Friday, February 22, 2019

Top 10 China Stocks To Watch For 2019

tags:FMCN,SINA,BIDU,ATAI,CDTI,TISA,SOL,NTES,

China’s currency has had a bumpier ride in the past several weeks than it’s seen since it stabilized against the dollar in 2017, and further turbulence may be in store as companies prepare to make a welter of dividend payments abroad.

Offshore-listed Chinese firms will hand out $19.6 billion of dividends in overseas currencies in the three months through August, according to data compiled by Bloomberg. While some of the payments will be made from existing foreign-exchange holdings, some conversions from yuan will be needed, contributing to volatility, market players say.

Dollars Wanted

Chinese companies will buy more foreign-exchange for dividend payments

Bloomberg

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After a long stretch of gains from 2017 to early 2018, the yuan lately has been confronting a resurgent dollar, thanks to rising U.S. Treasury yields. China’s currency dropped the most since 2016 last month, when its foreign-exchange reserves saw the first back-to-back drop in more than a year. On the flip side, depreciation has been limited by overseas investors’ increasing interest in Chinese securities, with net bond inflows the past 15 straight months.

Top 10 China Stocks To Watch For 2019: Focus Media Holding Limited(FMCN)

Advisors' Opinion:
  • [By Stephan Byrd]

    An issue of Focus Media Holding Limited (NASDAQ:FMCN) debt fell 1.1% against its face value during trading on Tuesday. The debt issue has a 7.5% coupon and is set to mature on April 1, 2025. The debt is now trading at $97.63 and was trading at $98.50 last week. Price changes in a company’s debt in credit markets sometimes anticipate parallel changes in its stock price.

  • [By Stephan Byrd]

    An issue of Focus Media Holding Limited (NASDAQ:FMCN) bonds fell 0.9% against their face value during trading on Monday. The high-yield debt issue has a 7.25% coupon and will mature on April 1, 2023. The bonds in the issue are now trading at $99.13 and were trading at $98.13 last week. Price moves in a company’s bonds in credit markets sometimes anticipate parallel moves in its share price.

Top 10 China Stocks To Watch For 2019: Sina Corporation(SINA)

Advisors' Opinion:
  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on SINA (SINA)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Leo Sun]

    But as the U.S. market remains stuck in neutral, Chinese tech stocks have thrived, sparked by impressive growth figures and their detachment from U.S.-centered issues. Let's examine three stocks in that industry which have already rallied more than 30% this month -- Baozun (NASDAQ:BZUN), Weibo (NASDAQ:WB), and SINA (NASDAQ:SINA).

  • [By Ethan Ryder]

    Eagle Global Advisors LLC decreased its position in Sina Corp (NASDAQ:SINA) by 1.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 84,875 shares of the technology company’s stock after selling 1,595 shares during the period. Eagle Global Advisors LLC owned about 0.12% of Sina worth $8,850,000 at the end of the most recent quarter.

  • [By Steve Symington]

    You wouldn't know it by the market's knee-jerk reaction, but SINA Corp. (NASDAQ:SINA) just announced another stronger-than-expected quarter early Wednesday. Shares of the Chinese internet media company fell 10% when all was said and done today -- though it's not the first time we've seen the stock fall on positive news.

  • [By Lisa Levin] Gainers Cocrystal Pharma, Inc. (NASDAQ: COCP) rose 15.3 percent to $2.41 in pre-market trading after declining 25.09 percent on Thursday. Expedia Group, Inc. (NASDAQ: EXPE) shares rose 10.7 percent to $117.75 in pre-market trading after the company reported stronger-than-expected earnings for its first quarter on Thursday. DMC Global Inc. (NASDAQ: BOOM) rose 10.6 percent to $35.00 in pre-market trading after reporting Q1 results. Genprex, Inc. (NASDAQ: GNPX) rose 10.2 percent to $12.12 in pre-market trading after climbing 86.76 percent on Thursday. Sprint Corporation (NYSE: S) shares rose 7 percent to $6.42 in pre-market trading on reports that the company has made progress on merger talks with T-Mobile. Amazon.com, Inc. (NASDAQ: AMZN) rose 6.9 percent to $1,621.95 in pre-market trading after the company posted upbeat results for its first quarter. The company sees second quarter operating income of $1.1 billion - $1.9 billion and sales of $51 billion - $54 billion. Riot Blockchain, Inc. (NASDAQ: RIOT) shares rose 5.5 percent to $7.88 in pre-market trading after gaining 1.49 percent on Thursday. Intel Corporation (NASDAQ: INTC) rose 5.3 percent to $55.86 in pre-market trading as the company reported better-than-expected results for its first quarter and also raised its FY18 sales outlook. 8x8, Inc. (NASDAQ: EGHT) rose 5.3 percent to $21.00 in pre-market trading. Southwestern Energy Company (NYSE: SWN) shares rose 5.1 percent to $4.75 in pre-market trading as the company reported better-than-expected earnings for its first quarter. Diamond Offshore Drilling, Inc. (NYSE: DO) rose 5 percent to $20.24 in pre-market trading. Baidu, Inc. (NASDAQ: BIDU) rose 4.5 percent to $249.50 in pre-market trading following upbeat Q1 profit. Charter Communications, Inc. (NASDAQ: CHTR) rose 4.3 percent to $311 in pre-market trading. Charter is expected to release quarterly earnings today. SINA Corporation (NASDAQ: SINA) shares rose 3.9 pe
  • [By Shane Hupp]

    SINA Corp (NASDAQ:SINA) shares hit a new 52-week low on Wednesday . The stock traded as low as $83.39 and last traded at $82.78, with a volume of 41597 shares trading hands. The stock had previously closed at $85.15.

Top 10 China Stocks To Watch For 2019: Baidu Inc.(BIDU)

Advisors' Opinion:
  • [By Motley Fool Staff]

    Dylan Lewis: This property just got spun out of Baidu (NASDAQ:BIDU) fairly recently. Shares have not been trading all that long. And in that time, we've seen the usual fluctuations that you might expect from a new issuance hitting the public markets. Some of that is due to some recent developments that are helping the company out.

  • [By ]

    Believe it or not, Chinese firms like internet giant Baidu (Nasdaq: BIDU) may make significant investments to fight the currency threat. The reason being is that the company boasts more cash than debt and will continue to grow thanks to China's expanding middle-class despite the pending tariffs.

  • [By ]

    LexinFintech Holdings Ltd.  (LX) : "The only ones I'm recommending from China are Baidu.com (BIDU) , Alibaba (BABA) and Baozun (BZUN) ."

    Illinois Tools Works (ITW) shares fell after the company's earnings report, but Cramer and the AAP team see it as an opportunity to buy more shares. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

  • [By ]

    Earlier this year, Bank of America estimated that between them, Google, Facebook, Amazon, Microsoft (MSFT) , Alibaba (BABA) , Baidu  (BIDU) and Tencent would grow their capex by 30% in 2018 to $74.1 billion. Google, it should be noted, just spent much more on capex in Q1 than the $3.4 billion BofA expected it to spend.

Top 10 China Stocks To Watch For 2019: ATA Inc.(ATAI)

Advisors' Opinion:
  • [By Paul Ausick]

    ATA Inc. (NASDAQ: ATAI) traded down about 14% Monday to set a new 52-week low of $0.82, based on revalued shares that closed at $0.72 on Friday but traded up about 250% on Monday at $2.53. Volume was more than 200 times the daily average of around 42,000. You’re on your own here to figure this one out.

Top 10 China Stocks To Watch For 2019: Clean Diesel Technologies Inc.(CDTI)

Advisors' Opinion:
  • [By Logan Wallace]

    Shares of CDTi Advanced Materials Inc (NASDAQ:CDTI) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $0.33 and last traded at $0.36, with a volume of 500 shares trading hands. The stock had previously closed at $0.36.

  • [By Stephan Byrd]

    Here are some of the media stories that may have impacted Accern Sentiment’s analysis:

    Get Molecular Templates alerts: Trading Center: Watching the Levels for Molecular Templates, Inc. (:MTEM): Move of 0.02 Since the Open (stocknewscaller.com) Molecular Templates (MTEM) Announces Clinical Data at 2018 ASCO Meeting (streetinsider.com) Gallbladder Cancer Treatment Sales Market Size by Players, Regions, Type, Application and Forecast to 2025 (exclusivereportage.com) ATR in spotlight EnSync, Inc. (NYSE:ESNC), CDTi Advanced Materials, Inc. (NASDAQ:CDTI), Molecular Templates, Inc … (stocksnewspoint.com)

    MTEM has been the subject of several research analyst reports. ValuEngine lowered shares of Molecular Templates from a “hold” rating to a “sell” rating in a research report on Thursday, March 1st. Zacks Investment Research raised shares of Molecular Templates from a “sell” rating to a “hold” rating in a research report on Thursday, June 7th. Four analysts have rated the stock with a hold rating and one has given a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $5.20.

Top 10 China Stocks To Watch For 2019: Top Image Systems Ltd.(TISA)

Advisors' Opinion:
  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Top Image Systems (TISA)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Money Morning Staff Reports]

    Before we get to our latest pick, here are last week's top-performing penny stocks:

    Penny Stock Sector Current Share Price Last Week's Gain Melinta Therapeutics Inc. (NASDAQ: MLNT) Healthcare $1.74 104.01% Pernix Therapeutics Holdings Inc. (NASDAQ: PTX) Healthcare $0.83 84.40% Top Image Systems Ltd. (NASDAQ: TISA) Healthcare $0.82 59.85% Jason Industries Inc. (NASDAQ: JASN) Healthcare $2.21 58.99% Maxwell Technologies Inc. (NASDAQ: MXWL) Financial $4.66 51.79% Marathon Patent Group Inc. (NASDAQ: MARA) Healthcare $0.52 51.47% Forward Pharma A/S (NASDAQ: FWP) Basic Materials $1.53 43.57% Dixie Group Inc. (NASDAQ: DXYN) Healthcare $1.40 42.86% Trevena Inc. (NASDAQ: TRVN) Services $1.41 39.60% Alliance MMA Inc. (NASDAQ: AMMA) Healthcare $4.95 36.18%

    Don't Miss Out: The Treasury is sitting on an $11.1 billion cash pile, and a loophole entitles Americans to a sizable portion. Some are collecting $1,795, $3,000, or $5,000 every month thanks to this powerful investment…

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Top Image Systems (TISA)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 China Stocks To Watch For 2019: Renesola Ltd.(SOL)

Advisors' Opinion:
  • [By Joseph Griffin]

    These are some of the media headlines that may have impacted Accern’s scoring:

    Get ReneSola alerts: ReneSola Sells North Carolina Solar Project To Greenbacker (solarindustrymag.com) ReneSola (SOL) Rating Increased to Neutral at Roth Capital (americanbankingnews.com) ReneSola (SOL) Q1 Earnings in Line, Revenues Top Estimates (zacks.com) ReneSola’s (SOL) CEO Xianshou Li on Q1 2018 Results – Earnings Call Transcript (seekingalpha.com) ReneSola (SOL) Releases Earnings Results (americanbankingnews.com)

    Shares of ReneSola traded up $0.08, hitting $2.76, during trading on Friday, Marketbeat.com reports. The stock had a trading volume of 124,969 shares, compared to its average volume of 108,565. The firm has a market capitalization of $102.11 million, a PE ratio of 21.23 and a beta of 2.05. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.36. ReneSola has a 12 month low of $2.12 and a 12 month high of $3.79.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on ReneSola (SOL)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Max Byerly]

    Sola Token (CURRENCY:SOL) traded 17.9% lower against the dollar during the 1-day period ending at 16:00 PM E.T. on October 11th. One Sola Token token can now be bought for about $0.0054 or 0.00000087 BTC on cryptocurrency exchanges including Tidex and OpenLedger DEX. Sola Token has a total market cap of $153,306.00 and $1,856.00 worth of Sola Token was traded on exchanges in the last 24 hours. In the last seven days, Sola Token has traded down 12.2% against the dollar.

  • [By Max Byerly]

    Sola Token (CURRENCY:SOL) traded up 26.7% against the US dollar during the 24 hour period ending at 22:00 PM E.T. on September 28th. One Sola Token token can currently be bought for $0.0085 or 0.00000131 BTC on popular exchanges including Tidex and OpenLedger DEX. Sola Token has a market capitalization of $0.00 and approximately $3,239.00 worth of Sola Token was traded on exchanges in the last 24 hours. During the last week, Sola Token has traded flat against the US dollar.

Top 10 China Stocks To Watch For 2019: Netease.com Inc.(NTES)

Advisors' Opinion:
  • [By Lisa Levin]

    NetEase, Inc. (NASDAQ: NTES) is expected to post quarterly earnings at $2.19 per share on revenue of $2.18 billion.

    China Distance Education Holdings Limited (NYSE: DL) is estimated to post earnings for its second quarter.

  • [By Joseph Griffin]

    Here are some of the media headlines that may have effected Accern Sentiment’s analysis:

    Get NetEase alerts: Marvel Introduces Their First Official Chinese Superheroes (huffingtonpost.com) NetEase, Inc. (NTES) year to date performance remained at -22.66% (nasdaqfortune.com) Marvel get its first official Chinese superheroes (bbc.co.uk) Why to Follow this Stock? NetEase, Inc. (NTES) (nysestocks.review) Marvel’s first Chinese superheroes are coming—and here are their superpowers (quartzy.qz.com)

    A number of research firms recently weighed in on NTES. BidaskClub cut NetEase from a “hold” rating to a “sell” rating in a report on Tuesday, March 27th. Jefferies Group reduced their price target on NetEase from $335.00 to $310.00 and set a “hold” rating for the company in a report on Tuesday, April 10th. CLSA raised NetEase from a “sell” rating to an “underperform” rating in a report on Thursday, February 8th. Zacks Investment Research raised NetEase from a “sell” rating to a “hold” rating in a report on Thursday, March 8th. Finally, JPMorgan Chase began coverage on NetEase in a report on Thursday, April 12th. They issued an “underweight” rating and a $240.00 price target for the company. Five research analysts have rated the stock with a sell rating, four have given a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company’s stock. NetEase currently has a consensus rating of “Hold” and a consensus price target of $337.47.

  • [By Dan Caplinger]

    The stock market gave up ground on Thursday, with the Dow Jones Industrial Average falling triple digits and other major market benchmarks following suit with declines of close to 0.5%. Investors seemed inclined to take their foot off the gas after the strong start to the year, as fears about possible deterioration in economic strength and the geopolitical climate weighed on sentiment. Bad news from some high-profile companies also hurt the overall market. Domino's Pizza (NYSE:DPZ), Carbon Black (NASDAQ:CBLK), and NetEase (NASDAQ:NTES) were among the worst performers. Here's why they did so poorly.

Thursday, February 21, 2019

Edwards Lifesciences: It's Expensive, But It's Recession-Proof

Introduction

Edwards Lifesciences Corp. (NYSE:EW) provides products used to treat heart disease and critical care monitoring. The company's products are available in the United States and internationally.

Edwards Lifesciences has a solid history of earnings growth with a boost to earnings expected for 2019 due to the release a new medical software product. The company is efficiently run, and management actively seeks out opportunities to further increase its earnings.

The stock is expensive with high PEG and PE multiples, but it's essentially recession-proof by the nature of its products, which are considered to be essential. In my opinion, Edwards Lifesciences would make a great long-term investment.

Financials

Edwards Lifesciences has reported full year financial results for 2018 (data from Seeking Alpha and Yahoo).

The reported revenue was up 8.1 percent over the 2017 fiscal year, and earnings were up 24 percent. Over the last five years, Edwards Lifesciences' revenue has grown 9.9 percent per year, and its gross income increased by 10.6 percent per year.

The return on equity is very good at 24 percent, and the profit margin (profit to revenue ratio) is strong at 20 percent. These have been fairly consistent over the last decade.

Edwards Lifesciences' current ratio is 2.6, which means the company has a surplus working capital (which means that the company can easily pay its bills without needing any long-term financing). Over the last ten years, its current ratio has always been above 2.

The total debt ratio (total liabilities to total assets) is 40 percent, which means that Edwards Lifesciences' total debt is only 40 percent of the value of everything the company owns (note that the asset value is the book value and not the liquidated value of its assets).

The company's book value is currently around $15, and with a stock price of $177, Edwards Lifesciences is trading at 11.7x book value.

The analysts' consensus forecast is for revenue to increase by 10.0 percent in 2020, and earnings are forecast to increase 12.3 percent in 2020. The 2020 PE ratio is 30x.

The financials reveal that Edwards Lifesciences is an efficiently run company with plenty of working capital. The company operates with a decent profit margin and generates a good return on equity. The company's debt level is moderately low, and if needed, Edwards Lifesciences could easily take on more debt.

Revenue and Earnings

As an investor, I personally like to examine the company's historical revenue and earnings trends. To make this task easier and to highlight trends, I like to visually display the data on a graph.

Edwards Lifesciences revenue and earnings history chart Edwards Lifesciences data by ADVFN

The above chart visually shows Edwards Lifesciences' revenue and earnings historical trend along with the next two years of consensus forecasts.

Examining the chart shows that Edwards Lifesciences' revenue has steadily increased over the last 15 years. The forecast revenue growth for 2019 and 2020 is in line with its historical growth trend. The company's earnings have also increased along with its revenue. The company did report very high earnings for the 2014 fiscal year, but this included a once off abnormal credit. On a gross income basis, the 2014 profit is in line with its historical trend. The forecast earnings for 2019 does show a jump up, but it's still broadly in line with its growth trend. The 2020 earnings forecast continues along with its growth trend.

The chart shows me that Edwards Lifesciences is a company with strong historical growth trends. While the analysts' 2019 earnings could be a little optimistic, they are a consensus average of 23 analysts.

The future always holds uncertainties, and forecasting is really nothing more than projecting forward what's currently happening. What I do know as fact is that Edwards Lifesciences has an established history of growth, and unless something dramatic happens in the future, I feel confident that this growth will continue into the future.

In Edwards Lifesciences' Earnings Call, Mike Mussallem - Chairman and CEO stated,

We believe there are a large number of patients suffering from aortic stenosis who are either undiagnosed or untreated. We're investing in programs to increase awareness, increase diagnosis, improve referral patterns and help patients receive the care they need based on medical guidelines.

Now, this is what I like to hear from management - future opportunities! Now, not to sound morbid, but the company has identified a medical condition with cases that aren't being treated. This is an opportunity for the company to market its treatments to patients who really should be using it (and thereby providing an increased revenue source). This is what I call proactive management.

Mike Mussallem made two more statements,

We continue to see excellent long term opportunities for growth as we believe international adoption of TAVR therapy is still quite low.

We are committed to maintaining our leadership in TAVR, which remains a large global opportunity that we estimate will double in size and reach approximately $7 billion by 2024.

Again, there is more potential for revenue growth here as the company sees an expanding market internationally for its TAVR (Heart Valve) therapy.

Mike Mussallem further stated that they had received FDA clearance for their Acumen Hypotension Prediction Index software, which is expected to provide a strong growth driver for 2019. Now, this explains why the analysts had bumped up the company's 2019 earnings growth forecast - there's a new software product to boost earnings for 2019.

In my opinion, management is proactive, and I feel confident that Edwards Lifesciences' revenue and earnings will continue to grow for many years to come. The company's products are essential items and services that patients with heart conditions need. This suggests that Edwards Lifesciences' earnings would be largely shielded during periods of economic weakness, making the company essentially recession-proof.

Stock Valuation

As Edwards Lifesciences is a growth stock, the PEG (PE divided by the earnings growth rate) is an appropriate valuation method.

Edwards Lifesciences' gross income increased 10.6 percent per year over the last five years. The forward annual earnings are for increases of 53 percent in 2019 and 12.3 percent in 2020.

The bump up in 2019 earnings was probably due to its new software release for 2019, which is expected to drive up earnings in that year.

Given that historical revenue growth is 12.5 percent per year, I would use the forecast 2020 earnings growth rate of 12.3 percent, which results in a forward PEG of 2.5 with a 2020 PE multiple of 30x.

It's commonly accepted that a stock is fairly valued when its forward PEG is 1.0, which means that Edwards Lifesciences is overvalued with a stock price of $177. Its fair value would be around $70.

On a PE basis, Edwards Lifesciences is trading at a high 30x for its 2020 estimated earnings, and its book value is 11.7x. While Edwards Lifesciences is overvalued, most good growth stocks are expensive as the stock market is prepared to pay a premium for earnings growth.

Stock Price Target

As an active investor, I personally like to determine some likely price targets. This gives me a feel for how high the stock price could go in the short term and how soon it could get there.

Edwards Lifesciences ten year stock chart

Edwards Lifesciences chart by StockCharts.com

The stock chart reveals that Edwards Lifesciences has increased considerably over the last decade - especially since the start of 2014. The stock ran up to peak in mid-2018 and then pulled back as the market showed weakness in the latter half of 2018. The stock then rallied this year along with the stock market to trade at a new high.

Should the market continue to rally, then I would expect Edwards Lifesciences to follow. The rally seen in 2018 could be replicated in 2019. The 2018 rally was from $115 to $150. This $35 rally added to the $150 at the start of 2019, which gives a target of $185. Granted that the stock has almost reached $185, but history shows that the stock will likely pullback and rally and repeat this several times during 2019.

Over the longer term, the stock could trade well past the 2018 high and will probably do so as long as Edwards Lifesciences' earnings growth continues.

Stock Price Risks

The stock will certainly rally and pullback and continue this pattern as this is what stocks do. But as far as bear markets go, I don't think that Edwards Lifesciences will respond much to a weak economy. To illustrate this, I have shown the stock chart covering the 2008 recession.

Edwards Lifesciences five year stock chart

Edwards Lifesciences chart by StockCharts.com

As the above chart shows, during the 2008 recession, the stock actually ended the bear market higher than where it started. In fact, the rallies and pullbacks were just part of the general uptrend. Granted, the rallies and pullbacks increased in magnitude, but they were still part of the broader uptrend.

The reason for this trading behavior is linked to the company's products - which are considered to be essential. This means patients will pay for the company's products irrespective of the state of the economy.

Conclusion

Edwards Lifesciences has a solid history of growth with more growth expected. The company will release a new medical software product in 2019, which is expected to boost earnings. Management is proactive and capitalizes on opportunities to further boost the company's future growth.

The company is efficiently run and has a history of operating with ample working capital and moderate debt levels, but the stock is expensive with high PEG and PE multiples.

The stock is essentially recession-proof by the nature of its products (which are considered to be essential rather than a luxury). Even though the stock is expensive, I think that Edwards Lifesciences would make a great long-term investment.

Disclosure: I am/we are long EW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Wednesday, February 20, 2019

Did You Claim Social Security Too Early? Here Are Your Options

Claiming Social Security as soon as you're eligible might seem smart when you turn 62 and you're facing a cash-strapped retirement. Why not start putting a monthly check from the government to use? After all, it's your money that you've paid into the program all your working life.

The problem is, if you claim benefits before reaching your full retirement age (FRA), you'll see a reduction in benefits that applies to the checks you'll receive for the rest of your life. Depending on how early you claimed, your Social Security income could be up to 30% below what the amount could have been had you waited until your FRA. And the longer you're able to wait even past your FRA, the more delayed retirement credits you'll rack up, until the bonus maxes out at 70. All this waiting translates into bigger Social Security checks when you do start claiming them.

So what happens if you discover you claimed Social Security too early and you'd rather wait to get more benefits later? The good news is, you have a few options. 

Social security card sitting on top of money

Image source: Getty Images.

1. You could withdraw your claim.

If it has been less than a year since you started claiming your Social Security benefits, it's not too late to simply hit the reset button and undo your claim by filing a Form SSA-521. If you do, it'll be as if you never claimed at all. 

Unfortunately, there's a catch. You do have to pay back the benefits you already received in order to withdraw your claim. Depending on how long you've been receiving benefits and how much you've already been paid, this could mean coming up with several thousand dollars to give back to the Social Security Administration (SSA).

Still, if you're able to find the money and you're within the year limit, withdrawing your claim is the simplest way to restore your ability to increase Social Security income by waiting to claim benefits. 

2. You could go back to work.

Another way to recoup some of the benefits you've lost by claiming early is to return to the workforce.

If you haven't reached your FRA, going back to work results in a benefit reduction -- provided you earn a certain amount of annual income. For 2019, your benefits are reduced by $1 for each $2 that you earn in excess of $17,640.  

If you can earn enough money, you can have your benefits reduced substantially -- or potentially reduced all the way down to $0. You're credited for the reduction in benefits, so your Social Security checks will be bigger later.

Earning extra money now can also allow you to put more money into retirement savings, which will boost your retirement income from investments. Any turbocharge you can give your portfolio will help offset the benefit reduction from claiming Social Security prematurely.

3. You could suspend your benefits.

If you've already reached your FRA and realize you claimed benefits too soon, you have the option to suspend your benefits. If you do this, you can start earning delayed retirement credits -- as you would have had you never claimed at all. Delayed retirement credits can be earned until age 70. Once you turn 70, waiting to claim Social Security won't increase your benefits any more. 

Unfortunately, many people who claim Social Security too early haven't reached FRA yet, so this isn't an option for everyone. But, if you're between your FRA and 70, and you want to boost your benefits later, suspending your claim is a simple way to do it. 

You can ask the SSA to suspend your benefits suspended either orally or in writing. You can also contact the Social Security Administration (SSA) by phone at 1-800-772-1213 or make the request in person at your local Social Security office, which you can find here.

Which redo is right for you?

If it's been more than 12 months since you first claimed Social Security and you want to undo your claim, your only option may be to try to work and reduce your benefits -- unless you're over full retirement age but under age 70. 

Unfortunately, if you can't find work and can't suspend your benefits or withdraw your claim, you don't really have any other options but to live with your lowered Social Security benefit. You can find ways to make your retirement funds stretch further, though, such as by moving to a state that won't tax your Social Security income. 

Since it's hard to undo an early benefits claim, make sure you understand exactly how Social Security works before you decide to claim. Then, you'll be making the most-informed choice for your financial future. 

Tuesday, February 19, 2019

3 Top Diabetes Stocks to Watch in February

Over 100 million Americans now have diabetes or pre-diabetes, according to the Centers for Disease Control and Prevention. The World Health Organization estimates that there were around 422 million people worldwide with diabetes in 2014, and that number is almost certainly much higher now. 

But with problems come opportunities. Many companies focus on developing drugs and medical devices that help patients manage diabetes. We asked three Motley Fool healthcare contributors to identify the diabetes stocks that they would recommend investors watch closely in February. Here's why they chose Insulet (NASDAQ:PODD), Lexicon Pharmaceuticals (NASDAQ:LXRX), and Tandem Diabetes Care (NASDAQ:TNDM).

Doctor holding card that has "Diabetes" written on it

Image source: Getty Images.

Get pumped about this stock

Brian Feroldi (Insulet): Millions of people with diabetes inject themselves with insulin each day to keep their blood glucose levels in check. A few decades ago, insulin pumps were introduced to the market to help automate this process and make the dosages far more precise. This results in much better blood sugar control with far fewer injections.

Unfortunately, insulin pumps are used by only a minority of patients. A big reason is that traditional insulin pumps are connected to the body by a long piece of tubing. That's a big turnoff since insulin pumps need to be worn 24 hours a day.

An innovative company called Insulet set out to address this problem by creating a disposable insulin pump that is worn directly on the body. The company named its device Omnipod and has been growing at a double-digit rate for more than a decade as patients and providers warm up to the benefits of choosing a tubing-free device.

Since the market for diabetes products is huge, the opportunity for Omnipod is still substantial. What's more, Insulet believes that the device can be used to deliver other types of drugs, too. The company already makes money from a partnership program that delivers Amgen's cancer drug Neulasta to patients. This is a great proof-of-concept program that could lead to other partnerships.

In total, investors should have plenty of reasons to believe that Insulet can continue to drive double-digit revenue growth. That makes it a great diabetes stock for growth-focused investors to get to know.

Just weeks away from a make-or-break decision 

Sean Williams (Lexicon Pharmaceuticals): There's no doubt in my mind that the diabetes stock with the most intrigue at the moment is Lexicon Pharmaceuticals, since its lead experimental drug Zynquista offers make-or-break potential for the company.

Although Lexicon does have one approved drug already on the market -- Xermelo, a treatment for carcinoid syndrome diarrhea -- it isn't designed to be a big revenue generator. Rather, that role has been given to Zynquista, a next-generation type 1 and 2 diabetes drug that works at inhibiting SGLT1 and SGLT2. Mind you, there are already around a half-dozen SGLT2 inhibitors on pharmacy shelves to treat type 2 diabetes, but none offer inhibition in both the kidneys (SGLT2) and intestines (SGLT1) to help maintain glycemic balance and excrete excess glucose.

What makes Lexicon such an intriguing case is that in mid-January, the Food and Drug Administration's (FDA's) advisory panel split right down the middle, 8 to 8, on its recommendation of Zynquista to the FDA for type 1 diabetes. Half of the panel sided with late-stage clinical data that easily met the primary endpoint in improving glycemic balance, while the other half worried that considerably higher instances of diabetic ketoacidosis (something also seen to some degree with SGLT2 inhibitors) didn't merit their recommendation. Keep in mind that type 2 diabetes accounts for 90% to 95% of all cases, so what the FDA's panel was reviewing is ultimately for a smaller pool of patients. 

So, what happens now? That's the interesting part that bears watching. With a PDUFA decision date of March 22, 2019, we'll soon know which way the FDA will rule. It isn't required to follow the advice of its panel, albeit it does more often than not. But at an 8-to-8 stalemate, any decision -- from approval to a complete response letter (i.e., rejection) -- is possible.

Not only will this decision make or break Lexicon, but it'll provide a substantial lift or weight on its development partner Sanofi, which is currently conducting type 2 diabetes trials, with Lexicon in charge of the type 1 diabetes studies. Should Lexicon's lead drug fail to win approval from the FDA, it could put Zynquista's future, and Sanofi's partnership with Lexicon, in doubt. If it does gain approval, a safety precedent will likely be set that allows Zynquista a good shot to dazzle in type 2 diabetes studies to come.

Get pumped about this stock, too

Keith Speights (Tandem Diabetes Care): Like Brian, I have my eyes on the stock of a company that makes insulin pumps. Tandem Diabetes Care enjoyed a phenomenal year in 2018. The stock skyrocketed 1,300%. That's enough to turn any investor's head. After pulling back for a few months, Tandem is again near its all-time high.

The company's success has been fueled by its steady introduction of innovative new insulin pumps over the last few years. Tandem's latest product, the t:slim X2 with Basal-IQ technology, is the best yet. It integrates with DexCom's enormously popular G6 continuous glucose monitoring (CGM) system. It's smaller than rivals' insulin pumps. And its Basal-IQ technology helps predict when insulin levels are about to get outside of thresholds.

Tandem believes that the convenience and features that its products offer will help boost the number of "pumpers" (diabetic patients using insulin pumps) in the U.S. from 550,000 to 900,000. There's an even bigger market opportunity outside the U.S.

This stock probably won't appeal to all investors. Tandem isn't profitable yet but still claims a market cap of close to $3 billion. However, the company thinks it's on track to reach breakeven on a cash flow basis in the second half of this year. With its tremendous growth prospects, Tandem definitely looks like a diabetes stock to keep your eyes on in February and beyond. 

Monday, February 18, 2019

Brokerages Anticipate Hecla Mining (HL) to Post -$0.05 Earnings Per Share

Brokerages expect Hecla Mining (NYSE:HL) to post earnings per share (EPS) of ($0.05) for the current fiscal quarter, Zacks Investment Research reports. Three analysts have issued estimates for Hecla Mining’s earnings. The lowest EPS estimate is ($0.07) and the highest is ($0.02). Hecla Mining reported earnings per share of $0.04 during the same quarter last year, which indicates a negative year over year growth rate of 225%. The firm is scheduled to announce its next earnings results before the market opens on Thursday, February 21st.

On average, analysts expect that Hecla Mining will report full-year earnings of ($0.06) per share for the current fiscal year, with EPS estimates ranging from ($0.12) to ($0.02). For the next fiscal year, analysts anticipate that the firm will post earnings of $0.00 per share, with EPS estimates ranging from ($0.07) to $0.08. Zacks Investment Research’s EPS calculations are an average based on a survey of research analysts that follow Hecla Mining.

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A number of research firms have weighed in on HL. HC Wainwright reissued a “buy” rating and set a $7.00 price objective on shares of Hecla Mining in a report on Friday. ValuEngine raised Hecla Mining from a “hold” rating to a “buy” rating in a report on Tuesday, January 29th. Royal Bank of Canada lowered Hecla Mining from a “sector perform” rating to an “underperform” rating and cut their price objective for the stock from $46.00 to $2.45 in a report on Thursday, January 17th. Canaccord Genuity lowered Hecla Mining from a “buy” rating to a “hold” rating in a report on Tuesday, January 15th. Finally, Zacks Investment Research raised Hecla Mining from a “strong sell” rating to a “hold” rating in a report on Wednesday, January 9th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company’s stock. Hecla Mining presently has an average rating of “Hold” and a consensus target price of $4.40.

HL stock traded up $0.11 during mid-day trading on Monday, reaching $2.69. 4,317,984 shares of the company traded hands, compared to its average volume of 4,575,113. The company has a quick ratio of 0.92, a current ratio of 1.50 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $1.29 billion, a PE ratio of 26.90, a PEG ratio of 637.50 and a beta of 0.50. Hecla Mining has a 52-week low of $2.17 and a 52-week high of $4.15.

Large investors have recently added to or reduced their stakes in the stock. Brookstone Capital Management bought a new stake in Hecla Mining in the 4th quarter worth approximately $27,000. Strategic Family Wealth Counselors L.L.C. bought a new stake in Hecla Mining in the 4th quarter worth approximately $34,000. Timber Hill LLC bought a new stake in Hecla Mining in the 4th quarter worth approximately $35,000. Sigma Planning Corp lifted its position in Hecla Mining by 22.7% in the 4th quarter. Sigma Planning Corp now owns 20,022 shares of the basic materials company’s stock worth $47,000 after buying an additional 3,705 shares during the last quarter. Finally, Clean Yield Group lifted its position in Hecla Mining by 59.9% in the 4th quarter. Clean Yield Group now owns 26,700 shares of the basic materials company’s stock worth $63,000 after buying an additional 10,000 shares during the last quarter. Institutional investors own 59.10% of the company’s stock.

About Hecla Mining

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal deposits worldwide. The company offers zinc, lead, and bulk flotation concentrates to custom smelters and brokers; and unrefined gold and silver bullion bars to precious metals traders.

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Sunday, February 17, 2019

Hot Heal Care Stocks For 2019

tags:AMWD,NTG,ARNA,MELI,NTEC,TROX,

The U.S. beer industry has seen better days. Millennials, now the largest generational cohort, don't share their parents' affection for beer, and instead prefer hard spirits or wine. And Big Beer has fared worse than the overall industry, as drinkers are increasingly eschewing mass-market labels like Budweiser, Coors Light, and Bud Light in favor of craft brews.

The shift has weighed on the stocks of major brewers Anheuser Busch InBev and Molson Coors Brewing: Both companies have underperformed the market.

Data by YCharts.

Constellation Brands (NYSE:STZ) has taken a different approach. Last year, the company surprised investors by taking a stake in marijuana company Canopy Growth (NYSE:CGC), and recently doubled down on this investment. Are these the early signs of a major change in direction for the company?

Constellation throws green at Canopy Growth

In October, Constellation Brands took a near-10% position in Canopy Growth, paying $191 million for its stake, which valued the company at nearly $2 billion. It was a controversial move, but CEO Rob Sands justified the investment by explaining that the company eventually expected nationwide marijuana legalization.

Hot Heal Care Stocks For 2019: American Woodmark Corporation(AMWD)

Advisors' Opinion:
  • [By Stephan Byrd]

    Quadrature Capital Ltd acquired a new stake in shares of American Woodmark Co. (NASDAQ:AMWD) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 5,332 shares of the company’s stock, valued at approximately $525,000.

  • [By Lisa Levin]

    Friday morning, the industrial shares rose 0.42 percent. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE), up 5 percent, and American Woodmark Corporation (NASDAQ: AMWD) up 3 percent.

  • [By Lisa Levin]

    Shares of American Woodmark Corporation (NASDAQ: AMWD) got a boost, shooting up 14 percent to $100.60 after the company reported upbeat Q4 results.

  • [By Lisa Levin]

    Shares of American Woodmark Corporation (NASDAQ: AMWD) got a boost, shooting up 13 percent to $100.05 after the company reported upbeat Q4 results.

Hot Heal Care Stocks For 2019: Tortoise MLP Fund, Inc.(NTG)

Advisors' Opinion:
  • [By Shane Hupp]

    Shares of Northgate plc (LON:NTG) have received an average rating of “Buy” from the six brokerages that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is GBX 523.25 ($6.67).

Hot Heal Care Stocks For 2019: Arena Pharmaceuticals, Inc.(ARNA)

Advisors' Opinion:
  • [By ]

    Arena Pharmaceuticals (Nasdaq: ARNA) has completed Phase 2 evaluation of its Ralinepag program for pulmonary arterial hypertension (PAH). The drug was granted orphan status by the U.S. Food and Drug Administration in 2014 which brings faster case review and increased patent protection. 

  • [By Stephan Byrd]

    Partner Fund Management L.P. purchased a new position in shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) in the 2nd quarter, HoldingsChannel reports. The fund purchased 1,196,891 shares of the biopharmaceutical company’s stock, valued at approximately $52,184,000.

  • [By Max Byerly]

    New York State Common Retirement Fund increased its holdings in shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) by 41.9% in the 1st quarter, Holdings Channel reports. The firm owned 51,175 shares of the biopharmaceutical company’s stock after acquiring an additional 15,115 shares during the period. New York State Common Retirement Fund’s holdings in Arena Pharmaceuticals were worth $2,021,000 as of its most recent SEC filing.

  • [By Max Byerly]

    Northern Trust Corp grew its stake in shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) by 16.9% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 543,774 shares of the biopharmaceutical company’s stock after buying an additional 78,445 shares during the period. Northern Trust Corp owned 1.10% of Arena Pharmaceuticals worth $21,479,000 at the end of the most recent reporting period.

  • [By ]

    Arena Pharmaceuticals (ARNA) : "I like specialty pharma. This is a good one, too."

    Dominion Energy (D) : "You have to buy it. It's time to think long-term."

  • [By Max Byerly]

    Macquarie Group Ltd. lifted its position in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) by 4.5% in the 2nd quarter, HoldingsChannel reports. The fund owned 490,000 shares of the biopharmaceutical company’s stock after buying an additional 20,900 shares during the period. Macquarie Group Ltd.’s holdings in Arena Pharmaceuticals were worth $21,364,000 as of its most recent SEC filing.

Hot Heal Care Stocks For 2019: MercadoLibre Inc.(MELI)

Advisors' Opinion:
  • [By Motley Fool Staff]

    Dylan Lewis: Alright, Danny, turning our attention to a company that we both currently own, why don't we talk about MercadoLibre (NASDAQ:MELI)? I know this is one of your favorite businesses, it's one that you turned me onto, I think, about a year ago, and I've been following it since. Why don't we break down for people that aren't as familiar with the business?

  • [By Dan Caplinger]

    Latin American e-commerce giant MercadoLibre (NASDAQ:MELI) has capitalized on fundamental growth prospects for years. Sometimes, however, often-overlooked factors can hold back a stock. One trend that isn't sexy but has played a major yet often misunderstood role throughout first-quarter earnings season has been the newest accounting method from the Financial Accounting Standards Board with respect to revenue recognition, and MercadoLibre found itself in the crosshairs of the new standard's potential negative impact.

  • [By Max Byerly]

    Shares of Mercadolibre Inc (NASDAQ:MELI) were up 5% during trading on Wednesday . The company traded as high as $345.98 and last traded at $344.93. Approximately 1,663,902 shares traded hands during trading, an increase of 123% from the average daily volume of 744,905 shares. The stock had previously closed at $328.45.

  • [By Motley Fool Staff]

    We're coming down the home stretch. Here comes stock No. 4, the company MercadoLibre (NASDAQ:MELI). The ticker symbol is MELI. Again, a slight effort at trying to pronounce the name as a native speaker of Spanish might. This is a company that's a $13 billion company. It's one I've mentioned a number of times on this podcast. I'm sure, in some of our five-stock samplers, I've included it. I'm not looking at the full list right now. It's one of my favorite go-to companies.

  • [By Shane Hupp]

    Westpac Banking Corp raised its stake in MercadoLibre (NASDAQ:MELI) by 11.4% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 27,793 shares of the company’s stock after purchasing an additional 2,853 shares during the quarter. Westpac Banking Corp owned about 0.06% of MercadoLibre worth $9,905,000 at the end of the most recent quarter.

Hot Heal Care Stocks For 2019: Intec Pharma Ltd.(NTEC)

Advisors' Opinion:
  • [By Max Byerly]

    Headlines about Intec Pharma (NASDAQ:NTEC) have trended somewhat positive recently, Accern Sentiment reports. Accern scores the sentiment of news coverage by analyzing more than 20 million blog and news sources. Accern ranks coverage of companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Intec Pharma earned a daily sentiment score of 0.16 on Accern’s scale. Accern also assigned news coverage about the biotechnology company an impact score of 45.4513319646459 out of 100, indicating that recent news coverage is somewhat unlikely to have an effect on the stock’s share price in the near term.

  • [By Joseph Griffin]

    Intec Pharma (NASDAQ:NTEC) has been assigned a $15.00 target price by Oppenheimer in a research note issued to investors on Wednesday. The firm presently has a “buy” rating on the biotechnology company’s stock. Oppenheimer’s price objective would indicate a potential upside of 185.71% from the company’s current price.

  • [By Max Byerly]

    Get a free copy of the Zacks research report on Intec Pharma (NTEC)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Media stories about Intec Pharma (NASDAQ:NTEC) have been trending somewhat positive on Wednesday, according to Accern Sentiment. The research group ranks the sentiment of press coverage by monitoring more than twenty million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Intec Pharma earned a coverage optimism score of 0.18 on Accern’s scale. Accern also assigned news stories about the biotechnology company an impact score of 45.6707447165993 out of 100, meaning that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the immediate future.

Hot Heal Care Stocks For 2019: Tronox Limited(TROX)

Advisors' Opinion:
  • [By Shane Hupp]

    Tronox (OTCMKTS:TROX) had its target price lowered by equities research analysts at BMO Capital Markets to $13.00 in a report released on Tuesday, The Fly reports. The firm currently has an “outperform” rating on the basic materials company’s stock. BMO Capital Markets’ target price indicates a potential upside of 0.93% from the company’s previous close.

  • [By Maxx Chatsko]

    Shares of Tronox (NYSE:TROX) jumped over 20% today after the company announced it had filed a joint motion with the U.S. Federal Trade Commission to delay the appeal schedule regarding the review of its proposed acquisition of Cristal. The move suggests the titanium dioxide manufacturer and the FTC are making progress toward a compromise over the acquisition of the Saudi-based chemicals producer, which has been under intense regulatory scrutiny for two years. 

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Tronox (TROX)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Maxx Chatsko]

    One factor contributing to the awful start to life as a publicly traded company is simply timing. Venator Materials stock listed on public exchanges just in time to catch the last few months of a multiyear bonanza for titanium dioxide stocks. Shares of Kronos Worldwide, Chemours, and Tronox Ltd (NYSE:TROX) all jumped by triple digits in the three-year period ending in 2017. That helped to soften the blow from their double-digit declines suffered so far in 2018, but the newcomer has no such history to hang its hat on.