Stock Pick

Author: therawinformant

  • Shale Pioneer Chesapeake Plans Bankruptcy With Options Dwindling

    Shale Pioneer Chesapeake Plans Bankruptcy With Options Dwindling(Bloomberg) — Chesapeake Energy Corp. is preparing a potential bankruptcy filing that could hand control of one of the leading lights of the U.S. shale revolution to senior lenders, according to people with knowledge of the matter.The dwindling options for a powerhouse that once rivaled Exxon Mobil Corp. for title of king of American natural gas comes after Chief Executive Officer Doug Lawler’s 7-year effort to untangle the financial and legal legacies of Chesapeake’s late founder, Aubrey McClendon.Lawler’s denouement, in turn, would signal the deep peril facing a shale industry largely built according to McClendon’s blueprint for Chesapeake: amassing incredible debts to pursue aggressive drilling programs that ultimately unearthed too little treasure to reward investors.Gordon Pennoyer, a spokesman for Chesapeake, declined to comment. The talks with lenders come almost seven years to the date that Lawler assumed the helm at the Oklahoma City-based company at the behest of Carl Icahn and O. Mason Hawkins, at the time two of the driller’s biggest investors.Chesapeake is negotiating a restructuring support agreement that could see holders of its so-called FILO term loan take a majority of the equity in bankruptcy, said the people, who asked not to be identified discussing confidential matters. The support agreement remains fluid and the terms could change, the people said.Chesapeake, which owes about $9 billion, is debating whether to skip interest payments due on June 15 and invoke a grace period while it talks with creditors, the people said. No final decision has been made. The company has also begun soliciting lenders to provide debtor-in-possession financing to fund its operations during bankruptcy, according to one of the people.Ripple EffectsA bankruptcy filing by Chesapeake would reverberate well beyond its investors and employees because it will put millions of dollars in pipeline, fracking and other contracts at risk.The stock, whose shrunken price was boosted by a 1-for-200 reverse stock split earlier this year, more than tripled at one point Monday to $84.75, then plunged to $52.05 after Bloomberg reported the potential Chapter 11 filing. A bankruptcy typically wipes out existing shareholders.Chesapeake, the brainchild of McClendon and co-founder Tom Ward, was one of the first to aggressively combine breakthroughs in horizontal drilling and high-intensity hydraulic fracturing to shale rock long ignored by geologists looking for gas or oil.That gamble provided trailblazers like Chesapeake, Continental Resources Inc. and EOG Resources Inc. a head start over industry titans like Exxon and Chevron Corp. in dominating the burgeoning shale sector. Years later, companies like Exxon would pay dearly to gain footholds in shale.Lawler’s efforts to rescue Chesapeake have included across-the-board belt-tightening at the company’s once-lavish corporate headquarters, along with tens of thousands of job cuts. A years-long campaign to transform the gas giant into an oil company never gained traction.Pre-CovidThe driller recorded $8.5 billion in impairments for the first three months of the year as the value of its fields, a sand mine and other assets plunged along with commodity prices.Chesapeake was already in a precarious position before the Covid-19 outbreak sent crude demand plummeting. At its height more than a decade ago, the producer was a $37.5 billion juggernaut commanded by McClendon, an outspoken advocate for the gas industry. But Chesapeake’s success at extracting the fuel from deeply buried rock contributed to a massive gas glut.Kirkland & Ellis and Rothschild & Co. are advising Chesapeake, according to people with knowledge of the matter. The FILO lenders are organized with Davis Polk & Wardwell and Perella Weinberg Partners LP, the people said. Franklin Resources Inc. is organized with Akin, Gump, Strauss, Hauer & Feld LLP, according to one of the people.Representatives for Rothschild, Perella Weinberg and Franklin declined to comment, while representatives for Kirkland & Ellis, Davis Polk, and Akin Gump didn’t immediately comment.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.

    from Yahoo Finance https://ift.tt/2AU4THe

  • Cheap ASX 200 retail shares to buy today

    shopping

    ASX 200 retail shares have been some of the hardest hit in 2020. The coronavirus pandemic saw many stores shut down as tight government restrictions came into place.

    The S&P/ASX 200 Index (ASX: XJO) is down 10.91% this year and many Aussie retailers have lost billions in value.

    However, there are indications that the tide could be turning. Here are a couple of my top ASX 200 retail shares to watch ahead of a potential recovery in June.

    Cheap ASX 200 retail shares to buy today

    I think JB Hi-Fi Limited (ASX: JBH) shares could be in the buy zone. JB Hi-Fi has benefitted from the remote working arrangements put in place across much of corporate Australia.

    Aussies have flocked to JB Hi-Fi’s online stores to deck out their working from home setups. That means more sales of computers, TVs, monitors and other accessories in 2020.

    The ASX 200 retail share is up 5.27% this year but I think it could climb even higher. If we see more companies remain with a remote working model, that could boost JB Hi-Fi’s sales even higher.

    I also think Super Retail Group Ltd (ASX: SUL) is worth a look right now. Super Retail is one of Australasia’s top 10 retailers with over 670 retail stores and more than 12,000 team members.

    The Aussie retailer owns a number of well-known brands including BCF, Rebel, Macpac, and Supercheap Auto. While sales may have seen a slump, I think the relaxation of restrictions could be a good thing for the ASX 200 retail share.

    More Aussies could be looking to get out and about. That might be buying more gym equipment from Rebel or outdoor gear from Macpac and BCF.

    The Super Retail share price is down 16.34% this year, but could be set to boom if we see strong earnings in August.

    For more cheap shares to buy today, check out these top Fool picks below!

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading over 30% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

    YES! SEND ME THE FREE REPORT!

    As of 2/6/2020

    More reading

    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Cheap ASX 200 retail shares to buy today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/37dyxmE

  • Latest Ethereum price and analysis (ETH to USD)

    Latest Ethereum price and analysis (ETH to USD)Ethereum is potentially just days away from breaking out above a key level of resistance against its Bitcoin trading pair. The world's second largest cryptocurrency has made a significant 22% gain against Bitcoin over the past three weeks as investors turn bullish ahead of the upcoming Ethereum 2.0 upgrade. The update will reportedly increase scalability and security, both of which have been key points of criticism since Ethereum's inception. During the height of the ICO boom in 2017 Ethereum's network often became clogged up with transactions, leading to inflated fees and a much slower network. When blockchain-based game CryptoKitties was released transactions took up to one hour with some costing as much as $50. If Ethereum can prove that its

    from Yahoo Finance https://ift.tt/2UrSn8K

  • 3 high quality ASX dividend shares you can buy today

    dividend shares

    While the Australian economy is faring a lot better than many expected during the pandemic, I’m still of the belief that rates will remain lower for longer.

    Barring a spike in inflation, I suspect the Reserve Bank will keep rates at 0.25% until at least 2022, but possibly longer.

    In light of this, I think dividend shares remain the best way to generate a passive income. But which dividend shares should you buy? Three that I rate highly are listed below:

    BHP Group Ltd (ASX: BHP)

    The first dividend share I would consider buying is BHP. I believe the Big Australian would be a top option for investors due to its world class operations and favourable commodity prices. This is particularly the case with its iron ore operations, which are benefitting greatly from a surge in the price of the steel making ingredient. I expect BHP to generate significant free cash flows in the near term. And with its balance sheet in such a strong position, the majority of this free cash flow is likely to be returned to shareholders. I estimate that the mining giant’s shares currently provide investors with a forward fully franked ~5% dividend yield.

    VanEck Vectors Australian Banks ETF (ASX: MVB)

    Another dividend share to consider is the VanEck Vectors Australian Banks exchange traded fund. I think it is a great option for investors that are looking to invest in the banking sector, but aren’t sure which bank to buy. This is because this exchange traded fund gives investors exposure to all of the big four banks. It is also invested in Australia’s regional banks and investment bank Macquarie Group Ltd (ASX: MQG). Predicting the dividends the banks will pay in FY 2021 is tricky, but I would expect a yield of at least 5% from this exchange traded fund.

    Wesfarmers Ltd (ASX: WES)

    A final dividend share to consider buying is Wesfarmers. I’m a big fan of the conglomerate due to its strong businesses and their positive long term outlooks. Combined with its mountain of cash, which is likely to be used for acquisitions in the near future, I believe Wesfarmers is well-placed to grow its earnings and dividends at a solid rate over the next decade. This could make it a great long term option. At present I estimate that its shares offer a fully franked 3.7% FY 2021 dividend yield.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 high quality ASX dividend shares you can buy today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3f4Slvq

  • These are the 10 most shorted ASX shares

    most shorted ASX shares

    At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

    This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Myer Holdings Ltd (ASX: MYR) continues to be the most shorted share on the ASX despite another reduction in its short interest to 13.6%. It appears as though traders believe the pandemic has hastened the structural decline of department stores.
    • Speedcast International Ltd (ASX: SDA) has short interest of 13.2%. This communications satellite technology provider’s shares remain suspended while it declares itself bankrupt.
    • Super Retail Group Ltd (ASX: SUL) has seen its short interest remain flat at 10.9%. A number of this retail group’s brands look likely to have been impacted greatly by the pandemic. This could mean soft results and lower dividends in FY 2020 and FY 2021.
    • Galaxy Resources Limited (ASX: GXY) has seen its short interest slide to 10.7%. Short sellers were closing their positions despite Chinese lithium prices tumbling to their lowest levels of the year last week.
    • Webjet Limited (ASX: WEB) has jumped into the top ten with short interest of 9.7%. Traders may believe the online travel agent’s shares are overvalued after a strong rebound. Especially given the dilution caused by its capital raising.
    • Orocobre Limited (ASX: ORE) has seen its short interest slide to 9.4%. This lithium miner’s shares were strong performers last week, possibly due to short sellers closing positions. Its shares have been hammered in recent times due to a collapse in lithium prices.
    • Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise to 9.3%. Traders may be targeting the biopharmaceutical company on the belief that its outlook doesn’t justify the lofty valuation its shares trade on.
    • Nearmap Ltd (ASX: NEA) has seen its short interest edge higher to 9.3%. Unfortunately for short sellers, this aerial imagery technology company’s shares have been racing higher in recent weeks after a positive market update.
    • Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.2%, which is down slightly week on week. Pilbara is another lithium miner which experienced a decline in short interest last week. Short sellers may believe the worst is over for the industry.
    • JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall week on week to 9%. It appears as though some short sellers have been closing positions in response to the retailer’s solid sales performance during the pandemic.

    Finally, instead of those most shorted shares, I would buy the exciting shares recommended below…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *  Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Webjet Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post These are the 10 most shorted ASX shares appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3dJ5k5u

  • 5 things to watch on the ASX 200 on Tuesday

    On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a small gain. The benchmark index rose 0.1% to 5,998.7 points.

    Will the market be able to build on this on Tuesday? Here are five things to watch:

    ASX 200 to surge higher.

    The ASX 200 looks set to start the week with a very strong gain after U.S. markets charged notably higher on Friday and Monday night. According to the latest SPI futures, the benchmark index is expected to open the week 147 points or 2.45% higher this morning. Overnight on Wall Street the Dow Jones jumped 1.7%, the S&P 500 stormed 1.2% higher, and the Nasdaq index rose 1.1%. The Dow Jones is up 4.9% over the last two trading days after stronger than expected U.S. jobs data.

    Oil prices tumble lower.

    Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure after oil prices tumbled lower overnight. According to Bloomberg, the WTI crude oil price fell 3.4% to US$38.21 a barrel and the Brent crude oil price dropped 3.5% to US$40.79 a barrel. Traders were selling oil after Saudi Arabia revealed that it would not extend its production cuts.

    Free childcare to end next month.

    The G8 Education Ltd (ASX: GEM) share price will be on watch on Tuesday after the Federal Government revealed plans to end its free childcare scheme in July. The government also intends to end the JobKeeper payment for workers in the sector. It will reintroduce the Child Care Subsidy in its place.

    Gold price higher.

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after a mixed couple of trading days. After tumbling notably lower on Friday, the gold price rebounded on Monday night. According to CNBC, the spot gold price rose 1.35% to US$1,705.40 an ounce.

    Iron ore miners on watch.

    BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could push higher again today after iron ore prices jumped. The spot iron ore price stormed over 5% on Monday and is now up to US$105 a tonne mark. All three of these miners are generating significant free cash flows from their operations with prices at these levels.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *  Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/30jHZ6E

  • Is Immunomedics, Inc. (IMMU) Going to Burn These Hedge Funds?

    Is Immunomedics, Inc. (IMMU) Going to Burn These Hedge Funds?In this article you are going to find out whether hedge funds think Immunomedics, Inc. (NASDAQ:IMMU) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among […]

    from Yahoo Finance https://ift.tt/37a3CYz

  • Why Facebook (FB) is Expected to Grow Sales at a Stellar Rate

    Why Facebook (FB) is Expected to Grow Sales at a Stellar RateDiamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]

    from Yahoo Finance https://ift.tt/2ALRsJk

  • Sarepta Gene Therapy Win Helps to Validate Broader Platform

    Sarepta Gene Therapy Win Helps to Validate Broader Platform(Bloomberg) — Data on Sarepta Therapeutics Inc.’s experimental gene therapy for a rare type of muscular dystrophy showed that patients receiving a higher dose of the medicine saw greater benefits than those receiving a lower dose, delivering another early-stage win for the drug developer.Three patients with limb-girdle muscular dystrophy Type 2E who got the high dose of Sarepta’s SRP-9003 produced greater levels of the protein beta-sarcoglycan. While patients with the progressive and debilitating muscle-wasting disease normally make very little or none of the protein, the three children showed an average protein expression that was 62% of normal, topping 36% seen at the lower dose, when using a standard analysis called Western Blot.“We see a dose-dependent increase in expression and we see good tolerability across these kids in both the first and second cohort,” Chief Executive Doug Ingram said in an interview.All three patients in the early-stage study saw an average reduction in the enzyme that the muscle releases when it’s being damaged, known as CK, of 89% after 90 days. Ingram called the reduction in enzyme levels “encouraging.” The three patients also showed significant expression of alpha-sarcoglycan, another integral protein.Shares of Cambridge, Massachusetts-based Sarepta rallied as much as 4.7% at 9:31 a.m. in New York Monday, bringing its 2020 gain to 18%. RBC Capital Markets analyst Brian Abrahams advised clients to continue buying shares as the results help provide “clear differentiation” of Sarepta’s gene therapy platform compared to peers.Sarepta said in a slideshow that one patient had a serious case of dehydration that was a result of vomiting three days after receiving the one-time infusion. The side effects were resolved two days after treatment with a pair of nausea and vomiting medicines and intravenous fluids. Management brushed aside any concern for the side effects, saying it’s not uncommon for patients to have nausea after receiving a gene therapy.Ingram highlighted that none of the six patients treated saw a decrease in platelet counts that were outside of normal or any signals of complement activation. “That has been, for other therapies using different vectors, a very significant issue and in fact others have been put on clinical hold as a result of these very serious problems,” he said.While the opportunity in this rare disease is much smaller than the company’s leading program in Duchenne muscular dystrophy, Wall Street will likely be pleased with the update as it further validates Sarepta’s gene therapy platform. Coming into the data, analysts including Mizuho’s Difei Yang were looking for a solid safety profile as well as a clear increase in benefit at the higher dose.Sarepta also said three patients who received the lower dose of SRP-9003 had improved function one year after treatment.The company plans to select the final dose for a registrational trial in coming months as it continues to discuss trial designs with regulators around the world.When asked if there was interest in studying a higher dose of the gene therapy, Ingram said “we’re getting to the top of what one could reasonably expect.”The update comes less than a month after underwhelming data from competitor Pfizer Inc.’s Duchenne muscular dystrophy gene therapy sent shares of Sarepta to a nine-month high.(Updates with share movement and analyst commentary in fifth paragraph, adds chart)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.

    from Yahoo Finance https://ift.tt/2Yb3UdD

  • Astrazeneca, Gilead reportedly eyed merger

    Astrazeneca, Gilead reportedly eyed merger Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Anjalee Khemlani discuss a possible merger between Astrazeneca and Gilead Sciences.

    from Yahoo Finance https://ift.tt/2MBOIAV