Tesla Inc (NASDAQ: TSLA)’s shares have been on roller coaster ride over the past couple months amid so many positive and negative developments. TSLA in December reached a high of $385 stock price and went down to as low as $300 in December, before bouncing back to $350 in second week of January. However, again in late January the stock reached a low of $290 again final week of January. In the month of February, TSLA has been moving within 10% range and last closed at around $294.
WOn January 30th, the company reported fourth-quarter profit that missed analysts’ expectations and replaced CFO. The company reported adjusted EPS of $1.93 versus $2.20, according to average estimates. Revenue came in at $7.23 billion versus $7.08 billion, according to average estimates.
The company cited a decline in revenue from the sale of regulatory credits and higher import duties on parts from China.
The company should see higher revenues in 2019 as it substantially ramps up production and deliveries this year, aiming for 360,000 to 400,000 vehicle deliveries, about 45 to 65 percent more than its deliveries in 2018. Musk predicted its deliveries will grow 50 percent in 2019, “even if there’s a recession.”
The company assured investors that it has “sufficient cash on hand to comfortably settle in cash our convertible bond that will mature in March 2019.”
Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)
Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.
Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.
Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.
Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.
The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.
Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.
Bristol-Myers declined to comment.
Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)
Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on seekingalph.com by Alpha Exposure.
The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.
Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.
On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.
Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.
The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.
Chesapeake Energy Corporation (CHK), Best Buy Co., Inc. (BBY) Are Top Early-Market Movers
Shares of Chesapeake Energy Corporation (CHK) shot up 8% in first hour Wednesday, after the oil and gas production company reported fourth-quarter earnings and revenue that beat expectations, and provided an upbeat outlook. Net income rose to $486 million, or 49 cents a share, from $309 million, or 33 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS fell to 21 cents from 30 cents but beat the FactSet consensus of 18 cents.
Total revenue rose 22% to $3.07 billion, as oil, natural gas and natural-gas equivalent revenue jumped 38% to $1.73 billion. The FactSet consensus for total sales was $2.28 billion for oil and gas sales was $1.10 billion. Average daily production fell 7% to 464,000 barrels of oil equivalent (BOE) while production expenses increased 15% to $2.87 BOE. The company projects 2019 average daily oil production to increase about 32%, capital expenditures are expected to be flat and cash flow is expected to be “meaningfully stronger.” The stock has lost 12% over the past three months through Tuesday, while the SPDR Energy Select Sector ETF has gained 1.5% and the S&P 500 has advanced 4.2%.
Best Buy Co., Inc. (BBY)jumped after the gadget retailer lent a spark to what had been a gloomy earnings season by delivering holiday sales that outpaced projections and a full-year profit outlook that topped analysts’ estimates.
Comparable-store sales in the U.S. — the retailer’s most-watched metric — rose 3 percent in the fourth quarter, beating projections. The midpoint of its profit forecast for the current fiscal year also topped estimates, sending the shares up as much as 16 percent.
The shares climbed as high as $69.85 in New York Wednesday, the biggest intraday gain since May 2017. The shares had already been up 14 percent this year through Tuesday’s close, outpacing the S&P 500 Index.
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