Author: therawinformant

Jul.06 — Freddie Lait, chief investment officer at Latitude Investment Management, discusses the current state of markets and where he sees them heading. He speaks on “Bloomberg Markets: European Open.”

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If you are looking to hit a home run in the stock market, the NASDAQ Composite is a good place to start. The index is home to surging technology, internet, and biotech stocks. Despite the adverse effects from COVID-19, the index is up 25% over the past year, and recently hit a new all-time high. Now comes the hard part. How are investors supposed to determine which stocks are poised to take off? Will the current winners continue climbing, or will new high-flyers emerge? Finding the next big one is challenging to say the least. On top of this, there are numerous and sometimes conflicting investing strategies to consider. Bearing this in mind, Wall Street analysts can provide some inspiration. The experts possess extensive knowledge about the stocks they cover, and offer insights on compelling names that don’t always get the same attention as other heavyweights. To this end, we used TipRanks’ database to pinpoint three micro-cap stocks that have earned a “Strong Buy” consensus rating from the analyst community. Not to mention each boasts excellent upside potential. We’re talking about over 120% here. Immunic, Inc. (IMUX) The first stock on our list is New York-based Immunic, a pharmaceutical company developing drugs to treat chronic autoimmune, inflammatory and viral diseases, with its market cap landing at only $182.9 million. The company’s lead prospect is IMU-838, an orally-dosed DHODH (an enzyme in humans that is encoded by the DHODH gene on chromosome 16) inhibitor. IMU-838 is currently being tested in four Phase 2 studies for multiple indications including COVID-19. Other promising drugs that Immunic is developing include IMU-935, a treatment for autoimmune diseases and MU-856, a treatment for gastrointestinal disorders. On June 15, Immunic announced that the first patients in its Phase 2 CALVID-1 clinical trial of IMU-838 in COVID-19 had been dosed. Ladenburg Thalmann analyst Matthew Kaplan explained, “The CALVID-1 study is a prospective, multicenter (10-35 centers in Germany, USA, and half a dozen European countries), randomized, placebo-controlled, double-blind Phase 2 clinical trial in approximately 230 patients with moderate COVID-19, and will evaluate efficacy, safety, and tolerability of IMU-838.” The development marked an important milestone in advancing the candidate. Commenting on this, Kaplan stated, “An interim analysis is planned after 200 patients have completed treatment, which could lead to an expansion to a confirmatory Phase 3 trial with an adaptive trial design…We are encouraged by the preclinical data and clinical plan and look forward to future updates.” Speaking to the strength of Immunic’s other possible catalysts, Kaplan noted, “We also believe the earlier stage pipeline programs (IMU-935 and IMU-856) provide for significant additional potential upside.” Based on all of the above, Kaplan reiterated his Buy recommendation. He also has a $50 price target on the stock, which indicates significant upside potential of 307%. (To watch Kaplan’s track record, click here) All in all, other analysts agree with Kaplan. 3 Buys and no Holds or Sells add up to a Strong Buy consensus rating. Meanwhile, the $51 average price target, which is more aggressive than Kaplan’s, represents a huge 315% potential increase from the share price of $12.30. (See Immunic stock analysis on TipRanks) Benefytt Technologies, Inc. (BFYT) Next up we have Benefytt Technologies, (previously called Health Insurance Innovations, Inc.) which sells a range of Medicare-related health insurance plans as well as other health and life insurance products. Last year, management made a strategic shift towards targeting Medicare dollars rather than individual and family plans. Consequently, the company, which has a market cap of $310.8 million, is navigating its way through a transition year, negatively affecting its operating performance. In the first quarter of 2020, revenue fell to $71.6 million, from $87.3 million in the prior-year quarter. That said, a closer look at the results reveals a bright spot. Revenue from Benefytt’s Medicare segment, which is new to the company since June 2019, came in at $18.9 million. Management plans to grow the Medicare segment to between $190 million to $210 million in the coming year. Five-star analyst from Cantor Fitzgerald, Steven Halper, shares the company’s optimistic view. “We continue to believe the company is taking the necessary steps to grow its Medicare business. It still expects 2020 Medicare revenue to be $190-210 million,” he commented. Pointing to Benefytt’s stock price, the five-star analyst said, “We have made some modest changes to our estimates but our price target remains at $75. Either way, we believe the shares are compelling at current levels.” To this end, Halper has an Overweight (i.e. Buy) rating on the stock. His $75 price target suggests hefty upside potential of 244%. (To watch Halper’s track record, click here) Turning to the rest of the Street, other analysts are on the same page. 5 Buys and no Holds or Sells have been issued in the last three months, so BFYT gets a Strong Buy consensus rating. The average price target is $47.30, which implies sizable upside potential of 117%. (See Benefytt stock analysis on TipRanks) Scorpio Bulkers (SALT) Last but not least is Scorpio Bulkers, an international shipping company that provides marine transportation for dry bulk commodities such as coal, grains, and fertilizers. At $181.1 million, its market cap is the smallest on our list. It has been a trying period for Scorpio Bulkers shareholders. The company’s shares have significantly underperformed the broader market, plunging 76% year-to-date, compared to a 3% loss for the S&P 500. Nevertheless, BTIG analyst Gregory Lewis believes the stock is ripe for a bounce. In a recent research report, he noted, “The company has prepared itself for the enacted IMO 2020 fuel regulation by installing scrubbers on its fleet which should provide above market earnings and a way for investors to capture dislocations in the marine bunker fuel market.” Further adding to the analyst’s bullish sentiment, Lewis sees several upcoming catalysts that are set to bolster shipping rates and profitability. These include countries reopening their economies and undertaking a restocking cycle, and governments employing stimulus programs to jump-start their economies. In line with his optimistic take, Lewis rates the stock a Buy and maintains a $40 price target, which translates to substantial upside potential of 164%. (To watch Lewis’ track record, click here)   Do other analysts on the Street agree with Lewis? Yes, they do. The consensus rating is a Strong Buy, based on 5 Buys and 1 Hold. The average price target of $34.17 implies meaningful upside potential of 126%. (See Scorpio Bulkers stock analysis on TipRanks)

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We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

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(Bloomberg) — Luckin Coffee Inc.’s chairman, Charles Zhengyao Lu, was ousted by shareholders from the scandal-plagued Chinese company, just days after surviving an effort by some directors to strip him of control, local media reports said, citing unidentified sources.Three other board directors including Sean Shao were also removed at an extraordinary shareholders meeting in Beijing on Sunday, according to the reports from 21st Century Business Herald and Sina, while Ying Zeng and Jie Yang will be added as independent board directors.A company representative didn’t respond to requests for comment.The removal of Lu is the culminating step in a major shakeup of top management since fabricated transactions dating back to April 2019 came to light earlier this year. The coffee chain already fired its chief executive and chief operating officers, among other employees, in May as it came under investigation by Chinese and U.S. regulators.The voting result ended a temporary reprieve for Lu, who remained chairman after a proposal to remove him from the startup he founded wasn’t approved by the required two-thirds of directors at a special meeting last week. According to Luckin’s Articles of Association, a director can be removed by shareholders or other board directors.Luckin’s executive shakeup is an unusual case in China, where it’s rare for a private startup to oust a founder and chairman, who is considered the soul of the firm. Lu and others were removed in a bid to distance the company from the financial scandal and allow it to continue operating more normally.Lu’s dismissal comes after Luckin said it substantially completed an internal investigation into the financial irregularities. Once considered among China’s brightest growth stories, the chain has seen its stock become almost worthless, plunging 94% this year.The company said last week its internal investigation concluded that net revenue last year was inflated by about 2.12 billion yuan ($300 million) while costs and expenses were boosted by 1.34 billion yuan. After the conclusion of the investigation, a majority of directors had requested Lu’s resignation.Banks Face $300 Million Shortfall on Luckin Margin LoansLuckin’s fall has ensnared banks including Credit Suisse Group AG and Morgan Stanley as they face a $300 million shortfall on margin loans made to Lu. The scandal is also a black eye for China Inc. as the U.S. Congress moves closer to passing legislation that could bar Chinese companies from trading on U.S. stock exchanges.Luckin said it would fire a dozen workers and discipline 15 others following the internal investigation. It already dismissed CEO Jenny Zhiya Qian, COO Jian Liu and some employees who reported to them in May after uncovering the scheme that funneled funds to the company from several third parties with links to the participants. The board said it fired the executives based on evidence showing their participation in the false transactions.Lu became a billionaire after his fast-growing Chinese chain went public in the U.S., but much of his wealth was wiped out by the plunge in Luckin’s stock. Lu last month resigned as chairman of Car Inc., China’s biggest rental-car fleet operator, as scrutiny increased over Luckin and the accounting scandal. A Beijing court has frozen Lu’s entire stake in Car Inc.’s parent, UCAR Inc., for judicial reasons.He has drawn criticism for applying an aggressive cash-burning expansion strategy to all his startup projects, as the model helps quickly expand the businesses and gain market share at the expense of profitability.Luckin, founded in 2017, raised $645 million in its U.S. IPO last year and counted BlackRock Inc. among its backers. It took direct aim at Starbucks Corp. in China, with a strategy to open more stores in two years than the Seattle-based heavyweight has in two decades.(Updates on attribution of media reports)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.

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Rains triggered floods and landslides in a part of southern Japan that hasn’t had many reported coronavirus cases. WSJ’s Peter Landers describes how authorities are working to make sure the rescue effort doesn’t accidentally spread the virus. Photo: Koji Harada/Kyodo News/Associated Press

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The mass adoption of bitcoin or cryptocurrencies is yet to be achieved, according to several metrics tracked by The Block Research.The post Bitcoin's mass adoption is still a dream, reveals data appeared first on The Block.

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Yahoo Finance’s Brian Sozzi and Alexis Christoforous break down today’s market action with BNY Mellon Chief Strategist Alicia Levine.

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(Bloomberg) — Shares of Tesla Inc. rose as much as 6.3% Monday after three analysts lifted the electric carmaker’s price target, including JMP Securities by 43%.The boost to $1,500 from $1,050 comes after the Palo Alto-based company delivered more Model 3 and Model Y vehicles in the second quarter than JMP expected, analyst Joseph Osha said in a note.“Our target is now based on our belief that TSLA is positioned to become a $100 billion company” by 2025, in terms of revenue, Osha said. At the end of last year, Tesla had $24.6 billion in revenue.While data for deliveries in China haven’t yet been released, the firm appears to have been more successful in the U.S. and Europe than JMP thought, Osha said. NIO Inc., Tesla’s Shanghai-based rival, has been gaining ground. The company’s U.S.-traded shares rose as much as 23% Monday.Deutsche Bank analyst Emmanuel Rosner also raised Tesla’s price target to $1,000 from $900, referencing the stronger-than-expected vehicle shipments.Even bearish analyst Ryan Brinkman at JPMorgan boosted his price target by $20 to $295 and expects a second-quarter loss that’s smaller than he previously estimated. He maintained his sell-equivalent rating, citing the company’s “lofty valuation coupled with higher investor expectations and high execution risk.”TSLA has 9 buys, 11 holds and 16 sell ratings, with an average price target of $730, according to data compiled by Bloomberg.(Adds JPMorgan raising target in sixth 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.

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