Barron’s is Bullish on Oil, Bearish on Tesla

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue features several names. They include:

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BULLISH MENTIONS

Large-cap energy companies in better shape to raise dividends – With oil prices close to $50 a barrel, large-cap energy companies are in better shape to maintain or even raise their dividends than they were a few years ago, when prices collapsed, Lawrence Strauss writes in this week’s edition of Barron’s. Oneok (OKE), Valero Energy (VLO), Exxon Mobil (XOM), Phillips 66 (PSX), Marathon Petroleum (MPC) and ConocoPhillips (COP) expected to boost their payouts above 2016 levels this year, the publication said.

Delta Air Lines could rise 35% in two years. At $50, Delta’s (DAL) shares trade at about nine times estimated 2017 earnings, which is “inexpensive” for a company looking to post double-digit earnings growth in the coming years, Andrew Bary writes in this week’s edition of Barron’s. The shares could rise 35% in the next two years, Bary notes, adding that a 50% dividend hike in September will lift the yield to 2.4%.

Finisar seen as the ‘most attractive’ Apple iPhone supplier – With the next Apple’s (AAPL) iPhone expected this fall, Wall Street is starting to speculate on the winners, with CEVA (CEVA) joining Cirrus Logic (CRUS) and Skyworks Solutions (SWKS), Tiernan Ray writes in this week’s edition of Barron’s. Among the most talked-about aspects of the next iPhone is augmented reality, Ray notes, adding that possible beneficiaries include Finisar (FNSR), Lumentum Holdings (LITE), II-VI (IIVI), and Viavi Solutions (VIAV). Finisar shares surged in June when it announced quarterly results that included an order for “3-D sensing,” a code name for augmented reality, Barron’s points out.

Southern ‘a good bet’ for investors willing to take on more risk – This year has not been kind to Southern Company (SO) shares, but after Scana’s (SCG) news that it would abandon its plan to build two nuclear reactors in South Carolina, Southern could be a “good bet” for investors willing to take on a little more risk, Ben Levisohn writes in this week’s edition of Barron’s. Southern could decide to abandon the two plants it has under construction in Georgia, something that would likely be rewarded by the market, #Levisohn adds.

Voya Financial could be worth 30% more – Voya Financial (VOYA) shares have fallen over 13% in the past two years, with Wall Street penalizing the company for a “troubled” legacy variable-annuity business that had made some of the most generous benefit guarantees in the industry, Reshma Kapadia writes in this week’s edition of Barron’s. However, there are indications that Voya’s core retirement and investment business is growing, and that management is taking the right steps to reduce risk, Kapadia argues, adding that Voya could be worth at least 30% more than its current market value in the next year.

BEARISH MENTIONS

Slower growth in China could prompt retreat in Copper prices, Barron’s says – Copper is enjoying its biggest rally in months, boosted by increased confidence about global growth and a weaker U.S. dollar., Ira Iosebashvili writes in this week’s edition of Barron’s. However, some market participants urge caution, warning that the ground may shift under investors’ feet in the second half of the year, with many concerned about China, Iosebashvili adds. Publicly traded companies in the space include Freeport McMoRan (FCX), BHP Billiton (BHP), Rio Tinto (RIO), Anglo American (NGLOY), Southern Copper (SCCO), and Vale (VALE).

Chipotle (CMG) shares should be avoided, since food-safety
problems might be structural and not coincidental.

Buy Tesla car, not stock – In a follow-up story, Barron’s writes that Tesla (TSLA) shares have outrun most analysts’ reasoned cases for buying the stock. While initial reviews of the Model 3 are glowing, and Tesla reports a remarkable 450,000 in pre-orders, the company’s stock price leaves little on the table, the publication adds.

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Impinj Plunges on Guidance

Tracking tag firm Impinj implodes after guidance, large customers delays

 Impinj implodes after guidance, large customers delays. See Stockwinners.com Market Radar

Shares of RFID solutions provider Impinj (PI) nose dived after reporting quarterly earnings and guidance for the current quarter.

Following the earnings report, research firm Canaccord lowered its price target. The company describes itself as a leading provider of RAIN RFID solutions.

RAIN RFID is a wireless technology that connects billions of everyday items to the internet, enabling businesses and consumers to identify, locate, authenticate, and engage each item.

The Impinj platform is made up of both hardware and software and uses RAIN RFID to wirelessly connect everyday items to the internet, delivering digital life to the physical world.

The company provides solutions to a broad base of industries including retail, healthcare, and logistics. “Impinj is helping companies around the world increase sales, improve efficiencies, and deliver compelling experiences.”

#Impinj went public on July 21 of 2016 and saw its shares rise about 28% on its first day of trading.

EARNINGS

Impinj reported second quarter financial results after the close of trading on Thursday evening. Q2 results were better than analyst expectations beating on both the top and bottom lines.

For Q2 the #RFID maker reported earnings per share of 6c on revenue of $34.1M. Analysts were modeling 2c for EPS on revenue of $33.51M. The problem with the report was in its tepid current quarter financial guidance and less robust product view for the year. The analyst provided Q3 guidance that was well shy of estimates.

The RFID tag maker is now guiding to an EPS loss for the current quarter of between (8c)-(1c) on lower revenue in a range of $31.75M-$33.25M. Analysts were predicting a profit of 8c on revenue of $37.75M. Founder and CEO Chris Diorio noted that the company will be adversely impacted by setbacks “in planned roll out expansions at several large end customers.”

The slowdown will result in fewer items being tagged with the company’s tracking chips. “We are revising our 2017 full-year endpoint IC estimated to be between 7B to 7.2Bunits,” said Diorio in a statement.

AMAZON DRIVER 

Late last year, shares of Impinj rallied after Amazon (AMZN) announced a new retail concept, Amazon Go.

Amazon said at the time that it is “a new kind of store with no check-out required… In fact, RAIN RFID can improve inventory visibility by more than 25%.”

Amazon expanded on its new store concept: “With our Just Walk Out Shopping experience, simply use the Amazon Go app to enter the store, take the products you want, and go! No lines, no checkout. Our checkout-free shopping experience is made possible by the same types of technologies used in self-driving cars: computer vision, sensor fusion, and deep learning.”

ANALYST VIEW

Adding to the selling in Impinj shares on Friday was a price target reduction out of #Canaccord.

Canaccord’s  Michael #Walkley lowered his price target on Impinj to $50 from $57 following Q2 results and lowered guidance.

The analyst noted delayed rollouts with a handful of customers in different verticals, including retail and healthcare, and said a single customer could represent several million endpoint IC’s. Management maintained its long-term guidance and Walkley said in the note that he expects re-accelerating revenue growth in 2018 and beyond.

As a result, Walkley maintained his Buy rating on Impinj shares.

PRICE ACTION

Shares of Impinj are near their day lows, trading down over 23% to $36.60 per share in Friday afternoon trading.

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Time Warner Name To Become History!

AT&T plans to drop Time Warner name after deal closes

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AT&T (T) is planning to drop the Time Warner (TWX) name after the proposed $85B takeover deal closes, The New York Post reports.

Additionally, sources say AT&T has approached potential candidates for a position that would sit above Time Warner units, including Turner, #HBO and Warner Bros., and would report to John Stankey, AT&T’s Entertainment chief; The company has hired Heidrick & Struggles (HSII) to conduct the search after media vet Peter Chernin said no to the role, sources say.

Time Warner CEO Jeff #Bewkes is expect to leave the company “as soon as the deal closes, — with a $95 million going-away prize” according to the report.

AT&T is expected to cut around two-thirds of the staff in the corporate unit, sources said. The company is also planning to create an ad tech platform across the company.

The deal is expected to be approved because AT&T and Time Warner don’t directly compete. But unlike past huge mergers such as Comcast’s purchase of NBCUniversal in 2013, this one is potentially trickier from an antitrust perspective.

That’s because AT&T has a nationwide footprint with its wireless and DirecTV satellite service, and could use that reach to demand higher fees from media companies and other cable and satellite firms.

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Genesis Energy to Buy Tronox Alkali Business for $1.33B in cash

Genesis Energy agrees to acquire Tronox Alkali Business for $1.33B in cash

Genesis Energy to Buy Tronox Alkali Business for $1.33B in cash. See Stockwinners.com Market Radar for details

Genesis Energy (GEL) announced that it has entered into a stock purchase agreement with a subsidiary of Tronox (TROX) to acquire all of Tronox’s trona and trona-based exploring, mining, processing, producing, marketing and selling business for approximately $1.33B in cash.

The Alkali Business is the world’s largest producer of natural soda ash, also known as sodium carbonate, a basic building block for a number of ubiquitous products, including flat glass, container glass, dry detergent and a variety of chemicals and other industrial products.

The Alkali Business produces approximately four million tons of natural soda ash per year, representing approximately 28% of all the natural soda ash produced in the world and, based on current production rates, has an estimated reserve life remaining of over 100 years.

Having been in continuous operations for almost 70 years, it sells its products to a broad, industry-diverse and worldwide customer base, including numerous long-term relationships.

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Jacobs Engineering to Buy Rival CH2M for $3.27 Billion

Jacobs Engineering to acquire CH2M in $3.27B transaction

 Jacobs Engineering to acquire CH2M in $3.27B transaction. See Stockwinners.com Market Radar to read more

Jacobs Engineering (JEC) and CH2M HILL Companies announced that they have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock transaction with an enterprise value of approximately $3.27B, including approximately $416M of CH2M net debt.

Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, CH2M’s stockholders will have the option to elect to receive either $88.08 in cash, 1.6693 shares of Jacobs common stock or a mix of $52.85 in cash and 0.6677 shares of Jacobs common stock subject to proration such that the aggregate consideration paid to CH2M stockholders will equal 60% cash and 40% Jacobs common stock.

Following the close of the transaction, CH2M stockholders will own 15% of Jacobs shares on a fully diluted basis based on the number of Jacobs shares outstanding. The transaction is not subject to a financing condition.

Jacobs expects to finance the $2.4B cash required for the transaction through a combination of cash on hand, borrowings under the Company’s existing revolving credit facility and $1.2B of new committed 3-year term debt arranged by BNP Paribas and The Bank of Nova Scotia.

Jacobs’ post-close liquidity is expected to remain robust at approximately $900M.

The transaction, which is expected to close in Jacobs’ fiscal 2018 first quarter, is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by CH2M stockholders.

Apollo Global Management (APO), which has an approximate 18% voting interest in CH2M, has agreed to vote in favor of the transaction.

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Barron’s is Bullish on Citi, Honeywell, Remains Bearish on Twitter

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue is bullish on several names. They include:

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Advance Auto Parts could rally 20%-30% in two years – Advance Auto Parts (AAP) stock’s valuation seems to discount a lot of bad news, while ignoring the potential for the company to boost profit margins and spur earnings growth in coming years, Vito Racanelli writes in this week’s edition of Barron’s. The shares could rally 20%-30% in the next two years, as earnings rise and the company demonstrates it can hold its own in the face of increasing online competition, he adds.

Citi could rise by 50% – At its first investor day since 2008, Citigroup (C) laid out some ambitious financial targets and Wall Street liked what it heard, Andrew Bary writes in this week’s edition of Barron’s. While the company’s shares finished the week up 2%, there could be more upside because Citi offers the combination of a low valuation and what could be the highest earnings growth rate among its peers in the years to come, Barron’s adds. The bank is targeting $9 a share in 2020 earnings, and suggested its stock could hit $100, 48% above the current level, Bary points out.

Honeywell (HON) shares could return 15% next year – If Darius Adamczyk, Honeywell’s new CEO, delivers as expected, the company’s revenue could rise 4% next year, and earnings, 10%, leading to a higher price/earnings ratio and a 15% total return for the shares, Lawrence Strauss writes in this week’s edition of Barron’s.

Blue Chips set to boost dividends – The third quarter is shaping up to be a ‘very strong one’ for dividend growth among blue-chip names, Lawrence Strauss writes in this week’s edition of Barron’s. IHS Markit expects Mondelez (MDLZ) to announce a 10.5% dividend increase and Intuit (INTU) to declare a hike of 15%, he says. Meanwhile, Microsoft (MSFT) is expected to raise its quarterly dividend by 10.3%, Royal Caribbean Cruises (RCL) to boost its quarterly payout by nearly 15%, Yum! Brands (YUM) to increase 13.3%, and Accenture (ACN) to boost payout by 10%, Barron’s points out.

BEARISH MENTION

Amazon.com, Alphabet to likely ‘cool off for a while,’ – Last week, Alphabet (GOOG; GOOGL) and Amazon (AMZN) beat quarterly sales expectations but showed underwhelming profit and it is not surprising investors would seize upon blemishes in the report as an excuse to take profits, Tiernan Ray writes in this week’s edition of Barron’s. While there is no fundamental weakness with either company, shares will probably show less upside in the rest of this year than in the first half, he notes.

Barron’s sees ‘no relief in sight’ for Twitter – Twitter (TWTR) is nearly as expensive as Facebook (FB), whose revenue and profit are galloping higher, based on next year’s projected earnings before interest, taxes, depreciation and amortization, Jack Hough writes in this week’s edition of Barron’s. That means Twitter must bounce back quickly, or get bought, or suffer a continuing stock-price decline, perhaps to single digits, Hough argues, adding that the first two outcomes are looking increasingly unlikely.

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Rig Counts Rise Again!

Baker Hughes reports U.S. rig count up 8 to 958 rigs

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Baker Hughes (BHGE) reports that the U.S. Rig Count is up 8 rigs from last week to 958, with oil rigs up 2 to 766 and gas rigs up 6 to 192.

The U.S. Rig Count is up 495 rigs from last year’s count of 463, with oil rigs up 392, gas rigs up 106, and miscellaneous rigs down 3 to 0.

The U.S. Offshore Rig Count is up 1 rig from last week to 24 and up 5 rigs year over year.

The Canadian Rig Count is up 14 rigs from last week to 220, with oil rigs up 11 to 129 and gas rigs up 3 to 91.

The Canadian Rig Count is up 101 rigs from last year’s count of 119, with oil rigs up 69, gas rigs up 33, and miscellaneous rigs down 1 to 0.

WTI crude edged a few cents lower after the report, and though remains less than 20 cents below its earlier trend high of $49.80.

#WTI  =  West Texas Intermediate

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GE’s Immelt May Become Uber CEO

GE’s Immelt has held ‘active’ discussions with Uber search committee

GE's Immelt May Become Uber CEO. See Stockwinners.com for more details

Uber is considering General Electric (GE) CEO Jeff Immelt among “a handful” of candidates for its CEO, The Wall Street Journal reports, citing a person familiar with the matter.

According to the person, Uber’s search committee has held “active” discussions with Immelt, who is stepping down as GE’s CEO at the end of the month, though he will remain chairman through the end of the year.

Uber hopes to wrap up the CEO search process by Labor Day, according to the report.

HP Enterprise (HPE) CEO Meg Whitman, who was rumored to be in contention for Uber CEO, says she is “fully committed” to HPE and she will not take the job at Uber.

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China’s Growth Forecast Boosts Miners and Basic Materials

Shares of industrial metal makers, miners surge on IMF’s China comments

Shares of industrial metal makers, miners surge on IMF's China comments. See Stockwinners.com for stocks to buy, stocks to watch, stocks to trade

Shares of industrial metal makers and miners are surging after the latest International Monetary Fund, or #IMF, update.

GLOBAL RECOVERY

The global economic recovery is on solid ground, said the IMF in a report out Monday. “As in our April forecast, the World Economic Outlook Update projects 3.5% growth in global output for this year and 3.6% for next,” the IMF predicted.

CHINA GROWTH CONTINUES

Government policies in China have been the foundation for the recent high growth rates in the country. The IMF has raised its China growth view for 2017 and 2018 by 0.1% and 0.2% points, respectively, to 6.7 % and 6.4%. “But higher growth is coming at the cost of continuing rapid credit expansion and the resulting financial stability risks. China’s recent moves to address nonperforming loans and to coordinate financial oversight, therefore, are welcome,” added the agency.

MUTED EXPECTATIONS FOR US GROWTH

The IMF said the said globally speaking, the critical hindrance to global growth will come from the United States. “Over the next two years, U.S. growth should remain above its longer-run potential growth rate. But we have reduced our forecasts for both 2017 and 2018 to 2.1 percent because near-term U.S. fiscal policy looks less likely to be expansionary than we believed in April,” argued the IMF.

COPPER SURGES

Copper prices jumped to the highest levels since this past February. According to a Citi research note,”Sentiment towards copper from the physical market has improved as fabricators in China have replenished their inventories,” said Reuters.

STOCKS TO WATCH

Shares of metal makers and miners are all higher in afternoon trading, with copper miners Freeport-McMoRan (FCX) and Southern Copper Corporation (SCCO) up 14% and 3%, respectively. Iron ore miners Cliffs Natural Resources (CLF) is up 5%, with peers Vale S.A. (VALE) and Rio Tinto plc (RIO) both up over 4%. Aluminum makers are also jumping, with Alcoa up almost 2%, with peers Century Aluminum (CENX) up 4% and Kaiser Aluminum (KALU) up fractionally. Shares of United States Steel Corporation (X) are 5% higher.

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Cott Corp. to Sell Beverage Manufacturing Business for $1.25B

Cott Corp. agrees to sell traditional beverage manufacturing business for $1.25B

Cott Corp. to Sell beverage manufacturing business for $1.25B. See Stockwinners.com for a list of Stocks to Watch, Stocks to Buy, Stocks to Follow

Cott Corporation (COT) announced that it has entered into a definitive agreement to sell its traditional beverage manufacturing business to Refresco for $1.25B.

The transaction includes Cott’s North America, U.K., and Mexico businesses.

The transaction is expected to: Improve top-line growth and stability; Enhance overall gross profit and EBITDA margins; Significantly reduce net leverage; Reduce customer concentration; Reduce commodity exposure; Shift Cott’s core focus to the growing categories of water, coffee, tea and filtration.

The transaction is expected to reduce Cott’s leverage to below 3.5x net debt to 2017 pro forma adjusted EBITDA after sale proceeds are used for the redemption of the remaining $250 million of our 10% DS senior secured notes, $525 million of our 5.375% notes, and paying off our asset-based lending facility.

As a result of the redemption of our 5.375% notes, we expect to commence asset sale proceed offers on or about the closing date of the transaction pursuant to the indentures governing our then remaining unsecured notes, pursuant to which we will offer to repurchase such notes at 100% of the principal amount thereof.

The acquisition, which is expected to close in the second half of 2017, is subject to certain closing conditions including regulatory approval, Refresco shareholder approval, and working capital adjustments.

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Barron’s is Bullish on Leucadia, Sarepta and Flex, Bearish on Fiberoptic Makers, Retail

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue is bullish on several names. They include:

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Flex could rise 25% in a year – Flex (FLEX) is using robotics, machine learning, three-dimensional printing, and other next-generation technologies to transform itself into an everything factory, able to turn out not just consumer electronics but also medical equipment, sneakers, and car components, Jack Hough writes in this week’s edition of Barron’s. While the company’s business mix is changing, it still has ample exposure to PCs and smartphones, as well as companies like Apple (AAPL) and Lenovo (LNVGY), the report noted, adding that it expects Flex’s stock to rise another 25% or more over the coming year.

Leucadia shareholders to ‘finally’ see reward – Five years after Leucadia National (LUK) announced its merger with Jefferies Group, the combined company, and its shares, seem poised to prosper, Leslie Norton writes in this week’s edition of Barron’s. Despite an initial burst from $21 to $31 in the year following the deal, the shares succumbed shortly thereafter to the drop-in oil prices and oil-related junk bonds, which hurt Jefferies’ commodities and bond units, the publication noted, adding that both businesses have since revived, with some investors believing its shares could be worth $30 or more.

Aviation, defense stocks have ‘juicy yields – Some aerospace and defense stocks sport “nice yields,” not to mention impressive total returns in recent years, and “good opportunities” exist in companies that overlap like Boeing (BA), Lawrence Strauss writes in this week’s edition of Barron’s. Alongside Boeing, the report highlighted the yields of Lockheed Martin (LMT), United Technologies (UTX), Raytheon (RTN), L3 Technologies (LLL), General Dynamics (GD), Northrop Grumman (NOC) and Rockwell Collins (COL).

Upbeat sales news, guidance boost lift Sarepta shares – Sarepta’s (SPRT) shares surged last week after the company reported stronger than expected U.S. sales of its drug for Duchenne muscular dystrophy, or DMD, in the second quarter, while raising sales guidance for the year, Andrew Bary writes in this week’s edition of Barron’s. There could be more upside in the shares because of the significant sales potential for its DMD drug, Exondys 51, the report noted, adding that Sarepta looks like one of the “most promising smaller biotech companies.”

BEARISH NAMES

Amazon, others could be threat to fiberoptic markers – Amazon.com (AMZN), Alphabet (GOOGL;GOOG), Microsoft (MSFT), Apple (AAPL), and Facebook (FB) have all become the biggest and most important buyers of tech gear, with their influence changing the way fiberoptic components are being manufactured and distributed, Tiernan Ray writes in this week’s edition of Barron’s. The pace is so intense, and supplies have gotten so tight, that Amazon is bypassing traditional vendors and manufacturing the parts itself, the report note, adding that this could threaten companies like Applied Optoelectrics (AAOI), Lumentum (LITE) and Oclaro (OCLR) if other big techs follow. See Stockwinners’ blog about fiberoptic names.

Nothing is ‘Amazon-proof’  – Amazon’s (AMZN) deal with Sears (SHLD) to sell Kenmore appliances caused shares of Home Depot (HD), Lowe’s (LOW) and Best Buy (BBY) to tumble, Ben Levisohn writes in this week’s edition of Barron’s. Brick-and-mortar retailers like Macy’s (M) and Kohl’s (KSS) were the first victims of the rise of online shopping, while this year retailers once thought immune to the impact like O’Reilly Automotive (ORLY) and Advance Auto Parts (AAP) followed suit, the report noted, adding that when Amazon agreed to buy Whole Foods Market (WFM), it also caused shares of Kroger (KR) and Costco (COST) to sell off. “Nothing is Amazon-proof,” Levisohn argued.

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Hyperloop Goes to Washington!

Musk gets verbal approval to build NYC to D.C. hyperloop 

 

Hyperloop, Tesla Stock, SpaceX, Stocks to Watch, Stock to Watch today, Stock of the day, Stock Movers, stock mergers

Elon Musk just tweeted, “Just received verbal govt approval for The Boring Company to build an underground NY-Phil-Balt-DC Hyperloop.

NY-DC in 29 mins. City center to city center in each case, with up to a dozen or more entry/exit elevators in each city.”

Musk, among his other endeavors, is the CEO of #Tesla (TSLA).

A #hyperloop is a mode of passenger and/or freight transportation, first named as such in an open-source vactrain design released by a joint team from Tesla and SpaceX. Drawing heavily from Goddard’s vactrain, a hyperloop comprises a sealed tube or system of tubes through which a pod may travel free of air resistance or friction conveying people or objects at optimal rates of speed and acceleration.

Elon Musk’s version of the concept, first publicly mentioned in 2012, incorporates reduced-pressure tubes in which pressurized capsules ride on an air bearings driven by linear induction motors and air compressors.

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OTHER STOCKS TO WATCH

ANSYS, Inc.  (ANSS) develops and markets engineering simulation software and services used by engineers, designers, researchers, and students in the aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors industries and academia worldwide.

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Avista Sold for $5.3 Billion Cash

Avista acquired by Hydro One for $53 per share

 

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Hydro One Limited and and Avista Corp. (AVA) dustry-leading regulated utilities with over 230 years of collective operational experience as well as shared corporate cultures and values.

The combined entity will safely and reliably serve more than two million retail and industrial customers and hold assets throughout North America including Ontario, Washington, Oregon, Idaho, Montana and Alaska.

“This marks a proud moment for Canadian champions as we grow our business into a North American leader,” said Mayo Schmidt, President and CEO, Hydro One Limited.

“This transaction demonstrates the power and value of the transition into an investor-owned utility, by allowing for healthy expansion into new lines of regulated utility business and new jurisdictions, such as the U.S. Pacific Northwest which is experiencing customer and economic growth.”

“With a focus on operational excellence and building our earnings streams, we are positioned for long-term, sustainable growth,” said Schmidt.

“We are further accomplishing this goal by bringing together two companies with shared cultures and industry expertise to create a North American regulated utility leader. This combination means greater scale, diversity and financial flexibility.”

Hydro One has a uniquely strong track record consolidating electricity utilities. Since the IPO, Hydro One has also delivered on cost savings and efficiencies for shareholders and customers.

Through the company’s energy conservation programs, Hydro One has helped customers and municipalities save 700 GWh year-to-date.

“Since our initial public offering, we have significantly enhanced our current operations while exploring opportunities that extend and diversify our regulated assets,” said #MayoSchmidt.

“We constantly seek to deliver exceptional value to shareholders, customers, and the communities we serve through stable, increasing regulated returns, exceptional service, and community engagement.”

This strategic combination demonstrates the value of consolidation by bringing together two highly complementary platforms to create one of North America’s largest regulated utilities, meaningfully enhancing both shareholder and customer value.

In addition, over time, non-headcount efficiencies will be realized through collaboration and sharing of best practices on IT, innovation and supply chain purchasing, all of which will further enhance cost savings.

No workforce reductions are anticipated as a result of this transaction for either Avista or #HydroOne.

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Stocks to Watch – Changes to S&P Indices

ResMed, Packaging Corp., A.O. Smith, Duke set to join S&P 500 at open on 7/26

Stocks to buy, stocks to watch, upgrades, downgrades, earnings

S&P MidCap 400 constituents ResMed (RMD), Packaging Corporation of America (PKG), A.O. Smith Corp. (AOS) and Duke Realty Corp. (DRE) will replace Mallinckrodt (MNK), Murphy Oil (MUR), Bed Bath & Beyond (BBBY) and Transocean (RIG) respectively, in the S&P 500 effective prior to the open of trading on Wednesday, July 26.

MGM Resorts Int’l. (MGM) will replace Reynolds American Inc. (RAI) in the S&P 500. British American Tobacco plc  is acquiring Reynolds American in a deal expected to be completed on July 25, pending final conditions.

Mallinckrodt, Murphy Oil, Bed Bath & Beyond and Transocean will replace ResMed, Packaging Corporation of America, A.O. Smith and Duke Realty, respectively in the S&P MidCap 400.

All stocks moving to the S&P 500 have total market capitalizations above $10B making them more representative of the large-cap market space.

All stocks moving to the S&P MidCap 400 have total market capitalizations below $4.5B making them more representative of the mid-cap market space.

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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.