Category: Stock Market

Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Heidi Chung break down the market action for Under Armour.

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On Wednesday, May 20, Florida’s Disney Springs (DIS) will begin its initial reopening, Matt Simon, VP of Disney Springs, has announced. He called the move “a great first step in the phased reopening of Walt Disney World Resort.”“While our theme parks and resort hotels remain temporarily closed, the phased reopening of Disney Springs is a welcome milestone as we navigate through this unprecedented time together as responsibly as we can” Simon wrote.Based on government requirements, as well as guidance from health authorities and government agencies, DIS will implement several new health and safety measures at the outdoor shopping, dining, and entertainment complex.For instance, all guests 3 years and older, along with cast members will have to wear a face covering while visiting Disney Springs. Visitors will also be requested to undergo temperature screenings, and the number of guests will be limited during this initial phase.DIS also said that it has increased cleaning and disinfection in high-traffic areas and will introduce hand-washing stations with hand sanitizer.On May 27, three Disney-owned and -operated stores and venues will reopen, namely: World of Disney, D-Luxe Burger (mobile order) and the Marketplace Co-Op.Analysts have a cautiously optimistic outlook on DIS stock right now with a Moderate Buy consensus and a $121 average price target (11% upside potential). The stock has plunged 25% year-to-date. (See Disney stock analysis on TipRanks).“Disney’s 2Q-FY20 results and outlook highlighted the significant operating and financial disruption caused by the ongoing pandemic” writes RBC Capital’s Kutgun Maral.He has a hold rating on the stock and recently trimmed his price target from $110 to $108 (1% downside potential). “The acute pressures to theme parks, studio, and media networks limit earnings visibility or confidence that estimates have bottomed, as demonstrated by the company foregoing its next semi-annual dividend” he explained.“We continue to remain bullish on Disney’s strategic vision, quality of assets, and execution, but remain on the sidelines until there is greater clarity on the post- coronavirus world” the analyst concluded.Related News: Citron Research Accuses Peloton Stock Of Peddling Its Way To Stupidity Buffett’s Berkshire Shaves Off 84% Of Its Goldman Sachs Stake Saudi Arabia’s Sovereign Fund Snaps Up $7.7B Of US Stocks, Including Boeing and Facebook More recent articles from Smarter Analyst: * Apple To Reopen More Than 25 U.S. Stores This Week * Europe Could Conditionally Approve Gilead’s Remdesivir In Next Few Days * Ryanair Cuts Traffic Target By Almost 50% For Coming Year, Seeks To Reduce Boeing Plane Deliveries   * AstraZeneca Aiming For 30M UK Covid-19 Vaccine Doses By September

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The Fed chief's alarming coronavirus warning has sent mortgage rates even lower.

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Biotechnology company Moderna announced that its early-stage human trial for a coronavirus vaccine produced COVID-19 antibodies in all trail participants.

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Following a woeful year, the end of last week provided a sense of turnaround for investors of Aurora Cannabis (ACB). The stock shot up over 90% after the release of a better-than-expected earnings report.The company delivered on several key issues weighing on investors’ minds ahead of the results. First of all, Aurora delivered much better sales than anticipated. Revenue of C$75.5 million beat the consensus calls for C$67 million, and represented 18% quarter-over-quarter growth. Recreational cannabis sales jumped 24% to CA$41.5 million, boosted by the success of value brand Daily Special’s February launch.Cost cutting measures have also been bearing fruit, significantly reducing cash burn in the quarter. The company exited the quarter with C$230.2 million of cash in the coffers.Additionally, the company's aim of reaching positive adjusted EBITDA in FQ2021 appears on target. Although still a way off from being positive, Aurora reported an adjusted EBITDA loss of CA$45.9 million, (excluding one-time staff reduction termination costs), a vast improvement on the previous quarter’s adjusted EBITDA loss of CA$80.3 million.Bottom line, though, the company is still losing money, with a FQ3 net loss of CA$137.4 million, or CA$1.37 per share, far above the consensus estimates of CA$0.77.Even though CIBC analyst John Zamparo believes Aurora is “making progress on cost cutting, while increasing its consumer market share and maintaining its leading medical business,” the analyst points out that the company still has “much work to do.”A particular issue needs solving, and quickly, according to Zamparo: “Regardless of progress on cost cutting, if Ontario stores do not start opening in the somewhat near future, industry revenues will not reach the levels required for most firms to reach profitability, and we believe Aurora is no different. A spike in online sales is encouraging, but nowhere near sufficient to supplant brick and mortar. As Ontario goes, so goes this industry.”To this end, Zamparo reiterates a Hold rating on Aurora shares, while lowering his price target from C$27 to C$14. The figure represents possible downside of 9% from current levels. (To watch Zamparo’s track record, click here)Zamparo’s assessment gets the rest of the Street’s backing. A Hold consensus rating is based on 9 Hold ratings, 3 Buys and 2 Sells. The average price target is slightly above the CIBC analyst’s, and at C$14.29 implies downside of 7%. (See Aurora stock analysis on TipRanks)To find good ideas for cannabis 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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(Bloomberg) — The U.S. Supreme Court rejected an appeal by Venezuela in its fight to retain control of oil refiner Citgo Holding Inc., putting the country a step closer to losing its largest asset.The justices, without comment on Monday, left intact a federal appeals court victory for a defunct Canadian gold mining company seeking to force the sale of Citgo’s parent company. The gold miner, Crystallex International Corp., is trying to collect a $1.4 billion arbitration award, most of which remains unpaid.The rebuff leaves Venezuela at risk of losing a much-needed source of revenue in Citgo. The country’s opposition leader, Juan Guaido, has been fighting to safeguard the assets since taking control of Citgo as part of his power struggle with President Nicolas Maduro.Crystallex is seeking compensation for Venezuela’s 2011 takeover of the company’s gold mining operations near Las Cristinas. Crystallex won in arbitration in 2016, and a Philadelphia-based federal appeals court ruled last year that the shares could be seized to satisfy the award. The gold miner must still secure a U.S. Treasury Department license before the shares could be auctioned.Crystallex is the furthest along of a group of creditors, including oil company ConocoPhillips, that are eyeing the shares of Citgo’s parent company, PDV Holding Inc.Venezuela and its national oil company, Petroleos de Venezuela SA, asked the Supreme Court to review the appeals court ruling, saying it conflicts with a federal sovereign immunity law. Crystallex urged the Supreme Court not to hear the case.The case is Bolivarian Republic of Venezuela v. Crystallex, 19-1049.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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Trulieve Cannabis (CSE:TRUL) shares have had a really impressive month, gaining 36%, after some slippage…

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(Bloomberg) — As successful as the Federal Reserve has been propping up corporate debt prices, the support is only temporary and distress will sweep through the credit markets when the central bank inevitably steps back, Howard Marks said.“Can the Fed keep it up forever?” Marks, the billionaire co-chairman of Oaktree Capital Group, said in a Bloomberg “Front Row” interview. “Those of us in the markets believe that stocks and bonds are selling at prices they wouldn’t sell at if the Fed were not the dominant force. So if the Fed were to recede, we would all take over as buyers, but I don’t think at these levels.”That, in a nutshell, is the dilemma for policy makers.Confronted by the worst economic collapse since the Great Depression, they’ve resorted to unprecedented means to keep big employers in business, including the March 23 announcement of two corporate-credit facilities with $750 billion of total spending power.The prospect of intervention on that scale sparked an immediate surge in demand for both investment-grade and junk bonds. Now that the program has started buying, it’s unclear what happens when — and if — the funding runs out.Some investors think the prices of stocks and bonds are justified by the promise of endless central bank liquidity. In other words: You can’t fight the Fed.Marks disagrees. He expects a slow and halting recovery from the coronavirus pandemic and said “there will be plenty” of debt defaults and bankruptcies when corporate borrowers start running out of cash in the months ahead.“There are large, highly levered companies and investment vehicles that the government and Fed rescue program is not likely to reach and take care of,” he said.Already, Neiman Marcus Group Inc., Stage Stores Inc., Avianca Holdings SA and J. Crew Group Inc. are among the bankruptcies hastened by the economic fallout from Covid-19. In the bond market, some 540 issuers are still trading at yields that suggest a high probability of default, though that number is down from almost 900 in late March.One example of the Fed’s efforts is Royal Caribbean Cruises Ltd. Even though cruises have been halted during the pandemic and revenue has shriveled to almost zero, the company was able to sell $3.3 billion of secured debt at a yield of about 11%.“It’s what happens in a market which is, I would say, artificially supported by Fed buying,” Marks said.‘Potemkin Market’In the 1980s, Marks became one of the first investors to specialize in beaten-down bonds. Oaktree, the Los Angeles-based firm he co-founded with Bruce Karsh, is now trying to raise $15 billion for what would be the biggest-ever fund to invest in distressed debt.Oaktree was a “very active buyer” when credit markets were swooning in mid-March, but has pulled back since the Fed announced it would intervene, Marks said. While the central bank has committed to buying investment-grade bonds and debt recently downgraded to junk, it hasn’t extended that support to less-creditworthy issuers.“They could do that,” Marks said. “And in theory, if they bought aggressively, they could make all the markets rise. Now everyone would know that that’s a Potemkin market, a fake, and the minute they stopped things would collapse.”In one of his recent memos to clients, Marks quoted a saying: “Capitalism without bankruptcy is like Catholicism without hell.” In the interview, he said he worries that Fed support for the credit market will result in moral hazard — the likelihood that those who escape the consequences for reckless behavior will be reckless again.That’s not to say he objects to Fed support for the economy.“Thank God that it did what it did,” he said. “Just because something has unforeseeable negative consequences, that doesn’t mean it was a mistake.”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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Hertz, backed by billionaire investor Carl Icahn, has suffered a “sudden and dramatic negative impact” on its business due to the coronavirus crisis, which has crushed demand for rental cars as people cancel travel and stay at home. Hertz, which operates the Hertz, Dollar and Thrifty rental brands, said Stone replaced Kathryn Marinello, who will remain with the company in a consulting position for up to one year.

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