Crude Oil Higher on API Data, OPEC Cuts

oil-rigsGasoline inventories fell by 3.15 million barrels, according to the report;

Kuwait’s Oil Minister said on Tuesday #OPEC is committed to restore the balance of the oil market

 

The American Petroleum Institute #API reported a draw of 1.5 million barrels in crude oil inventories for last week, compared to analyst expectations of  a draw of 2.3 million barrels for the week ending May 19. This week’s crude oil inventory draw was accompanied by across the board draws for gasoline, distillates, and oil at the Cushing, Oklahoma facility as well.

Gasoline inventories fell by 3.15 million barrels, according to the report.

For the Week, distillate inventories fell by 1.85 million barrels—offsetting the 1.8 million barrel build last week.

The U.S. Energy Information Administration report on oil inventories is due Wednesday at 10:30 a.m. EDT.

WTI prices have risen this week, from $48.76 last week to $51.41 per barrel on Tuesday. Brent was trading at $54.11, compared to $51.78 last week.

#WTI = West Texas Intermediate

Prices are supported by production cuts from OPEC but prices have been kept in check by domestic productions.

Kuwait Calls for Deeper Cuts

Kuwait’s Oil Minister said on Tuesday #OPEC is committed to restore the balance of the oil market and is not ruling out any option for discussion at the upcoming meeting on Thursday, including considering deeper cuts.

“All options are on the table and could be discussed. However, any agreement should be satisfactory for all parties. And if necessity arises, we could increase the output cut. But it is premature to talk about that now,” the minister said.

He added that Kuwait fully supports the extension of the deal for nine months, as well as all efforts aimed at rebalancing the global oil market. He added that four other non-OPEC countries—Egypt, Norway, Turkmenistan, and Indonesia—could join the output cuts.

Although signs from OPEC producers point to support for a rollover of the cuts, not all members have voiced support for a nine-month extension. $USO closed at $10.64

#OPEC = Organization of Petroleum Exporting Countries

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Take-Two Higher Despite Red Dead Redemption 2 delay

Stockwinners.com blogShares of #Take-Two $TTWO rose in Tuesday trading, rebounding from Monday’s after-hours dip following the delay of the video game maker’s highly-anticipated #RedDeadRedemption 2 to Spring of next year.

In addition, the company reported better-than-expected quarterly results and provided guidance for the first quarter and fiscal 2018.

RED DEAD DELAY: In a blog post Monday afternoon, Take-Two subsidiary Rockstar Games said that Red Dead Redemption 2 is now set to launch in Spring 2018 on #Sony’s #SNE #PlayStation 4 and #Microsoft’s $MSFT #Xbox One.

The company originally said the game, which is a sequel to 2010’s Red Dead Redemption, would be available in Fall of 2017. Commenting on the matter, Rockstar said it is “very sorry for any disappointment this delay causes,” yet noted that they would rather deliver a game “only when it is ready.”

Following the news, shares of Take-Two fell as much as 10% in after-hours trading.  Later on, Take-Two CEO Strauss Zelnick noted in the company’s quarterly earnings release that Red Dead Redemption 2 will be the first game from Rockstar to be “created from the ground up” for the latest generation of consoles, and some additional time is necessary to “ensure that they deliver the best experience possible.”

EARNINGS/GUIDANCE: Take-Two Interactive TTWO reported fourth quarter GAAP earnings per share of 89c on net revenue of $571.6M. Analysts were expecting the company to report EPS of 57c on revenue of $355.37M.

Looking ahead, the company said it expects Q1 EPS in the range of 65c-75c on revenue of $390M-$440M. Take-Two also said it sees Q1 net sales of $240M-$290M, compared to analysts’ estimates for $254.5M.

In addition, the video game maker said it sees FY18 EPS of $4.35-$4.65 on revenue of $1.95B-$2.05B and net sales of $1.42B-$1.52B. Analysts expect the company to report FY18 revenue of $2.24B.

Analyst Comments: Prior to Take-Two’s earnings report, #Jefferies analyst Timothy O’Shea said that the selloff related to the Red Dead Redemption 2 delay should be viewed as a buying opportunity. #O’Shea attributed the roughly 10% slip in shares post-market to Rockstar’s “infamous perfectionism” and doesn’t believe that it changes the overall unit sales potential for the title.

The analyst also noted that Take-Two’s shares traded down 6% when Rockstar announced in January 2013 that the release Grand Theft Auto V would be moved by six months, adding that GTA V has sold over 75M units and the stock has “more than quintupled” since that time. O’Shea maintained a Buy Rating on Take-Two with a $65 price target.

Meanwhile, #Piper Jaffray analyst Michael Olson kept an Overweight rating and $77 price target on the stock, saying that he doesn’t expect the RDR2 release change to affect overall sales of the game or average multi-year Take-Two EPS. While Olson noted that some may suggest the delay comes with two potential risks, namely a worse launch window as well as real issues with the game, he said that a spring release should not “significantly” impact overall sales of the game and that he believes Rockstar would have left the timing open-ended if in fact there were major development issues. PRICE ACTION: In afternoon trading, Take-Two (TTWO) advanced about 5% to $72.48.

OTHERS TO WATCH: Shares of the game maker’s competitors were also higher, with Activision Blizzard $ATVI up 1% and Electronic Arts $EA up 0.5% in the afternoon.

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Global Sources Sold for $18 per share

stockwinners com#GlobalSources $GSOL  has entered into an Agreement and Plan of Amalgamation with Expo Holdings and Expo Holdings II, a wholly-owned subsidiary of Parent.

Subject to the terms and conditions set forth each shareholder to receive an amount equal to $18.00 in cash, without interest. The Amalgamation Consideration represents a premium of 50.0% over the company’s closing price of $12.00 per Share on May 22, 2017, the last trading day prior to the date that the Company entered into the Amalgamation Agreement, and a premium of 72.65% to the volume-weighted average closing prices of the Shares during the 30 trading days prior to May 22, 2017.

The Company expects to hold a special meeting of its shareholders to consider and act upon the Amalgamation Agreement and the transactions contemplated by the Amalgamation Agreement as promptly as practicable. Details regarding the record date for, and the date, time and place of, the special meeting will be included in a press release when finalized.

Shares of Global Sources last traded at $17.88.

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Buy Clovis Ahead of ASCO Meeting

American Society of Oncology Meets June 2-6, 2017 in Chicago

Clovis to Present about its Ovarian Cancer Drug

Clovis to Submit NDA for Ovarian Cancer#Clovis Oncology $CLVS announced that abstracts highlighting progress in the rucaparib clinical development program, its treatment for ovarian cancer, will be presented at the 2017 American Society of Clinical Oncology Annual Meeting taking place June 2 to June 6 in Chicago. #ASCO

Four abstracts highlighting ongoing #rucaparib clinical trials will showcase some of the multiple #cancer types in which the compound is being studied, including germline and somatic BRCA-mutated, relapsed, high-grade ovarian cancer; metastatic castration-resistant prostate cancer associated with homologous recombination deficiency; and HER2 negative metastatic breast cancer.

Rucaparib is Clovis Oncology’s oral, potent, small-molecule inhibitor of #PARP1, #PARP2 and #PARP3.

In December 2016, the #FDA approved rucaparib tablets as monotherapy for women with advanced ovarian cancer who have been treated with two or more chemotherapies and whose tumors have a deleterious BRCA mutation as identified by an FDA-approved companion diagnostic test.

The #ARIEL3 pivotal study of rucaparib is a randomized, double-blind study comparing the effects of rucaparib against placebo to evaluate whether rucaparib given as a maintenance treatment to platinum-sensitive ovarian cancer patients can extend the period of time for which the disease is controlled after a response to platinum-based chemotherapy.

Top-line results from ARIEL3 are anticipated by the end of June, and the Company plans to provide a more comprehensive presentation of the ARIEL3 results in a scientific session at a medical meeting later this year.

Pending positive data, the Company intends to submit a supplemental New Drug Application for a second line or later maintenance treatment indication within approximately four months of the database lock.

Other stocks to watch in the group: $INCY, $TSRO, $PBYI, $AMGN

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GE Receives $15 Billion Contract from Saudi Arabia

Building on its more than 80 years of partnership and experience in the Kingdom, #GE said it has taken significant steps in supporting the delivery of Saudi Vision 2030, announcing this weekend in partnership with the Kingdom a range of Memorandums of Understanding and projects valued at $15B – of which almost $7B are GE technology and solutions – across multiple sectors and partners aimed at creating a truly diverse and sustainable economic platform.

The initiatives touch upon the key pillars within #SaudiVision 2030, focusing on transforming the nation into a global investment leader and geographic hub and the upscaling of industrial skills and capabilities.

Among the projects, GE will help make Saudi power generation more efficient and provide digital technology to the operations of oil firm Saudi Aramco, aiming to create $4 billion of annual productivity improvements at Aramco. It will cooperate in medical research and training.

The agreements also place significant emphasis on human capital development and the digital transformation across multiple sectors, with the expanded application of GE’s Predix platform, which utilizes cloud-based data analytics to better ensure and enhance manufacturing efficiency.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.