Stock Pick

  • Amazon Is Said To Be In Talks To Buy Bankrupt J.C. Penney

    Amazon Is Said To Be In Talks To Buy Bankrupt J.C. PenneyAmazon.Com Inc. (AMZN) is said to be interested in snapping up debt-strapped J.C. Penney Co. Inc., (JCP) in a deal that would bolster the online retailer’s apparel business, Women’s Wear Daily reported.Shares in J.C. Penney plunged another 23% to $0.18 before being halted on Monday. The report comes after the U.S. apparel and home retailer on Friday filed for bankruptcy protection proceedings.As part of its “renewal” plan, the Plano-based company said it will to cut its debt, streamline operations, close stores and spin off a real estate division in a move to come back in a stronger position. It has about 850 stores across the U.S. and Puerto Rico.“There is an Amazon team in Plano as we speak,” according to the WWD report. “There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business.”J.C. Penney has $500 million in cash on hand as of the Chapter 11 filing date, the retailer said in a SEC filing. In addition, the company received commitments for $900 million in financing from its existing first lien lenders, which includes $450 million of new money.“This financing, combined with cash flow generated by the company’s ongoing operations, is expected to be sufficient to meet J.C. Penney’s operational and restructuring needs,” the company said. “As part of the commitment from its existing lenders, J.C. Penney will explore additional opportunities to maximize value, including a third-party sale process.”It looks like Amazon is on a shopping spree as the economic crisis induced by the coronavirus pandemic is creating opportunities for mergers and acquisitions. The world’s largest online retailer has reportedly also held talks to buy debt-strapped theatre operator AMC Entertainment Holdings Inc. (AMC).Wall Street analysts are bearish about J.C. Penney’s stock with 2 Sells and 2 Holds adding up to a Moderate Sell consensus. Should the $0.36 average price target be met, investors could be looking at 98% upside potential in the shares in the coming 12 months. (See J.C. Penney stock analysis on TipRanks).Related News: AMC Pops 11% Amid Potential Acquisition Talks by Amazon Uber’s Latest Takeover Offer Said To be Rejected By GrubHub Apple is Said to Snap Up Startup NextVR For Virtual Reality Content; Top Analyst Sees Buying Opportunity More recent articles from Smarter Analyst: * Baidu Pops 8% After-Hours On Strong Earnings Beat * Starbucks Back To Business In Japan Today * Moderna Prices $1.3B Equity Offering at $76/Share * Uber Pops More Than 6% On Second Round Of Layoffs, Site Closures

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  • Imperial Brands to cut dividend, sees bigger COVID-19 hit in second half

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  • Top brokers pick the latest ASX stocks to buy today

    Market bulls have gained the upper hand with the S&P/ASX 200 Index (Index:^AXJO) jumping 1.8% today.

    The world appears to finally be in control of the COVID-19 pandemic and investors are willing to look past the recession and into the recovery.

    But investors shouldn’t get ahead of themselves. The fact that the big four banks have finished the session at their intraday lows shows the rebound remains vulnerable.

    If you are looking for ASX shares that might hold their ground better, here are the latest buy ideas from leading brokers.

    Bountiful harvest

    One stock that UBS is backing is Graincorp Ltd (ASX: GNC). The broker just reiterated its “buy” call on the grain handler as it believes the risk-reward is favourable after management posted a better than expected profit result.

    There are also signs that the drought is breaking in parts along the eastern seaboard where Graincrop focuses on. This bodes well for our winter crop.

    Further, the group’s balance sheet looks healthy with net cash of $5 million from its core businesses post demerger of UMG and divestment of the Bulk Liquid Terminals.

    UBS’ 12-month price target on Graincorp is $4.50 a share.

    Turning a corner

    Meanwhile, Morgans reaffirmed its “add” recommendation on Superloop Ltd (ASX: SLC) after the broadband services company’s latest trading update.

    The broker thinks Superloop is at a turning point after struggling with operational issues over the past year or so.

    “Both 1H20 and 2H20 results, ex the COVID-19 overlay which is clearly not management’s fault, have been in-line with our expectations,” said Morgans.

    “This implies that after several years of being in an earnings downgrade cycle, FY20 looks to be the base year, from which to grow.”

    The broker’s price target on the stock is $1.30 a share.

    Good prognosis

    Another stock for the watchlist is medical diagnostic group Sonic Healthcare Limited (ASX: SHL). Citigroup highlighted the stock as a “buy” after running several COVID-19 test scenarios.

    The stock fell out of favour at the start of the pandemic because investors were worried that what it will make from running COVID-19 tests will not be enough to offset the drop in demand for its traditional services.

    The broker estimates that the total market opportunity in the US alone from coronavirus testing stands at around US$6 billion for the six months to the end of calendar 2020.

    “Assuming a SHL market share of 5%, it would increase group 1H21 revenue/EBITDA/NPAT by up to 13%/31%/63% over our baseline forecasts of ‘business as usual’, all else equal,” said the broker.

    While there are some caveats to the forecast, the broker believes Covid-19 testing could provide a significant cushion against a drop in the base business.

    “Under the 5% mkt share scenario the group’s global revenue would have to decline by 13% in 1H21 to offset the contribution from US Covid-19 testing,” explained Citigroup.

    The broker’s 12-month price target on Sonic is $32.50 a share.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    More reading

    Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia has recommended Sonic Healthcare 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 Top brokers pick the latest ASX stocks to buy today appeared first on Motley Fool Australia.

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