CIM Commercial declares special dividend

CIM Commercial Trust declares $1.98 cash dividend

CIM Commercial bought $576 million of its shares

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#CIM Commercial Trust Corporation $CMCT announced that it has repurchased in a privately negotiated transaction 26,181,818 shares of its common stock from a fund managed by an affiliate of CIM Group, the manager of CMCT.

The aggregate purchase price was $576,000,000, or $22 per share.

In order for all common shareholders to participate in the economic benefit of the share repurchase in an equitable manner, CMCT’s Board of Directors has declared a special cash dividend of $1.98 per common share.

The amount of the special cash dividend per common share was calculated based on the spread between $22.00, the repurchase price, and the volume-weighted average price per common share for the 20 trailing trading days through June 9, 2017 of $15.82 per common share.

The dividend will be paid on June 27, 2017 to common shareholders of record as of June 20, 2017. The Fund has informed CMCT that it waived its right to receive this special cash dividend on the common shares that it owns. The repurchase and special cash dividend are part of CMCT’s previously stated goal of focusing on increasing the net asset value and cash flow per share of common shares while providing liquidity to common shareholders at prices reflecting the underlying fundamentals of CMCT’s portfolio.

In conjunction with the share repurchase and declaration of the $1.98 per share special cash dividend, CMCT has adjusted its recurring quarterly common dividend to conform with the dividend program of its public REIT peers, which we believe have distributed 40% to 50% of funds from operations and 2.0% to 2.5% of consensus net asset value estimates on an annual basis.

Accordingly, the Board today declared a quarterly cash dividend of $0.125 per common share, representing approximately 45% of 2017 Q1 FFO and, on an annualized basis, 2.1% of net asset value.

CMCT closed at $15.55. Shares have a 52-week trading range of $14.54 to $19.29.

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CooperVision lens reduces progression of myopia

CooperVision 1-day soft contact lens reduced the rate of progression of juvenile-onset myopia

Adolescents who are myopic (nearsighted) typically have “progressive myopia”

 

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The British Contact Lens Association Clinical Conference ended on Sunday in Liverpool England. Among companies presenting at the conference were Cooper Companies.

Cooper Companies subsidiary CooperVision announced Saturday that “a pioneering contact lens therapy has considerable potential to impact the rising prevalence of myopia in children, according to highly-anticipated study outcomes presented today at the British Contact Lens Association Clinical Conference.”

At the conference, CooperVision reviewed three-year results from the clinical trial assessing a specially-designed, dual-focus myopia control 1-day soft contact lens in reducing the rate of progression of juvenile-onset myopia.

Adolescents who are myopic (nearsighted) typically have “progressive myopia” — that is, their nearsightedness becomes progressively greater over time. If left uncontrolled, myopia results in a higher incidence of complications such as retinal tears and detachments, glaucoma, cataracts, and a reduced quality of life.

Three-year findings indicated that use of the dual-focus contact lens was effective in slowing myopia progression 59% as measured by mean cycloplegic spherical equivalent and 52% as measured by mean axial elongation of the eye when compared to the children in the control group wearing a single vision 1-day contact lens.

Three-year results indicated the dual focus lens was well accepted by children, and did not affect their daily activities. Children in both the test and control groups had a higher satisfaction with contact lenses over spectacles.

Parents of study participants also had a very positive response, noting their children could mostly manage their lens wear independently.

“No other prospective randomized controlled study has offered conclusive data for such a high degree of continued efficacy in myopia management using a 1-day soft contact lens over three years,” the company remarked.

COO closed at $237.43. Shares have a 52-week trading range of $158.73 to $243.88.

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Novo Nordisk reports data on Xultophy

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The 77th Scientific Sessions of the American Diabetes Association is underway in San Diego, CA from June 9-13, 2017.

Xultophy 100/3.6 demonstrated similar A1C reductions with significantly lower rates of hypoglycemia and a decrease in weight in adults with type 2 diabetes compared to treatment with basal-bolus therapy

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The 77th Scientific Sessions of the American Diabetes Association is underway in San Diego, CA from June 9-13, 2017.


Novo Nordisk announced Saturday that new results from the phase 3b DUAL VII clinical trial showed that Xultophy 100/3.6 demonstrated similar A1C reductions with significantly lower rates of hypoglycemia and a decrease in weight in adults with type 2 diabetes compared to treatment with basal-bolus therapy.

 

In DUAL VII, Xultophy 100/3.6 demonstrated non-inferiority in lowering A1C when compared to insulin glargine U100 in combination with insulin aspart.

 

The objective of non-inferiority trials is to compare a novel treatment to an active treatment with a view of demonstrating that it is not clinically worse with regards to a specified endpoint.

 

Those treated with #Xultophy 100/3.6 versus basal-bolus therapy also: Reached similar glycemic targets; demonstrated an 89% reduction in severe or blood glucose confirmed symptomatic hypoglycemic events and a 92% reduction for nocturnal severe or blood glucose confirmed symptomatic hypoglycemic events; experienced a weight reduction of 0.93 kg compared with a weight gain of 2.64 kg for people treated with the basal-bolus regimen; achieved glycemic control with no hypoglycemic episodes and no weight gain in the last 12 weeks.

 

A basal-bolus routine involves taking a longer acting form of insulin to keep blood glucose levels stable through periods of fasting and separate injections of shorter acting insulin to prevent rises in blood glucose levels resulting from meals.

 

Furthermore, patients treated with Xultophy 100/3.6 required a lower daily insulin dose compared with the basal-bolus treatment group — 40 units vs 84 units.

 

Adverse events were similar across both treatment groups. The safety profile of Xultophy 100/3.6 in DUAL VII was generally consistent with previous Xultophy 100/3.6 clinical trials.


NVO closed at $42.84. It has a 52-week trading range of $30.89 to $57.41.

 

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Barron’s is bullish on Chevron, Apple

Apple’s (AAPL) smart speaker is a “turning point” for personal technology

Comerica (CMA), SVB Financial (SIVB) and Zions Bancorp (ZION) are among banks that “should continue to benefit” from near-term rate hikes

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

The unveil of Apple’s (AAPL) smart speaker is a “turning point” for personal technology and possibly for the company itself, Barron’s contends in a ‘Technology Trader’ column. The product and its array of “enticing” audio tech shows that Apple continues to innovate, the publication says, while cautioning that some observers see Apple’s arguably lackluster Siri digital assistant as a “giant hole” in the product as compared to competing offerings from Amazon (AMZN) and Alphabet (GOOG).

Shares of ATM-maker Diebold (DBD) could return 25%-40% over the next two years, Barron’s contends in a feature article. The company should lift EPS to at least $3 through 2020 as it realizes cost cuts and synergies from its acquisition of Wincor Nixdorf, the publication says. Additionally, while cash is sometimes called a declining medium amid the proliferation of online payment platforms, Diebold CEO Andy Mattes tells Barron’s that such pessimism is countered by the 5%-6% annual growth rate of paper notes in circulation.

Lam Research (LRCX) could gain 20% in a year, Barron’s contends in a feature article. The publication argues that as memory chip usage in cars, home appliances, and other machines increases — and China ramps its catch-up efforts in the space — investors should buy the industry’s “arms dealers;” that is, the companies that manufacture etching and lithography equipment. Barron’s names both Lam Research and Applied Materials (AMAT), but favors Lam Research.

Banks

Comerica (CMA), SVB Financial (SIVB) and Zions Bancorp (ZION) are among banks that “should continue to benefit” from near-term rate hikes, Barron’s contends in a feature article. The publication explains that most banks haven’t paid depositors more despite the start of rate hikes in late 2015, a trend which is expected to continue with the likely hike in June, which means higher profits for the banks. Small and mid-market names with significant depositor bases, good balance sheets, and many commercial customers will gain the most from the trend, Barron’s says, leading it to recommend the above-mentioned banks.

Energy Stocks

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Certain North American energy names “look attractive,” including Chevron (CVX), EOG Resources (EOG), Canadian Natural Resources (CNQ) and Noble Energy (NBL), Barron’s contends in a feature article. The sector “could be near a bottom” after dipping on the recent surprise gain in crude inventories, the publication adds.

Regeneron (REGN) appears expensive against short-term profit expectations, but the stock still looks good for growth investors given the company’s “long-term ability to generate more attempts at hit drugs than do peers,” Barron’s contends in a ‘Follow Up’ column.

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Changes to S&P Indices

Hilton Worldwide Holdings (HLT) will replace Yahoo (YHOO) in the S&P 500

Align Technology (ALGN) and ANSYS (ANSS) will also be added to the S&P 500

S&P Dow Jones Indices will make the following changes to the S&P 500 and S&P MidCap 400 indices effective prior to the open of trading on Monday, June 19:

 

 Hilton Worldwide Holdings (HLT) will replace Yahoo (YHOO) in the S&P 500.

 

Yahoo is expected to convert to a publicly traded, non-diversified, closed-end management investment company under the Investment Company Act of 1940 on June 16, a few days after the expected sale of its operational business to S&P 100 & 500 constituent Verizon Communications (VZ). Closed end funds are ineligible for inclusion in the S&P 500.
S&P MidCap 400 constituents Align Technology (ALGN) and ANSYS (ANSS) will replace Teradata (TDC) and Ryder System (R) respectively in the S&P 500.
Align Technology and ANSYS have total market capitalizations above $10B making them more representative of the large-cap market space.
Teradata and Ryder System have total market capitalizations below $3.7B making them more representative of the mid-cap market space.

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Glencore offers $2.55 billion for Rio Tinto’s Coal & Allied Industries

Glencore submits proposal to acquire Rio Tinto’s Coal & Allied Industries for $2.55B

Glencore Proposal will be funded from existing cash resources and committed facilities

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Glencore (GLNCY) announced it has submitted a proposal to acquire Rio Tinto’s (RIO) 100% interest in Coal & Allied Industries for $2.55B cash plus a coal price linked royalty, with the cash comprising $2.05B cash payable on completion and $500M in aggregate deferred cash payments, payable as annual instalments of $100M over five years following completion.

Rio Tinto plc (RIO) finds, mines, processes, and markets mineral resources. The company mines and produces aluminum products, including bauxite, alumina, and aluminum; copper, gold, silver, and molybdenum, as well as nickel; diamonds, titanium dioxide feedstocks, borates, and salt, as well as high purity iron, steel billets, metal powders, zircon, and rutile; uranium; iron ore; and thermal coal, and coking or metallurgical coal.

A subsidiary of #Mitsubishi Corporation has a tag-along right to sell its 32.4% interest in the Hunter Valley Operations joint venture.

Glencore has agreed to purchase Mitsubishi’s 32.4% interest in the HVO JV and 28.898% interest in the Warkworth joint venture for $920M cash conditional on completion of Glencore’s acquisition of C&A from Rio Tinto, with $520M being payable on completion and $100M payable on the first four anniversaries of completion.

The Glencore Proposal will be funded from existing cash resources and committed facilities and is subject only to regulatory conditions. Glencore will only be bound once a binding share purchase agreement is concluded with Rio Tinto.

If a transaction is concluded, Glencore intends to mitigate its overall financial commitment via a sale / monetization of assets, prioritizing its coal portfolio, of no less than $1.5B, including exploring the option of selling down up to 50% of its interest in the C&A mines.

“In any event, as part of our overall Group financial policy, in addition to targeting maximum 2x Net debt/Adjusted EBITDA through the cycle, Glencore’s balance sheet will be managed to prevent net debt increasing above December 2016’s level of $15.5B, thereby ensuring that our leverage target is comfortably met and financial conservatism maintained,” Glencore stated.

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Stocks to Watch Ahead of this Weekend

Electronic Entertainment Expo, or E3, convention starts this weekend in Los Angeles

Activision plans to showcase “Call of Duty: WWII,” “Destiny 2,” and “Crash Bandicoot N. Sane Trilogy”

 

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Shares of video game stocks are in focus ahead of the upcoming Electronic Entertainment Expo, or E3, convention starting this weekend. Investors and analysts will be looking at major upcoming releases from big sector players as well as any new game announcements at the event.

EA ‘STAR WARS’ PUSH:

Electronic Arts (EA) will be the first major game maker to host a press conference. The company already confirmed in a blog post that it will showcase eight games at its presentation, including its usual sports titles as well as “Star Wars Battlefront II,” which EA plans to highlight through showing a live multiplayer match for the game featuring multiple YouTube “influencers.”

Ahead of the event, #Piper Jaffray analyst Michael #Olson reiterated an Overweight rating and $119 price target on the stock, saying that “Star Wars Battlefront II” is expected to be a “more fleshed out” version of its predecessor, which Olson notes was criticized for a lack of game modes.

Credit Suisse analyst Stephen Ju added that he expects the single player content for “Battlefront II” to open the door for potential upside versus his firm’s current 13.8M unit volume estimate. Ju noted that the incremental million units should add 7c to EPS for fiscal 2018. Shares of EA are up over 45% year to date.

ACTIVISION STICKS TO ITS GUNS:

After skipping the show floor at last year’s E3, Activision Blizzard’s (ATVI) Activision unit said in a blog post that it plans to showcase “Call of Duty: WWII,” “Destiny 2,” and “Crash Bandicoot N. Sane Trilogy” at E3 this year.

All three of these titles were already announced previously, and Credit Suisse’s Ju said his firm doesn’t see much in the way of surprises for Activision.

Ju noted, however, that in the case of “Destiny 2,” he will be paying closer attention to the “greater accessibility of the underlying storyline to drive gameplay as well as engagement.”

Piper’s Olson, on the other hand, expects most investors to focus on the new “Call of Duty” title, which he says will face easier comps than the last two releases in the franchise. The Piper analyst reiterated an Overweight rating and $60 price target on the stock.

Shares of Activision Blizzard have advanced over 67% year to date.

NO SURPRISES SEEN FOR TAKE-TWO:

Take-Two Interactive (TTWO) will not be hosting a press event at E3, though the company already made waves several weeks ago after it delayed the release of the highly-anticipated “Red Dead Redemption 2,” which is now expected to launch in Spring of 2018 after originally being slated for Fall of this year.

Piper’s Olson, who backed an Overweight rating and $83 price target on the stock, said that he doesn’t anticipate the company will use E3 as a venue to announce any new games and will probably use its floor space at the event for meetings.

Credit Suisse’s Ju said that, given the delay of “Red Dead 2,” he does not expect any further updates on the game of any kind and expects that the only playable games on the floor from Take-Two will be the latest iterations of “NBA 2K” and “WWE 2K.”

Shares of Take-Two are up over 61% year to date.

HARDWARE:

On the hardware side, Microsoft (MSFT) is expected to unveil the name, price, and release date for Project Scorpio during its E3 briefing this Sunday, according to media.

Project Scorpio will be “the most powerful console ever,” according to Microsoft, with 6 Teraflops of graphical processing power, “true” 4K gaming, and compatibility with Xbox One games and accessories.

Sony (SNE), whose PlayStation 4 Pro currently stands as one of the most powerful gaming consoles on the market, will hold its press conference on Monday night.

In addition, jumping off the recent success of its latest Switch console, Nintendo (NTDOY), which hasn’t done major stage shows at E3 in recent years, said it will provide a closer look at its upcoming “Super Mario Odyssey” game for the Switch as well as other games coming this year to its newest console, which launched on March 3.

OTHERS TO WATCH:

Shares of retailers GameStop (GME) and Best Buy (BBY) should be in play also.

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DuPont Fabros Sold for $7.6 Billion

DuPont Fabros shareholders will receive of 0.545 Digital Realty shares

The combination of the two companies is expected to create annual savings of $18M

 

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Digital Realty  and DuPont Fabros announced they have entered into a definitive agreement under which DuPont Fabros will merge with Digital Realty in an all-stock transaction.

The consummation of the transaction is subject to customary closing conditions, including approval by the shareholders of Digital Realty and DuPont Fabros.

DuPont Fabros Technology, Inc. (DFT) , a real estate investment trust (REIT), engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities in the United States.

Digital Realty Trust, Inc.(DLR), a real estate investment trust ( #REIT ),  engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate.

Under the terms of the agreement, DuPont Fabros shareholders will receive a fixed exchange ratio of 0.545 Digital Realty shares per DuPont Fabros share, for a transaction valued at approximately $7.6B in enterprise value.

The two companies’ operating models are highly complementary, and the combined organization is expected to provide the most comprehensive product offering in the data center sector. Given the enhanced size and scale, the combined company is also expected to have the most efficient cost structure and the highest EBITDA margin of any U.S.-based publicly-traded data center REIT.

The combination of the two companies is expected to create an opportunity to realize up to $18M of annualized overhead savings, resulting from both companies’ complementary business operations.

Upon closing, the transaction is expected to be immediately accretive to financial metrics, and is expected to further improve balance sheet strength.

The fixed exchange ratio represents a total enterprise value of approximately $7.6B, including $1.6B of assumed debt and excluding transaction costs.

Digital Realty has obtained a fully committed bridge loan facility from BofA Merrill Lynch and Citigroup which will be available, if needed, to finance the transaction. The debt assumed in the transaction is expected to be permanently refinanced with a combination of investment grade corporate bonds and other financings.

The transaction has been unanimously approved by the boards of directors of both Digital Realty and DuPont Fabros. The transaction is expected to close in the second half of 2017 and is subject to the approval of DuPont Fabros and Digital Realty shareholders and other customary closing conditions.

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FDA Asks Removal of Endo Pharmaceuticals’ Opana from the Market

FDA requested that Endo Pharmaceuticals remove its opioid pain medication from the market

This is the first time the FDA has taken steps to remove a currently marketed opioid pain medication

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The U.S. Food and Drug Administration requested that Endo Pharmaceuticals remove its opioid pain medication, reformulated Opana ER (oxymorphone hydrochloride), from the market. After careful consideration, the agency is seeking removal based on its concern that the benefits of the drug may no longer outweigh its risks. This is the first time the agency has taken steps to remove a currently marketed opioid pain medication from sale due to the public health consequences of abuse.

“We are facing an opioid epidemic – a public health crisis, and we must take all necessary steps to reduce the scope of opioid misuse and abuse,” said FDA Commissioner Scott #Gottlieb, M.D. “We will continue to take regulatory steps when we see situations where an opioid product’s risks outweigh its benefits, not only for its intended patient population but also in regard to its potential for misuse and abuse.”

Endo said it is reviewing the request and is evaluating the full range of potential options as we determine the appropriate path forward.

“While the benefits of opioids in treating and managing pain are widely recognized, the misuse and abuse of these products have increased greatly in the U.S.,” the company said in a statement.

“As a pharmaceutical company with a demonstrated commitment to the improvement of pain management, Endo feels a strong sense of responsibility to improve the care of pain for patients while at the same time taking comprehensive steps to minimize the potential misuse of its products. Despite the FDA’s request to withdraw OPANA ER from the market, this request does not indicate uncertainty with the product’s safety or efficacy when taken as prescribed. Endo remains confident in the body of evidence established through clinical research demonstrating that OPANA ER has a favorable risk-benefit profile when used as intended in appropriate patients.”

Other Stocks to Watch

Shares of pain treatment makers Depomed (DEPO) and Insys Therapeutics (INSY) are weaker in extended trading.

Collegium Pharmaceuticals (COLL), shares are up  due to its competing drug. It last traded at $10.50. COLL has a 52-week trading range of $7.37 – $20.55.

ENDP last traded at $12.80. ENDP has a 52-weeks trading range of $9.70 – $24.92.

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Tivity Health is For Sale

Tivity Health provides fitness and health improvement programs in the United States

Going private would accelerate Tivity Health’s ongoing transformation

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Reuters reports that Tivity Health (TVTY) is in discussion to go private. Going private would accelerate Tivity Health’s ongoing transformation, that included changing its name from Healthways earlier this year and divesting its total population health division, which uses coaching and clinical protocols to improve the overall health of employees and insurance plan members.

#TivityHealth, Inc.  ($TVTY) provides fitness and health improvement programs in the United States. It offers #SilverSneakers senior fitness program to the members of #Medicare advantage, Medicare supplement, and group retiree plans; and Prime fitness, a fitness facility access program through commercial health plans, employers, and insurance exchanges. The company also provides access to its WholeHealth Living network primarily to commercial health plans.

Following a strategic review, Tivity Health last year decided against an outright sale, instead opting to divest its population health unit to Sharecare Inc, a U.S. health and wellness online platform co-founded by TV personality Dr. Oz.

TVTY closed at $37.80. Shares have a 52-week trading range of $20.600 – $40.00.

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Bottle-Maker Shares Crack as Beer Sales Fizz Out

2017 is shaping up to be the worst year for beer volumes since 2009

Owens-Illinois is trying to build out its non-beer segments to compensate for the continued weakness in beer

Shares of beverage can and bottle makers are underperforming broader market measures after beer maker Molson Coors Brewing (TAP) gave uninspiring guidance at its investor day on Wednesday.https://stockwinners.com/blog

COORS INVESTOR DAY:

At its investor day on Wednesday, the brewer said its underlying marketing, general and administrative spending will increase this year and CapEx will remain at elevated levels for 2018.

As a result of these expenses, the brewer said it sees underlying EBITDA margins rising 50-60 bps per year for next three years.

Separately, Molson Coors Brewing said it bought the remainder of the MillersCoors joint venture it didn’t own two years ago, making it the third largest beer maker.

Molson Coors’ shares declined sharply during the presentation and ended the day down over 6%. Shares are falling further today.

BEER SALES SLIDE:

For the U.S. market, “2017 is shaping up to be the worst year for beer volumes since 2009, when total industry volumes were down 2%,” said Bernstein analyst Trevor #Stirling, according to a Financial Times.

Last month, the U.S. trade association for larger brewers, said that for the three months from February to April, beer volumes fell 5%, according to the FT report.

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OWENS-ILLINOIS:

Speaking at the Deutsche Bank Global Industrials and Materials Conference Presentation on Wednesday, Jan #Bertisch, the CFO of the world’s largest maker of glass bottles, Owens-Illinois, said the company is trying to build out its non-beer segments to compensate for the continued weakness in beer.

PRICE ACTION:

Can and bottle makers Owens-Illinois (OI), Crown Holdings (CCK), and Ball Corp. (BLL) are all down in afternoon trading, missing out on a broad market rally.

Large beer makers are also missing out on the rally, with Molson Coors down again, along with Anheuser Busch Inbev (BUD), and Boston Beer Company (SAM).

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Morgan Stanley Cuts U.S. Auto Sales

Morgan Stanley cuts 2017 US auto industry sales forecast to 17.3M units from 18.3M units

In Q1 2017, 10.2 million vehicles were sold in the used market, a decrease of 1.3% versus the previous year

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New Car Sales

The US auto industry has witnessed high demand for heavyweight vehicles in the past few years. In 2016, auto sales in the US were at their highest, with about 17.6 million vehicles sold during the year.

However, weakness in the first four months of 2017 also ignited the debate whether US auto sales have already peaked.  US Vehicle Sales at May reported at 16.96M, down from 17.21M last month and down from 17.52M one year ago. This is a change of -1.43% from last month and -3.16% from one year ago.

Used Autos

In Q1 2017, 10.2 million vehicles were sold in the used market, a decrease of 1.3% versus the previous year. Franchise used sales also showed a reduced number of units sold, with a 0.3% decrease versus 2016. Fewer consumers trading in their existing vehicle upon their new purchase could be sidestepping inventory from dealers. The average vehicle on American roads is nearly 12 years old.

The average retail used vehicle sold for $19,227 in Q1 2017, an increase of 2.1% year over year. This record-breaking high can partially be attributed to a higher mix of vehicles being sold that are only 3 years old or newer (53% of sales in Q1 2017) and these 3-year-old vehicles began with much higher MSRPs versus years prior. One caveat is that, while the MSRPs are up and so is the share, these vehicles aren’t retaining nearly as much value as before.

Cautious Comments

Morgan Stanley analyst Adam Jonas made “big” cuts to his US auto industry sales  forecast, reducing his 2017 US #SAAR forecast to 17.3M units from 18.3M units, 2018 to 16.4M units from 18.9M units, 2019 to 15M units from 19.2M units, and 2020 to 15M units from 18.7M units.

Jonas believes the auto cycle may be hitting a point of diminishing returns following 8 years into the biggest cycle on record as used car values erode, pressuring conditions for selling new vehicles, and said new vehicle inventory levels continue to rise.

Additionally, the analyst expects electrical margins to face increasing competition from new entrants and higher development costs.

#SAAR = seasonally adjusted annual rate

He lowered his price targets on 15 companies, cutting his targets for the following companies by 10% or more: Adient (ADNT), Ford (F), Group 1 Automotive (GPI). Specifically, he cut his target on Adient to $85 from $95, on Ford to $9 from $10, and on Group 1 Automotive to $53 from $60. Jonas kept an Overweight rating on Adient, and Underweight ratings on Ford and Group 1. LEAR: Jonas downgraded Lear to Underweight from Equal Weight and reduced its price target to $134 from $149. He expects Lear’s earnings to peak this year and to fall by 20% by 2021.

He also expects its Electrical business margins to disappoint investors due to higher development costs, increased competition, and potential lost market share.

Stocks to Watch:

GM, F, HMC, TM, LEA, TSLA, AN, FCAU, and GPI

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