PepsiCo put volume heavy and directionally bearish » 15:1504/0804/08/20
Bearish flow noted in…
Bearish flow noted in PepsiCo with 5,731 puts trading, or 1.2x expected. Most active are Apr-20 135 calls and Jun-20 125 puts, with total volume in those strikes near 2,600 contracts. The Put/Call Ratio is 1.74, while ATM IV is up over 3 points on the day. Earnings are expected on April 28th.
Imperial Brands price target lowered to 1,656 GBp from 1,685 GBp at Morgan Stanley » 15:2904/0704/07/20
Morgan Stanley analyst…
Morgan Stanley analyst Sanath Sudarsan lowered the firm's price target on Imperial Brands to 1,656 GBp from 1,685 GBp and keeps an Underweight rating on the shares. In a European Staples sector note, the analyst and his team modeled the impacts of the current volatile market.
Kerry Group price target lowered to EUR 110 from EUR 120 at Morgan Stanley » 15:2604/0704/07/20
Morgan Stanley analyst…
Morgan Stanley analyst Graham Hunt lowered the firm's price target on Kerry Group to EUR 110 from EUR 120 and keeps an Equal Weight rating on the shares. In a European Staples sector note, the analyst and his team modeled the impacts of the current volatile market.
Nestle price target lowered to CHF 110 from CHF 120 at Morgan Stanley » 15:1704/0704/07/20
Morgan Stanley analyst…
Morgan Stanley analyst Richard Taylor lowered the firm's price target on Nestle to CHF 110 from CHF 120 and keeps an Overweight rating on the shares. In a European Staples sector note, the analyst and his team modeled the impacts of the current volatile market.
TreeHouse changes 2020 Annual Meeting of Stockholders to virtual webcast » 16:1804/0604/06/20
TreeHouse Foods announced…
TreeHouse Foods announced that due to emerging public health impact of the novel coronavirus pandemic, the location of its 2020 annual meeting of stockholders has been changed. The Annual Meeting will be held in virtual meeting format only, via live webcast. Stockholders will not be able to attend the Annual Meeting physically. As previously announced, the Annual Meeting will be held on Thursday, April 30, 2020 at 9:00 a.m. Central Time. Stockholders of record at the close of business on March 2, 2020, the record date, will be able to access the Annual Meeting webcast at www.virtualshareholdermeeting.com/THS2020. To be admitted to the webcast on the Annual Meeting Website, stockholders must enter the 16-digit control number found on their proxy card, voting instruction form or notice previously received by stockholders.
PHE urges smokers to quit amid COVID-19 pandemic, Sky reports » 15:1704/0604/06/20
BTI, MO, PM, IMBBY
All tobacco smokers have…
All tobacco smokers have been urged to quit smoking while cigarette companies have been told to cease producing and selling tobacco during the COVID-19 outbreak, Sky News reports. Professor John Newton, Public Health England's director of health, said "there has never been a more important time to stop smoking, not only for your own health but to protect those around you," the report says. PHE officials also pointed to a survey from Wuhan, China, which found that smokers who became infected with the coronavirus were 14 times more likely to develop a severe disease, the report notes. Publicly traded companies in the space include Altria Group (MO), British American Tobacco (BTI), Imperial Brands (IMBBY) and Philip Morris (PM). Reference Link
Fly Intel: Top five weekend stock stories » 20:0904/0504/05/20
GILD, BA, FB, TWTR, GOOG, GOOGL, UAL, CMCSA, CMCSK, T, VZ, ABT, CVX, HRL, JNJ, KMB, MDT, PG, TROW
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Gilead Sciences (GILD) said it is donating 1.5M doses of its experimental anti-coronavirus drug remdesivir, which could treat 140,000 patients. In an open letter, Chairman and CEO Daniel O'Day said that the drug will be offered for compassionate use, expanded access and clinical trials, and will treat patients with severe symptoms. "Our existing supply, including finished product ready for distribution as well as investigational medicine in the final stages of production, amounts to 1.5 million individual doses. Depending on the optimal duration of treatment, which is something we are studying in clinical trials, this supply could equate to well over 140,000 treatment courses for patients. [...] Gilead is providing the entirety of this existing supply at no cost, to treat patients with the most severe symptoms of COVID-19. The 1.5 million individual doses are available for compassionate use, expanded access and clinical trials and will be donated for broader distribution following any potential future regulatory authorizations. These doses are for treating patients with severe symptoms, through daily intravenous infusions in a hospital setting. Having a potential treatment in our hands comes with significant responsibility." 2. Boeing (BA) announced that it is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. "These actions are being taken in light of the company's continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities," the plane maker said in a statement Sunday night. 3. Across the media landscape, advertising is disappearing, one more casualty of the global economic shutdown, and new technology won't be a savior as this is an equal-opportunity problem across print, TV, digital, radio, and outdoor advertising, Eric Savitz wrote in this week's edition of Barron's. Even the most prominent ad buyers lack reasons, and often the means, to buy ads, the author notes, while many of the small and medium-size businesses that buy online ads are struggling to stay solvent. Both Facebook (FB) and Twitter (TWTR) have already warned that they will take a hit from the downturn, and Alphabet's Google (GOOGL) no doubt is seeing the same effects, but so far hasn't discussed the matter, the publication adds. 4. United Airlines (UAL) is cutting nearly 90% of its New York-area flying, as public health officials predicted that the city will reach the peak of its novel coronavirus outbreak in the coming days, The Wall Street Journal's Alison Sider reported. The airline said the reductions set to remain in place for at least three weeks will mean substantially fewer employees will need to show up each day, though workers will continue to receive pay and benefits, the author noted. 5. Comcast (CMCSA), AT&T (T), Verizon (VZ), Abbott Laboratories (ABT), Chevron (CVX), Hormel Foods (HRL), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), Medtronic (MDT), Procter & Gamble (PG), and T. Rowe Price (TROW) saw positive mentions in this week's edition of Barron's.
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
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.