City) and solar panel production.
Tesla MotorsIn Tesla's vehicle business, government policies provide two sources of revenue. The first comes from zero emission vehicle (ZEV) credits. The�California Air Resources Board (CARB) manages the ZEV program which requires automakers to sell zero emission cars and pick up trucks in California. For each electric vehicle sold, an automaker receive ZEV credits based on auto range. �Tesla receives 3.3 ZEV credits for each Model S while GM receives 1.8 ZEV credits for each Bolt sold.
Top 10 Defense Stocks To Own For 2017: Humana Inc.(HUM)
Advisors' Opinion:- [By Ben Levisohn]
The Wall Street Journal reported that government regulators are pushing back against Anthem’s (ANTM) purchase of Cigna (CI). California, however, seems to have few issues with the proposed combination of Aetna (AET) and�Humana (HUM). Leerink’s Ana Gupte explains:
- [By Lisa Levin]
Humana Inc (NYSE: HUM) delivered better than expected results for the third quarter. However, the company’s adjusted EPS forecast came in below the estimates.
- [By Ben Levisohn]
How good were UnitedHealth Group’s (UNH) earnings today? So good its stock has jumped the most in more than six years–and lifted competitors like Humana (HUM), Cigna (CI), Aetna (AET), and Anthem (ANTM) as well. Leerink’s Ana Gupte explains why the market is in love with UnitedHealth’s earnings:
- [By Ben Levisohn]
Clinton 15 stock basket (DBUSCLNT): UnitedHealth Group (UNH), Humana (HUM), McKesson (MCK), Aecom (ACM), Quanta Services (PWR), ExxonMobil (XOM), Alcoa (AA), NextEra Energy (NEE), Cree (CREE), First Solar (FSLR), Facebook (FB), Netflix (NFLX), Prudential Financial (PRU), Citigroup (C), Union Pacific (UNP).
- [By David Zeiler]
Aetna is the focus of the senators' wrath, but four of the five largest U.S. health insurers have a stake in this fight:
No. 3 Aetna is attempting to acquire No. 5 Humana Inc. (NYSE: HUM); andNo. 2 Anthem Inc. (NYSE: ANTM) is seeking to acquire No. 4 Cigna Corp. (NYSE: CI).Related: Why the Cost of Obamacare Plans Will Continue to Skyrocket
Top 10 Defense Stocks To Own For 2017: Sanofi(SNY)
Advisors' Opinion:- [By Keith Speights]
Monitoring closely
I suspect that several companies were carefully monitoring what Keryx had to say this week. Sanofi (NYSE: SNY ) could be one of them. Zerenex will compete head-to-head against�its (NYSE: SNY ) Renvela. The French company's drug requires more intravenous iron and erythropoiesis-stimulating agents than Zerenex, so that could give a leg up to Keryx in the marketplace. - [By Emily Stewart]
Paulson picked up 395,500 shares of Sanofi SA (SNY) valued at $16.6 million.
Sanofi is a health care company engaged in the research, development, manufacture and marketing of healthcare products. It has a $101.4 billion market cap and trades at a P/E of 21.18.
- [By Monica Gerson]
Medivation Inc (NASDAQ: MDVN) is said to have spurned recent takeover approach from France's Sanofi SA (ADR) (NYSE: SNY), according to sources as reported by Bloomberg on Tuesday. Sanofi wants Medivation's treatments for hard-to-cure cancers, the sources said. Medivation shares surged 8.46 percent to $49.60 in the after-hours trading session, while Sanofi shares fell 0.59 percent to $42.02 in after-hours trading.
- [By Monica Gerson] Related GNCA 20 Biggest Mid-Day Gainers For Friday 15 Stocks Which Plummeted Three Days On Increasing Volume Related BHI A Peek Into The Markets: U.S. Stock Futures Rise Following Strong Chinese Manufacturing Report Benzinga's M&A Chatter for Monday October 31, 2016 Baker Hughes - I Like The Deal With GE On The Back Of De-Risking And Synergies (Seeking Alpha)
Gainers Genocea Biosciences Inc (NASDAQ: GNCA) shares rose 13.3 percent to $4.08 in pre-market trading after the company presented a new 12 month data on genital herpes immunotherapy GEN-003. Baker Hughes Incorporated (NYSE: BHI) shares rose 8.2 percent to $59.00 in pre-market trading. General Electric Co. (NYSE: GE) is said to be in talks to acquire Baker Hughes, according to sources as reported by Dow Jones on Thursday. A deal could be valued at as much as $30 billion, the sources said. However, Bloomberg later reported that a GE spokesperson said they are is in talks with Baker Hughes regarding possible partnerships, but not an acquisition. Sanofi SA (ADR) (NYSE: SNY) rose 8 percent to $40.20 in the pre-market trading after the company posted upbeat quarterly earnings and lifted its full-year profit forecast. Cirrus Logic, Inc. (NASDAQ: CRUS) rose 6.6 percent to $55.20 in pre-market trading after the company reported better-than-expected results for its third quarter. Alliance Resource Partners, L.P. (NASDAQ: ARLP) shares rose 5.3 percent to $24.75 in pre-market trading following results for the quarter ended September 30, 2016. Its net income in the quarter gained 7.7 percent to $89.8 million. Marvell Technology Group Ltd. (NASDAQ: MRVL) rose 5 percent to $13.78 in pre-market trading after dropping 2.09 percent on Thursday. Community Health Systems (NYSE: CYH) rose 4.4 percent to $5.27 in - [By Ben Levisohn]
Reports suggest that Gilead Sciences (GILD) and Celgene (CELG) have joined the bidding process for�Medivation (MDVN), one that already includes (maybe) Amgen (AMGN), and of course Sanofi (SNY), which is trying to throw out Medivation’s board. Of the three biotech giants, Citigroup’s Robyn Karnauskas and team argue that Amgen is best positioned to win the battle. They explain why:
- [By Ben Levisohn]
Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:
Top 10 Defense Stocks To Own For 2017: GTx Inc.(GTXI)
Advisors' Opinion:- [By Roberto Pedone]
One biopharmaceutical player that's rapidly moving within range of triggering a major breakout trade is GTx (GTXI), which is dedicated to the discovery, development and commercialization of small molecules that selectively target hormone pathways to treat cancer, osteoporosis and bone loss, muscle loss and other serious medical condition. This stock has been hammered by the bears so far in 2013, with shares off sharply by 53%.
If you look at the chart for GTx, you'll notice that this stock recently gapped down sharply from over $4 to below $1.50 a share with heavy downside volume. Following that gap down, shares of GTXI have rebounded sharply and started to uptrend, with the stock moving higher from its low of $1.31 to its recent high of $1.96 a share. During that move, shares of GTXI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GTXI within range of triggering a major breakout trade.
Traders should now look for long-biased trades in GTXI if it manages to break out above some near-term overhead resistance at $1.96 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.35 million shares. If that breakout triggers soon, then GTXI will set up to re-fill some of its previous gap down zone from August that started just above $4 a share. Some possible upside targets if GTXI gets into that gap with volume are $2.50 to $3 a share, or possibly even $3.50 a share.
Traders can look to buy GTXI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.50 a share. One can also buy GTXI off strength once it takes out $1.96 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 10 Defense Stocks To Own For 2017: Seaboard Corporation(SEB)
Advisors' Opinion:- [By Cameron Saucier]
Nearly 56% of the fund consists of U.S.-based companies who do business in the Caribbean, including Cuba. Some of its top holdings include:
MasTec Inc. (NYSE: MTZ) (7.63%)Copa Holdings SA (CPA) (6.69%)Royal Caribbean Cruises (RCL) (6.28%)Lennar Corp. (LEN) (5.78%)Seaboard Corp. (SEB) (4.22%)Carnival Corp. (CCL) (3.85%)Currently, CUBA trades at $6.28 per share. The fund hit its 52-week high of $8.49 back when President Obama visited Havana in March. Not many people are currently trading the fund right now – understandably. Its average volume over the past three months is about 19,000.
- [By John Udovich]
Thanksgiving is almost here and aside from featuring a turkey, most Thanksgiving dinners will include items from a range of consumer stocks �� including Campbell Soup Company (NYSE: CPB), Kraft Heinz Co (NASDAQ: KHC), Fresh Del Monte Produce Inc (NYSE: FDP) and McCormick & Company (NYSE: MKC) along with a�Thanksgiving turkey from Hormel Foods Corporation (NYSE: HRL)�or Seaboard Corporation (NYSEAMEX: SEB). According to�the American Farm Bureau Federation,�a classic Thanksgiving dinner will cost�$49.87 for a gathering of 10 or�just under $5 per person��� down from 2015��s all-time high of $50.11.
- [By John Udovich]
Thanksgiving is almost here but the exit of both Pilgrim's Pride Corporation (NYSE: PPC) and Smithfield Foods (NYSE: SFD) to focus on their chicken or pork businesses (the latter was also acquired by the Chinese) leaves just two big Thanksgiving turkey stocks, Hormel Foods Corporation (NYSE: HRL) and Seaboard Corporation (NYSEAMEX: SEB), for investors to consider. According to the American Far Bureau, a 16-pound turkey will (on average) come in at a total of $22.74 this year or roughly $1.42 per pound for a decrease of 2 cents per pound or a total of 30 cents per whole turkey, compared to 2015. The price drop may be a transition back to the norm as the significant bird flu outbreak last year hurt the nation��s supply of both turkey and eggs.
Top 10 Defense Stocks To Own For 2017: Wolverine World Wide, Inc.(WWW)
Advisors' Opinion:- [By Monica Gerson]
Pier 1 Imports Inc (NYSE: PIR) Dec16 5.0 Puts Sweep: 1191 @ ASK $0.80: 1354 traded vs 102 OI: $5.32 Ref Alcoa Inc (NYSE: AA) Jul16 9.5 Puts Sweep: 1494 @ ASK $0.13: 14k traded vs 6682 OI: $10.09 Ref Sarepta Therapeutics Inc (NASDAQ: SRPT) Jul16 10.0 Puts: 3536 @ ASK $0.50: 5506 traded vs 54k OI: Earnings 8/4 $22.50 Ref Tableau Software Inc (NYSE: DATA) Jul16 47.5 Puts Sweep: 837 @ ASK $0.30: 995 traded vs 37 OI: Earnings 8/3 $50.60 Ref Yandex NV (NASDAQ: YNDX) Aug16 18.0 Puts Sweep: 532 @ ASK $0.30: 2143 traded vs 78 OI: Earnings 7/28 Before Open $22.02 Ref Wolverine World Wide, Inc. (NYSE: WWW) Aug16 22.5 Puts: 719 @ ASK $1.35: 1032 traded vs 0 OI: Earnings 7/19 $22.22 Ref Conn's Inc (NASDAQ: CONN) Jan17 5.0 Puts Sweep: 605 @ ASK $0.85: 1355 traded vs 3132 OI: $7.16 Ref
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Monday’s regular session.Posted-In: Huge Put PurchasesNews Options Markets
Top 10 Defense Stocks To Own For 2017: American Tower Corporation (REIT)(AMT)
Advisors' Opinion:- [By Michael Flannelly]
Before the bell on Monday, analysts at Nomura Securities upgraded telecommunication tower site operator American Tower Corp (AMT) due to an industry wide upgrade of telecom tower operators, including the non-dividend paying companies SAB Comm (SBAC) and Crown Castle (CCI).
The analysts upgraded AMT from “Neutral” to “Buy” and now see shares reaching $90, up from the previous price target of $85. This new price target suggests a 22% upside to the stock’s Friday closing price of $73.71.
“Tower industry revenue grew over 20% in 1H13, helped by strong carrier network spending and tower acquisitions,” Nomura analyst Adam Ilkowitz noted. “On an organic basis, we believe site rental revenue growth of ~11% for the tower operators is a sign of the health of the U.S. wireless industry and elevated capital spending. After 30% portfolio growth in 2012 across the three tower operators, profitability is recovering from diluted levels. Despite a still-tepid global economy, carriers are investing in their networks to respond to consumer demands and traffic growth. With our positive outlook and upwardly revised estimates, we are increasing our target prices for AMT and SBAC both from $85 to $90 and raising AMT to a Buy. We are raising our 2014 AFFO estimates for all three operators given strong activity levels and announced acquisitions.”
Furthermore, the analysts at Nomura lowered AMT’s fiscal 2013 adjusted funds from operations (AFFO) estimates from $3.69 to $3.65, but raised its fiscal 2014 AFFO estimates from $4.25 to $4.50.
American Tower Corp shares were inactive during pre-market trading on Monday. The stock is up 22.83% year-to-date.
- [By Matthew Smith]
The two names which come to mind as potential buyers are American Tower (AMT) and Crown Castle International (CCI) as the assets would be natural for them to purchase. It would be a large transaction though which would be about 1/6th the current market cap of American Tower and 1/4th the size of Crown Castle's market cap. Another possible buyer could be a hedge fund, and although there are few names out there specializing in this industry, at the end of the day it is a real estate game and all about the leverage and cash flows. Readers should watch this story because if AT&T does in fact sell its towers, it might be set to make a move on the chess board.
Top 10 Defense Stocks To Own For 2017: Lumber Liquidators Holdings, Inc(LL)
Advisors' Opinion:- [By Monica Gerson]
Lumber Liquidators Holdings Inc (NYSE: LL) is projected to report a quarterly loss at $0.24 per share on revenue of $237.44 million.
Fossil Group Inc (NASDAQ: FOSL) is estimated to post its quarterly earnings at $0.15 per share on revenue of $666.60 million.
Top 10 Defense Stocks To Own For 2017: CVD Equipment Corporation(CVV)
Advisors' Opinion:- [By Jim Robertson]
On Wednesday, our Under the Radar Movers�newsletter suggested small cap materials and coatings stock CVD Equipment Corporation (NASDAQ: CVV) as a short/bearish trade:
- [By Jim Robertson]
At the beginning of the week, our Under the Radar Movers�newsletter suggested�small cap industrial machinery stock CVD Equipment Corporation (NASDAQ: CVV) as a long/bullish trade:
Top 10 Defense Stocks To Own For 2017: Kate Spade & Company(KATE)
Advisors' Opinion:- [By Ben Levisohn]
Shares of Michael Kors Holdings have soared 24% to $49.99 at 3:23 p.m. today, while Kate Spade (KATE) has risen 1.9% to $18.19, and Coach (COH) has dropped 0.5% to $37.02.
- [By Ben Levisohn]
Coach shares likely to take a breather here after recent slew of sell-side upgrades and expectations already raised heading into the print. We thought the Kate Spade (KATE) news last week might have lowered the bar somewhat for Coach but a 2% US comp (despite a flat comp at factory) was at the low end of client expectations and initial FY2017 EPS guide seems in-line with prior guidance.
Top 10 Defense Stocks To Own For 2017: Tobira Therapeutics, Inc.(TBRA)
Advisors' Opinion:- [By Benzinga News Desk]
Allergan (NYSE: AGN) acquired Akarna Therapeutics global rights to AKN-083 for up-front payment of $50 million. This came just hours after Allergan bought Tobira Therapeutics (NASDAQ: TBRA) for upfront Payment of $28.35 share in cash, up to $49.84 per share in CVRs.
