Stock of the Week

Valeant Pharmaceuticals International (VRX): November 6 – November 10

Valeant Pharmaceuticals (VRX)

Valeant Pharmaceuticals (VRX) develops, manufactures and markets a broad range of pharmaceutical products in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. The company was founded on March 29, 1994 and is headquartered in Laval, Canada.

Significant Developments

The Trump Rally is Over, Get Defensive

November 15, 2017 (8:am U.S. Eastern Time): After rising sharply from the day that Donald Trump was elected as the 45th U.S. President on November 8, 2106 through November 8 of this year, the trading action in the U.S. stock market, as well as the readings on several reliable economic indicators, suggest that the Trump Rally has ended and that U.S. stocks will pull back sharply over the next few months. Therefore, we’re advising subscribers to our investment journals to get defensive, by allocating a large portion of their financial market assets to money-market securities and consumer staple stocks.

U.S. Economic Developments

U.S. Political Developments

Earnings Announcements

167 Companies Report Third Quarter Earnings

10/25/17: 167 Companies Report Third Quarter Earnings, Including Boeing (BA), Coca-Cola (KO), Ethan Allen (ETH), Freeport-McMoRan (FCX), Norfolk Southern (NSC), Owens Corning (OC), Public Storage (PSA), Tractor Supply (TSCO), and Wyndham Worldwide (WYN) Click here for...

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International Economic Developments

Great Britain Retail Sales Fall Sharply during October

11/16/17: The United Kingdom’s Office of National Statistics reported today that sales at Great Britain’s retail stores fell during October, on a year-over-year basis, for the first time since March 2013. Excluding sales of fuel, the country’s retail sales declined...

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International Geopolitical Developments

Company and Stock News

November 16, 2017 Company and Stock News

November 16, 2017
  • General Electric (GE): Moody’s Investors Service announced that it downgraded its long-term credit rating on General Electric Company to A2, from A1, as a result of a “severe deterioration in the financial performance of GE’s Power segment” that it expects to last through at least 2019. Moody’s added that it anticipates that GE will fail to allocate a meaningful portion of any proceeds from the company’s planned asset disposals to debt reduction in the near term to help expedite the restoration of its credit ratings.
  • Emerson Electric (EMR) and Rockwell Automation (ROK): Emerson Electric Co. and Rockwell Automation, Inc. announced that Emerson made a proposal to acquire all of Rockwell’s outstanding stock for $225 per share, consisting of $135 per share in cash and $90 per share in Emerson shares, in a deal valued at approximately $29 billion.
  • Allstate (ALL): The Allstate Corporation announced that it incurred $516 million of catastrophe losses ($335 million after income taxes) during October due primarily to wildfires in California.
  • Hess (HES): Hess Corporation announced that it plans to reduce its debt by $500 million and to repurchase $500 million of its stock by the end of 2018. The company stated that it plans to increase its drilling rigs in the Bakken to six rigs, from four rigs, and to prefund its oil development in Guyana.
  • Caesars (CZR): Caesars Entertainment Corporation announced that it entered into a definitive agreement to acquire Centaur Holdings, LLC, a privately-owned global investment holding company, for $1.7 billion in cash. As a result of the acquisition, Caesars will add Hoosier Park Racing and Casino in Anderson, Indiana, and the Indiana Grand Racing and Casino in Shelbyville, Indiana to its Total Rewards network.
  • Comcast (CMCSA), 21st Century Fox (FOX) and Verizon (VZ): Reuters reported that Comcast Corporation and Verizon Communications Inc. expressed an interest in acquiring a significant portion of Twenty-First Century Fox’s assets.
  • PayPal (PYPL) and Synchrony Financial (SYF): PayPal Holdings, Inc. and Synchrony Financial announced that they entered into an agreement to expand their strategic consumer credit relationship. Under the terms of the agreement, Synchrony Financial will acquire $6.8 billion of PayPal’s accounts receivables and approximately $1 billion in participation interests in the company’s receivables held by certain investors and a chartered financial institution. Separately, PayPal announced that it increased its earnings and revenue estimates for the quarter ending December 31, 2017 to earnings per share in a range of $0.52-$.59 on revenues of $3.64-$3.70 billion, from an earlier estimate of earnings per share of $0.37-$0.39 on revenues of $3.57-$3.63 billion.

Investors Monitor 20

Investors Monitor Grade

Company NameTicker SymbolSector / IndustryComposite Fundamental RatingProductFinancial LiquidityLong-term DebtProfit MarginsSales & EPS Growth (Qtrly)Institution Buys to Sells
Alarm.Com HoldingsALRMHome SecurityB-AA+CCBB
Applied OptoelectronicsAAOIFiber OpticsA-A+A+A+B+A+B+
Arista NetworksANETNetwork AppsA+AA+A+AA+A
Control4 CorporationCTRLHome DevicesB-AA+A+CCA
Floor & Décor HoldingsFNDHome FlooringB-AB-C-CA+B+
GigamonGIMONetwork TrafficA-AA+A+B+AC+
GrubHubGRUBMobile OrdersB+A+A+BB+AC
Kornit Digital, Ltd.KRNTTextile PrintingC+AAA+n/aCD
Malibu BoatsMBUUBoat Mfg.C+AB-C-B-CD
Masimo CorpMASIMedical DevicesA-AA+A+ABB
Momo Inc.MOMOSocial MediaA+AA+A+A+A+A
Ollie’s Bargain OutletOLLIDiscount StoresB+B+A+AB+AC+
QualysQLYSInternet SecurityA-AA+A+B+AC
Sears HoldingsSHLDRetail StoresC+BBD+TurnAroundTurnAroundA
SolarEdge TechnologiesSEDGSolar PanelsA+AA+AAAA
Stanley FurnitureSTLYFurnitureBABATurnAroundTurnAroundB-
The Trade DeskTTDAdvertisingB+AA+A+C+AB
Weibo CorporationWBSocial MediaA+AA+A+A-A+A
Winnebago IndustriesWGORV Mfg.C-AC+DCCC
Yelp Inc.YELPOnline ReviewB-A+A+A+N/AB-C
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