Stocks making the biggest moves premarket: Kellogg, J&J, T-Mobile, PG&E & more

Check out the companies making headlines before the bell:

Cal-Maine Foods — The egg producer reported quarterly profit of 82 cents per share, well above the consensus estimate of 43 cents a share. Revenue also topped Wall Street forecasts. Cal-Maine points to favorable demand trends and a strong performance by its specialty egg business.

Kellogg — Kellogg is near a deal to sell its Keebler and Famous Amos brands to Italy-based Ferrero for up to $1.5 billion, according to sources who spoke to CNBC. Ferrero is the company that owns the Nutella brand and bought Nestle’s US candy business last year.

Activision Blizzard — Wedbush added the video-game maker’s stock to its “Best Ideas” list, saying it’s positioned to deliver significant outperformance over the next two years.

Johnson & Johnson — J&J’s baby shampoo samples were rejected by regulators in India, who said they failed quality tests. The tests indicated that the samples contained formaldehyde, but J&J said the company does not accept the results and that the products are safe.

T-Mobile US — The mobile carrier detailed a departure plan for Chief Financial Officer Braxton Carter in a Securities and Exchange Commission filing. He would depart on one of three dates, whichever arrives first: the end of 2019, 20 days after the first quarterly filing of a merged T-Mobile and Sprint, or 20 days after an announcement that the proposed deal is off.

Walgreens Boots Alliance — Walgreens has been testing tobacco-free stores in the U.S., but its CEO Stefano Pessina tells The Wall Street Journal that the drugstore chain has no plans to completely abandon cigarette sales.

PG&E — A judge may keep California utility PG&E from resuming dividend payments until it meets goals to trim trees near its power lines and reduces its role in causing California wildfires.

Walt Disney — Disney’s live remake of its animated classic “Dumbo” did top the weekend box office with ticket sales of $45 million, but the opening was considered weak by industry analysts. The film had a budget of $170 million.

Willis Towers Watson — The consulting firm will buy TRANZACT for $1.2 billion from private-equity firm Clayton Dubilier & Rice. TRANZACT is a direct-to-consumer health care company that links consumers to health insurers.

Apple — Apple has hired Tesla’s head of electric powertrains, according to industry publication Electrek, sparking talk that Apple intends to produce an electric vehicle rather than merely a self-driving system.

Wells Fargo — Wells Fargo was downgraded to “market perform” from “outperform” at Keefe Bruyette & Woods, which said it does not believe the bank will save as much in expenses as previously thought.

Intel — The chipmaker has laid off a “substantial” number of IT workers numbering in the “hundreds,” according to the Oregonian newspaper.

Wall Street Wants to Hide This Opportunity from You

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4 Pharma Stocks That Could Swing A Major Deal Soon

Retail and institutional investors aren’t the only ones who used the fourth-quarter selloff last year as a buying opportunity. 

Bristol-Myers Squibb (NYSE: BMY), one of the largest U.S. pharma companies by revenue, didn’t waste any time scooping up biotech Celgene (Nasdaq: CELG). Announced on January 3, the $74 billion acquisition is the second-largest pharmaceutical M&A deal ever (after the $87 billion merger of Warner-Lambert and Pfizer (NYSE: PFE) twenty years ago).

Despite the price tag, it was still a bargain. Even though BMY offered a 53.7% premium to CELG’s closing price on January 2, the latter, which lost $30 per share between August 30, 2018, and year-end, still trades below its 52-week high. This price action shows how unexpected the deal was, and how little of the future M&A premium was “baked” into the price of CELG before BMY has made its move.

Identifying potential M&A targets is a difficult process, but it can be worth the effort. After all, a jump of 30%, 50% or even more is a nice payoff… But it’s never wise to simply invest in a stock on the hopes that it will one day be acquired — hence the research part. 

I, for one, am keeping an eye on several companies that may be worth something to a larger peer. As I’ve explained several times recently, I think we’re on the cusp of a new wave of medical innovation that will prove to be one of the largest wealth creation opportunities of our lifetime. And while the big pharma players will certainly benefit — it’s the smaller companies that are often on the cutting edge of these developments. 

As soon as I complete my research, my Fast-Track Millionaire readers will be the first to know about it in an upcoming issue of my newsletter. 

Big Pharma Stocks In The Market For Deals
In the meantime, I am doing something else entirely. To start with, I wanted to see which companies in the large pharma and biotech industries could become the acquirers down the road. For that, I reviewed some of the largest companies in the industry for what they might have to lose due to upcoming patent expirations.

Here’s a list of four large pharmaceutical companies, all facing or about to face some of the most notable patent losses, along with a discussion of how these companies are addressing the challenge. I wouldn’t be surprised if a company or two from this list becomes an acquirer of a smaller peer down the road. 

 

Pharma takeover watchlist

Swiss giant Roche Holding (OTC: RHHBY) owns several large drugs already facing or about to face the patent cliff, including Rituxan, Avastin, and Herceptin. Its near-term future, much like that of the rest of the companies in the table, will largely depend on how successfully it will continue to defend these drugs’ exclusivity.

Rituxan, also known as MabThera, is a huge drug for Roche. It’s a biologic first developed by Genentech; this fact alone should tell you everything you need to know about that drug’s old age — Genentech was acquired by Roche 10 years ago. Rituxan was approved by the FDA nearly a decade earlier, in November 1997.

It was a pioneering treatment for cancer, and as such, it used to hold the title of the best-selling cancer drug in the world. In 2018, it generated $4.3 billion in the United States alone. Thanks to the difficulties of copying and approving of a generic version (called biosimilar) of a biologic drug, here in the United States, Rituxan/MabThera has been holding on: sales in 2018 have even grown compared to the previous year.

The picture in Europe is different, thanks to the easier process for approving biosimilars, and more dangerous for Roche: there, Rituxan/MabThera has already lost about half of its revenue.
Also acquired with Genentech, cancer drug Avastin is another potential revenue loss due to patent expiration. And here is one more Roche medicine that faces a biosimilar threat as soon as a few months from now (second half of 2019). Herceptin, another cancer drug, was first approved in 1998 and still brings in nearly $3 billion a year. The drug is set to lose its patent protection in June.

GlaxoSmithKline (NYSE: GSK) has fought for its asthma drug Advair, including the patented inhaler, for a few years now. Now, however, it seems to be finally facing off against generic competition. Just a month ago, on February 8, GSK announced that it plans to make an “authorized generic” version of Advair available. This is likely in a response to the FDA approving the first generic version of Advair on January 30, and an attempt to save at least some of the $1.4 billion in annual sales.

Here’s one more in the same vein: Gilead Sciences (Nasdaq: GILD). This venerable biotech has been fighting to protect slumping revenue from its Hep C treatment franchise. To do so, Gilead is also going the generic route: the company, much like GSK above, is going to sell generic versions of its own medicines Epclusa and Harvoni. 

It’s a highly unusual move inasmuch as this decision to launch cheaper generics comes only a few years after the FDA approved these medicines (Harvoni in 2014 and Epclusa in 2016). But if this is how GILD wants to protect its Hep C franchise, if not the entire revenue stream (Harvoni alone sold $4.9 billion worth in 2016, although this number has been on the decline ever since, falling to $4.4 billion in 2017 and as low as $1.2 billion in 2018). This approach is worth watching — it may save GILD much of its otherwise lost revenue.

Of course, we cannot talk about patent cliff without mentioning AbbVie (NYSE: ABBV), the owner of the world’s bestselling drug, Humira. While Humira, a biologic for rheumatoid arthritis and other maladies, still sells as much as $20 billion a year — a massive number by any measure — the stock of ABBV has been in the dumps, down more than 30% year-over-year.

Even though ABBV has more than 100 patents covering Humira, and despite its 2017 patent win over Amgen (Nasdaq: AMGN) requiring AMGN to wait until 2023 before issuing its own copy of Humira, the battle for generic Humira isn’t over.

Just this January, ABBV reported a 17.5% decline in fourth-quarter revenue generated by Humira outside of the United States as the bestselling drug saw competition from biosimilars in Europe for the first time. The 2023 patent protection, which still stands domestically, resulted in a 9.1% increase in Humira’s U.S. revenue — a drastic difference that demonstrates why pharma companies try to keep patent protection at almost all cost for as long as they can. This year alone, Humira’s revenue will decline by some $2 billion, all thanks to the advances of biosimilars in Europe.

Action To Take
Let’s keep our eye on this group… While each has their own unique challenges with regard to patent expirations, any one of them could easily make the decision to put the cash flow from their blockbuster drugs to good use by acquiring a smaller pharma or cutting-edge biotech company in the near future.

In fact, I just recently profiled a small-cap biotech company in the most recent issue of ​Fast-Track Millionaire that would be perfect for one of these bigger players… It’s a younger company showing enormous promise in the field of cancer treatment by targeting at the cellular level. It just went public last year — and is already well on its way to blockbuster status. (To learn how to join us and get the name of this stock, go here.)​

(This article originally appeared on StreetAuthority.com.)

Top 5 Energy Stocks To Invest In 2019

There’s a new buzz powering public buses in London.

British startup bio-bean has partnered with Shell (RDSB) and Argent Energy to create a coffee-based biofuel that will be used in London’s diesel buses.

The company has produced 6,000 liters of coffee oil for the pilot project with London’s transportation authority — enough to help power the equivalent of one city bus for a year.

“It’s a great example of what can be done when we start to reimagine waste as an untapped resource,” bio-bean founder Arthur Kay said in a statement.

The startup collects used coffee grounds from cafes, restaurants and factories, and transports them to its recycling facility. There, the grounds are dried before coffee oil is extracted.

The coffee oil is then blended with other fuels to create B20 biofuel, which can be used in diesel buses without modification.

“Spent coffee grounds are highly calorific and contain valuable compounds, making them an ideal feedstock from which to produce clean fuels,” the company says on its website.

Top 5 Energy Stocks To Invest In 2019: Phillips 66 Partners LP(PSXP)

Advisors’ Opinion:

  • [By Matthew DiLallo]

    One of the drivers of that increase is the fact that Diamondback Energy has secured 50,000 BPD of capacity on the Gray Oak Pipeline, which is under development by Phillips 66 Partners (NYSE:PSXP) and Andeavor (NYSE:ANDV). Initially envisioned as a 385,000 BPD pipeline, Gray Oak will now be a 700,000 BPD pipeline that its developers could expand to 1 million BPD if they secure enough customers. Phillips 66 Partners, which is leading the development, expects the project to enter service by the end of 2019.

  • [By Reuben Gregg Brewer]

    Investing in midstream master limited partnerships is generally all about the distributions, which the tax-efficient corporate structure is designed to provide to unitholders. However, that doesn’t always mean a high distribution yield is the goal, which is the key to determining if Holly Energy Partners, LP (NYSE:HEP) or Phillips 66 Partners LP (NYSE:PSXP) is the better buy. Here’s what you need to know to make an informed decision between these stocks. 

  • [By Ethan Ryder]

    Phillips 66 Partners LP (NYSE:PSXP) has been given an average recommendation of “Hold” by the fourteen analysts that are presently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $56.50.

  • [By Tyler Crowe, Matthew DiLallo, and Reuben Gregg Brewer]

    It’s no surprise, then, that many high-yield investments in the energy sector look attractive today. We asked three of our Motley Fool investors to highlight energy stocks they see as compelling buys right now. Unsurprisingly, they picked three high-yield stocks: Enterprise Products Partners (NYSE:EPD), TerraForm Power (NASDAQ:TERP), and Phillips 66 Partners (NYSE:PSXP).

  • [By Logan Wallace]

    TRADEMARK VIOLATION WARNING: “Phillips 66 Partners LP (PSXP) Expected to Announce Quarterly Sales of $321.18 Million” was first reported by Ticker Report and is the property of of Ticker Report. If you are viewing this report on another publication, it was illegally copied and republished in violation of US and international copyright & trademark law. The correct version of this report can be accessed at https://www.tickerreport.com/banking-finance/3355129/phillips-66-partners-lp-psxp-expected-to-announce-quarterly-sales-of-321-18-million.html.

Top 5 Energy Stocks To Invest In 2019: Foresight Energy LP(FELP)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Foresight Energy (NYSE:FELP) – Analysts at B. Riley lifted their Q2 2018 earnings per share (EPS) estimates for Foresight Energy in a research report issued to clients and investors on Wednesday, May 9th. B. Riley analyst L. Pipes now forecasts that the energy company will post earnings of ($0.08) per share for the quarter, up from their previous forecast of ($0.12). B. Riley has a “Neutral” rating and a $4.00 price objective on the stock. B. Riley also issued estimates for Foresight Energy’s Q3 2018 earnings at ($0.07) EPS, Q4 2018 earnings at ($0.08) EPS, FY2018 earnings at ($0.35) EPS, FY2019 earnings at ($0.26) EPS and FY2020 earnings at ($0.39) EPS.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Foresight Energy (FELP)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Foresight Energy (NYSE:FELP) was upgraded by analysts at Zacks Investment Research from a strong sell rating to a hold rating. According to Zacks, “Foresight Energy Partners LP is a producer and marketer of thermal coal. It operates four underground mining complexes, all in the Illinois Basin region of the United States. The Company’s mining complexes consist of: Williamson Energy, LLC, Sugar Camp Energy, LLC, Hillsboro Energy, LLC and Macoupin Energy, LLC. It markets and sells its coal to a diverse customer base including electric utility and industrial companies in the eastern United States, as well as the seaborne thermal coal market. Foresight Energy Partners LP is based in St. Louis, Missouri. “

  • [By Motley Fool Transcribers]

    Foresight Energy LP  (NYSE:FELP)Q4 2018 Earnings Conference CallFeb. 27, 2019, 2:00 p.m. ET

    Contents:
    Prepared Remarks Questions and Answers Call Participants
    Prepared Remarks:

    Operator

Top 5 Energy Stocks To Invest In 2019: REC Silicon ASA (REC)

Advisors’ Opinion:

  • [By Logan Wallace]

    Regalcoin (CURRENCY:REC) traded up 10.1% against the US dollar during the 1 day period ending at 22:00 PM E.T. on February 7th. One Regalcoin coin can now be purchased for about $0.0047 or 0.00000139 BTC on popular exchanges including YoBit, CoinExchange and BTC-Alpha. Regalcoin has a total market capitalization of $60,267.00 and $9.00 worth of Regalcoin was traded on exchanges in the last day. During the last week, Regalcoin has traded down 2.2% against the US dollar.

  • [By Logan Wallace]

    Regalcoin (CURRENCY:REC) traded up 5.2% against the U.S. dollar during the 1 day period ending at 19:00 PM E.T. on May 27th. Regalcoin has a total market cap of $496,466.00 and $1,256.00 worth of Regalcoin was traded on exchanges in the last day. During the last week, Regalcoin has traded 1.9% higher against the U.S. dollar. One Regalcoin coin can currently be purchased for about $0.0388 or 0.00000529 BTC on cryptocurrency exchanges including BTC-Alpha, CoinExchange and YoBit.

  • [By Shane Hupp]

    Regalcoin (REC) is a PoW/PoS coin that uses the
    X11 hashing algorithm. Its launch date was September 28th, 2017. Regalcoin’s total supply is 16,491,413 coins and its circulating supply is 12,799,009 coins. The Reddit community for Regalcoin is /r/RegalCoin and the currency’s Github account can be viewed here. Regalcoin’s official Twitter account is @regalcoinx and its Facebook page is accessible here. The official website for Regalcoin is regalcoin.co.

Top 5 Energy Stocks To Invest In 2019: Yuma Energy, Inc.(YUMA)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of Yuma Energy, Inc. (NYSE: YUMA) were down 60 percent to $0.4520 after the company late Friday reported it was not in compliance with its debt to EBITDAX covenant and announced limited liquidity levels. The company also reported Q1 earnings down year-over-year and disclosed that it is exploring strategic alternatives.

  • [By Logan Wallace]

    Yuma Energy Inc (NYSEAMERICAN:YUMA) was the target of a large increase in short interest during the month of February. As of February 15th, there was short interest totalling 336,888 shares, an increase of 27.7% from the January 31st total of 263,835 shares. Currently, 1.7% of the shares of the stock are sold short. Based on an average trading volume of 1,331,392 shares, the short-interest ratio is currently 0.3 days.

  • [By Lisa Levin]

    Breaking news

    Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) disclosed that it received the FDA approval for Calcium Chloride injection.
    Rapid7, Inc. (NASDAQ: RPD) reported a proposed offering of 3 million shares.
    Yuma Energy Inc (NYSE: YUMA) reported a Q1 loss of $0.16 per share on sales of $5.646 million. The company also disclosed that it is actively seeking strategic alternatives.
    NiSource Inc. (NYSE: NI) disclosed a 24.96 million share common stock offering via selling holders.

Top 5 Energy Stocks To Invest In 2019: Southwestern Energy Company(SWN)

Advisors’ Opinion:

  • [By Paul Ausick]

    Southwestern Energy Co. (NYSE: SWN) traded down 7.4% Monday and posted a new 52-week low of $4.63 after closing Friday at $5.00. The stock’s 52-week high is $9.75. Volume was over 37 million, approaching double the daily average of about 21 million shares. The company had no specific news.

  • [By Ethan Ryder]

    BlueMountain Capital Management LLC boosted its holdings in Southwestern Energy (NYSE:SWN) by 290.0% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 167,089 shares of the energy company’s stock after purchasing an additional 124,248 shares during the period. BlueMountain Capital Management LLC’s holdings in Southwestern Energy were worth $886,000 at the end of the most recent reporting period.

  • [By Money Morning News Team]

    Southwestern Energy Co. (NYSE: SWN) produces natural gas all over North America. It has drilling rights for over 918,000 acres in West Virginia and Pennsylvania in the Appalachian Basin.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss in the S&P 500 ahead of the close was Southwestern Energy Co. (NYSE: SWN) which fell about 10% to $5.17. The stock’s 52-week range is $3.42 to $6.72. Volume was about 40.5 million compared to the daily average volume of 17.4 million.

  • [By Money Morning News Team]

    Southwestern Energy Co. (NYSE: SWN) extracts natural gas in North America.

    The company has rights to drill in more than 918,000 acres in the Appalachian Basin, which is in Pennsylvania and West Virginia.

Here’s the Hideous, Scary Truth About Yield Curve Inversions

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Tim MelvinTim Melvin

The Martians have landed in New Jersey! Chinese Army tanks are rolling in the Chicago Loop! California has fallen into the ocean! Giant robots have kidnapped the Statue of Liberty! D.C. is in flames!

The yield on 10-year Treasuries has fallen below the yield on three-month Treasuries!

We are doomed!

Enough already – yes, last week, the yield curve inverted.

So, the conventional thinking goes, we’ll have a recession. Right? Maybe. When? Don’t know. It could be a month or two; it could be almost two years from now.

The truth is, there has been a yield curve inversion before every recession – if you don’t care how long it took for that recession to develop. The historical record shows the yield curve inverted a whopping 23 months before the economy slowed in the most recent recession.

So, a yield curve inversion heralds a recession in kinda the same way baseball’s Opening Day “causes” the World Series, or that being born is a leading cause of death.

In other words, it’s a bit of a stretch – and certainly nothing you’d want to make do-or-die investing decisions on.

There’s a much better, much more profitable way…

Join the conversation. Click here to jump to comments…

Tim MelvinTim Melvin

About the Author

Browse Tim’s articles | View Tim’s research services

Tim Melvin is an unlikely investment expert by any measure. Raised in the “projects” of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing – and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find “unreasonably good” bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked “hidden gems” in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the “Little Book of” Investment Series and a “Junior Chamber Course” geared towards young adults that teaches Graham’s principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of “Max Wealth” and Heatseekers.

… Read full bio