Trading Ideas

OPEC leader Saudi Arabia and non-OPEC Russia have agreed a preliminary deal to extend existing record oil production cuts by one month while raising pressure on countries with poor compliance to deepen their output cuts, OPEC+ sources told Reuters. “Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction,” one OPEC source said. OPEC+ agreed last month to cut output by a record 9.7 million barrels per day, or about 10% of global output, in May and June to lift prices …read more […]

Shares of the company, which have risen 5% this year, were up 3% in pre-market trading. The Prego pasta sauce maker now expects fiscal 2020 adjusted earnings per share to be between $2.87 and $2.92, compared with its prior range of $2.55 to $2.60. Net sales rose about 15% to $2.24 billion in the third quarter, ended April 26, beating estimates of $2.22 billion, driven by higher demand for Prego pasta sauces, V8 beverages and Pepperidge Farm cookies. …read more […]

This is an absolutely tremendous time to be an investor.
At the threat of being hyperbolic, it may be the best time ever.
Across all three of the model portfolios we run, there are currently 22 open positions. All but two are worth more than we paid for them… many are worth significantly more.
We’ve got multiple stocks up by 20%, 30% and 40% just in the past few weeks. And we’ve got options surging by 100%, 200% and even 300%.
One of the companies we recently detailed in a special report to subscribers surged as much as 1,000% since January.
Times aren’t just good… …read more […]

(Bloomberg) — A meeting between OPEC and its allies this month was in doubt as Saudi Arabia and Russia drew a hard line over quota cheating by some nations.The two leaders of OPEC+ told other members that talks planned for early June to discuss extending record output cuts may not happen if countries including Iraq and Nigeria don’t make firm promises to implement their supply curbs, said people familiar with the matter.Without any changes to the deal, the group is due to start easing its cuts from July. Oil erased gains in New York, trading at $36.79 a barrel as …read more […]

Top news and what to watch in the markets on Wednesday, June 3, 2020. …read more […]

China’s oil demand has recovered to more than 90% of the levels seen before the coronavirus pandemic struck early this year, a surprisingly robust rebound that could be mirrored elsewhere in the third quarter as more countries emerge from lockdowns. While China – the world’s second-largest oil consumer – is the outlier for now, easing travel restrictions and stimulus packages aimed at resuscitating economies could accelerate global oil demand in the second half of 2020, industry executives said. “The brisk resumption of Chinese oil demand, 90% of pre-COVID levels by the end of April and moving higher, is …read more […]

China’s oil demand has recovered to more than 90% of the levels seen before the coronavirus pandemic struck early this year, a surprisingly robust rebound that could be mirrored elsewhere in the third quarter as more countries emerge from lockdowns. While China – the world’s second-largest oil consumer – is the outlier for now, easing travel restrictions and stimulus packages aimed at resuscitating economies could accelerate global oil demand in the second half of 2020, industry executives said. “The brisk resumption of Chinese oil demand, 90% of pre-COVID levels by the end of April and moving higher, is …read more […]

Shares in Glu Mobile (GLUU) pulled back 3% in after-hours trading on Tuesday after the company announced that it intends to offer $100 million of its common stock in an underwritten public offering.In addition, Glu expects to grant the underwriters a 30-day option to purchase up to an additional $15 million of its common stock. All of the shares are being offered by Glu.Glu intends to use the net proceeds from the offering for working capital and other general corporate purposes, which may include potential acquisitions and strategic transactions.Goldman Sachs & Co. LLC, Morgan Stanley and UBS Investment Bank are …read more […]

(Bloomberg) — Tiffany & Co. plunged after Women’s Wear Daily reported LVMH’s deal to buy the luxury jewelry company is uncertain as the U.S. economy faces widespread upheaval.LVMH board members arranged to meet on Tuesday to discuss the proposed deal, WWD reported, citing unidentified individuals. Board members are concerned about the Covid-19 pandemic that has disrupted the U.S. economy and growing unrest over police violence, WWD said. They also expressed concern about Tiffany’s ability to cover its debt covenants at the end of the transaction.Tiffany’s representatives didn’t immediately respond to a request for comment from Bloomberg. LVMH declined to comment. …read more […]

Popular video-conferencing company Zoom Video Communications (ZM) far outpaced sales expectations in the first quarter as millions of users flocked to use its technology to host business and social meetings during the coronavirus pandemic.First-quarter revenue surged 169% to $328.2 million year-on-year, beating analysts’ estimates of $202.7 million. Zoom now has about 265,400 customers with more than 10 employees, up about 354% from the same quarter last fiscal year.“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,” said Zoom founder and CEO Eric S. Yuan. “Use cases have grown rapidly as people integrated Zoom into …read more […]

Shares in Microchip Technology (MCHP) surged 7.4% after-hours on Tuesday, after the company boosted its guidance for net sales and earnings for the 2021 fiscal first quarter as Covid-19 disruptions ease.Microchip now expects consolidated net sales for the June quarter to be $1.247 billion – $1.326 billion, or between flat and down 6% sequentially. That’s versus prior guidance of $1.194 billion – $1.3 billion (down between 2% and 10%).GAAP earnings per share is now expected to be between $0.25 and $0.39 and non-GAAP earnings per share is expected to be between $1.35 and $1.53. The original guidance for GAAP earnings …read more […]

(Bloomberg) — Deutsche Lufthansa AG signaled the start of a company-wide revamp spanning job cuts to asset disposals to help repay its 9 billion-euro ($10 billion) bailout from the German government.Europe’s biggest airline will slash employee expenses and look at spinning off non-core units in an effort to reduce costs and bolster cash flow as the coronavirus crisis depresses revenue, it said in a statement Wednesday. The group had a 2.1 billion-euro net loss in the first quarter.“In view of the very slow recovery in demand, we must now take far-reaching restructuring measures to counteract this,” Chief Executive Officer Carsten …read more […]

(Bloomberg) — It’s the rise of the robots: Japan’s second-largest company is now a maker of industrial automation systems, highlighting the rising importance of a less visible sector to a nation long associated with consumer-facing brands.Keyence Corp., a maker of machine vision systems and sensors for factories, has jumped 19% this year to become Japan’s second-largest company by market value. At a valuation of over 11 trillion yen ($100 billion), it has overtaken telecommunications giants SoftBank Group Corp., and NTT Docomo Inc., which have jostled for the honor to sit behind Toyota Motor Corp. over most of the past decade.Keyence …read more […]

(Bloomberg) — The specter of negative prices is hanging over energy markets more than a month after oil’s unforgettable crash below zero.While crude has staged a rapid recovery after a deal by the biggest producers to curb a surplus, the $600 billion global gas market remains extraordinarily oversupplied. Traders and analysts say the worst may be yet to come as demand falls and storage nears capacity, creating the ideal conditions for negative prices in some parts of the world.It shows just how far the global energy industry is from recovering from a pandemic-fueled slide in demand and signals more pain …read more […]

(Bloomberg) — China’s success in luring foreigners into its domestic debt market, the world’s second largest, faces a new test in coming months as officials try to drum up interest in a record wave of bonds from local authorities.International funds now hold 8.6% of China’s central government bonds, several times more than the share just several years ago, and not terribly far from the 13% overseas stake in Japanese sovereigns. Inflows continued through the coronavirus crisis, and the U.S. trade war.Officials are hoping that interest might extend to local government notes, where foreign ownership is merely 0.01%. Issuance will climb …read more […]