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Top 10 Medical Stocks To Own Right Now

Yesterday, our Under the Radar Moversnewsletter suggested small cap Viveve Medical Inc (NASDAQ: VIVE) as a short/bearish trade:

This downtrend just firmed up with the “second wind” effort evidenced in just the past couple of trading days. After finding support for the better part of September and October, the floor finally broker in late October. A bounce started to take shape in early November, but all it took was a bump into the 20-day moving average line to put the pullback back into motion. Today’s and yesterday’s bar we’ve seen opens and closes at the lower end of the trading range, and so far today we’ve seen a lower low and lower high on very strong selling volume. Let’s just take the hint at face value.

Our Under the Radar Moversnewsletter has a more detailed discussion about Viveve Medicals technical chart along with a potential short/bearish trading strategy:

Top 10 Medical Stocks To Own Right Now: KongZhong Corporation(KZ)

Advisors’ Opinion:

  • [By Monica Gerson]

    The list of below stocks is notable as the shares have traded on sequentially increasing volume spanning the trading days from September 16 to September 20:

Top 10 Medical Stocks To Own Right Now: Best Buy Co., Inc.(BBY)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Then there was Best Buy (BBY) with a surprisingly strong quarter.

    Many of the losers can be found at the mall, with Gap Stores (GPS) and Abercrombie & Fitch (ANF) continuing to disappoint. The only winner at the mall was Childrens’ Place (PLCE) , but Cramer said he’s not counting out a turnaround at L Brands (LB) .

  • [By Peter Graham]

    The Q3 2017 earnings report for large cap consumer electronics retail stock Best Buy Co Inc (NYSE: BBY) is scheduled before the market opens onThursday (November 17th) as a technical chart shows shares still in an apparent uptrend albeit also appearing to have leveled off or be range bound since mid-August:

  • [By Ben Levisohn]

    The folks at Bespoke Investment Group note that its “Death By Amazon” index, which includesBest Buy (BBY), Barnes & Noble (BKS), Wal-Mart Stores (WMT), and Macy’s (M), among other traditional retailers that have been hurt by Amazon.com’s (AMZN) dominance, has been outperforming since Donald Trump’s election victory:

Top 10 Medical Stocks To Own Right Now: BlackRock, Inc.(BLK)

Advisors’ Opinion:

  • [By Shauna O’Brien]

    UBS announced on Wednesday that it has cut its rating on investment management firm BlackRock, Inc. (BLK).

    The firm has downgraded BlackRock from “Buy” to “Neutral” due to expenses, which are putting pressure on margins. UBS also lowered its price target on BLK to $280, which suggests a 5% upside from the stock’s current price of $266.51.

    BlackRock shares were down $2.51, or 0.94%, during pre-market trading Wednesday. The stock is up 29% YTD.

  • [By Tom Aspray, Senior Editor, MoneyShow.com]

    Some of the emerging market ETFs are already up 7%, so far, this month, as it seems like others are drawing the same conclusions. Robert Kapito, co-founder of BackRock, Inc. (BLK), which has assets of $3.9 trillion, said that “The emerging markets are going to account for about 60 to 65% of the world’s growth over the next 20 years.”

Top 10 Medical Stocks To Own Right Now: Vical Incorporated(VICL)

Advisors’ Opinion:

  • [By Lisa Levin]

    Vical Incorporated (NASDAQ: VICL) shares dropped 22 percent to $3.01 after the company disclosed that its Phase 2 trial did not meet primary endpoint.

Top 10 Medical Stocks To Own Right Now: Brown(n)

Advisors’ Opinion:

  • [By Alex Jordon]

    He already owns a good chunk of NetSuite (N), whose revenue grew 35% last quarter, beating earnings estimates by $0.03 a share. Ellison’s been profiting from the cloud while dismissing its significance. With the Salesforce agreement his company is, too. (Fool)

  • [By Arie Goren]

    On November 5, Oracle (NYSE:ORCL)confirmed that it has finally completed the acquisition of Netsuite (NYSE:N) for $9.3 billion in cash, or $109 per share that the company had initially offered. In my previous article about Oracle, I had suggested that the acquisition of NetSuite, the cloud business application software company, is a smart move by Oracle. What’s more, it is not paying an excessive price for the deal. In fact, Oracle insisted that it will not pay more than what it had first offered despite the resistance from T Rowe Price (NSDQ:TROW)which demanded $133 per share.

Top 10 Medical Stocks To Own Right Now: Rite Aid Corporation(RAD)

Advisors’ Opinion:

  • [By Matthew Smith]

    Speaking of subsectors in the retailing industry we are bullish on, how about the drugstores? They all seem to be running on all cylinders and yesterday Rite-Aid (RAD) had a tremendous day. It was the heaviest traded stock on all of the exchanges and saw its shares rise $0.87 (23.45%) to close at $4.58/share. Rite-Aid is the first among the ‘Big Three’ to report quarterly results so we find it interesting that they saw an increase in same store sales and saw profits driven by generic drugs. We have been told that this is going to be the bottom line driver for the industry via nearly everyone and that it would impact the top line as generics replaced the more expensive branded drugs. We care about earnings growth more than revenue growth, especially when the stall in revenues is due to switching to higher margin product which is purchased for a lower price. The market gets this and is pushing all of these names higher. In hindsight we wish we had been more bullish of Rite-A id earlier, but hindsight is always perfect.

  • [By Benzinga News Desk]

    Shares of Rite Aid (NYSE: RAD) surged to a high of $7.89 following a DealReporter story that Walgreens (NASDAQ: WBA) is close to reaching a deal to satisfy the US FTC, which would involve divestiture of up to 1,000 stores. Companies interested in the Walgreen's assets are said to include Kroger, Albertsons, CVS Health, Kinney Drugs and Fred's.

  • [By Teresa Rivas]

    Rite Aid (RAD) was up more than 15% at recent check, near six-year highs, as its second quarter surprised investors with an unexpected profit.

    The drugstore said it earned $32.8 million, or three cents a share, compared with a year-earlier loss of $38.8 million, or a nickel a share. Analysts were looking for a per-share loss of four cents for the period ended August 31.

    Rite Aids total sales climbed 0.8% to $$6.28 billion, while same-store sales rose 1%, as a 0.3% decline in front-end sales was more than offset by a 1.7% increase in pharmacy sales.

    In addition, Rite Aid also increased its forecast, saying it now expects to earn to between 18 cents and 27 cents a share on sales of $25.1 billion to $25.3 billion and same-store sales of plus or minus 0.5%. The companys EPS estimate is above expectations, while the revenue guidance is in-line with current forecasts.

    At recent check, rival Walgreen (WAG), the nations largest chain, was up 0.5%, while CVS Caremark (CVS), the second-largest drugstore operator, was down 0.1%.

  • [By Ben Levisohn]

    Chase announced that the company will process payments for Wal-Mart on the companys closed-loop network, ChaseNet. We would expect the economics of the deal to benefit Wal-Mart and thus the signing of the agreement and onboarding of another payment processor. The real takeaway for us is that today’s announcement adds one of the largest US retailers by revenues to the growing list of merchants that already accept ChaseNet including: Starbucks (SBUX), Marriott (MAR), United (UAL), Rite Aid (RAD), and Chevron (CVX). Thus, JPMorgan is building scale on the company’s platform and that needs to continue longer term.

  • [By Monica Gerson]

    Analysts expect Rite Aid Corporation (NYSE: RAD) to report its quarterly earnings at $0.06 per share on revenue of $8.40 billion. Rite Aid shares gained 0.25 percent to $8.15 in after-hours trading.

Top 10 Medical Stocks To Own Right Now: Citrix Systems Inc.(CTXS)

Advisors’ Opinion:

  • [By Monica Gerson]

    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 Thursday’s regular session.

Top 10 Medical Stocks To Own Right Now: Liberty Global plc(LBTYA)

Advisors’ Opinion:

  • [By Alex Webb]

    Kabel Deutschland is a key part of Vodafones expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafones largest market, and had drawn a rival bid from John Malones Liberty Global Plc. (LBTYA)

Top 10 Medical Stocks To Own Right Now: Silver Bay Realty Trust Corp.(SBY)

Advisors’ Opinion:

  • [By Mark Holder]

    Instead of competing in one-off auctions, the traditional method of acquiring homes and the one preferred by Silver Bay Realty Trust (NYSE: SBY  ) (NYSE: SBY  ) (NYSE: SBY  ) and American Homes 4 Rent (NYSE: AMH  ) (NYSE: AMH  ) (NYSE: AMH  ) , the company is obtaining non-performing loans in pools that include thousands of loans. The ultimate outcome of these different models is unknown, but the market hasso far supported Altisource Residential.

Top 10 Medical Stocks To Own Right Now: Potash Corporation of Saskatchewan Inc.(POT)

Advisors’ Opinion:

  • [By Daniela Pylypczak]

    Morgan Stanley announced on Monday that it has resumed coverage on Potash Corp (POT).

    Morgan Stanley analyst Vincent Andrews stated that the company has assigned the fertilizer stock an “Equal Weight” rating, warning “We remain cautious on the overall potash market, though more because of loose supply/demand fundamentals than because of dynamics in Russia/Belorussia. Potash prices have been moving lower for 8 quarters in a row now (7 of which BPC was fully functioning) and prices were continuing to drift lower in the weeks preceding the BPC break-up (recall Mosaic’s disclosure about lower prices in the Brazilian market on its July 16th earnings call.”

    Potash shares popped 1.55% during Monday’s session. Year-to-date, the stock has fallen 21.35%.

  • [By Cameron Swinehart]

    A diversified agriculture ETF with holdings in a variety of the largest agribusiness companies globally. Holdings include Bunge (BG), Archer Daniel Midland (AMD), PotashCorp (POT) and Deere (DE).

  • [By Jon C. Ogg]

    Potash Corp. of Saskatchewan Inc. (NYSE: POT) was up 25 at $33.12 in Monday afternoon trading. Monday’s gain puts shares up within striking distance of its breakout point from the aftermath this summer that took shares from $38 to $31 and ultimately back under $30 before recovering.

  • [By Chad Fraser]

    The agriculture ETF is heavily weighted toward the U.S., with 45.8% of its assets there, but it is geographically diverse, with exposure to countries such as Canada (9.9%), Switzerland (8.5%), Japan (6.7%) and Singapore (5.1%).

    Potash Cartel Breakup Has Weighed on This Agriculture ETF

    The ETF’s unit price declined in the first half of 2013, partly because of the breakup of the Belarusian Potash Company (BPC), through which Russia’s Uralkali, the world’s No. 1 potash producer, and Belaruskali of Belarus distribute their potash. The market is dominated by BPC and Canpotex, owned by Potash Corp. of Saskatchewan (NYSE: POT), Mosaic and Agrium Inc. (NYSE: AGU).

    Together, the two cartels control 70% of global potash exports, so the breakup of BPC will result in a more fractured market, which seems likely to push potash prices lower. Shares of major potash producers fell sharply on the news, as did Market Vectors Agribusiness ETF due to its potash stock holdings, which include Agrium, Potash Corp. and Mosaic.

Should You Invest Alongside Soros In This Battered Retailer?

There are two ways to invest in retail stocks. You can focus on strong and steady operators such as Costco (Nasdaq: COST) or Wal-Mart (NYSE: WMT) and hope to secure moderate upside. Or you can be bold and buy shares of truly struggling retailers that have fallen deeply out of favor.

That latter approach has been extremely profitable in 2013 for anyone with the guts to invest in GameStop (NYSE: GME) or Best Buy (NYSE: BBY). Just a few quarters ago, these companies looked to be in deep trouble as spending on video games and consumer electronics, respectively, increasingly was taking place at rivals. Those two retailers have found a way to lure back customers, and the payoff has been huge.

Major investors are now scouring the retail landscape in search of the next turnaround play, and mega-investor George Soros thinks he's found one. In this year's second quarter, he plunked down $3 million to buy shares of J.C. Penney (NYSE: JCP) at an average price of $16.83. Not only should a purchase of that size get your attention, but it's also notable that shares are now 20% lower. You've got a chance to ride herd with George Soros, at a solid discount.

 

But should you? This is certainly a company in trouble, with a great deal of risk. I've already been burned once, noting roughly a year ago that then-CEO Ron Johnson had crafted a creative new strategy to help differentiate the struggling retailer from the pack. 

Johnson's strategy ultimately failed, and the board has brought back former CEO Mike Ullman to help stem the bleeding. In his previous tenure, Ullman wasn't held in high regard by investors, so the move to reinstate him was a bit curious. The board knew that Ullman would at least unwind some of his predecessor's most egregious moves.

Roughly three months ago, my colleague James Brumley helped frame the issue, identifying the necessary steps to help bring J.C. Penney back to relevance.

To be sure, Ullman has yet to stop the hemorrhaging. Fiscal second-quarter sales slid 12%, and gross margins dipped below 30%. That figure, which used to hover in the upper 30s, means the difference between solid net profits and massive net losses. Analysts expect the latter, calling for J.C. Penney to lose more than $5 a share in the current fiscal year and more than $2 a share in fiscal 2015.

     
   
  Flickr/NHD-INFO
  With J.C. Penney's shares down 20% since his $3 million purchase, you've got a chance to ride herd with George Soros, at a solid discount.

 

But behind the dismal numbers, clear improvements are underway. In recent months, J.C. Penney has begun to:

Whittle away at bloated inventories Return the assortment of merchandise back to styles and fashions that formerly devoted customers used to embrace Increase the sales emphasis on private label brands, which should eventually boost gross margins Make an investment in previous staffing levels, which will hurt margins in the near term, but restore the shopping experience to levels that customers had come to expect

Though these moves not bear fruit in the current quarter, analysts now think J.C. Penney will eke out a small profit in the all-important fiscal fourth quarter (reversing a $745 million operating loss in the fiscal fourth quarter of 2013). And subsequent quarters are expected to show ever-smaller losses, when compared with the quarterly results being generated this year.

Such a trajectory is crucial if J.C. Penney is to regain relevance. The company recently established a new loan agreement that will ensure it has ample cash on hand through the holidays. Once better quarterly metrics are in place, management will have an even stronger hand in refinancing the current debt.

Of course at the end of the day, J.C. Penney needs to find the formula to return to positive free cash flow if balance sheet concerns are to truly recede. For a point of reference, a healthy J.C. Penney generated $791 million in positive free cash flow in fiscal 2010, and a whopping $906 million free cash flow loss in fiscal 2013.

The Soros Effect
In light of this retailer's challenges and opportunities, George Soros' massive recent investment in J.C. Penney is notable. He has presumably looked at the roadmap ahead, and concluded that new CEO Ullman can stabilize the ship. And stability may be just enough to justify Soros' interest. After all, J.C. Penney currently trades at a sharp discount to its peers.

Simply delivering acceptably boring results will close that valuation gap. Ullman doesn't need to be a hero. This stock would more than double if J.C. Penney is eventually seen in the same light as its peers. George Soros would be thrilled to see that gap close by half as much.

Risks to Consider: J.C. Penney alienated many shoppers with its myriad changes on the sales floor. It will be a challenge to win back those customers. 

Action to Take –> Recent debt refinancings have given J.C. Penney breathing room, and as long as the company starts to show progress in stabilizing operations, then the retailer will be better positioned with lenders to take any other steps to improve the balance sheet. This isn't the kind of stock that you want to wait see become truly healthy in terms of quarterly results. By the time that happens, shares will have already moved up considerable off of their multi-year lows.

P.S. — Soros has made a $3 million prediction that J.C. Penney will reverse its fortunes. At StreetAuthority, we're big on predictions — and our previous predictions have given investors 89%… 92%… 293%… and even 310% gains in a year. To hear our latest, click here.

Why Health Care Dragged on the Dow This Morning

On a quiet day on the news front, the stock market took the path of least resistance and dropped modestly. Although the latest reading on consumer confidence soared well beyond expectations and home prices posted a 9.3% year-over-year gain, a disappointing measure of manufacturing activity in the Chicago region led investors to take a break from the run that has lifted the Dow Jones Industrials (DJINDICES: ^DJI  ) by between 1% and 2% for the month of April so far. As of 10:50 a.m. EDT, the Dow is down 30 points, or 0.2%, while the broader market posted somewhat smaller losses on a percentage basis.

Weakness in the Dow centered on the health care sector. Pfizer (NYSE: PFE  ) fell 3.3% after it cut its earnings guidance for the full 2013 year by $0.06 per share. The drugmaker now expects profit to come in between $2.14 and $2.24 per share. Given that and disappointing results showing that sales fell 9% and net income fell $0.01 per share short of expectations, Pfizer needs to demonstrate its ability to sell its stable of approved drugs. Otherwise, continued pressure from generic competition will continue to weigh on revenue well into the future.

UnitedHealth (NYSE: UNH  ) also fell, losing 0.9% on the same day that rival Aetna (NYSE: AET  ) reported earnings. Aetna managed to increase its earnings by keeping premium prices high and cutting its costs, and it’s positioning itself to deal with the onset of health exchanges and other key provisions of Obamacare that will take effect within the next year. But what’s increasingly clear is that competition among health insurance carriers will become fierce as Obamacare is increasingly implemented, and UnitedHealth needs to defend its leadership position by getting its plans onto as many health exchanges as possible without cutting profit margins any further than the new health-care law will require.

Finally, outside the Dow, Best Buy (NYSE: BBY  ) has soared almost 11% after selling its stake in its Best Buy Europe joint venture to its partner for $775 million. Under the deal, Carphone Warehouse Group will take over the venture, which originally had grand plans for expansion but foundered due to the weak European economy and Best Buy’s own troubles. The move should help Best Buy focus more on its restructuring efforts in the U.S. and in other international markets.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.