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
- 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.
- 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