Category: Stock Market

Chris Taylor, CEO of Great Bear Resources, discusses where gold prices may go next with Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Jared Blikre.

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It's shaping up to be a tough period for Wells Fargo & Company (NYSE:WFC), which a week ago released some…

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Another earnings season has arrived, and this time the bar is set seriously low. The upcoming reports will shed some light on the extent of the damage inflicted by COVID-19. Expectations are low, and while there’s plenty of room for disappointments, Oppenheimer’s Chief Investment Strategist John Stoltzfus believes that there’s also an opportunity for some upside.“COVID-19 resurgences notwithstanding the equity markets stateside have thus far shown persistent resilience that continues to confound bears and skeptics. It could be that their memory is lacking when it comes to previous recoveries from market events that have led us to the proverbial brink only to have the resilience of the of the U.S. economy save the day,” Stoltzfus commented.Putting the S&P 500’s rebound from its March 23 low into context, the index has clawed its way back, giving the strategist hope that the unprecedented levels of stimulus will get the market out of the mess the pandemic created. Even though the market is waiting for a catalyst to determine its direction, Stoltzfus points out that historically, “progress not perfection” is what drives a turnaround, noting that evidence indicates serious progress is in fact being made.Putting the strategist’s advice into concrete recommendations, Oppenheimer’s analysts point to two stocks in particular that could take off in the next twelve months. The firm, which lands among the top three on TipRanks’ list of Top Performing Research firms, sees over 80% upside potential in both. After using TipRanks’ database, we found out that each ticker has also received enough support from other Wall Street analysts to earn a “Strong Buy” consensus rating. GrowGeneration Corporation (GRWG)Taking its place as the largest hydroponic equipment supplier in the U.S., GrowGeneration owns and operates specialty retail hydroponic and organic garden centers. Given its strong long-term growth narrative and its $6.95 share price, it’s no wonder GRWG recently earned a thumbs up from Oppenheimer.Covering the stock for the firm, 5-star analyst Brian Nagel likes what he’s seeing, to put it lightly. “GRWG represents a leading, yet still early stage, up-and-coming retail chain within the rapidly expanding and dynamic market for hydroponic and organic gardening supplies,” he noted.Speaking to its footprint, the company operates 27 stores in ten states. That said, over the next few years, Nagel estimates that new store additions, including acquisitions and greenfield expansions, could approach more than 20 units per year, putting its total number of locations at over 90 stores by 2023.To help it reach its targets, the company is putting advanced infrastructure in place. As part of these efforts, GRWG implemented a new ERP system, and in June, the stores were connected to its website, allowing for BOPUS and other functionality. Expounding on this, Nagel stated, “Key to our initial positive outlook for GRWG is our view that the GRWG business model is now approaching a point of increased sustained underlying scalability… Our initial analysis suggests that, as GRWG accelerates further acquisition and organic expansion efforts, the company should increasingly capitalize upon scale-related synergies and over time deliver even better profit and cash generation.”Additionally, after an all-primary, secondary equity offering, GRWG’s cash position lands at over $52 million, with only $314,000 in short- and long-term debt. Based on this, Nagel thinks that the company should be able to fund its near- and longer-term expansion objectives.With the analyst projecting that through 2023, adjusted EBITDA will reach roughly $55 million on total company revenue of more than $400 million, Nagel doesn’t believe GRWG’s full value has been built into the share price.To this end, Nagel rates GRWG a Buy along with a $15 price target. This target indicates shares could skyrocket 110% in the next year. (To watch Nagel’s track record, click here)Turning now to the rest of the Street, other analysts are on the same page. Only Buy ratings, 5, to be exact, have been issued in the last three months, so the consensus rating is a Strong Buy. The $10.20 average price target puts the potential twelve-month gain at 42%. (See GrowGeneration stock analysis on TipRanks)Relmada Therapeutics (RLMD)Bringing extensive drug development capabilities to the table, Relmada Therapeutics is working to address the unmet needs in depression, central nervous system (CNS) and ophthalmological disorders. Based on the strength of its lead development candidate, REL-1017, Oppenheimer is getting on board.Looking more closely at the asset, REL-1017 (dextromethadone) is an oral NMDA-receptor antagonist designed for use in major depressive disorder (MDD). According to firm analyst Jay Olson, what makes the therapy stand out is that “as the d-stereoisomer of methadone, REL-1017 is devoid of opioid activity while preserving affinity for the ketamine-binding site on NMDA receptors, which are hyperactive in MDD neuropathology.” On top of this, it can also generate BDNF expression, and this in turn improves synaptic plasticity. The analyst added, “Based on its novel MOA, REL-1017 should provide rapid and durable antidepressant effects with clean safety/tolerability.”During the Phase 2a 202 trial in an MDD 2L+ adjunctive setting, the therapy showed statistical significance on all efficacy endpoints, including MADRS improvement, with the results supporting a differentiated profile, in Olson’s opinion.Going forward, a pivotal Phase 3 program is set to initiate in the fourth quarter of 2020, with the FDA stating that two positive trials with a primary endpoint of 28-day MADRS improvement and 52-week safety data would support an NDA filing in the chronic MDD 2L+ adjunctive setting. Adding to the good news, in 1H21, the company might kick off a Phase 2 trial in a 2L+ monotherapy setting. “We expect REL-1017 to be a schedule IV/V drug and widely prescribed,” Olson noted.Speaking to the market opportunity, the analyst told clients, “MDD occurs in ~7% of adults and remains a large unmet medical need despite multiple SOC treatments. SSRIs/SNRIs are predominantly prescribed but have slow onset and adverse side effects… REL-1017 would enter the treatment paradigm as an adjunctive to SSRIs/SNRIs in 2L+ patients.” The product could launch in 2023, with “total peak un-risk-adjusted sales for REL-1017 in MDD of $3.7 billion comprised of $3 billion and $700 million in 2L+ adjunctive and monotherapy settings, respectively, in 2035.”To this end, Olson rates RLMD a Buy along with a $75 price target. Shares could appreciate by 87%, should the analyst’s thesis play out in the coming months. (To watch Olson’s track record, click here) Looking at the consensus breakdown, the rest of the Street agrees with Olson’s assessment. With 3 Buys and no Holds or Sells, the word on the Street is that RLMD is a Strong Buy. At $72.67, the average price target implies shares could rise 82% in the next year. (See Relmada stock-price forecast 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.

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If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a…

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The Goldman Sachs Group, Inc. (NYSE:GS) shareholders will have a reason to smile today, with the analysts making…

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LAKEWOOD, Colo., July 17, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”), the largest uranium mining company in the United States, is pleased to announce the recent elimination of a portion of the Company’s debt, confirmation of 2020 uranium production guidance, and updates on the value of the Company’s significant uranium and vanadium inventories. On July 14, 2020, the Company completed the partial cash redemption of its floating rate convertible unsecured subordinated debentures (the “Debentures”) as previously announced on June 11, 2020. On July 14, the Company distributed Cdn$10,430,000 of cash to holders of the Debentures (as of July 8, 2020).

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The European Union is negotiating advance purchase deals of potential COVID-19 vaccines with drugmakers Moderna, Sanofi and Johnson & Johnson and biotech firms BioNtech and CureVac, two EU sources told Reuters. The talks follow a deal reached in June by four EU states with AstraZeneca for the upfront purchase of 400 million doses of its potential COVID-19 vaccine, in principle available to all 27 EU nations.

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(Bloomberg Opinion) — Tesla Inc.’s march to a $275 billion market capitalization has been pretty galling for Germany, the birthplace of the automobile. But the pain is felt most acutely at Daimler AG, which used to be a large Tesla shareholder.Had the owner of the luxury Mercedes-Benz brand kept hold of the almost 5 million shares it offloaded in 2014, they would now be worth about $7.3 billion by my calculation — a sum that’s equivalent to two-thirds of Daimler’s current net industrial cash position.(1)In the annals of ill-timed investment decisions, that stake sale doesn’t quite match the U.K.’s flogging off a big chunk of its gold reserves when prices bottomed out around the turn of the millennium. It still hurts, particularly at a time when industrial companies are counting every last cent.Fortunately there’s some good news to console Daimler’s long suffering shareholders. The company’s performance in the most recent quarter was a lot better than expected. Instead of burning a large amount of cash, Daimler’s industrial business recorded an almost 700 million-euro ($799 million) inflow during the three-month period. The quarterly operating loss of 1.7 billion euros was also a pretty respectable outcome, considering the pandemic forced the temporary closure of both factories and dealerships.The shares rose on Friday, extending the stock’s rally since its March low to almost 80%. While not Tesla-esque, that’s still pretty racy. Unfortunately, this resilient showing may make the task of restructuring Daimler that much harder.But first, what’s gone right? A recession would normally be devastating for auto sales. However, a pandemic changes the dynamic somewhat: Having a car is pretty helpful if you worry taking public transport might endanger your health.Mercedes’s car sales declined about a fifth in the first half of the year, but in June they were actually higher than the same month a year ago. The brand’s performance in China, where the pandemic seems to have been brought under control, was especially good. It helps too that the jobs of Mercedes’s customers – wealthy white collar workers – probably aren’t as threatened by the pandemic as other parts of the economy.That doesn’t mean Daimler is in the clear. The company’s margins had already deteriorated before the novel coronavirus appeared. Legal troubles involving dirty diesel engines contributed to a string of profit warnings, but the overarching problem was the massive cost of investing in cleaner propulsion technology, and that hasn’t gone away. At the same time, Daimler’s large production and staffing footprint in high-cost Germany and high level of vertical integration (it produces lots of parts itself rather than outsourcing the work) has become unsustainable.New Chief Executive Officer Ola Kallenius wants to trim the workforce by 15,000 positions, but the additional headwinds created by the pandemic may mean that number has to rise. Talks with trade unions have begun but unsurprisingly, they’re not going smoothly.The risk is that Daimler’s decent second-quarter performance lessens the urgency for change. Generating positive cash flow is also unhelpful from a political perspective: While Germany has boosted subsidies for low-cost electric vehicles and cut sales taxes, domestic carmakers have received remarkably little support from their government during this crisis.So Daimler still has plenty of work to do. It’s embarrassing that the world’s largest premium automaker and biggest truck maker is valued at barely 40 billion euros. Considering how Mercedes focuses on the premium end of the market, the car unit should be far more profitable than it is.Yes, Daimler should have moved faster to develop electric vehicles. But it’s not the dinosaur it’s sometimes characterized as. The EQS electric saloon set to go on sale in 2021 promises to cover more than 700 kilometers (435 miles) on a single charge, which might convince even the most range-anxious car buyers to abandon their addiction to combustion engines. The truck unit too is targeting a carbon-neutral fleet in key regions by 2039. In view of previous setbacks, Daimler’s shareholders will take more convincing before they believe in this recovery story and get over the disappointment of missing out on the Tesla rally. (1) Daimler acquired a 9% stake in Tesla in 2009 for the trifling sum of $50 million. The Germans quickly offloaded part of their stake, they got diluted when Tesla raised capital and sold the remaining 4% stake in 2014 for $780 million.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Occidental Petroleum Corporation (NYSE:OXY) shareholders will doubtless be very grateful to see the share price up 41…

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(Bloomberg) — Less than a month after emerging from bankruptcy triggered by a string of devastating wildfires in 2017 and 2018, PG&E Corp. has now been found responsible for California’s biggest blaze of 2019.The California energy giant’s power lines sparked the Kincade fire which burned 77,758 acres and destroyed 374 structures in Sonoma County wine country, the California Department of Forestry and Fire Protection, said Thursday.Investigators have sent a report on the incident to the Sonoma County District Attorney’s Office, only a month after PG&E pleaded guilty to 84 counts of involuntary manslaughter for a 2018 conflagration that was the most deadly in state history.Brandon Gilbert, an assistant to Sonoma County District Attorney Jill Ravitch, said his office recently received the reports and will start reviewing them. PG&E said it doesn’t have access to Cal Fire’s report or the evidence it collected.“We look forward to reviewing both at the appropriate time,” PG&E said in a statement.Long SuspectedPG&E’s equipment was long suspected of causing the Kincade fire that started on Oct. 23, as the utility had reported that one of its transmission lines malfunctioned near the location and time of the start of the blaze. The company said in May that it could book a loss of at least $600 million stemming from damages tied to the wildfire.The Kincade fire likely won’t cause the same kind of financial trouble for PG&E as the string of catastrophic blazes in 2017 and 2018 that were blamed on its equipment and pushed it into bankruptcy more than a year ago. PG&E estimated liabilities from those fires at $30 billion. The company emerged from Chapter 11 at the start of this month after having settled claims from the earlier fires for $25.5 billion. The Kincade blaze wasn’t included in the bankruptcy settlement with victims.Cal Fire’s finding is certain to be of interest to the federal judge overseeing PG&E’s criminal probation stemming from a 2010 gas line explosion in San Bruno.LawsuitsU.S. District Judge William Alsup has threatened to impose deep and expensive changes to PG&E’s operations based on its involuntary manslaughter plea following the investigation of the origin of the Camp fire, which destroyed the town of Paradise. The prosecution was led by Butte County District Attorney Mike Ramsey, who concluded that blaze was due to PG&E’s negligence, which he also tied to the Kincade fire.Even before Cal Fire’s report, PG&E faced lawsuits over Kincade. One of the suits, filed July 8 in Sonoma County Superior Court, was filed on behalf of a golf course, vineyards and a hotel damaged in the fire. The suit blames PG&E’s culture as the cause, claiming it failed to maintain aging equipment despite knowing it was unsafe.The fire started after PG&E had shut down other power lines in the area during windy and dry conditions. The measure was part of a number of intentional blackouts carried out by PG&E in October designed to keep its equipment from sparking another calamitous blaze.Mike Danko, a lawyer representing victims of the Camp fire in Paradise, California, in which PG&E pleaded guilty to involuntary manslaughter, said Cal Fire’s report was unsurprising. Danko is representing a number of individuals and businesses who lost property from the Kincade fire.“We knew that, just like the Camp fire, PG&E should have turned the transmission lines off, but didn’t,” he said, referring to the Kincade blaze. “The only question is, given what happened in Paradise, why did PG&E leave the transmission lines energized? Did it learn nothing at all?”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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