J&J, Chevron among names with safe dividends for now, Barron's says » 10:0404/0404/04/20
TROW, PG, MDT, KMB, JNJ, HRL, CVX, ABT
Among the 64 S&P 500…
Among the 64 S&P 500 Dividend Aristocrats, the dividends of Abbott Laboratories (ABT), Chevron (CVX), Hormel Foods (HRL), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), Medtronic (MDT), Procter & Gamble (PG), and T. Rowe Price (TROW) look safe for now, thanks in part to relatively low debt loads, Lawrence Strauss writes in this week's editions of Barron's. Reference Link
Tyson Foods price target lowered to $70 from $92 at Credit Suisse » 06:3404/0304/03/20
Credit Suisse analyst…
Credit Suisse analyst Robert Moskow lowered the firm's price target on Tyson Foods to $70 from $92 and keeps an Outperform rating on the shares. Moskow tells investors in a research note that the spike in demand for chicken from the grocery channel over the past two weeks is starting to fade now that consumers and grocers have filled their freezers with inventory and is no longer sufficient to offset the 50% decline in demand in the restaurant sector.
Altria Group upgraded to Buy from Hold at Panmure Gordon » 05:4504/0304/03/20
Panmure Gordon analyst…
Panmure Gordon analyst Rae Maile upgraded Altria Group to Buy from Hold with a $62 price target.
Herbalife put volume heavy and directionally bearish » 14:1504/0204/02/20
Bearish flow noted in…
Bearish flow noted in Herbalife with 1,195 puts trading, or 1.3x expected. Most active are May-20 30 puts and Aug-20 30 puts, with total volume in those strikes near 1,100 contracts. The Put/Call Ratio is 9.34, while ATM IV is up nearly 79 points on the day. Earnings are expected on April 30th.
WD-40 shares sink after being named short idea at Spruce Point » 10:0804/0204/02/20
WDFC, DD, NWL
Shares of WD-40 dropped…
Shares of WD-40 dropped in morning trading after Spruce Point issued a 'Strong Sell' opinion on the stock, saying it faces 55%-60% downside risk to approximately $75-$85 per share. 'HORRIBLE' RISK/REWARD: Spruce Point said in a research note that WD-40 is facing both long and short-term secular pressures. With the company recently increasing and drawing down almost 100% of its credit facility, a size 1,500% larger than the previous recession in 2008-2009, it believes a hole in its balance sheet has been exposed. The firm believes shares are a "horrible" risk/reward and that it will have to drastically reduce its optimistic 3%-7% sales target and re-set investor expectations meaningfully lower. Spruce Point believes the product is also coming under increasing regulatory scrutiny, as the oil-based lubricant is being sold at above market prices, and thinks WD-40 is not well suited to an e-commerce environment. NO VISIBILITY: Spruce Point also contended that WD-40, which missed FY09 sales and EPS estimates by 13% and almost 10% at the mid-points, has no visibility in an economic recession, and that it has few, if any growth avenues left. TAKEOVER TARGET? The firm commented on WD-40 as a potential takeover target, but states that larger companies like DuPont (DD) and Newell Brands (NWL) have competing products in the space and neither has made an offer for WD-40. PRICE ACTION: In morning trading, shares of WD-40 are down 3.5% to $182.03.
Altria Group to defend minority investment in JUUL against FTC action » 05:2104/0204/02/20
Altria Group announced…
Altria Group announced that the U.S. FTC has filed an administrative complaint challenging Altria's minority investment in JUUL Labs. In December 2018, Altria made a minority investment in JUUL. In exchange for the investment, Altria received a 35% economic interest in JUUL through non-voting shares, with their conversion to voting shares and the seating of representatives on JUUL's board of directors contingent on antitrust clearance. "We believe that our investment in JUUL does not harm competition and that the FTC misunderstood the facts," said Murray Garnick, Altria's Executive Vice President and General Counsel. "We are disappointed with the FTC's decision, believe we have a strong defense and will vigorously defend our investment."
FTC sues to unwind Altria's $12.8B investment in Juul » 18:3004/0104/01/20
The Federal Trade…
The Federal Trade Commission filed an administrative complaint alleging that Altria Group, Inc. and JUUL Labs, Inc. entered a series of agreements, including Altria's acquisition of a 35% stake in JUUL, that eliminated competition in violation of federal antitrust laws. The FTC alleged that as competitors, Altria and JUUL monitored each other's e-cigarette prices closely and raced to innovate. Altria also leveraged its ownership of leading brands across tobacco categories to secure favorable shelf space at retailers throughout the United States, the complaint alleges. Although early competition resulted in Altria's MarkTen e-cigarette becoming the second most popular brand by market share, by late 2018, JUUL vaulted past the industry leaders Altria and Reynolds to become the leading e-cigarette company in the country. The Commission alleges that Altria dealt with this competitive threat by agreeing not to compete in return for a substantial ownership interest in JUUL. Weeks after Altria declared its intention to wind down its e-cigarette business, Altria and JUUL announced an agreement that made Altria JUUL's largest shareholder, allowed Altria to appoint an observer to JUUL's Board of Directors, and would have permitted Altria to appoint three members of JUUL's Board after converting its shares to voting securities. JUUL received over $12B, an agreement that Altria would not compete with JUUL for six years, and a range of support services. Reference Link
FTC files suit to unwind Altria's $12.8B Juul investment, Bloomberg says 18:2304/0104/01/20
Stephens food analysts to hold an analyst/industry conference call » 17:4304/0104/01/20
TSN, SAFM, PPC, CALM
Analysts, along with…
Analysts, along with Urner Barry, an American business publisher that provides market information on the food industry, provides an update and outlook on the industry on an Analyst/Industry conference call to be held on April 9 at 2 pm.
Tyson Foods put volume heavy and directionally bearish » 12:3504/0104/01/20
Bearish flow noted in…
Bearish flow noted in Tyson Foods with 2,842 puts trading, or 1.2x expected. Most active are 4/3 weekly 56 puts and May-20 60 calls, with total volume in those strikes near 2,600 contracts. The Put/Call Ratio is 2.87, while ATM IV is up over 6 points on the day. Earnings are expected on May 4th.