(Reuters) – Shares of Eastman Kodak Co surged more than 40% on Wednesday after an independent review cleared its chief executive of insider trading in relation to a $765 million U.S. government loan to produce pharmaceutical ingredients.
The review by Washington-based law firm Akin Gump, published on Tuesday, found securities transactions made by Chief Executive Jim Continenza around the time of the loan did not violate internal policies, but found certain « gaps » in Kodak’s insider trading processes.
If premarket gains hold, it will mark Kodak’s best day since late-July, when news of the deal catapulted the stock to $30 a share from $2 in just three sessions, partly due to retail investors on the Robinhood trading app piling into the shares.
Kodak, once an industry leader in cameras and the imaging business but long in decline as a global name, has since lost about 80% of its market capitalization as the transaction came under scrutiny from the federal government.
The White House said last month the loan would not proceed unless the company is cleared of the alleged wrongdoing.
« Whether the U.S. government accepts this analysis and restores its business relationship with the company remains an open question, » said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey
« For now, investors seem to feel it is worth speculating on given how high the stock rose on the initial news of the loan. »
Short interest in the company – reflecting bets that its stock would decline after hitting the highs in July – had jumped to about 22% as of Aug. 31, according to Refinitiv data, from nearly 4% on July 16.
One San Francisco accountant finishes every client conversation with a discussion about what a Biden administration could mean for portfolios.
It’s a clear demonstration of continued strong investor interest in both cloud-based software stocks and companies with very high top-line growth rates.
JFrog will list on Nasdaq with the symbol FROG. The company posted revenue of $69.3 million for the six months ended June 30.
JPMorgan Chase & Co (NYSE: JPM) says it has noticed a troubling pattern with its work-from-home employees, particularly those who are of a younger age, Bloomberg reported Monday.What Happened: CEO Jamie Dimon told analysts Keefe, Bruyette & Woods in a private meeting that productivity was particularly affected on Mondays and Fridays, according to Bloomberg. »The WFH lifestyle seems to have impacted younger employees [at JPMorgan], and overall productivity and ‘creative combustion’ has taken a hit, » KBW Managing Director Brian Kleinhanzl wrote to clients in a note, citing the meeting with Dimon.JPMorgan spokesman Michael Fusco told Bloomberg that the productivity of employees was affected « in general, not just younger employees, » but added that younger workers « could be disadvantaged by missed learning opportunities » as they were not in offices.Why It Matters: The New York-based lender informed most senior sales staff and trading employees that they would be required to return to offices by Sept. 21, Bloomberg noted.Workers in other roles are reportedly being encouraged to return to their desks up to a maximum of half building capacity in New York.CEOs across the corporate world have a different take on the work from home environment. »I felt that, given a lot of our work could be done from home, it made sense for us to contribute to social distancing, » Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) CEO Sundar Pichai said in May in relation to the pandemic.Amazon.com, Inc (NASDAQ: AMZN) CEO Jeff Bezos wrote in a note to employees in March, « Much of the essential work we do cannot be done from home. » The e-commerce giant purchased 900,000 square feet of office space in six cities in the United States last month.Facebook Inc (NASDAQ: FB) has also been expanding its office space taking advantage of the pandemic. A company spokesperson said on the development that its offices are « vitally important to help accommodate anticipated growth and meet the needs of our employees that need or prefer to work from campus. »Price Action: JPMorgan traded nearly 0.3% higher at $102.80 in the pre-market session on Tuesday.See more from Benzinga * JPMorgan Removes Employees Who Pocketed COVID-19 Small Business Relief Funds: FT * Online Ad Giants Taboola, Outbrain Backtrack On Merger Plan * Unilever Pledges .2B To Eliminate Fossil Fuels From Cleaning Products Within A Decade(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
GM outlined its biggest challenge to Tesla’s EV dominance Wednesday with a family of five interchangeable drive systems that compliment its new battery technology.
The financial services industry seems very exorcised by a relatively modest proposal in Joe Biden’s tax plan — namely, changing the tax incentive to save for retirement from a deduction to a flat, refundable tax credit. Employers and individuals take an immediate deduction for contributions to retirement plans and participants pay no tax on investment returns until benefits are paid out in retirement. This favorable tax treatment significantly reduces the lifetime taxes of those who receive part of their compensation in contributions to retirement plans relative to those who receive all their earnings in cash wages.
Shares of Tesla Inc. dropped 2.7% in premarket trading Wednesday, to put them on track to snap a 5-day win streak, even as Deutsche Bank analyst Emmanuel Rosner boosted his price target by 33%. The electric vehicle and battery maker’s stock has soared 36.2% over the past five days, to retrace 71.1% of the 34% bear-market plunge from the Sept. 1 record close of $498.32 to the Sept. 8 closing low of $331.21. Rosner raised his stock price target to $400 from $300, but reiterated his hold rating, as his new target is still 11.1% below Tuesday’s closing price of $449.76. Rosner said Tesla could unveil « a new insourced manufacturing system » to ramp up battery capacity, improved cell chemistry that greaty enchances performance and « fast-declining » battery costs at its much-anticipated Battery Day scheduled for Sept. 22. « While media and investors’ expectations for the event are high, we believe these announcements could meet many of them, and reinforce Tesla’s position as a technology leader, » Rosner wrote in a note to clients. « We believe investor ongoing enthusiasm for EV plays and the expected confirmation of ongoing technology lead by Tesla, could continue to support its high valuation. » Tesla’s stock has rocketed 437.6% year to date through Tuesday, while the S&P 500 has gained 5.3%.
(Bloomberg) — Cloud-data software maker Snowflake Inc. raised $3.36 billion in the year’s biggest U.S. initial public offering for an operating company, pricing its shares above the marketed range.The San Mateo, California-based company sold 28 million shares Tuesday for $120 apiece, according to a statement. Snowflake had marketed the shares for $100 to $110 apiece, a range that was boosted from $75 to $85 on Monday.The listing ranks as the biggest U.S. IPO this year, excluding the $4 billion offering by the special purpose acquisition company, or SPAC, backed by billionaire Bill Ackman.Snowflake is valued in the IPO at more than $33 billion based on the outstanding shares listed in its prospectus. That compares with a valuation of $12.4 billion in a private funding round announced in February.It’s a busy week for IPOs as technology and other companies rush to get in the door ahead of the Nov. 3 U.S. presidential election. JFrog Inc., Sumo Logic Inc. and Unity Software Inc. are among 15 companies going public this week, seeking to raise a combined $8.3 billion, according to data compiled by Bloomberg.Snowflake lured Warren Buffett to invest in his first-ever IPO. Berkshire Hathaway Inc. and Salesforce Ventures, an arm of Salesforce.com Inc., have each committed to buy $250 million of the company’s Class A common stock in a private placement. Berkshire has also agreed to buy 4 million shares in a secondary transaction, according to Snowflake’s filing.Snowflake, founded in 2012, is a rare challenger to Amazon.com Inc. as a provider of data warehouse technology, which compiles information from different systems so clients can analyze it together in the same place. In the fiscal year that ended Jan. 31, Snowflake’s revenue soared 174% to $264.7 million compared with the previous fiscal year, the company reported. In the sixth months that ended July 31, sales were $242 million, a 133% year-over-year increase.The offering is being led by Goldman Sachs Group Inc. and Morgan Stanley. Snowflake’s shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol SNOW.(Updates with statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The coronavirus pandemic crisis dealt a hard blow to the airline industry. Disruptions to trade and travel, social lockdown policies, and increased border restrictions were only the beginning of the troubles. Even though income collapsed, the airlines still had to maintain aircraft and hangars, pay leases on equipment and airport space, and meet their debts.But the virus is starting to wane, and economies are coming back – and travel is starting to resume. The big question for the airlines is how many people are willing to book flights? There is no doubt that the pandemic will have cost the industry some potential passengers, people simply no longer willing to fly, but for many others, travel will remain essential. How the industry will look in 2021 is still not clear, as Morgan Stanley transportation expert Ravi Shanker notes: “While the rising industry tide will lift all boats, we recognize that we are not out of the woods yet and that there is likely to be significant volatility in the next six months as the recovery takes shape.”This does not stop Shanker from rating the airline stocks, nor does it stop him from choosing three tickers that are primed for strong gains as the industry comes back to life. Using TipRanks’ Stock Comparison tool, we were able to evaluate these 3 airline players alongside each other to get a sense of what the analyst community has to say.Southwest Airlines (LUV)First on the list is Southwest Airlines, arguably the best airline operating in the US. Southwest has built its reputation on good customer service, and leveraged that to become the world’s largest budget airline. Its success has made it a long-time component of the S&P 500 index, and brought it 47 consecutive profitable years. The travel restrictions put in place to combat the pandemic hurt the airline badly in 1H20. EPS turned negative in Q1, and the in Q2 the loss reached $2.67 per share despite the partial recovery that started in May and June. That was the bad news. On the positive side, Southwest managed to finish the second quarter with plenty of cash on hand – over $14.5 billion in cash and cash equivalents combined. The company also has over $12 billion in ‘unencumbered assets,’ mostly wholly owned aircraft. The healthy liquidity situation has been a boon to Southwest; of the major American airlines, this is the only one with an investment-grade credit rating.Morgan Stanley’s Shanker believes that Southwest is well-positioned to take off as restrictions ease heading into next year. He writes, “LUV is arguably the highest quality airline in the US… As a largely US domestic medium haul airline, we believe its network is in a sweet spot for a COVID rebound and it has… a loyal customer base.” He adds that the airline is especially “able to capitalize on share gain or M&A opportunities as other airlines falter/lag.”In line with his optimism, Shanker rates LUV an Overweight (i.e. Buy). His $54 price target implies a 33% upside for the stock in the coming year. (To watch Shanker’s track record, click here)With 10 « buy » ratings against just 3 « holds, » LUV shares have earned their Strong Buy consensus rating. The stock is selling for $40.50, and the average price target of $43.80 implies that there is room for 8% upside growth. (See LUV stock analysis on TipRanks)Delta Airlines, Inc. (DAL)The next airline on today’s list is Delta Airlines. Even after the coronavirus hit the industry, Delta’s position among the world’s largest airlines is secure; with $21.5 billion in market cap, $47 billion in total revenue last year, and ranks second in total number of passengers carried, fleet size, and revenue per passenger-mile. The airline routes its flights through nine hubs, with Atlanta being the largest.All of that just goes to show the extent of the hit that the pandemic dealt. Delta reported a net loss per share of $4.43 in Q2, and quarterly revenues of $1.2 billion. The company described the magnitude of the pandemic crisis as “truly staggering.”Fortunately for Delta, the company’s sheer size has given it resources to survive the corona crisis. The company took steps in the spring to improve liquidity, drawing on its $3 billion credit facility in March and, in April, issuing $1.5 billion in senior secured notes and opening an additional $1.5 billion in credit. More recently, Delta announced earlier this month that it will be opening another offer of secured notes and entering a new credit facility, with the two total $6.5 billion. That Delta can contemplate such a move despite the deep recent losses, is testament to the company’s fundamental strength as a leader in an essential industry.Shanker rates Delta as another Overweight (i.e. Buy), writing, “DAL has some of the strongest customer satisfaction numbers among the other Legacy peers… With ample liquidity, we see limited liquidity risk here. Additionally, we continue to see DAL’s international alliances and partnerships as strategic assets…” Shanker describes the airline as “our preferred Legacy carrier.” His $50 price target indicates confidence in a 48.5% one-year upside.Overall, the analyst consensus on Delta is a Moderate Buy, based on 7 review which include 5 Buys and 2 Holds. The stock’s trading price is $32.82; the average price target of $39.17 suggests it has room for 16% upside growth in the next 12 months. (See DAL stock analysis on TipRanks)JetBlue Airways Corporation (JBLU)Last up from out list of Morgan Stanley airline picks is JetBlue, another major name among the budget carriers. JetBlue is the seventh largest US airline, as ranked by passengers carried. The company, before the crisis, operated over 1,000 daily flights to destinations in the US and Latin America.Unsurprisingly, earnings took a hit in the second quarter due to the effects of the pandemic. JetBlue reported a loss of $2.02 per share, on revenues of $215 million. The top line is down 89% since the end of 2019.On some positive notes, JetBlue was the first major US carrier to implement a UV cabin cleaning system in response to the viral pandemic. The company undertook this step back in July, and boasts that it can use the system to clean an airliner cabin in just 10 minutes. And more recently, in response to the scaling back of the crisis, JetBlue announced that it will open 24 additional routes by year’s end. Destinations include Florida and the Caribbean and are scheduled to open in November and December.In his review of this stock, Shanker was impressed by JetBlue’s ability to take early advantage of the travel industry’s gradual reopening. “We like JetBlue’s significant exposure to the ‘Medium Haul’ US domestic market, which we believe is likely to be the first to return. Additionally, JBLU’s ‘snowbird’ network provides a significant upside as leisure travel returns,” the analyst opined. With those advantages in mind, Shanker rated JBLU as Overweight (i.e. Buy), and his $16 price target implies an upside potential of 26% for the year ahead.Overall, Wall Street is still cautious on JetBlue, based on 3 Buy ratings and 5 Holds issued in the past 3 months. With an average price target of $$12.17, the Street anticipates shares to stay range-bound for now. (See JBLU stock analysis on TipRanks)To find good ideas for airline stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Eastman Kodak Company’s (NYSE: KODK) shares jumped in pre-market session Wednesday as the special committee appointed by its board declared the outcome of its independent review on the company’s handling of stock options to the CEO.What Happened: The committee remarked that although there were no violations of the law, the company did a sub-par job in matters of corporate governance, according to Bloomberg.In July, the Rochester-based photography company received a $765 million loan under the Defence Production Act. The loan was granted with the intent to aid the manufacturing of generic drugs. However, in August the government decided to halt the loan when the reports about alleged insider trading broke out.A special committee of Kodak’s board engaged a law firm to review share purchase transactions and option grants to company insiders – CEO Jim Continenza and board member Philippe Katz.One of the recommendations of the special committee is to revamp the company’s executive compensation packages and its policies on insider trading, the Financial Times reported.Why Does It Matter: Continenza’s trade deals in company stocks were made before the news about the $765 million government grant was publicly announced. The lapse of judgment and lack of reporting stock transactions prior to the dissemination of material non-public information attracted insider trading investigations against the company.According to FT, Continenza accepted the committee’s observations and agreed to implement its suggestions citing a « need to take action to strengthen our practices, policies and procedures. »Price Movement: Kodak shares traded 24.4% higher at $7.75 in pre-market session Wednesday.See more from Benzinga * FTC Plans Antitrust Lawsuit Against Facebook Before Year-End: WSJ * Spotify Spars With Apple Over Services Bundle Launch * Amazon Plans To Increase Reliance On ‘Flex’ Workers For Grocery Supply Chain: Report(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Estate planning is a crucial part of any holistic financial plan. As a financial advisor, you could direct your clients to an estate planning attorney for guidance in this area, but while attorneys are great, and necessary, for crafting the legal documents used in estate planning, they don’t always see the big picture. An attorney may focus only on how the estate plan will impact your client’s overall estate, without giving due consideration to how the plan will affect your client while she is still alive.
So far, September has been a wild ride of ups and downs. Following the recent bout of volatility, stocks have ticked higher again. But as uncertainty regarding another rescue program and the presidential election continues to linger, where does the market go from here? Weighing in for Oppenheimer, Chief Investment Strategist John Stoltzfus argues that any market dips appear “relatively contained and orderly,” and present longer-term investors the chance to find “babies that got thrown out with the bathwater.” He noted, “For nervous investors the recent downdraft has presented opportunity to take some profits without FOMO (fear of missing out).”As for the tech heavyweights that powered the market’s five-month charge forward, the strategist believes “current expectations that technology stocks will remain under pressure for some time seem exaggerated.” Stoltzfus adds that the “core of technology stocks did not appear terribly rich in price considering that developments in technology and innovation have yet to show signs of plateauing in the current cycle.”Taking Stoltzfus’ outlook into consideration, our focus turned to stocks that Oppenheimer analysts are bullish on. The firm’s pros see triple-digit upside potential in store for three tickers in particular. Running the names through TipRanks’ database, we wanted to find out what makes each so compelling.MediWound Ltd. (MDWD)Developing cutting-edge products, MediWound wants to address unmet needs in the fields of severe burn and chronic wound management. With an important government contract secured, Oppenheimer has high hopes for this name.Back in January, MDWD announced that the U.S. Biomedical Advanced Research and Development Authority (BARDA) had entered into a contract to procure $16.5 million of NexoBrid, its drug designed to remove eschar in adults with deep partial and full-thickness thermal burns (a process called debridement), for an emergency stockpile. According to management, the first delivery is set for Q3 2020.On top of this, the company filed the NexoBrid Biologics License Application (BLA) with the FDA for eschar removal in adults with deep partial-thickness and full-thickness thermal burns in June. MDWD’s U.S. commercial partner, Vericel, is preparing for an immediate launch upon approval.Representing Oppenheimer, 5-star analyst Kevin DeGeeter points out that “Given the filing involved participation from three parties—MDWD, U.S. commercial partner Vericel and funding partners at BARDA—and was completed against the backdrop of public sector work-from-home mandates, we view meeting stated timelines as a material milestone and derisking event for MDWD shares… we believe NexoBrid is on track for 1H21 launch.”Should the therapy ultimately be approved, MDWD is entitled to a $7.5 million milestone payment from Vericel. “We believe the combination of existing cash and the $7.5 million milestone payment from VCEL upon NexoBrid approval should fund operations at least into 2H23,” DeGeeter added.DeGeeter also points out that MDWD plans to open 25-30 sites in U.S. and Israel to support the Phase 2 study of EscharEx, its product for chronic wounds. Although COVID-19 resulted in a delay, the analyst thinks “the current timeline of 1H21 is achievable.”To this end, DeGeeter rates MDWD an Outperform along with a $7 price target. Should his thesis play out, a potential twelve-month gain of 117% could be in the cards. (To watch DeGeeter’s track record, click here)All in all, other analysts echo DeGeeter’s sentiment. 4 Buys and no Holds or Sells add up to a Strong Buy consensus rating. With an average price target of $6.63, the upside potential comes in at 106%. (See MDWD stock analysis on TipRanks)UroGen Pharma (URGN)Primarily focused on uro-oncology, UroGen Pharma develops advanced non-surgical treatments to improve the lives of patients. As the launch of one of its products is progressing well, Oppenheimer thinks that now is the time to get on board.Writing for the firm, analyst Leland Gershell points to UGN-101 as a key component of his bullish thesis. UGN-101, which has now been formally launched in the U.S. under the commercial name Jelmyto, was designed as a treatment for low-grade upper tract urothelial carcinoma (LG UTUC). The analyst highlights that Jelmyto’s launch is already off to a solid start, as eight patients had received 20 doses of the drug in June.“Jelmyto sales were $371,000 in its first month of launch, but more important was management’s commentary that over 100 urology practice sites are treatment-ready for the product, and that patient demand has not been visibly impacted by COVID-19,” Gershell explained.Adding to the good news, permanent C- and J-codes, which are expected in October and January 2021, respectively, could bolster sales, in Gershell’s opinion. The label could also be updated to reflect completed OLYMPUS data.It should be noted that patient and physician engagement could remain diminished through YE20, and restrictions around elective surgeries could persist, according to Gershell. That said, he argues that “LG UTUC’s lack of surgical urgency could imply treatment deferral for several months, whereas Jelmyto’s ability to be administered in an outpatient setting could expedite treatment, favoring adoption.”If that wasn’t enough, UGN-102, its mitomycin gel that targets low-grade intermediate risk non-muscle invasive bladder cancer (LG IR-NMIBC), is set to enter pivotal testing before the end of 2020. Looking at previously released data, the therapy achieved a 65% complete response (CR) rate at three months following onset of treatment. “To offset any potential COVID-19 impact on enrollment, URGN has increased the number of clinical trial sites outside of the U.S., in those countries where virus-related clinical delays have not cropped up,”Gershell added.Summing it all up, Gershell commented, “We believe shares trade at a discount to the value of Jelmyto and UGN-102, and that revenue growth will support stock upside over the next 12 months.”To this end, Gershell stands with the bulls, reiterating an Outperform rating. At $48, his price target brings the upside potential to 123%. (To watch Gershell’s track record, click here)What does the rest of the Street have to say? 3 Buy ratings and 1 Hold have been issued in the last three months. As a result, URGN receives a Strong Buy consensus rating. In addition, the $44 average price target suggests 104% upside potential. (See URGN stock analysis on TipRanks)Ayala Pharmaceuticals Inc. (AYLA)Last but not least we have Ayala Pharmaceuticals, which is focused on developing targeted therapies for cancers in which Notch activation is a known tumor driver. Based on the progress across its development pipeline, Oppenheimer sees big gains in store.Oppenheimer analyst Jay Olson thinks AYLA’s technology makes it a stand-out. Its two candidates, AL101 and AL102, which are in-licensed from Bristol Myers, are gamma-secretase inhibitors that target aberrant activation of Notch signaling in cancer cells.Notch signaling plays an important role in normal cell development, and perturbations can cause malignant transformation. “We believe Notch targeted therapies hold promise in addressing unmet clinical needs,” Olson commented.The analyst added, “The Notch mutational landscape is diverse, and the underlying science is evolving. AYLA is building a bioinformatics database around Notch to better characterize and identify Notch-activating mutations. Additionally, AYLA is collaborating with partners developing diagnostic tests for Notch-activating mutations, both at DNA and RNA levels. We believe these initiatives benefit AYLA in the long term by identifying responders and expanding the addressable patient population.”Despite the challenges presented by COVID-19, critical catalysts remain on track. The company is set to present new interim data from the Phase 2 ACCURACY open-label study of AL101 in R/M ACC at the mini oral head and neck cancer section of ESMO. Looking at the available data, a recent interim analysis in one cohort showed 69% DCR.As for the second cohort, it is evaluating a 6mg once-weekly dosing of AL101. “We view the efficacy and safety data from the 6mg dosing cohort as important for the registration-enabling studies, and we anticipate similar interim data readout in 1H21,” Olson said.Adding to the good news, AYLA is on track to kick off patient dosing in the Phase 2 TENACITY study of AL101 in R/M TNBC by YE20 after the IND was cleared by the FDA in April. In 2021, AYLA plans to initiate two additional Phase 2 studies including AL102 for desmoid tumors and AL101 for r/r T-ALL.“Springworks Therapeutics recently announced the completion of patient enrollment of the Phase 3 DeFi trial of nirogacestat in desmoid tumors with topline data expected mid-2021, which should provide read-across to AYLA’s AL102 program,” Olson noted.Given all of the above, Olson opined, “We’re encouraged by AYLA’s advantages along several dimensions, including its drug candidates, cancer indication selection, and focus on identifying Notch-activating mutations while developing diagnostics. AYLA’s Notch targeted approach should address unmet clinical needs for patients with rare but aggressive cancers.”It should come as no surprise, then, that Olson stayed with the bulls. To this end, he kept an Outperform rating and $23 price target on the stock, implying 123% upside potential. (To watch Olson’s track record, click here)Looking at the consensus breakdown, 2 Buys and 1 Hold have been published in the last three months. Therefore, AYLA gets a Moderate Buy consensus rating. Based on the $19.83 average price target, shares could climb 92% higher in the next year. (See AYLA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Long-ailing Ford faces new coronavirus challenges with demand and supply chains. But is Ford primed for a comeback? Here’s what you should know.
Apple stock’s ho-hum reaction to the company’s new products makes perfect sense. Analysts see little upside, unlike with most others in the S&P; 500.
Not that long ago my charitable trust, Action Alerts PLUS, had a pretty big position in Citigroup . Plus the key regulatory test, the Fed’s CCAR, or Comprehensive Capital Analysis and Review, gave Citigroup the best report of all the majors.
Stock futures drifted higher Tuesday evening, extending gains from the regular session, as investors awaited the Federal Open Market Committee’s (FOMC) September monetary policy statement and remarks from Federal Reserve Chair Jerome Powell.
The World Trade Organization ruled today that US tariffs on Chinese imports are illegal under global trade rules. The new taxes in question were imposed on Americans by president Donald Trump, ostensibly put in place to combat Chinese efforts to steal intellectual property from US companies through coercive investment pacts, among other tactics. Now, the WTO says the US’s blanket tariffs aren’t a permissible solution under trade agreements the US signed on to starting in 1994.
Over the past few weeks, quite a few major technology companies have retreated from their all-time high and now are attempting to rebound. One of those issues is Shopify Inc (NYSE: SHOP) and is the PreMarket Prep Stock Of The Day.The Company: Shopify is a Canadian multinational technology company that offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue).Big Winner Since IPO: Shopfiy made its debut on the New York Stock Exchange in May 2015. After an initial surge to $41.11, the issue retreated and undercut its initial monthly low ($24.11) and didn’t find a bottom until January 2016 at $18.48.From that low, it began to rapidly appreciate ending 2016 at $42.87, 2017 at $101 and 2018 at $138.45. The momentum started to kick in 2019, rallying to end the year $397.59. It has gone parabolic this year after bottoming in March at $305.20, nearly tripling off that low when it peaked earlier this month at $1,146.91.Much Needed Pullback: The issue posted its all-time high ($1,146.91) and all-time closing high that same day at $1134.32 on Sept. 1. Interestingly, that’s one day before the S&P 500 index posted the same on Sept. 2.In the three days following, the issue descended to $896.48 and revisited that low on Sept. 11, when it reached $897.50. Its lowest close for the decline was on Friday ($914.50).Rebound Capped at $975: After such a sharp decline, the rebound off the recent low has been met with an overhead supply of sellers that are looking to take profits or mitigate losses from an ill-timed purchase and short sellers making another attempt to tame the beast. At this time, the issue has a potential double top in place from Sept. 9 ($970) and Sept. 10 ($975).Shrugs Off Potential Dilutive News: Before the open, the company launched an offering of class A subordinate voting shares and convertible senior notes. As of 12:30 p.m. ET, the Street doesn’t seem to be concerned about the offering.After a flat open, it surpassed Friday’s ($946) and Monday’s highs ($946.88), but came up well shy of the recovery high ($975), only reaching $953 and has reversed course falling into the upper $930 handle.Bulls in the issue want to see the rally exceed and close above the rebound high and close back in four digits. Also, those investors don’t want to see a breach of the double bottom just under $900, as that could signal further declines in the issue.See more from Benzinga * PreMarket Prep Stock Of The Day: Nikola * PreMarket Prep Stock Of The Day: Kroger * PreMarket Prep Stock Of The Day: RH(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The initial public offering of Warren Buffett-backed Snowflake is about to set a record as the largest software deal ever as it draws heightened interest from investors. It trades Wednesday.
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