Credit Suisse pledges to return capital to shareholders

Credit Suisse pledges to return 50% of net income to shareholders by 2019

Credit Suisse pledges to return 50% of net income to shareholders by 2019. See Stockwinners.com
Credit Suisse pledges to return 50% of net income to shareholders by 2019

Credit Suisse (CS), in its Investor Day presentation, said that “As we approach 2018 – the final year of our three-year restructuring plan – we remain committed to achieving the 2018 targets announced last year for the Swiss Universal Bank, International Wealth Management, Investment Banking & Capital Markets and Global Markets.

For our Wealth Management & Connected business in Asia Pacific, we are confident that we can achieve our 2018 target of CHF 700M of adjusted pre-tax income for the full year 2017 ahead of schedule and we are therefore setting a new target for 2018 of CHF 850M.

Reflecting our strong progress on cost, we are confident of beating our target cost base of less than CHF 18.5B for 2017 and we estimate that our total cost base for the year will be approximately CHF 18B .

We are confirming our 2018 cost base target of less than CHF 17B.

Looking ahead, the Group aims to operate with a total cost base of between CHF 16.5B and CHF 17B in 2019 and 2020, subject to market conditions and investment opportunities within this range.

We are confident that we can complete the wind-down of our non-core unit, the Strategic Resolution Unit, and reach our targeted adjusted pre-tax loss of approximately CHF 1.4B in 2018.

We have lowered our 2019 adjusted pre-tax loss target for the Strategic Resolution Unit from approximately $800M to approximately $500M, which represents a significant improvement… Our objective is to achieve a Group reported return on tangible equity of 10% to 11% for 2019 and 11% to 12% for 2020.

We aim to operate with a look-through CET1 ratio of above 12.5% from 2018 to 2020, before the implementation of the Basel III reforms beginning in 2020.

Cumulatively in 2019 and 2020, as we continue to strengthen our capital generation, we expect to allocate approximately 20% for investment in wealth management and connected businesses .

We also expect that approximately 30% of the cumulative capital generated will be used for the RWA uplift resulting from Basel III reforms and other contingencies. We also aim to increase returns to shareholders and plan to distribute 50% of net income earned to them primarily through share buybacks or special dividends.”

CS closed at $16.65.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

“Better Botox” data to move Allergan

Watch Allergan into Revance ‘better Botox’ trial data

Watch Allergan into better botox data. See Stockwinners.com
Watch Allergan into Revance ‘better Botox’ trial data

Shares of Allergan (AGN) are on the rise after Morgan Stanley analyst David Risinger upgraded the stock to Overweight, a buy-equivalent rating as he believes the shares can outperform over time and fears about a “better Botox” from a competitor may be overdone.

BACKGROUND

RT002 is a new injectable BoNTA product. This formulation limits the spread of BoNTA, potentially permitting safe administration of larger doses and possibly extending its duration of action.

Revance Therapeutics, Inc. (RVNC) is developing botulinum toxin products (RT002) for use in treating aesthetic and therapeutic conditions, today announced duration of effect of at least 24 week. The product is dubbed “better Botox” since it promises to last longer.

Botox is owned, manufactured and sold by Allergan. Botox had an annual sales of about $2.78 billion in 2016. Botox effect lasts anywhere from 12-16 weeks.

BUY ALLERGAN

In a research note this morning, Morgan Stanley’s Risinger upgraded Allergan to Overweight from Equal Weight while maintaining a $200 price target on the stock.

The analyst told investors that Allergan’s risk-reward looks favorable following a significant stock decline due to reductions in out-year estimates, pipeline concerns, competitive threats to Botox, and negative perception associated with licensing of Restasis patent to an Indian tribe.

#Risinger believes the negatives have largely been priced into the stock, and given investor concerns about the safety of new drug candidates for migraine and eye disease, he sees the risk-reward on 2018 Phase 3 pipeline news flow as skewed to the upside.

Additionally, the analyst pointed out that he thinks investor enthusiasm for rapastinel for severe depression will rise as three Phase 3 studies reach their conclusion at the end of 2018. Compelling Phase 2 data indicated that #rapastinel may be a blockbuster, he contended.

Meanwhile, Risinger believes fears about a “better Botox” may be overdone.

While Revance’s (RVNC) botulinum toxin RT002 Phase 3 data is expected “any day now,” he thinks it could be difficult for the company to demonstrate that RT002 is materially longer-lasting than Botox, which has been a concern for Allergan investors.

Further, the analyst pointed out that mechanistically it would be difficult to create a significantly longer-lasting Botox because botulinum toxin gradually loses efficacy over four months due to neuronal regeneration. If he is correct, Allergan shares could benefit, he said.

PRICE ACTION

In Wednesday’s trading, shares of Allergan have gained almost 4% to $178.14.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Chipotle to name a new CEO

Chipotle forms search committee to identify new CEO

Chipotle Mexican Grill spokesman Chris Arnold says the company is aware of a "small number" of illnesses linked to a store in Sterling, Virginia
Stocks to Avoid, Stocks to short, Put Options, Stocks to Watch

Chipotle Mexican Grill  (CMG) announced that Steve Ells, chairman and CEO — and the founder of the company in 1993 — will become executive chairman following the completion of a search to identify a new CEO.

The Board has formed a search committee comprised of Directors Robin Hickenlooper and Ali Namvar, as well as Ells, to identify a new leader with demonstrated turnaround expertise to help address the challenges facing the company, improve execution, build customer trust, and drive sales.

Ells said, “Simply put, we need to execute better to ensure our future success.

The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training.

Bringing in a new CEO is the right thing to do for all our stakeholders. It will allow me to focus on my strengths, which include bringing innovation to the way we source and prepare our food. It will ultimately improve our ability to provide our guests with delicious food that is prepared with high quality ingredients that are raised responsibly and served in a way that is accessible to everyone. I am confident that this will allow us to deliver value for our shareholders, and provide rewarding opportunities for our employees. Chipotle has vast unrealized potential.

As we work hard to restore our brand, I believe we can capitalize on opportunities, including in areas such as the digital experience, menu innovation, delivery, catering, and domestic and international expansion, to deliver significant growth.”

ANALYST COMMENTS

Chipotle CEO change to be welcomed by investors, says SunTrust – After Chipotle announced it has started a search to identify a new CEO and that founder Steve Ells will become executive chairman when one is identified, SunTrust analyst Jake Bartlett said he views the news as positive for both the company’s turnaround efforts and the stock as he expects investors to welcome a CEO with a proven operational track record. Bartlett has a Buy rating and $355 price target on Chipotle shares.

William Blair downgraded the stock to Market Perform from Outperform. William Blair analyst Sharon Zackfia downgraded Chipotle Mexican Grill to Market Perform . While a new leader may accelerate the company’s turnaround longer term, today’s move likely signals that Chipotle’s trends remain under pressure and creates more near-term uncertainty, Zackfia tells investors in a research note. The analyst adds that transition years, in which costs accelerate before sales trends rebound, often follow new CEOs. As such, she’s more cautious on Chipotle’s earnings recovery trajectory following today’s announcement. The market, on the other hand, is applauding the company’s decision.

CMG closed at $285.86. It last traded at $300 in pre-market action.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Watch Capricor Therapeutics

Capricor Therapeutics announces FDA clearance of IND for CAP-1002

Capricor Therapeutics reports ‘positive’ results from CAP-1002 trial. 

Capricor Therapeutics (CAPR) announced that the U.S. FDA has cleared its Investigational New Drug application to conduct a new clinical trial of CAP-1002, its lead investigational therapy, in boys and young men in advanced stages of Duchenne muscular dystrophy, a fatal genetic disorder for which there are limited treatment options.

This randomized, double-blind, placebo-controlled clinical trial will be called the HOPE-2 Trial and is designed to evaluate the safety and efficacy of intravenous, repeat doses of CAP-1002 in boys and young men whose ability to walk has been seriously impaired by the loss of muscle function that occurs as Duchenne muscular dystrophy progresses.

The primary efficacy endpoint will be the relative change in the mid-level dimension of the Performance of the Upper Limb test from baseline to Month 12.

The HOPE-2 Trial is expected to enroll approximately 84 patients and be conducted at 10-12 U.S. sites.

Capricor believes that if the primary endpoint is reached, the HOPE-2 Trial could serve as a registration trial, meaning that its results could support the submission of a Biologics License Application to obtain marketing approval of CAP-1002.

Capricor expects to initiate the HOPE-2 Trial in the first quarter of 2018.

Capricor plans to apply for the Regenerative Medicine Advanced Therapy (RMAT) Designation for CAP-1002 based on updated guidance recently issued by the FDA.

If granted, the RMAT Designation would be expected to facilitate CAP-1002’s path to potential registration.

CAPR closed at $1.92. It last traded at $2.40.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Melinta buys infectious disease business from The Medicines Co.

Melinta to acquire infectious disease business from The Medicines Co.

Melinta to acquire infectious disease business from The Medicines Co.

Melinta Therapeutics (MLNT) announced that Melinta and The Medicines Company (MDCO) have entered into an agreement pursuant to which Melinta will acquire the infectious disease business from The Medicines Company.

This includes three marketed products: recently approved and launched Vabomere, and established commercial products Orbactiv and Minocin IV.

The acquisition was unanimously approved by Melinta’s board and is expected to close in Q1 of 2018, subject to satisfaction of customary closing conditions, including Melinta stockholder approval. The acquisition includes the purchase of global rights for three marketed products and the business supporting those products.

Recently launched Vabomere is a novel fixed-dose combination agent comprising vaborbactam, a beta-lactamase inhibitor, and meropenem, the leading carbapenem. Vabomere was approved by the FDA after priority review in August 2017 and is indicated for the treatment of adult patients with complicated urinary tract infections, or cUTI, including pyelonephritis caused by designated susceptible Enterobacteriaceae.

Vabomere’s Phase 3 TANGO II trial, a randomized trial comparing Vabomere to the best available therapy for the treatment of serious carbapenem-resistant Enterobacteriaceae, or CRE, infections, was stopped early by an Independent Data and Safety Monitoring Board following a risk-benefit analysis of available data which was in favor of Vabomere.

Vabomere’s Marketing Authorization Application is currently under regulatory review by the European Medicines Agency for cUTI. Orbactiv is an injectable product approved by the FDA and EMA for the treatment of adults with acute bacterial skin and skin structure infections, or ABSSSI, caused by susceptible designated gram-positive bacteria including methicillin-resistant Staphylococcus aureus, or MRSA.

Minocin IV, an injectable product, is a tetracycline derivative approved in the U.S. for the treatment of infections due to susceptible strains of several important designated gram-positive and gram-negative pathogens, including infections due to Acinetobacter species, which typically occur in hospitalized patients.

Under the terms of the acquisition agreement, the purchase price consists of a payment by Melinta to The Medicines Company of $165M in cash and the issuance to The Medicines Company of a number of shares of Melinta common stock equal to $50M, divided by 90% of the volume weighted average price for the trailing 10 trading day period ending 3 trading days prior to closing; a payment by Melinta to The Medicines Company of $25M following each of the twelve and eighteen month anniversaries of the closing date, and payment by Melinta to The Medicines Company of certain royalty payments, based on tiered net sales of the acquired products in certain jurisdictions.

Funding for this acquisition will be provided through both debt and equity. In conjunction with the closing of the acquisition, Melinta will enter into a Loan and Security Agreement with Deerfield Management Company, L.P.

Deerfield and certain funds managed by Deerfield will initially provide a total of $190M in debt and equity financing. An additional $50M of debt is available to Melinta within 24 months of the acquisition close upon the achievement of certain sales thresholds.

In addition to the funding from Deerfield, certain investors are committed to make a $30M equity investment at closing.

These funds will be used to fund the initial cash acquisition price of $165M and to retire existing company debt of $40M.

Additional information on the acquisition and related financing will be contained in the proxy statement related to the proposed transactions.

Melinta stockholders holding approximately 52% of the outstanding common stock have executed voting agreements agreeing to vote their shares in favor of the transaction.

MDCO closed at $30.21. MLNT closed at $15.00, it last traded at $16.10 in pre-market action.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Shell paints a rosy picture

Shell annual organic free cash flow outlook increased to $25B-$30B by 2020

Shell annual organic free cash flow outlook increased to $25B-$30B by 2020

Royal Dutch Shell (RDS.a) CEO Ben van Beurden updated investors on the company’s strategy, setting out plans to grow returns and free cash flow, and outlining its ambition to reduce the net carbon footprint of its energy products.

Van Beurden highlighted three updates from his presentation:

“We have increased our outlook for organic free cash flow, which has been consistently strong over the past five quarters. We have also made significant progress with our divestment programme, allowing us to reduce net debt in that time.

Meanwhile, we intend to cancel our scrip dividend programme with effect from the fourth quarter 2017.”

The outlook for annual organic free cash flow has increased to $25 to $30 billion by 2020 at a Brent crude oil price of $60 per barrel (real terms 2016).

This is $5 billion more than the outlook Shell provided during its capital markets day in June 2016.

The delivery of new projects continues, and the company remains on track to deliver 1 million barrels of oil equivalent per day, and $10 billion of cash flow from operations from new projects by 2018, at $60 per barrel, real terms 2016.

It expects to deliver an incremental $5 billion cash flow from operations by 2020. Annual capital investment will continue to be between $25 and $30 billion, and at current oil prices capital investment will be managed towards the bottom end of that range, or lower if needed.

Annual underlying operational expenditure will remain below $38 billion until 2020, with efficiency gains expected to deliver further reductions, building on the more than 20% reduction in operational expenditure since 2014. The company expects to continue to grow organic free cash flow throughout the 2020s at a more moderate rate.

Increased distributions to shareholders in the form of share buybacks in line with the plans confirmed below is expected to support a stronger growth in its metrics per share.

RDS-a closed at $61.85.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Emerson drops proposal to buy Rockwell Automation

Emerson withdraws proposal to acquire Rockwell Automation for $225 per share

Rockwell receives $29B takeover offer. See Stockwinners.com for details
Rockwell receives $29B takeover offer. See Stockwinners.com for details

Emerson (EMR) announced that it has withdrawn its proposal to acquire Rockwell Automation (ROK) for $225 per share due to the Rockwell Board of Directors’ continued unwillingness to engage in discussions about a potential combination.

“The Rockwell Board again rejected our offer, which would have delivered approximately $30 billion of value to Rockwell shareholders,” said Emerson Chairman and CEO David Farr.

“We are disappointed that the Rockwell Board refused even to discuss the potential combination of our two great companies. Instead of engaging in constructive dialogue, the Rockwell Board decided to let this unique and value-generative opportunity go unexplored.

We remain confident in the strategic plans we have in place, and in Emerson’s ability to create a global automation leader with a technology portfolio to meet evolving customer needs across process, hybrid and discrete product lines.

Our Company is in a great position – we have successfully repositioned our portfolio over the last two years, and have market-leading platforms in Automation Solutions and Commercial & Residential Solutions, both of which are performing well and have very attractive growth outlooks. Our future is bright, and we remain focused on accelerating core growth through new market penetration, technology innovation and strategic bolt-on acquisitions. We are also committed to returning capital to shareholders through our strong and growing dividend and our share repurchase program. Management believes the Company’s shares are an attractive investment opportunity.

Accordingly, we plan to accelerate repurchases over the next month and buy back up to $1 billion over the next 12 months. We look forward to executing on this strategy to drive near- and long-term value creation for all Emerson stakeholders.”

EMR closed at $61.88. ROK closed at $191.04.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Buffalo Wild Wings sold for $2.9 billion

Arby’s to acquire Buffalo Wild Wings for $157 per share in cash

Buffalo-Wild-Wings gets $2.3 billion offer. See Stockwinners.com for details
Buffalo-Wild-Wings sold for $2.9 billion offer.  

Arby’s Restaurant Group and Buffalo Wild Wings (BWLD) announced that the companies have entered into a definitive merger agreement under which ARG will acquire BWLD for $157 per share in cash, in a transaction valued at approximately $2.9B, including BWW’s net debt.

The agreement, which has been unanimously approved by both companies’ Boards of Directors, represents a premium of approximately 38% to BWW’s 30-day volume-weighted average stock price as of November 13, 2017, the latest trading day prior to news reports speculating about a potential transaction.

The transaction is not subject to a financing condition and is expected to close during the first quarter of 2018, subject to the approval of BWW shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Following the close of the transaction, BWW will be a privately-held subsidiary of Arby’s Restaurant Group and will continue to be operated as an independent brand.

Paul Brown will serve as CEO of the parent company.

Arby’s is majority owned by affiliates of Roark Capital Group, an Atlanta based private equity firm that focuses on investing in franchised and multi-unit businesses in the restaurant, retail and other consumer sectors.

Affiliates of Roark are committing all of the equity that, together with the proceeds of debt financing, will be necessary to complete the transaction. Certain funds advised by Marcato Capital Management, LP, which own approximately 6.4% of the outstanding shares of BWW, have entered into an agreement to vote in favor of the transaction.

BWLD closed at $146.40.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Barracuda Networks sold for $1.6 billion

Barracuda agrees to be acquired by Thoma Bravo for $27.55 per share in cash

Barracuda Networks (CUDA) announced that it has entered into an agreement to be acquired by private equity investment firm Thoma Bravo in an all-cash transaction valued at $1.6B.

Barracuda shareholders of record will receive $27.55 in cash for each share of Barracuda common stock they hold.

This price exceeds Barracuda’s 52-week high and represents a premium of 22.5% to the company’s 10-day average stock price prior to Nov. 27, the company noted.

Upon the close of the transaction, Barracuda will operate as a privately-held company with a continued focus on email security and management, network and application security, and data protection solutions that can be deployed in cloud and hybrid environments.

The proposed transaction, which has been unanimously approved by Barracuda’s Board of Directors, is expected to close before Barracuda’s fiscal year end of Feb. 28, 2018, and is subject to approval by Barracuda’s shareholders and regulatory authorities, and the satisfaction of other customary closing conditions.

CUDA closed at $23.69.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Bazaarvoice sold for $521 million

Bazaarvoice to be acquired by Marlin Equity Partners 

Bazaarvoice (BV) announced that it has entered into a definitive agreement to be acquired by entities affiliated with the global investment firm, Marlin Equity Partners.

Under the terms of the agreement, Marlin will acquire each share of outstanding common stock of Bazaarvoice in exchange for $5.50 in cash for a total value of approximately $521M.

This price represents an 18% premium to the average closing price of Bazaarvoice common stock for the 30-calendar day period ending November 24, 2017.

Upon completion of the transaction, Bazaarvoice will become a privately-held company.

Bazaarvoice will maintain its headquarters in Austin, Texas.

The closing of the transaction is subject to customary closing conditions, including regulatory approvals and the affirmative vote by a majority of the votes cast by the holders of Bazaarvoice common stock at a to-be-scheduled special meeting of stockholders.

The transaction is expected to close in the first quarter of calendar 2018.

BV closed at $4.80.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Bioverativ drug approved for children with hemophilia B

Bioverativ receives FDA approval for ALPROLIX label update

bioverativ reports positive data on its hemophilia drug. See Stockwinners.com for stocks to buy, stocks to watch, stocks to buy

Bioverativ (BIVV) announced that the U.S. Food and Drug Administration has approved updated labeling for ALPROLIX, the extended half-life therapy for the treatment of adults and children with hemophilia B.

The label update, including the addition of pediatric data showing prophylactic treatment with ALPROLIX results in effective bleed protection with extended dosing intervals, further supports the long-term efficacy and safety profile of ALPROLIX.

These updates are based on interim data from the Phase 3 B-YOND open-label extension trial and final data from the Phase 3 Kids B-LONG pediatric study.

ALPROLIX is a recombinant clotting factor therapy developed using Fc fusion technology to prolong circulation in the body and has been studied in more than 150 adult, adolescent, and pediatric patients over 17,000 exposure days as part of its clinical development program.

The new label demonstrates additional clinical trial experience with 93 subjects treated prophylactically for more than 104 weeks.

The ALPROLIX label update is based on FDA review of results from B-YOND, an open-label, non-randomized extension study of previously-treated adults and adolescents enrolled in the Phase 3 B-LONG study and participants of Kids B-LONG, a Phase 3 study of children with severe hemophilia B.

In these trials, weekly prophylactic treatment with ALPROLIX resulted in a median spontaneous annualized bleeding rate of zero among children and 1.04 among adults and adolescents, and a median joint annualized bleeding rate of zero among children and 1.11 among adults and adolescents. Median overall ABRs for children, and adults and adolescents with weekly prophylactic treatment, were 1.97 and 2.95, respectively.

Updated pharmacokinetic data from these studies are also included in the label.

Obstructive uropathy was also added to the label as a common adverse reaction. Obstructive uropathy was reported in two subjects and the condition was resolved in both cases with hydration.

Other common adverse reactions include headache and oral paresthesia.

BIVV closed at $50.57.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

MGC Diagnostics sold for $50 million

Altus Capital to acquire MGC Diagnostics for $11.03 per share in cash

MGC Diagnostics (MGCD) announced it has agreed to be acquired by affiliates of Altus Capital Partners.

MGC Diagnostics Corporation designs, markets, and sells non-invasive cardiorespiratory diagnostic products in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Altus is a private equity firm that makes control investments in middle market manufacturing businesses.

Altus will acquire all outstanding shares of MGCD for $11.03 per share in cash, or approximately $50.3M.

Under the terms of the merger agreement, Altus will commence a tender offer for all MGCD outstanding shares as promptly as possible after November 27, 2017.

Upon completion of the transaction, which is expected to close in late 2017 or early 2018, MGCD will become a privately held company.

MGCD’s Board unanimously approved the acquisition agreement, which follows a review of strategic alternatives that the company announced on January 25, 2017.

In addition, MGCD directors and officers representing 8.9% of the outstanding shares have entered into tender support agreements with Altus.

The purchase price represents a 44% premium to the January 24, 2017 closing price of $7.65, and premiums of 25% and 37% to the MGCD respective closing prices on the dates one day and three months prior to the date of the announcement.

MGCD closed at $8.80.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Meredith to buy Time for $2.8 billion

Meredith will pay $18.50 per share for publisher of Fortune and Time

TIME sold to Meredith for $2.8 B

Meredith Corp.  (MDP) said it will acquire Time Inc.  (TIME) in a deal valued at $2.8 billion, a further sign of consolidation in the print magazine industry.  Meredith has agreed to pay $18.50 a share for the publishing company that owns magazines  such as Time, Fortune and Sports Illustrated.

The deal includes $1.85 billion in cash and the assumption of debt. It had been approved by both firms’ boards of directors and is expected to close in the first quarter in 2018.

The transaction received financial backing from the billionaire Koch brothers. Meredith said it secured $650 million from Koch Equity Development, the investment arm of Koch Industries, but the publisher said Koch Equity Development would not have a seat on the Meredith board and “will have no influence on Meredith’s editorial or managerial operations.”

Meredith Corporation is the owner of Family Circle, Better Homes and Gardens and AllRecipes, and is based in Des Moines Iowa.  The company also owns local television stations — that has allowed Meredith to better weather the economic storm that has faced print publishers.

A deal between Meredith and Time Inc. fell apart in 2013 after Meredith reportedly said that it did not want to acquire some of Time Inc.’s best-known titles, including Time, Fortune and Sports Illustrated. Meredith also expressed interest in buying Time Inc. earlier this year before it walked away — in part because it could not secure sufficient financing. The Kochs helped the company overcome that problem.

MDP closed at $61.00. TIME closed at $16.90.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Nvidia’s AI to be used by GE Healthcare

GE, Nvidia join forces to accelerate AI adoption in healthcare

Nvidia pullback after Q2 beat a buying opportunity. See Stockwinners.com Market Radar for more
Nvidia’s AI chips to be used by GE Healthcare

GE Healthcare (GE) and Nvidia (NVDA) announced they will deepen their 10-year partnership to bring the most sophisticated artificial intelligence to GE Healthcare’s 500,000 imaging devices globally and accelerate the speed at which healthcare data can be processed.

The scope of the partnership, detailed at the 103rd annual meeting of the Radiological Society of North America, includes the announcement of the new Nvidia-powered Revolution Frontier CT, advancements to the Vivid E95 4D Ultrasound and development of GE Healthcare’s Applied Intelligence analytics platform.

The new CT system in the Revolution Family is two times faster in imaging processing than its predecessor, due to its use of Nvidia’s AI computing platform.

The Revolution Frontier is FDA cleared and expected to deliver better clinical outcomes in liver lesion detection and kidney lesion characterization because of its speed – potentially reducing the need for unnecessary follow-ups, benefitting patients with compromised renal function and reducing non-interpretable scans with Gemstone Spectral Imaging Metal Artefact Reduction.

The new CT system in the Revolution Family is two times faster in imaging processing than its predecessor, due to its use of NVIDIA’s AI computing platform.

NVIDIA, which has helped pioneer the spread of AI across a growing range of fields, including self-driving cars, robotics and video analytics, is working with GE Healthcare to spread its application in healthcare.

GPU-accelerated deep learning solutions can be used to design more sophisticated neural networks for healthcare and medical applications—from real-time medical condition assessment to point-of-care interventions to predictive analytics for clinical decision-making.

For patients, the partnership aims to drive lower radiation doses, faster exam times and higher quality medical imaging.

NVDA closed at $216.96. GE closed at $18.19.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.

Barron’s is bullish on Verizon

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue mentions several names: 

Stockwinners offers Barron's review of Stockwinners offers stocks to buy, stocks to watch, upgrades, downgrades, earnings, Stocks to Buy On Margin
Stockwinners offers Barron’s review of stocks to buy, stocks to watch, Today’s Stocks, Stockwinners Voted Best Stock Research Site

BULLISH  MENTIONS

 

Rising sales may lift Mondelez (MDLZ)- There is reason to hope that growth is returning to Mondelez, with sales perking up in its latest quarter, especially in the developing markets, Bill Alpert writes in this week’s edition of Barron’s. If the company and its new CEO can deliver sales growth, many analysts think Mondelez’s stock could rise to $50 or more, the report notes.

Wheat prices may rise amid cold December – A “brutal cold snap” in December is likely and could lift winter wheat prices higher than $5 a bushel, a rally that would aid the farm economy that has been hurt by steadily falling wheat prices since mid-2012, Simon Constable writes in this week’s edition of Barron’s. Among companies that benefit from higher crop prices are fertilizer makers Mosaic (MOS) and Agrium (AGU), the report notes.

Infrastructure stocks should rise if Congress passes legislation – It may be easy to be skeptical about President Donald Trump’s ambitious effort to rebuild aging bridges, roads and other elements of the country’s infrastructures, but there is reason for hope, John Kimelman writes in this week’s edition of Barron’s. For investors in a group of about a dozen infrastructure companies such as Vulcan Materials (VMC) and Fluor (FLR), legislation cannot be considered soon enough, he contends. Other companies that may get meaningful boosts include Martin Marietta Materials (MLM), Aecom (ACM), Jacobs Engineering Group (JEC), Granite Construction (GVA), Eagle Materials (EXP), and U.S. Concrete (USCR), Barron’s notes, adding that even equipment companies like Caterpillar (CAT) could benefit.

Tencent still has upside – While Tencent (TCEHY) is up 125% this year, the stock still has lots of upside, Assif Shameen writes in this week’s edition of Barron’s.

Verizon could return 20% over the next year – A long price war in wireless is easing, which has left Verizon’s (VZ) shares looking cheap, Jack Hough writes in this week’s edition of Barron’s. They could return 20%, including a dividend yield of 5%, over the next year, he adds.

BEARISH  MENTIONS

Challenges at HP Enterprise loom large– In a follow-up story, Barron’s says that as HP Enterprise (HPE) CEO Meg Whitman prepares to retire in February, the company no longer “has to shut the lights at night to save money.” However, plenty of challenges remain, notwithstanding Whitman’s moves to reconfigure the business, the report notes. The challenges at HP Enterprise loom large, as cloud-computing leaders Amazon (AMZN), Microsoft (MSFT) and Alphabet’s (GOOGL; GOOG) increasingly buy less HPE gear because they are building their own, the report notes.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This 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.