AMD Stock Continues to Fall in 2017
Advanced Micro Devices (AMD) stock fell 9.4% in the week ended January 20, 2017. Shares of the firm have fallen 14% since the start of 2017 after an incredible run last year.
Miscellaneous
Why Corn Prices Moved Higher in January
Global corn prices are significantly lower than they’ve been for the past four years, considering the high global corn stock-to-use ratio last year.
Analyzing the Concentration of US Media Ownership
Time Warner (TWX) has high-quality content assets, and AT&T (T) has extensive customer relationships across the wireless, video, and fixed broadband platforms.
Will Macy’s Job Cuts and Store Closures Improve Its Position?
On January 4, Macy’s disclosed 68 store closures—three stores closed in mid-2016, 63 stores slated to close in early spring 2017, and two in mid-2017.
Does the US Dollar Impact Natural Gas Prices?
In the past four trading sessions, natural gas futures and the US Dollar Index moved in opposite directions one out of four times.
Inside the Soybean Inventory Rise in December
The global soybean stock-to-use ratio for soybeans rose to ~25.1% in December 2016, as compared to 24.8% in November 2016.
Does Consolidation in the FPGA Market Make Xilinx an Acquisition Target?
In the past, analysts have named Broadcom (AVGO), Qualcomm (QCOM), and Texas Instruments (TXN) as potential bidders for Xilinx.
What’s the Outlook for Chinese Iron Ore Imports?
Contrary to what’s been suggested by many market participants, China’s iron ore imports have been robust in 2016. In November, imports were 92.0 million tons.
Analyzing Halliburton’s Stock Price Returns
From December 2014 to December 2016, Halliburton’s (HAL) stock price reached the highest level in December 2016. It troughed at ~$28 in January 2016.
The Inotera Deal: Micron’s Upcoming Earnings Highlight
The key highlight in Micron’s fiscal 1Q17 earnings will be the integration of Inotera, which should be quickly accretive to its gross margins, EPS, and FCF.
How Will Trump’s Take on the ACA Affect Healthcare Stocks?
Donald Trump wants to repeal the Affordable Care Act (or ACA) and replace it with a new act that encourages free-market competition.
What Do Analysts Recommend for FMC Technologies?
In November, 34% of the analysts tracking FMC Technologies rated it a “buy,” ~55% rated it a “hold,” and only 3% of the analysts rated it a “sell.”
Wall Street Analysts’ Recommendations for Schlumberger
In November, 83% of the analysts tracking Schlumberger rated it a “buy” or some equivalent. The other 18% of the analysts recommended a “hold” or a “sell.”
How Might the Inotera Acquisition Impact Micron’s DRAM Earnings?
Micron Technology will have to raise ~$2.5 billion to fund its joint venture acquisition of Inotera, and this move will add to its already high leverage.
What You Need to Know About the Micron-Inotera Deal
A major part of Micron Technology’s (MU) transition to the 20 nm node involves Taiwan’s (EWT) Inotera and its joint venture with Nanya Technology.
Why Were Chinese Iron Ore Imports Weak in October?
China’s weaker iron ore imports Contrary to what’s been suggested by many market participants, China’s iron ore imports have been robust in 2016. In October, however, the imports were at their lowest since February, at 80.8 million tons, down 13% month-over-month. On a year-over-year basis, the imports rose 7%. In the first ten months of […]
Why Has Mondelēz International Been Rising for Two Months?
Mondelēz International’s (MDLZ) stock rose 3.6% to $44.32 per share on October 26, 2016, after the announcement of the company’s 3Q16 results.
Analyzing Tesla’s Updated Energy Products
In October, Tesla unveiled the second version of the Powerwall and Powerpack. The second version comes with higher energy storage capacity.
Rising Anthracite Prices Pressure Chinese Fertilizer Producers
Anthracite coal is used to produce nitrogen fertilizers. For the week ending November 18, average weekly anthracite coal prices in China rose 3.8%.
Whiting Petroleum Announces Bakken Midstream Divestiture
On November 21, 2016, Whiting Petroleum announced its intention to sell its Bakken midstream assets to an affiliate of Tesoro Logistics Rockies for $375 million.
Why India Demonetized 2 Currency Notes
The 500 rupee note and the 1,000 rupee note were demonetized at midnight on November 8. The move aimed to curb black money in the financial system.
What’s the Strategy behind Broadcom’s Brocade Acquisition?
Broadcom is acquiring Brocade in order to benefit from the latter’s strong cash flow. This raises the question of why Brocade agreed to be acquired if its business was profitable.
TSO to Acquire WNR: Where Do Their Valuations Stand?
In this article, we’ll look at Tesoro’s (TSO) and Western Refining’s (WNR) valuations following the news of TSO’s acquisition of WNR.
How Much Have MLP Fund Inflows Improved in 2016?
MLP funds’ capital inflows have recovered in 2016 from levels in 2H15. But overall capital inflows are lower than the seven-year average of $2.8 billion.
Soybean’s Stock-to-Use Ratio Rose with the Inventory
Unlike corn, the global soybean stock-to-use ratio is lower compared to the global stock-to-use ratio of 26.5% last year.
Why Did GE Part Ways with Its Appliance Division?
In addition to the sale of its Financial Assets business, General Electric (GE) bid farewell to its Appliance business in July 2016.
Will US Non-Farm Payrolls Impact Crude Oil Prices?
US (VFINX) (VOO) non-farm payrolls rose by 161,000 in October 2016, according to the U.S. Bureau of Labor Statistics’ report released on November 4, 2016.
Fertilizer Update: Are Market Dynamics Changing?
Producers in China primarily use coal as an input material to produce nitrogen, especially urea-based fertilizers. China is the world’s biggest urea exporter.
Rockwell Collins Acquires B/E Aerospace in a Deal-Making Weekend
On October 23, Rockwell Collins (COL) announced that it intends to acquire B/E Aerospace (BEAV) for a total consideration of $8.3 billion. Within Rockwell Collins, B/E Aerospace will operate as its new Aircraft Interior Systems segment.
Implied Volatilities: Crude Oil and Natural Gas
Crude oil’s (UWTI) (USO) (OIIL) (USL) (SCO) (DWTI) implied volatility was 24.4% on October 14, 2016. Its 15-day average implied volatility is 36%.
Soybean’s Stock-to-Use Ratio Rose in October
The global stock-to-use ratio for soybeans rose 1.6% to ~23.5% in October—compared to 22% in September. Soybean’s ratio is lower than last year.
What’s the Rationale behind GE’s Proposed Acquisition?
In this article, we’ll go through the rationale behind GE’s planned acquisition of LM Wind Power. According to the GWEC, worldwide wind capacity is expected to nearly double in the next five years.
GE’s Acquisition Spree Continues with LM Wind Power
On October 11, 2016, General Electric (GE), an industrial behemoth, said that it was set to acquire LM Wind Power for $1.7 billion.
Coal Prices Remained Flat for the Week Ending October 7
Chinese producers primarily use coal to produce nitrogen, especially urea-based fertilizers, while producers in North America mostly rely on natural gas.
Crude Oil and Natural Gas: Analyzing Implied Volatilities
For natural gas (UNG) (DGAZ) (BOIL) (FCG) (UGAZ) (GASL), its implied volatility was 39.4% on October 7, 2016. Its 15-day average implied volatility is 38.5%.
The Outlook for China’s Automobile Sales and Why It Matters
China’s passenger car sales rose 26% year-over-year in August. This is the fourth consecutive month that car sales have risen in the double digits.
What Were the Implied Volatilities for Crude Oil and Natural Gas?
Crude oil’s (UWTI) (USO) (OIIL) (USL) (SCO) (DWTI) implied volatility was 35.3% on September 30, 2016.
What’s the Natural Gas Outlook for This Week?
The weather forecast for October 3 to October 9, 2016, indicates that temperatures in the United States could remain higher than the five-year average for the period between October 3 and October 6.
Why Did Treasury Bonds Record a Fall in Yield?
The yield on US ten-year Treasury securities fell below the 1.6% mark for the first time on September 26, 2016 due to a rise in demand.
Will Treasury Inflation-Protected Securities Be a Game-Changer?
According to Bloomberg, Treasury Inflation-Protected Securities (or TIPS) have generated a year-to-date return of 6.3% compared to 4.7% by the broad Treasury market.
The Rally in Emerging Market Debt
Emerging markets’ nonfinancial corporate debt breached the $26 trillion mark in the first half of 2016.
Could China’s Iron Ore Imports Pull Back in the Near Term?
In August 2016, China’s iron ore imports came in at 87.7 million tons, a rise of 18.3% compared to 74.1 million tons in August 2015 but a slight fall of 0.8% compared to July 2016.
What Are Analysts’ Recommendations for Hotel Stocks?
Wyndham has the highest return potential of 21% with a target price of $81. Marriott is next with a return potential of 18% and a target price of $79.15.
Analyzing the Key Events before the Marriott-Starwood Merger
On April 29, 2015, Starwood put itself up for sale. On August 29, 2015, Anbang offered to buy it at a 20% all-cash premium deal on its last closing price.
Options Traders: The Implied Volatility of Crude Oil and Natural Gas
Crude oil’s implied volatility was 41.8% on September 23, which is 6.9% above its 15-day average. Its 15-day average implied volatility is 39.1%.
Why the Weather Could Mean Trouble for Natural Gas Bulls
The weather forecast for September 26 to October 2 indicates that temperatures in the US could remain lower than the five-year average for the period.
How Has Gold Performed So Far in 2016?
Gold prices have gained 21% YTD in 2016 and closed at $1,308.40 on September 16, 2016.
How Did the Dollar’s Move Affect the Price of Gold?
Gold is valued in dollars. As a result, the stronger dollar, driven by the recovery of the US economy, is pushing the gold prices further down.
Analyzing the Implied Volatilities of Crude Oil and Natural Gas
Crude oil’s implied volatility was 37.2% on September 16, 2016. Its 15-day average implied volatility is 38.1%.
Natural Gas Traders Should Watch This Weather Report
The weather forecast for September 19–25, 2016, indicates that temperatures in the United States could remain higher than the five-year average for the same period.