Tesla should be valued at less than $100 a share, investor says

Tesla heads into its earnings report out after the bell Wednesday trading at its lowest level in six months. There is no company that’s better at overpromising and under-delivering than Tesla,” said Mark Tepper, founder and president of Strategic Wealth Partners, on CNBC’s “Trading Nation” on Tuesday. Tesla has not traded below $100 since mid-2013. Following earnings, Katie Stockton, founder of Fairlead Strategies, said the company needs to hold one key level to prevent it from tumbling. “There’


Tesla heads into its earnings report out after the bell Wednesday trading at its lowest level in six months. There is no company that’s better at overpromising and under-delivering than Tesla,” said Mark Tepper, founder and president of Strategic Wealth Partners, on CNBC’s “Trading Nation” on Tuesday. Tesla has not traded below $100 since mid-2013. Following earnings, Katie Stockton, founder of Fairlead Strategies, said the company needs to hold one key level to prevent it from tumbling. “There’
Tesla should be valued at less than $100 a share, investor says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: keris lahiff, mark ralston, afp, getty images, kevin frayer, lindsey wasson, david becker, getty images news, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, share, need, 100, level, stock, stockton, tesla, hold, company, thats, valued, trading, support, investor


Tesla should be valued at less than $100 a share, investor says

Tesla heads into its earnings report out after the bell Wednesday trading at its lowest level in six months.

One strategist said it should get even worse for the electric car maker.

“This is a company that has a cult following – people that believe that [Elon Musk] is changing the world – and that’s the only reason this stock is trading at $260. There is no company that’s better at overpromising and under-delivering than Tesla,” said Mark Tepper, founder and president of Strategic Wealth Partners, on CNBC’s “Trading Nation” on Tuesday.

Tepper said its true valuation should be even lower.

“If I were to believe Tesla’s stories, with a 35% projected earnings growth rate, even at a PEG [price/earnings to growth] ratio that’s at a premium to the market, you still can’t value the stock at over $100 a share and $100 is on the very high end,” he said.

Tesla has not traded below $100 since mid-2013. It would need to drop 62% to reach that level.

A storm of headwinds are coming for the company, which could shake the stock, Tepper said. He mentioned an expiring tax credit, which could hurt demand, and increased competition, which means the company is jockeying for customers over price as well as quality.

“Quite frankly my biggest issue is management doesn’t execute on what they say. I don’t need management selling me a bill of goods. I want execution and you’re not getting that from Tesla,” said Tepper.

Tesla has not responded to a request for comment.

Following earnings, Katie Stockton, founder of Fairlead Strategies, said the company needs to hold one key level to prevent it from tumbling.

“There’s a very strong support level right around $250 for Tesla so we really want to see that level hold to preserve the long-term neutral bias of the chart,” Stockton said Tuesday on “Trading Nation.” “The latest down move that we’ve seen has been significant. It has marked underperformance. It’s very rare right now to see in the marketplace a stock that actually topped last December and this is one of those few, but we need some stabilization near support to get convinced that we have a basing phase in place for Tesla.”

“I also feel like to me that the support is likely to hold because we have seen a slight loss of downside momentum,” Stockton said.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: keris lahiff, mark ralston, afp, getty images, kevin frayer, lindsey wasson, david becker, getty images news, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, share, need, 100, level, stock, stockton, tesla, hold, company, thats, valued, trading, support, investor


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Twitter is surging and the rally shows no signs of slowing, chart analyst says

Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35Twitter is surging. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high. Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge. Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain. Alphabet has the largest w


Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35Twitter is surging. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high. Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge. Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain. Alphabet has the largest w
Twitter is surging and the rally shows no signs of slowing, chart analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: keris lahiff, david becker, getty images news, getty images, daniel acker, bloomberg, michael nagle, eddie seal, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, surging, weighting, maley, signs, chart, twitter, facebook, xlc, rally, higher, companies, snap, range, trading, slowing, shows, analyst


Twitter is surging and the rally shows no signs of slowing, chart analyst says

Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35

Twitter is surging.

The stock rose more than 10% in early trading Tuesday after beating earnings and topping sales estimates for its first quarter. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high.

Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge.

“Even though Snap and Facebook have seen a series of nice higher highs and higher lows, they’re getting very extended and very overbought,” Maley said.

Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain.

Twitter has “been stuck in a sideways range for six months now and you really have to go back to June before it was really rallying in any significant way,” Maley said Monday on CNBC’s “Trading Nation.”

Twitter had ping-ponged in a tight range between roughly $26 and $35. It had not traded above that level since mid-2018 until Tuesday when it broke out above $38.

It now needs to hold that level through to the close, said Maley.

“If it can hold above that range ($36.25 is the top of that range on a closing basis), it’s going to be quite positive,” Maley said in an email on Tuesday. “It hasn’t attracted any ‘momentum money’ for 10 months. If it continues to break above that range over the coming days, it’s going to attract some of that momentum money (much like FB did after they reported their 4th quarter earnings).”

Twitter led the XLC communications services sector ETF higher Tuesday. The ETF has added 20% in 2019, outpacing the 16% gain of the S&P 500.

However, Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, says to steer clear of the group.

“We would avoid this altogether,” Morganlander said on “Trading Nation” on Monday. “In fact, because of the concentration risk about 40% of this sector is based off of two companies and the other top 10, it’s basically 70%.”

Alphabet has the largest weighting in the XLC, contributing 24%, and Facebook chases with a 19% weighting. The next three components – Disney, Comcast and Netflix, contribute more than 15%.

“Our viewpoint is that the social media companies as well as some of the search companies are stretched at this inflection point,” said Morganlander.

Disclosure: Comast owns CNBC parent NBCUniversal, which is an investor in Snap .


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: keris lahiff, david becker, getty images news, getty images, daniel acker, bloomberg, michael nagle, eddie seal, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, surging, weighting, maley, signs, chart, twitter, facebook, xlc, rally, higher, companies, snap, range, trading, slowing, shows, analyst


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Twitter is surging and the rally shows no signs of slowing, chart analyst says

Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35Twitter is surging. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high. Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge. Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain. Alphabet has the largest w


Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35Twitter is surging. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high. Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge. Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain. Alphabet has the largest w
Twitter is surging and the rally shows no signs of slowing, chart analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: keris lahiff, david becker, getty images news, getty images, daniel acker, bloomberg, michael nagle, eddie seal, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, surging, weighting, maley, signs, chart, twitter, facebook, xlc, rally, higher, companies, snap, range, trading, slowing, shows, analyst


Twitter is surging and the rally shows no signs of slowing, chart analyst says

Why this trader says Twitter has more upside potential than Facebook, Snap 22 Hours Ago | 02:35

Twitter is surging.

The stock rose more than 10% in early trading Tuesday after beating earnings and topping sales estimates for its first quarter. That move also pushed Twitter out of bear market territory, now less than 20% off its 52-week high.

Matt Maley, equity strategist at Miller Tabak, said that Twitter still looks like the social stock with the most upside even with Tuesday’s surge.

“Even though Snap and Facebook have seen a series of nice higher highs and higher lows, they’re getting very extended and very overbought,” Maley said.

Facebook has added nearly 40% this year, while Snap has rocketed 117% higher, compared with Twitter’s 35% gain.

Twitter has “been stuck in a sideways range for six months now and you really have to go back to June before it was really rallying in any significant way,” Maley said Monday on CNBC’s “Trading Nation.”

Twitter had ping-ponged in a tight range between roughly $26 and $35. It had not traded above that level since mid-2018 until Tuesday when it broke out above $38.

It now needs to hold that level through to the close, said Maley.

“If it can hold above that range ($36.25 is the top of that range on a closing basis), it’s going to be quite positive,” Maley said in an email on Tuesday. “It hasn’t attracted any ‘momentum money’ for 10 months. If it continues to break above that range over the coming days, it’s going to attract some of that momentum money (much like FB did after they reported their 4th quarter earnings).”

Twitter led the XLC communications services sector ETF higher Tuesday. The ETF has added 20% in 2019, outpacing the 16% gain of the S&P 500.

However, Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, says to steer clear of the group.

“We would avoid this altogether,” Morganlander said on “Trading Nation” on Monday. “In fact, because of the concentration risk about 40% of this sector is based off of two companies and the other top 10, it’s basically 70%.”

Alphabet has the largest weighting in the XLC, contributing 24%, and Facebook chases with a 19% weighting. The next three components – Disney, Comcast and Netflix, contribute more than 15%.

“Our viewpoint is that the social media companies as well as some of the search companies are stretched at this inflection point,” said Morganlander.

Disclosure: Comast owns CNBC parent NBCUniversal, which is an investor in Snap .


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: keris lahiff, david becker, getty images news, getty images, daniel acker, bloomberg, michael nagle, eddie seal, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, surging, weighting, maley, signs, chart, twitter, facebook, xlc, rally, higher, companies, snap, range, trading, slowing, shows, analyst


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Oil surges as US ends Iran sanction waivers—four experts forecast what’s next

Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent. So I think that’s one potential silver lining of higher oil. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, wa


Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent. So I think that’s one potential silver lining of higher oil. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, wa
Oil surges as US ends Iran sanction waivers—four experts forecast what’s next Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: lizzy gurdus, eddie seal, bloomberg, getty images, johannes eisele, afp, anna moneymaker, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, price, experts, market, forecast, thats, sanction, think, prices, whats, higher, energy, surges, oil, going, ends, iran, crude, waiversfour


Oil surges as US ends Iran sanction waivers—four experts forecast what's next

Things are heating up in the energy market.

The Trump administration announced Monday that it would end exemptions to its sanctions on Iran, a move meant to significantly curb Iran’s oil output. Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent.

Here’s what experts say higher oil prices could mean for the broader market:

Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch, said a significant uptick in the price of crude would likely be a double-edged sword:

“[Higher] oil is actually good for corporate profits because the S&P [500] is levered to oil, so I think this could be a source of positive earnings surprise[s] for the year where analysts are penciling in super low expectations. So I think that’s one potential silver lining of higher oil. And then … consumers are making more money, so we might not feel that energy pinch until we get to higher levels. But $5 a gallon in California is not a good environment to be in, so we’re getting to a point where this could turn ugly.”

Aperture Investors CEO Peter Kraus didn’t anticipate major changes to the status quo:

“I think the oil prices are going to continue to reflect this sort of restriction in supply. And we’re not going to see a lot of new drilling based on these prices. We’re not going to see more holes being punched into the world to create more oil at these current prices. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. […] People predicted oil was going to go to $100, $120 a barrel, which I don’t see happening.”

Alex Dryden, global market strategist at J.P. Morgan, said macroeconomic global risks could catch up to the oil market itself:

“I think what you’re looking at is incoming restrictions on supply. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. Now, again, it’s about how sustainable that oil price is. You look at … the futures market. Go three years out — you typically go out that far when you want to take out political risk and look at how much geopolitical risk premium [is] priced into oil. Right now, it’s some of the highest levels since the Arab Spring. That’s not exactly a great backdrop for energy companies to really be able to continue to put that oil number in in a reliable way going forward. So, certainly some question marks over it.”

RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, was fairly bullish on the prospect of higher oil prices for the broader market:


Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: lizzy gurdus, eddie seal, bloomberg, getty images, johannes eisele, afp, anna moneymaker, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, price, experts, market, forecast, thats, sanction, think, prices, whats, higher, energy, surges, oil, going, ends, iran, crude, waiversfour


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Qualcomm just added $26 billion to market cap—Cramer, experts weigh in

On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap. Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:”I think you stick with this stock. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. Pete Najarian of Investitute.com also no


On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap. Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:”I think you stick with this stock. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. Pete Najarian of Investitute.com also no
Qualcomm just added $26 billion to market cap—Cramer, experts weigh in Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: lizzy gurdus, sopa images, lightrocket, getty images, anthony kwan, bloomberg, source, michael nagle, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, times, buying, capcramer, apple, saw, know, huge, market, added, 26, billion, stock, model, weigh, way, experts, qualcomm


Qualcomm just added $26 billion to market cap—Cramer, experts weigh in

One of big tech’s biggest battles is now over, and it’s making Wall Street more bullish on the space.

On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap.

Here’s what four top market watchers had to say about the newfound prospects for Qualcomm and Apple:

Jim Cramer, host of CNBC’s “Mad Money,” was excited about what this deal means for Apple:

“The thing that I don’t understand is why isn’t Apple up more? Before, we had 5G that was completely uncertain. We had no way to build a model on 5G. Now you have 5G. So … I believe next Christmas — not this year, but next year — could be the biggest Apple Christmas in history. So, you want to sell the stock now, because you know that next year at this time you can buy it back at $270?”

Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:

“I think you stick with this stock. I do understand that it’s up something like 33% in two days, but fair value to me on this stock is $96 a share. With Apple revenues and earnings now back in the picture — they’ve been out for two years — you’re looking at earnings around $6 [per share], probably north of that. But use $6, put a 16 [times price-to-earnings] multiple on that, [and] you get to $96. If you want to know, why 16 times? Look: if this were just a chip manufacturer, you’d say 10 to 12 times. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. That deserves a much higher multiple. And, look, for people who know this stock over the last 20 years, this Apple issue isn’t the first time they’ve been challenged on this. You go back to Broadcom 15 years ago; same thing happened. You had Samsung, you had countries, whether it’s Korea, China [or] the U.S. right now. This model has been tested again and again and again and they always come out on top. That’s why I love this stock at $50, but $96, 25% higher? I see that by summer.”

Pete Najarian of Investitute.com also noted how well Qualcomm was holding up:

“Yesterday I had options and stock in here, and it all started when we had some huge buying. And we were talking about everything being short term. Well, you go back to February, March: all of a sudden, we saw some October buying [and] we saw some July buying in here. By the way, those July [options were] July $62.50 calls — how are they doing? 80 cents, and now the stock’s trading, what is it? $77, $78? So these are now trading, call it, somewhere close to some real money. So these are huge gains. You have to take stuff off into that. I took it off way too early. I was taking this off yesterday in the afternoon as I’m watching the stock scream to the upside because I thought, ‘At any moment, we’re going to see something that’s going to pull it back down.’ It hasn’t happened.”

Virtus Investment Partners’ Joe Terranova had his eyes on a sidelined winner:


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: lizzy gurdus, sopa images, lightrocket, getty images, anthony kwan, bloomberg, source, michael nagle, kcna, thomas barwick getty images
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Qualcomm just added $26 billion to market cap—Cramer, experts weigh in

On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap. Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:”I think you stick with this stock. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. Pete Najarian of Investitute.com also no


On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap. Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:”I think you stick with this stock. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. Pete Najarian of Investitute.com also no
Qualcomm just added $26 billion to market cap—Cramer, experts weigh in Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: lizzy gurdus, sopa images, lightrocket, getty images, anthony kwan, bloomberg, source, michael nagle, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, times, buying, capcramer, apple, saw, know, huge, market, added, 26, billion, stock, model, weigh, way, experts, qualcomm


Qualcomm just added $26 billion to market cap—Cramer, experts weigh in

One of big tech’s biggest battles is now over, and it’s making Wall Street more bullish on the space.

On Tuesday, chipmaker Qualcomm and iPhone maker Apple settled a yearslong dispute over patent royalties, sending shares of Qualcomm on a more than 35% tear over the course of two days, a $26 billion boost to its market cap.

Here’s what four top market watchers had to say about the newfound prospects for Qualcomm and Apple:

Jim Cramer, host of CNBC’s “Mad Money,” was excited about what this deal means for Apple:

“The thing that I don’t understand is why isn’t Apple up more? Before, we had 5G that was completely uncertain. We had no way to build a model on 5G. Now you have 5G. So … I believe next Christmas — not this year, but next year — could be the biggest Apple Christmas in history. So, you want to sell the stock now, because you know that next year at this time you can buy it back at $270?”

Cerity Partners’ Jim Lebenthal saw huge runway for Qualcomm’s stock:

“I think you stick with this stock. I do understand that it’s up something like 33% in two days, but fair value to me on this stock is $96 a share. With Apple revenues and earnings now back in the picture — they’ve been out for two years — you’re looking at earnings around $6 [per share], probably north of that. But use $6, put a 16 [times price-to-earnings] multiple on that, [and] you get to $96. If you want to know, why 16 times? Look: if this were just a chip manufacturer, you’d say 10 to 12 times. But what happened yesterday validated … the high-margin [intellectual property] model that Qualcomm has depended on for 25 years. That deserves a much higher multiple. And, look, for people who know this stock over the last 20 years, this Apple issue isn’t the first time they’ve been challenged on this. You go back to Broadcom 15 years ago; same thing happened. You had Samsung, you had countries, whether it’s Korea, China [or] the U.S. right now. This model has been tested again and again and again and they always come out on top. That’s why I love this stock at $50, but $96, 25% higher? I see that by summer.”

Pete Najarian of Investitute.com also noted how well Qualcomm was holding up:

“Yesterday I had options and stock in here, and it all started when we had some huge buying. And we were talking about everything being short term. Well, you go back to February, March: all of a sudden, we saw some October buying [and] we saw some July buying in here. By the way, those July [options were] July $62.50 calls — how are they doing? 80 cents, and now the stock’s trading, what is it? $77, $78? So these are now trading, call it, somewhere close to some real money. So these are huge gains. You have to take stuff off into that. I took it off way too early. I was taking this off yesterday in the afternoon as I’m watching the stock scream to the upside because I thought, ‘At any moment, we’re going to see something that’s going to pull it back down.’ It hasn’t happened.”

Virtus Investment Partners’ Joe Terranova had his eyes on a sidelined winner:


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: lizzy gurdus, sopa images, lightrocket, getty images, anthony kwan, bloomberg, source, michael nagle, kcna, thomas barwick getty images
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A 26-year-old trend line suggests IBM still has more upside from here, technician says

However, the stock managed to hold a multidecade trend line even in the grips of that decline, a move one chart watcher sees as a technical feat. “You have a trend line going back to 1993 and it’s held this and I like that a lot,” said Bill Baruch, president of Blue Line Futures, on CNBC’s “Trading Nation” on Tuesday before the company reported earnings. Its shorter-term moves also indicate even more strength for the stock, Baruch said. What I’m looking for, there’s a trend line going back to 20


However, the stock managed to hold a multidecade trend line even in the grips of that decline, a move one chart watcher sees as a technical feat. “You have a trend line going back to 1993 and it’s held this and I like that a lot,” said Bill Baruch, president of Blue Line Futures, on CNBC’s “Trading Nation” on Tuesday before the company reported earnings. Its shorter-term moves also indicate even more strength for the stock, Baruch said. What I’m looking for, there’s a trend line going back to 20
A 26-year-old trend line suggests IBM still has more upside from here, technician says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: keris lahiff, lucas jackson, mike blake, adam bettcher, getty images, mike ehrmann, kcna, thomas barwick getty images, source, lawrence mcdonald
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A 26-year-old trend line suggests IBM still has more upside from here, technician says

One of the top performers on the Dow just reported earnings.

IBM fell 2% after hours Tuesday after beating on quarterly profit, but falling short of sales estimates.

Even so, by market’s close, big blue remained the second-best gainer on the Dow in 2019, adding 28% and roughly $28 billion to its valuations which equals the total market cap of Twitter.

Its strong run this year marks a turnaround after a steep sell-off in the fourth quarter. However, the stock managed to hold a multidecade trend line even in the grips of that decline, a move one chart watcher sees as a technical feat.

“You have a trend line going back to 1993 and it’s held this and I like that a lot,” said Bill Baruch, president of Blue Line Futures, on CNBC’s “Trading Nation” on Tuesday before the company reported earnings. “On the fundamental side, you’ve got a dividend yield of more than 4.3% and a [price-earnings ratio] of 12. This is a good longer-term investment.”

Its shorter-term moves also indicate even more strength for the stock, Baruch said.

“You’ve got the 50-day moving average crossing out above the 200, [a ‘golden cross’ that points to a bullish trend]. The ADX, which signals whether a stock is trending, is picking up and I think those two combined are going to bring some momentum,” he said.

“Ultimately, I like this stock and I think there’s more upside. What I’m looking for, there’s a trend line going back to 2012 and this market if it tests that, it’s going to be testing into the thick of last year’s highs. $160 is what I’m targeting to the upside here,” Baruch said.

Michael Binger, president of Gradient Investments, is more cautious on the stock given its stagnating top-line growth.

“We would not be buyers of IBM here right now,” Binger said. “To make money in tech stocks, you really need to find organic growth and companies that can grow that growth at pretty fast rates. IBM is not one of those companies. In fact, they need to buy their growth and Red Hat is the latest example of that.”

IBM’s $34 billion acquisition of open-source cloud software developer Red Hat has yet to close. It announced the deal in October.

“Yes, it’s a cheap stock. Yes, it has a good dividend yield. But, I just don’t see long-term upside and I think it’s a stock you tread water in,” Binger said

Disclosure: Gradient Investments holds IBM.


Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: keris lahiff, lucas jackson, mike blake, adam bettcher, getty images, mike ehrmann, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, 26yearold, think, suggests, trend, going, growth, stock, baruch, technician, line, ibm, upside, binger


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As Goldman Sachs drags on financials, Cramer and other experts weigh in on bank earnings

Financials stocks came under pressure Monday after declining revenue from Citigroup and Goldman Sachs soured the positive earnings news out from J.P. Morgan last week. Ahead of earnings from Bank of America and Morgan Stanley later this week, five experts weigh in on the mixed quarter for the big banks so far. Morgan Stanley back above its 200-day moving average for the first time in a year. “For those looking at bank stocks and your financials in general, I’d be looking at the large-cap big one


Financials stocks came under pressure Monday after declining revenue from Citigroup and Goldman Sachs soured the positive earnings news out from J.P. Morgan last week. Ahead of earnings from Bank of America and Morgan Stanley later this week, five experts weigh in on the mixed quarter for the big banks so far. Morgan Stanley back above its 200-day moving average for the first time in a year. “For those looking at bank stocks and your financials in general, I’d be looking at the large-cap big one
As Goldman Sachs drags on financials, Cramer and other experts weigh in on bank earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: keris lahiff, andrew harrer, bloomberg, getty images, eduardo munoz, daniel acker, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, financials, earnings, cramer, think, experts, sachs, sign, morgan, big, bank, drags, weigh, stocks, actually, stanley, goldman, quarter, thing


As Goldman Sachs drags on financials, Cramer and other experts weigh in on bank earnings

Financials stocks came under pressure Monday after declining revenue from Citigroup and Goldman Sachs soured the positive earnings news out from J.P. Morgan last week.

Ahead of earnings from Bank of America and Morgan Stanley later this week, five experts weigh in on the mixed quarter for the big banks so far.

Chris Verrone, head of technical analysis at Strategas Research, said a steep decline last year should give some of these names a pop.

“Goldman, Morgan, they had 40% declines last year. These were devastating bear markets. We think they’re bottoming. Morgan Stanley back above its 200-day moving average for the first time in a year. Maybe this is a sign that the yield curve actually steepens here. Maybe this is a sign that rates actually go up. … It’s a broad call for us. We think rates are starting to bottom here. We think frankly signs of cyclicality are emerging everywhere and banks benefit from that.”

Jeffrey Harte, principal at Sandler O’Neill, said it’s best to bet on the largest of the financials and sees one winner among them.

“For those looking at bank stocks and your financials in general, I’d be looking at the large-cap big ones. Citi is one I like a lot and they reported this morning and actually the numbers look really good. The big thing we needed to see was consumer growth and we saw it. They kind of delivered on the big market skepticism there.”

Jim Cramer, host of CNBC’s “Mad Money,” said it was an uneven quarter with some bright spots that should continue.

“They key thing to recognize is March was great. January was weak … March was full bore, continuing, that’s what matters, not what happened this quarter but what was happening and what’s going to happen in subsequent quarters. It could be an opportunity.”

Stephen Weiss, founder and managing partner at Short Hills Capital, said regulatory headwinds from Washington might linger.

“This is a group that just hadn’t done well, it’s sort of been ignored. Now it’s done quite well so it snuck up on you. … There’s no basis for regulating them further and to the extent that we regulate them further you weaken the smaller competitors.”

Josh Brown, co-founder and CEO of Ritholtz Wealth Management, said major pre- and post-market moves in these stocks makes trading difficult.


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: keris lahiff, andrew harrer, bloomberg, getty images, eduardo munoz, daniel acker, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, financials, earnings, cramer, think, experts, sachs, sign, morgan, big, bank, drags, weigh, stocks, actually, stanley, goldman, quarter, thing


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After Chevron’s biggest sell-off in a year, market watcher sees opportunity

The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness. “Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energ


The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness. “Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energ
After Chevron’s biggest sell-off in a year, market watcher sees opportunity Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: keris lahiff, daniel acker, bloomberg, getty images, vcg, bryan r smith, afp, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, chevron, petroleum, tatro, market, selloff, chevrons, biggest, names, watcher, sees, xle, obviously, energy, trading, opportunity, oil, youve


After Chevron's biggest sell-off in a year, market watcher sees opportunity

Chevron is starting the week fresh on the heels of its worst day in more than a year.

The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. Occidental Petroleum also reportedly is interested in the oil and gas exploration company.

While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness.

“Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. “You’ve got to look at a name like this that is trading 14 to 15 times forward earnings. … Obviously they’re spending $30 billion to try to grow that profit, so we like the acquisition.”

Chevron is expected to post a 2019 earnings contraction of 14 percent, followed by a 23 percent surge in 2020, according to FactSet.

“We need to do a lot more work really into the fundamentals to see how this will be accretive to the bottom line,” said Tatro. “Basically it expands their shale play, their deep-water drilling, so it’s hard to do but ultimately I think this is a day where you’ve got to hold your nose and you go in and you add to your Chevron position.”

Tatro also likes Chevron for its strong balance sheet and steady dividend. The company yields 4%, double the S&P 500.

Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energy group as a whole.

The XLE energy ETF “still is at a point where we need to get above about $68. That’s where your 200-day moving average is at, which is declining,” Johnson said Friday on “Trading Nation.” “There’s still a long way to go. Again, I like energy, but I’m more of a neutral to these names. Is the M&A activity going to put a little bit of a bid under these names? It probably will, but I’d rather be a selective buyer of these names, especially the XLE.”

The XLE ETF has not traded above its 200-day moving average since October. It has fallen 7% since then.

Disclosure: Joule Financial holds CVX.


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: keris lahiff, daniel acker, bloomberg, getty images, vcg, bryan r smith, afp, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, chevron, petroleum, tatro, market, selloff, chevrons, biggest, names, watcher, sees, xle, obviously, energy, trading, opportunity, oil, youve


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Big banks set to report earnings—here’s what five experts are watching

Big banks are leading the way into earnings season, and Wall Street is on close watch. And I think Wells Fargo actually should fare pretty well. Of course, we know what’s going on with Wells Fargo in terms of the management change. And, by the way, Bank of America did have the best quarter out of the big five last quarter.” Veteran bank analyst Mike Mayo, head of U.S. large-cap bank research at Wells Fargo Securities, might be the most bullish of the group:


Big banks are leading the way into earnings season, and Wall Street is on close watch. And I think Wells Fargo actually should fare pretty well. Of course, we know what’s going on with Wells Fargo in terms of the management change. And, by the way, Bank of America did have the best quarter out of the big five last quarter.” Veteran bank analyst Mike Mayo, head of U.S. large-cap bank research at Wells Fargo Securities, might be the most bullish of the group:
Big banks set to report earnings—here’s what five experts are watching Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: lizzy gurdus, eric thayer, valerie macon, afp, getty images, bryan r smith, oliiva michael, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, set, bank, quarter, banks, wells, report, watching, earningsheres, big, terms, experts, going, actually, look, thats, think


Big banks set to report earnings—here's what five experts are watching

Big banks are leading the way into earnings season, and Wall Street is on close watch.

Last quarter was softer than expected for most of the country’s largest financial companies, which were still feeling the pain from the stock market’s late-2018 sell-off. But this time, experts are cautiously optimistic on what the next quarter will bring.

Here’s what five market watchers will look for as the major banks begin to report on Friday:

Sarat Sethi, managing partner at Douglas C. Lane and Associates, says bank stocks look particularly appealing here compared with the rest of the market:

“The banks, I think, are going to do well because they’re actually at a much lower valuation than the rest of the market. [Banks] have been dead money for a long time. But if you look at where they are price-to-book, look at it on a [price-to-earnings] basis, look at it on a well-capitalized basis, […] I don’t know if now is the moment, but I think you want to be there. Because when they do start doing well, … the balance sheets are so much better than they were back in ’09.”

Paul Hickey, who is head portfolio manager at Bespoke Investment Group, likes ones particular name in the group:

“Two weeks ago, when everyone was freaking out about the yield curve inverting, … the financials dropped 10% in five days. [The] S&P 500 was down 1%. That kind of underperformance in such a short period of time is very rare for the sector. Goldman [Sachs], when those periods [have] happened, has averaged a gain of 20% over the next three months, with gains 75% of the time. [It] trades at a much cheaper valuation to its peers. The 1MDB scandal, that’s weighing on it, but the move into the consumer sector provides a much more stable potential revenue stream for the company. […] Again, the sentiment towards the sector is weak, and that’s the best time to be going long in these names — when other investors don’t want them.”

Nuveen’s head of global equities research, Stephanie Link, whose largest position is in Bank of America, predicts the banks will start to see an upturn after December’s market carnage:

“I think the theme is going to be capital markets have seen a recovery. January, February was terrible — we knew that — but March really did improve substantially, and I think that that’s what people are going to kind of hold their hat on and hope that that actually will continue. I believe it will continue in terms of the activity in capital markets. I also think you’re going to hear the rhetoric around mortgages actually increase as well given the great application data that we’ve seen over the past month, and I think that that is actually not in the stocks at all. And I think Wells Fargo actually should fare pretty well. Of course, we know what’s going on with Wells Fargo in terms of the management change. We have to wait for that stock to really do much. But I do think that the cost-cutting story is still very much front and center. After earnings, then you’re going to get CCAR and I think people will start to get excited about that. […] Bank of America is a separate story because it’s a cost-cutting story, an operational efficiency story, operating leverage story. And, by the way, Bank of America did have the best quarter out of the big five last quarter.”

Deutsche Bank’s Binky Chadha, who is the firm’s chief U.S. equity and global strategist, agrees with Link on the banks’ recovery:

“I am overweight banks, and I would argue that the main issue here is global growth and whether it will turn around, and whether we’ve found a bottom, basically, for rates. And I would check the box and bet on both. … In terms of what we’re looking to hear and understand is we know how the early part of the quarter went for the banks, but I would argue that’s pretty well in the estimates. The question is whether the latter part of the quarters started to turn around, basically, in activity.”

Veteran bank analyst Mike Mayo, head of U.S. large-cap bank research at Wells Fargo Securities, might be the most bullish of the group:


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: lizzy gurdus, eric thayer, valerie macon, afp, getty images, bryan r smith, oliiva michael, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, set, bank, quarter, banks, wells, report, watching, earningsheres, big, terms, experts, going, actually, look, thats, think


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