Rosenblatt Cuts Apple Shares to Sell

Rosenblatt Cuts Apple Shares to Sell

Investment firm sees 25 percent downside in tech giant’s shares. Investment firm Rosenblatt has cut shares of Apple to sell from neutral. The company cited “fundamental deterioration” of the underlying business over the next 6-12 months as the culprit. Looking at the specific product lines, expectations are for disappointing sales in iPhones and iPad growth. New products like the Apple Watch and AirPods are too small relative to the company to impact revenue growth. Shares of Apple dropped about 2.6 percent on the day, to around $200 per share. The $150 price target that Rosenblat...
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Unusual Options Activity: Apple (AAPL)

Unusual Options Activity: Apple (AAPL)

Big bearish bet on tech giant in the next month. Shares of Apple (AAPL) sold off Monday on a major downgrade, citing the company’s “fundamental deterioration.” Naturally, some traders saw that as an opportunity to sell shares—at least in the short-term. That explains the 100-fold increase in volume on the August 2nd $185 puts on the company. With shares of Apple trading just under $200, this is a bet on about a 7.5 percent decline between now and expiration in 25 days. Apple is a widely held company, due to its size and success. And while the company has pushed to improve its suit...
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Unusual Options Activity: Snapchat (SNAP)

Unusual Options Activity: Snapchat (SNAP)

Big bet on social media company rallying in the next month. Shares of social media companies have underperformed the broad market. Between a slowdown in user growth and privacy concerns, they don’t look like the most attractive investment. Yet shares of these companies are off their recent lows—and at least one trader is betting on a big move higher. Last Friday saw a surge in volume on the July 26th $19 call options on Snapchat (SNAP). With shares trading around $15, that’s a bet on shares rallying another $4 from here, or about another 26 percent. That’s a large percentage mo...
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Drug Stocks in the Crosshairs on Trump’s “Favored Nations” Plan

Drug Stocks in the Crosshairs on Trump’s “Favored Nations” Plan

Move to lowest-cost drugs could save $3 billion per year. Drug and related stocks were among the worst market performers on Friday, after President Trump says his administration is working on a system to allow the U.S. to buy drugs based on the lowest prices paid by other countries. Such a plan, typically known in contracts as a favored-nations clause, would help keep a lid on drug costs for consumers, but would cut into the profitability of the drug companies. Last year, Trump proposed a similar pricing plan for drugs. Known as the International Pricing Index, the government is...
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June Payrolls Rise by 224,000

June Payrolls Rise by 224,000

Job growth goes beyond highest forecast for June. U.S. employers added 224,000 to their payrolls in June, per the job data that was released by the Bureau of Labor Statistics on Friday. That’s about three times larger than the revised 72,000 jobs numbers from May, and indicate a strong economy. The expectation was for 160,000 new jobs at best, and the number was higher than the most bullish forecast by Wall Street traders. The job growth was also the best monthly increase since January 2019. The numbers for May were also revised higher. The market, trading flat ahead of the ann...
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Insider Activity: OncoCyte Corporation (OCX)

Insider Activity: OncoCyte Corporation (OCX)

Major holder adds to stake in blood testing company. Insiders in the health, pharmaceutical, and biotech space continue to buy shares of their beaten-down companies near today’s prices. The latest big buy? At shares of one of the smaller diagnostic plays, OncoCyte Corporation (OCX). Last week, Broadwood Partners LP, which already owns more than 10 percent of shares in the company, added 1 million shares to their stake. At a price of around $2, this represented a $2 million buy. Founded in 2009, OncoCyte works on the development and commercialization of non-invasive, blood-based...
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Unusual Options Activity: AngloGold Ashanti (AU)

Unusual Options Activity: AngloGold Ashanti (AU)

Big bet on gold mining company shares moving higher this year. Shares of mining companies can be pretty volatile. If gold prices stop moving higher, the share price on these companies can drop quickly. Yet at least one trader is betting that mining giant AngloGold Ashanti (AU) will trade at least as high as it’s been if not higher by the end of January 2020. On July 3rd, there was a surge in trading on the January 2020 $18 calls. Shares last traded around $17.80, making this option at-the-money. In other words, in a volatile sector of the market, one trader is betting that shar...
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Insider Activity: Dova Pharmaceuticals (DOVA)

Insider Activity: Dova Pharmaceuticals (DOVA)

Major holder adds to stake in beaten-down biotech company. Insiders in the health, pharmaceutical, and biotech space continue to buy shares of their beaten-down companies near today’s prices. The latest big buy? At shares of one of the smaller biotech plays, Dova Pharmaceuticals (DOVA). On July 3rd, the Perceptive Life Sciences Master Fund, which already owns more than 10 percent of shares and has a seat on the board of directors, added to their stake. The fund bought 20,541 shares, paying just under $300,000. But this isn’t their first buy with this company. They also bought s...
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Currency Manipulation: The Next Trade War?

Currency Manipulation: The Next Trade War?

With trade deals underway, Trump hits Europe and China on currency programs. Although global markets were largely unchanged on Thursday, with U.S. markets closed, traders are starting to keep a closer eye on the currency markets. While largely unchanged right now, recent comments from President Trump indicated that currency manipulation by China and Europe was a problem, and that the United States should follow suit. Tweeting on Wednesday, the president said: “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. ...
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US Factory Orders Contract for Second Month in a Row

US Factory Orders Contract for Second Month in a Row

Slight decline tied to drops in defense and Boeing orders. United States factory orders fell for a second month in a row, declining 0.7 percent month-over-month in May. This follows a 1.2 percent decline in April. Year-over-year growth is also down 1.2 percent, the lowest level of orders since August 2016. The largest factor in the drop was a decline in defense spending and non-defense aircraft spending. This adds to other pieces of economic data suggesting a slowdown largely in the industrial space, but one that could spill over into the rest of the overall economy. Howev...
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