Stock Market News and Insight for November 3, 2014

Stock Picks for Today

  • BWP reported a great quarter, should go from $17 back to $21
  • Facebook looks good
  • Hilton is ok

Taylor Swift Pulls All Music from Spotify

  • Why would any artist even be on Spotify?
  • This makes sense because Taylor Swift can actually sell albums
  • Spotify says 16 million of it’s 40 million users have listened to a Taylor Swift Song in the last 30 days
  • Too many middle-men in this industry
  • Taylor has 46 million followers on Twitter!

Google CEO talks Corporate Re-Organization

  • Google stock is flat for the year
  • Google is investing in many industries
  • Google is the best innovator in the world
  • Google is a well-led company
  • Facebook and Google have great leadership – invest in them

The Alibaba Play

  • Risks to the upside due to expectations
  • Price target is $112/share
  • We need to look for guidance

First Time Home Buyers are Not Coming Back

  • First time home buyers down 33%
  • Home prices rose faster and buyers say the mortgage process is difficult
  • First time home buyers do not have good credit or money to put down
  • Rental development business is sizzling

Stratasys

  • Stratysys can run here, but once HP starts shipping…look out
  • BMRN, ISIS – great companies.

Red Lobster Revamps their Menu

  • Menu is now 85% seafood (up from 75%)
  • Darden Restaurants owns Red Lobster – they are searching for a new CEO
  • Restaurant stocks – Starbucks looks good!
  • Why does McDonalds keep going higher?
  • Dine Equity had a good quarter (Applebees)
  • Chipotle and Dominoes look good
  • Domonoes is the most forward thinking of all restaurant chains
  • Starbucks might go to $90

Looking at the Week Ahead

  • Alibaba is HUGE – there is so much money and tons of BUY recommendations
  • Copper has been going up – could there be something going on in China?
  • Alibaba needs to show sign-ups, global and a big profit
  • How much is mobile versus PC?
  • Facebook, Google will be moved by the Alibaba report
  • Morgan Stanley likes Facebook
  • Materials performs great from November to May (Iron, Copper)

American Realty Capital Companies

  • Stock is trading down 13% due to a deal that did not go through
  • RCS ends Cole Capital Deal with ARCP – that is HUGE!
  • The FBI has opened a criminal probe into the ARCP accounting practices

The Opening Bell

  • Alibaba doesn’t look too expensive
  • The Employment number will be out today.
  • Keysight technologies rang the opening bell on the NASDAQ
  • Twitter demotes product chief
  • General Motors reporting a slight increase for October – below analyst predictions.  GM ended the month with a 94 day supply of vehicles – increase in supply is not good.
  • Ford reported a decline of 1.7% – better than expected.
  • Auto Nation and Chrysler reported great quarters.
  • Stocks open mixed

Stocks Insight Today

  • Home Depot was downgraded.  They managed the credit card fraud beautifully.
  • National Oilwell Varco is a great company.  They make Rigs, but there is a decline going on in the prospect of drilling.  Too many drilling companies – there will be a consolidation.  At these levels, oil is not worth drilling.  If you think Oil can stabilize at $80, this is a buy now, but don’t risk it.

Freedom Tower Opens

  • 13 years after the 9/11 attacks, tenants move into the freedom tower

Jim Cramer Thinks Twitter Needs New Management

  • Twitter turnover seems to happen every day
  • CFO, COO, Heads of Engineering
  • Stock is down about 2% today
  • Twitter management is really  missing how much revenue can be brought in
  • Facebook is spending too much money
  • The spending of these internet companies is really high.
  • Amazon, Facebook, Google, Twitter – don’t worry enough about the bottom line

Apple To have Conference Call Today To Discuss Bond Sale in Euros

  • Apple iWatch may not launch until this Spring
  • Apple is one of the few companies that is taking advantage of the Fed
  • Apple Pay is going to be going head to head with Starbucks
  • Apple has never issued debt in currencies other than the dollar
  • Apple is taking advantage of the current interest rates

Covance and Sapient both got buyout bids today

  • Deals are coming back – shows a sign of confidence
  • Sapient was purchased for 3.7B in cash
  • LabCorp will buy Covance for $105.12/share
  • The strategy of the Covance purchase doesn’t quite make sense.  Possibly a pay on personalized medicine and help run drug trials efficiently.
  • LabCorp stock going down today as a result of the deal.
  • Publicis to acquire Sapient and is an explosive acquisition.

Morning Notes

  • People are betting EBOLA will become a big issue and were shorting restaurants, airlines, etc.  This did not happen
  • Japan was buying everything around the world!
  • You can’t be as worried about Eastern Europe
  • Oil and Steel reserves are at all-time highs
  • Everyone thinks the dollar is going higher