MGIC Investment: Compelling Upside Remains After 40% YTD

Private sector mortgage insurers have achieved a strong performance YTD, but still offer compelling value and investors should remain long.

YTD, MGIC Investment Corp. (MTG) has returned 40.6% to investors and had returned 455% since the end of 2012. The returns from MTG’s close peer Radian (NYSE:RDN) for these periods are 16% and 265%. This analysis focused on MTG but broadly applies to RDN as well.

Yet, still, these stocks are on modest PEs when we consider them in the context of the US stock market and opposite other financial sector stocks. Here is MTG’s PE ratio based on consensus forward earnings projections. the chart shows the stock to be on 11x 2019 EPS.

Bloomberg

The forecasts behind this PE value are too conservative. Current market consensus envisages a bottom line of $458m for 2017, growing to $485m by 2019, which is just 6% growth through the two year forecast time-frame.

Consensus expectations for the top line are healthier, with the market looking for 6% growth in 2018. Such a clip should easily continue in 2019 assuming the US economic expansion remains on track. Why’s this a reasonable assumption?


Company Data

As we see in this extract from the 3Q report, insurance in force is growing around 6%, which is the kind of expansion one would expect from present growth in the US’s nominal GDP. MTG’s premium income growth over time will reflect this volume expansion in the in force business, circled in red in the table above. We can also expect a further small boost to revenue from stronger investment book yields, assuming the Fed holds to its course.

For a ~6% expansion of top line growth to deprive MTG of a similar rate of bottom line growth, a cost item or items have to growth faster than the top line.

MTG’s management of its expense base has always been strong. What might grow suddenly as a cost item is its provision, or losses incurred, expenses. I strongly believe this won’t happen absent a recession in the US.

What we also see in the table above is that primary delinquent inventory, which is lapsed insured mortgages, fell 20% Y/Y in 3Q. See the blue circle.

This drop in the amount of new inflows of delinquent mortgages insured has allowed MGIC’s cost of risk, see in its additions to reserves line, collapse dramatically from $80-90m a quarter to the current sub-$30m level of cost. See the table below.

Bloomberg

There is no reason to expect this to come back to anything like the previous strength without a material deterioration in wider economic conditions. Even then, MTG would be far more resilient than in the past due to the change in the credit quality of its borrowers.

And MTG is still building conservatism Q-Q. Below you can see how over five quarters the top FICO bracket of insured borrowers had grown from 48% of the Risk In Force to 51%, and the lowest FICO bracket in the table (FICO 659&<) has dropped from 12% to 10%. The latter category is more likely to produce defaults than the higher categories.

Company Data

This means it’s worth considering MTG in a scenario under which its losses incurred remain at the current levels, supported by incremental improvements in the quality of new risk and the overall RIF book.

Here’s 2019 on this prognosis: Revenue of $1.2bn, expenses of $186mn, losses incurred of $130m (allowing $10m more than the current annualized rate of $120m). This would give us pretax of $950m and a 35% tax rate would leave net income of $617m, some 27% north of the current consensus punt on the bottom line.

Sell siders are afraid how good this stock might be, and will upgrade incrementally. Here’s the recent movement in consensus earnings for FY 2019. As we see, consensus is moving along the lines we are discussing here.

Bloomberg

Dividends?

Investors looking for capital appreciation should buy MTG now. In addition to the strong EPS outlook and still-cheap PE, we have a stock that is returning to dividend distribution, having focused resources on building capital and debt rationalization for the last eight years. Here is an article from last year in which I look at the debt dynamics closely.

MGIC’s risk to capital ratio has fallen again recently from 12.6:1 to 11:1. The company is now overcapitalized to the eye of this analyst. Consider the ROE of the business, which is about 14%, and the rate of growth of risk in force, which is what the capital backs, 6%. The bit in the middle between these two, should be finding its way back to shareholders. The pressure for this to happen will bring more investors to MTG and put it on the radar of income investors soon.

Disclosure: I am/we are long MTG.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

About this article:ExpandAuthor payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.Tagged: Investing Ideas, Long Ideas, Financial, Surety & Title InsuranceWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

Senate tax cuts are permanent for businesses but temporary for you

Late Thursday night, the Senate Finance Committee released an updated tax reform bill that is expected to pass this week.

The reason for the update? The Senate had to make changes to reduce how much the bill would add to deficits.

They chose to make the vast majority of individual tax cuts temporary — set to expire after 2025.

The change was made to accommodate complicated budget rules that Republicans have chosen to use so they can pass tax reform without any Democratic votes.

By contrast, the bill still makes permanent the corporate tax rate cut to 20%, along with most other business tax provisions.

As it is, Republicans in the House and Senate have already agreed to let a tax reform bill add $1.5 trillion to deficits over 10 years. But because of the complex budget rules allowing passage on a strict party-line vote, the bill is not allowed to add to deficits beyond the first decade.

Making all tax cuts permanent would violate that rule. So Republicans have essentially created yet another major fiscal cliff in 2025 akin to the one Congress dealt with in 2012 when faced with the expiration of the Bush tax cuts.

And just as lawmakers in 2012 chose to make the majority of Bush tax cuts “permanent,” Republicans are likely banking on a future Congress to do the same in 2025.

“Does anyone really believe Congress will allow the individual tax cuts to sunset in eight years? This is an obvious ruse to hide very real costs and make more room for debt-financed cuts and giveaways,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

Related from CNN: GOP in House and Senate confident they have vote on tax bills

If those tax cuts are extended, the bill will add much more to deficits over time than the official “score” of the bill will reveal.

And that means that sometime in the future, should lawmakers decide they need more money to, say, keep paying promised benefits in Medicare or Social Security or to keep pace with fast-growing interest payments due on the nation’s debt, they’ll need to either raise taxes or cut spending even more than otherwise might be the case.

Hot Casino Stocks To Watch For 2018

Federal prosecutors are pursuing a potential settlement of their record-settingforeign corruption lawsuit that seeks$1 billion in assets, including future proceeds from the 2013 Hollywood hit movieThe Wolf of Wall Street.

Characterized by federal officials as the largest attempted seizure under anti-kleptocracy laws in U.S.history, the case targets officials who allegedly misappropriated profits from financial dealings of the Malaysian sovereign wealth fund called1MDB. Malaysia Prime Minister Najib Razak, who foundedthe fund, has denied wrongdoing.

According to the Department of Justice, conspirators allegedly misappropriated more than $3.5 billionfrom 1MDBin a money laundering scheme from 2009 through 2013.

Officially, 1MDB was intendedto help Malaysia and its people by issuing debt securities that would fund economic development projects. But federal prosecutors allege that suspected conspirators instead used a network of shell companies to siphon fundsfor purchases of U.S. mansions and luxury condominiums,gambling costsat Las Vegas casinos, purchase of artworkby Vincent Van Gogh and Claude Monetand other personal expenses.

Hot Casino Stocks To Watch For 2018: Enerplus Corporation(ERF)

Advisors’ Opinion:

  • [By Money Morning News Team]

    Enerplus Corp. (NYSE: ERF) is a $2.1 billion oil company based in Calgary and trades on both the NYSE and Toronto Stock Exchange. ERF primarily produces crude oil in the Bakken fields in North Dakota and Western Canada.

Hot Casino Stocks To Watch For 2018: Movado Group Inc.(MOV)

Advisors’ Opinion:

  • [By Dan Caplinger]

    Monday began on a down note for the stock market, as the Dow Jones Industrials fell back down below the 20,000 level. Major market benchmarks finished with losses of 0.6% to 0.8%, and some market commentators attributed the declines to nervousness about the Trump administration’s actions to clamp down on immigration. Others noted that the latest reading of U.S. economic growth showed a 1.9% rise in gross domestic product for the fourth quarter, finishing the year with an overall GDP increase of just 1.6%, down a full percentage point from 2015’s growth. Despite the overall sullen mood in the market, some stocks gained ground, and GoPro (NASDAQ:GPRO), Movado Group (NYSE:MOV), and IPG Photonics (NASDAQ:IPGP) were among the best performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.

  • [By Dan Caplinger]

    Wednesday was yet another record-setting day for the stock market, as the Dow climbed triple digits and the S&P 500 and Nasdaq Composite followed the venerable average to unprecedented heights. Economic data showing rising inflation made it more likely that the Federal Reserve will look to boost interest rates at its next Federal Open Market Committee meeting next month, and the ripples throughout the bond market sent many investors to consider stocks instead. Yet despite the substantial rally, some stocks missed out on the move higher, and American International Group (NYSE:AIG), Teck Resources (NYSE:TECK), and Movado Group (NYSE:MOV) were among the worst performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so poorly.

  • [By Lisa Levin]

    Movado Group, Inc (NYSE: MOV) shares shot up 15 percent to $27.30 after the company posted better-than-expected results for its second quarter and raised its FY 2018 forecast.

Hot Casino Stocks To Watch For 2018: Pharmerica Corporation(PMC)

Advisors’ Opinion:

  • [By Monica Gerson]

    PharMerica Corporation (NYSE: PMC) is estimated to report its quarterly earnings at $0.43 per share on revenue of $509.45 million.

    United States Cellular Corp (NYSE: USM) is projected to report its quarterly earnings at $0.26 per share on revenue of $975.54 million.

Hot Casino Stocks To Watch For 2018: Bridgford Foods Corporation(BRID)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Friday, non-cyclical consumer goods & services shares rose by just 0.3 percent. Meanwhile, top losers in the sector included Medifast Inc (NYSE: MED), down 5 percent, and Bridgford Foods Corporation (NASDAQ: BRID), down 6 percent.

  • [By Lisa Levin]

    Non-cyclical consumer goods & services sector was the top gainer in the US market on Tuesday. Top gainers in the sector included Nature's Sunshine Prod. (NASDAQ: NATR), Bridgford Foods Corporation (NASDAQ: BRID), and SunOpta, Inc. (USA) (NASDAQ: STKL).

Hot Casino Stocks To Watch For 2018: JP Energy Partners LP(JPEP)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of ArcLight Capital Partners, LLC’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=ArcLight+Capital+Partners%2C+LLC

    These are the top 5 holdings of ArcLight Capital Partners, LLCEnable Midstream Partners LP (ENBL) – 43,585,926 shares, 67.58% of the total portfolio. American Midstream Partners LP (AMID) – 13,977,709 shares, 19.28% of the total portfolio. Shares added by 230.89%TransMontaigne Partners LP (TLP) – 3,166,704 shares, 13.14% of the total portfolio. JP Energy Partners LP (JPEP) – 0 shares, 0% of the total portfolio. Shares reduced by 10000%Added: Am

Hot Casino Stocks To Watch For 2018: UTStarcom Holdings Corp(UTSI)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of UTStarcom Holdings Corp (NASDAQ: UTSI) got a boost, shooting up 10 percent to $3.61. UTStarcom Holdings reported Q3 adjusted earnings of $0.07 per share on revenue of $26 million.

Top 5 Clean Energy Stocks To Invest In 2018

AMD (NYSE:AMD) does not need a merger or buyout as some have written. Those days are long gone. If it were going to happen, it would have been two years prior when AMD was really feeling the pain and the balance sheet was a wreck. Since then they have drastically reduced debt while expanding product offerings. In this article we are going to cover a brief history, growth prospects, why a buyout will not happen, and how Intel (NASDAQ:INTC) might get in bed with AMD.

History

To look at AMD we have to look to the future. Back in the late 90s and early 2000s AMD was basically a company that specialized in flash memory and had a struggling x86 CPU business. Sure AMD had periods where they were the leader but these were brief due to Intel’s relentless foundry upgrade cycle. AMD could not match Intel from an investment standpoint in the foundries due to cash constraints and product slippage. Nor did Intel’s questionable business practices help but that is for another time. Fast forward to the present. We have an AMD that is emerging from a long healing process and the future outlook is what drives stock prices.

Top 5 Clean Energy Stocks To Invest In 2018: L Brands, Inc.(LB)

Advisors’ Opinion:

  • [By Jeremy Bowman]

    J.C. Penney and Nordstrom should report holiday sales in the coming days, but there’s evidence elsewhere that it was a weak season for bricks-and-mortar retailers. Shares of Victoria’s Secret parentL Brands(NYSE: LB) were down 9% after it said comparable sales fell 1% in December and that it expects fourth-quarter earnings to come in at the low end of its previously stated guidance of $1.85-$2.00.

  • [By Teresa Rivas]

    L Brands (LB) ended at the bottom of the S&P 500 on Thursday, after disappointing guidance overshadowed better-than-expected earnings.

    L Brands slid $9.19, or 15.8%, to $48.94, its lowest close since 2013. By contrast, the S&P 500 gained 0.99 points, or 0.04%, today to 2363.81.

    Oppenheimers Anna Andreeva and Samantha Lanman reiterated an Outperform rating and $75 price target on the stock, but admit that the magnitude of L Brands downward forecast was disappointing, even with weak industry trends signaled by peers like Wal-Mart (WMT), Macys (M), and TJX Cos. (TJX).

    While they still are bullish, they admit that the bottom isnt clear:

    In the last 5 years, LB’s multiple averaged in high-teens given quality of brands/management, with 13-14x trough not seen since early ’13valuation could still compress assuming guidance isn’t conservative enough. Sticking with Outperform for now, albeit near-term visibility is worsening.

    L Brands is down 25% this year.

  • [By Paul Ausick]

    L Brands Inc. (NYSE: LB) also dropped about 2.6% on Friday to record a new 52-week low of $56.01. The stock closed at $57.48 on Thursday. Volume was about 33% above the daily average of around 2.5 million shares. Wednesday’s report that ecommerce giant Amazon.com is considering competing with the company’s Victoria’s Secret stores has caused some investors to seek greener pastures.

Top 5 Clean Energy Stocks To Invest In 2018: One Horizon Group, Inc.(OHGI)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Aimmune Therapeutics Inc (NASDAQ: AIMT) shares jumped 35 percent to $34.64 in response to failed DBVT peanut allergy trial.
    Exactech, Inc. (NASDAQ: EXAC) shares surged 30.9 percent to $41.88 after the company agreed to be acquired by TPG Capital for $42 per share in cash.
    Dextera Surgical Inc (NASDAQ: DXTR) shares climbed 27.6 percent to $0.238 after surging 40.48 percent on Friday.
    Petmed Express Inc (NASDAQ: PETS) jumped 21.8 percent to $44.73 as the company reported better-than-expected Q2 results.
    SenesTech Inc (NASDAQ: SNES) shares surged 21.7 percent to $1.95 after the company disclosed that Univar will be marketing and selling ContraPest.
    Yulong Eco-Materials Ltd (NASDAQ: YECO) shares gained 18.3 percent to $0.560.
    One Horizon Group Inc (NASDAQ: OHGI) shares rose 18 percent to $1.18.
    Atossa Genetics Inc (NASDAQ: ATOS) shares climbed 18 percent to $0.566. Atossa Genetics is schedule to host a conference call to announce preliminary results from Phase 1 study of oral Endoxifen on October 25, 2017.
    ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 15.3 percent to $2.72
    Renren Inc (NYSE: RENN) shares gained 11.9 percent to $10.71 after gaining 2.68 percent on Friday.
    Kalvista Pharmaceuticals Inc (NASDAQ: KALV) shares rose 11.8 percent to $12.59. KalVista Pharma 13D filing from Longwood Fund showed registration for an 8.7 percent stake.
    Xunlei Ltd (NASDAQ: XNET) shares gained 9.4 percent to $7.20 after surging 25.33 percent on Friday.
    VF Corp (NYSE: VFC) shares surged 7.1 percent to $71.09 after the company reported upbeat earnings for its third quarter and raised its FY2017 guidance.
    CAI International Inc (NYSE: CAI) rose 6.6 percent to $39.70. Cowen & Co. upgraded CAI from Market Perform to Outperform.
    Agenus Inc (NASDAQ: AGEN) shares gained 5.7 percent to $4.58 as the company disclosed that GSK's shingle vaccine received FDA approval.
    Deltic Timber Corp (NYSE: DEL) shares climbed 5.6 percent to $94.11

Top 5 Clean Energy Stocks To Invest In 2018: BP Prudhoe Bay Royalty Trust(BPT)

Advisors’ Opinion:

  • [By WWW.MONEYSHOW.COM]

    Our featured recommendation, the BP Prudhoe Bay Royalty Trust (BPT), is a grantor trust. What that means is that the trust holds royalty interest in minerals from the Prudhoe Bay on the North Slope of Alaska.

  • [By Lisa Levin]

    In trading on Friday, energy shares fell by 1.30 percent. Meanwhile, top losers in the sector included BP Prudhoe Bay Royalty Trust (NYSE: BPT), down 14 percent, and Gulf Island Fabrication, Inc. (NASDAQ: GIFI), down 13 percent.

Top 5 Clean Energy Stocks To Invest In 2018: Mayne Pharma Group Limited (MAYNF)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    We believe that two main risks currently exist. First, a few days ago, U.S. Department of Justice filed charges in generic drug price-fixing probe. The U.S. Department of Justice accused two former generic pharmaceutical executives of colluding with other generic manufacturers to fix prices – the first criminal charges stemming from a two-year investigation. Companies in the congressional probe have since publicly disclosed that they have received subpoenas, including Mylan NV (NASDAQ:MYL), Allergan (NYSE:AGN), which later sold its generics business to Teva (NASDAQ:TEVA), Lannett (NYSEMKT:LCI), Impax Laboratories (NASDAQ:IPXL), Endo International (NASDAQ

stock market closures

Small cap gourmet burger stock Red Robin Gourmet Burgers, Inc (NASDAQ: RRGB) reportedfiscal Q1 earnings after the Tuesday close. Unlike most other restaurant chains, Red Robin Gourmet Burgersis focused on company-owned restaurantswhich gives it full control over operations along with profits. However, a spat of burger related IPOs a few years ago led to concerns over

Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, increased 4.1% to $418.6 million. Restaurant revenue increased $24.8 millionprimarily due to new restaurant openings and acquired restaurants, partially offset by decreases of $4.6 million, or 1.2%, in comparable restaurant revenue and $3.8 million from closed restaurants. Franchise and other revenue decreased $0.3 million, primarily driven by the loss of royalties from 13 franchised restaurants acquired during the first quarter of 2016. System-wide restaurant revenue (which includes franchised units) totaled $498.8 million versus$493.0 million. Comparable restaurant revenuedecreased 1.2% driven by a 1.7% decrease in guest counts that waspartially offset by a 0.5% increase in average guest check. The increase in average guest check comprised a 1.6% increase in pricing and a 1.1% decrease in menu mix. Net income was $11.567 million versus $14.225 million.

stock market closures: Kalytera Therapeutics, Inc. (QUEZF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Kalytera Therapeutics Inc (OTC: QUEZF) closed a C$13.4 million ($10.2 million) tranche of a private placement for the acquisition of Talent Biotechs Ltd.

stock market closures: Patheon Holdings CoŠ×Üperatief U.A. (PTHN)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Patheon N.V. (NYSE: PTHN) was downgraded to Neutral from Outperform and the price target was cut to $28 from $34 (versus a $27.72 close, after an 11.7% drop) at Robert W. Baird. Patheon also was downgraded to Sector Weight from Overweight at KeyBanc Capital Markets.

  • [By Lisa Levin]

    Thermo Fisher Scientific Inc. (NYSE: TMO) announced plans to acquire Patheon NV (NYSE: PTHN) for $35 per share in cash.

    The deal is projected to complete by the end of 2017.

  • [By Benzinga News Desk]

    In the parched terrain just south of the United States border, the prices of food and other necessities follow the dollar, whose value has been climbing: Link

    ECONOMIC DATA
    Industrial Production (MoM) for Feb 0.00% vs 0.20% consensus estimate; Manufacturing Outputs (MoM) for Feb 0.50% vs 0.40% consensus estimate.
    The University of Michigan's consumer sentiment index for March is schedule for release at 10:00 a.m. ET.
    The index of leading economic indicators for February will be released at 10:00 a.m. ET.
    The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.
    ANALYST RATINGS
    Wunderlich upgraded Adobe Systems (NASDAQ: ADBE) from Hold to Buy
    FBR Capital upgraded L Brands (NYSE: LB) from Market Perform to Outperform
    Morgan Stanley upgraded Dean Foods (NYSE: DF) from Neutral to Overweight
    Baird downgraded Patheon (NYSE: PTHN) from Outperform to Neutral
    Citigroup downgraded SeaWorld Entertainment Inc (NYSE: SEAS) from Neutral to Sell
    Goldman Sachs downgraded Macerich (NYSE: MAC) from Neutral to Sell

    This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email minutes@benzinga.com.

stock market closures: Gevo, Inc.(GEVO)

Advisors’ Opinion:

  • [By Paul Ausick]

    Gevo Inc. (NASDAQ: GEVO) dropped about 16 Wednesday to post a new 52-week low of $1.33 after closing Tuesday at $1.59. The 52-week high is $27.20. Volume of about 3.5 million was nearly 5 times the daily average of around 760,000 shares traded. On Tuesday the renewable chemicals and biofuels priced a secondary offering of 5.68 million shares at $1.90 per share, and also 570,000 units of three different warrants. Today’s drop was about half the size of Tuesday’s.

stock market closures: Principal Financial Group Inc(PFG)

Advisors’ Opinion:

  • [By Ben Levisohn]

    The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.

Top 10 Undervalued Stocks To Invest In Right Now

Related AMZN Benzinga's Bulls & Bears For The Past Week: Amazon, Best Buy, Nike, Wells Fargo And More Deutsche Bank: Kroger Likely To Improve In Q2, Shares 'Attractive' Despite Competitive Pressure Costco After the Recent Correction: Overvalued or Undervalued? (GuruFocus)

With the Amazon.com, Inc. (NYSE: AMZN)'s Whole Foods Market acquisition finally here, the notoriously expensive grocery store is seeing some much needed price cuts, as much as a 43 percent price reduction on certain products.

Top 10 Undervalued Stocks To Invest In Right Now: MDC Partners Inc.(MDCA)

Advisors’ Opinion:

  • [By Lisa Levin]

    MDC Partners Inc (NASDAQ: MDCA) shares dropped 60 percent to $3.38. MDC Partners reported a Q3 loss of $0.64 per share on revenue of $349.3 million.

  • [By Lisa Levin]

    Shares of MDC Partners Inc (NASDAQ: MDCA) were down 31 percent to $12.52 after the company posted downbeat quarterly results and lowered its FY16 sales outlook.

Top 10 Undervalued Stocks To Invest In Right Now: Leading Brands Inc(LBIX)

Advisors’ Opinion:

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares dropped 13 percent to $1.99 following Q2 results. Leading Brands posted Q2 EBITDAS of $0.00 per share, compared to $0.09 per share during the same period last year.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares were also up, gaining 145 percent to $3.31 on no formal news from company. The stock rallied 215 percent over Tuesday and Wednesday of this week amid trader speculation stock could be sympathy play on move higher in Helios & Matheson. However, Leading Brands shares sold off 27 percent on Thursday.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares shot up 66 percent to $2.49 following Q1 results. Leading Brands reported Q1 earnings of $0.10 per share on revenue of $3.033 million.

Top 10 Undervalued Stocks To Invest In Right Now: Lexicon Pharmaceuticals, Inc.(LXRX)

Advisors’ Opinion:

  • [By Paul Ausick]

    Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX) dropped about 12.3% Wednesday to post a new 52-week low of $12.93 after closing at $14.74 on Tuesday. The stock’s 52-week high is $19.62. Volume of around 2.8 million was nearly 5 times the daily average. The company had no specific news.

Top 10 Undervalued Stocks To Invest In Right Now: Liquidity Services Inc.(LQDT)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Liquidity Services Inc. (NASDAQ: LQDT) was raised to Buy from Underperform, and the price target was raised up to $45 from $28.50, at Merrill Lynch.

  • [By Roberto Pedone]

    Liquidity Service (LQDT) is an online auction marketplace for surplus and salvage assets. This stock closed up 14.9% at $34.44 in Monday’s trading session.

    Monday’s Volume: 1.60 million

    Three-Month Average Volume: 402,622

    Volume % Change: 336%

    From a technical perspective, LQDT skyrocketed higher here right off its 50-day moving average of $30.94 with strong upside volume. This move briefly saw shares of LQDT trend back above its 200-day moving average at $34.60, before it closed just below that level at $34.44. Shares of LQDT are now quickly moving within range of triggering a big breakout trade. That trade will hit if LQDT manages to take out Monday’s intraday high of $35.21 and then once it clears some more near-term overhead resistance at $35.71 with high volume.

    Traders should now look for long-biased trades in LQDT as long as it’s trending above $32.67 or above $31.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 402,622 shares. If we get that breakout soon, then LQDT will set up to re-test or possibly take out its next major overhead resistance levels at $38 to $40.90.

Top 10 Undervalued Stocks To Invest In Right Now: Zion Oil & Gas Inc(ZN)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Wednesday, energy shares fell by 0.76 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 6 percent, and Zion Oil & Gas, Inc. (NASDAQ: ZN) down 7 percent.

  • [By Lisa Levin]

    Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 20 percent to $5.07.

    Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 12 percent to $19.40. Guggenheim upgraded Spark Energy from Neutral to Buy.

  • [By Lisa Levin]

    Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 47 percent to $6.21.

    Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 10 percent to $19.10. Guggenheim upgraded Spark Energy from Neutral to Buy.

Top 10 Undervalued Stocks To Invest In Right Now: The First of Long Island Corporation(FLIC)

Advisors’ Opinion:

  • [By Dividends4Life]

    The First of Long Island Corporation (FLIC) operates as a bank holding company for The First National Bank of Long Island that provides financial services. Sept. 19, the company increased its quarterly dividend 4% to $0.26 per share. The dividend is payable Oct. 11, 2013 to shareholders of record on October 3, 2013. The yield based on the new payout is 2.7%.

Top 10 Undervalued Stocks To Invest In Right Now: WD-40 Company(WDFC)

Advisors’ Opinion:

  • [By Monica Gerson]

    WD-40 Company (NASDAQ: WDFC) reported better-than-expected earnings for its second quarter, but the company missed analysts’ sales estimates. WD-40 shares fell 0.97 percent to $106.00 in the after-hours trading session.

  • [By Monica Gerson]

    WD-40 Company (NASDAQ: WDFC) is projected to post its quarterly earnings at $0.86 per share on revenue of $99.10 million.

    Hooker Furniture Corporation (NASDAQ: HOFT) is estimated to report its quarterly earnings at $0.40 per share on revenue of $62.20 million.

Top 10 Undervalued Stocks To Invest In Right Now: Del Taco Restaurants, Inc.(TACO)

Advisors’ Opinion:

  • [By Jim Robertson]

    On Tuesday, our Under the Radar Moversnewsletter suggested shorting small cap Mexican restaurant stock Del Taco Restaurants (NASDAQ: TACO):

    The downtrend here is clearly well established, But, it cemented itself in place yesterday and today. On Monday the bulls took a shot, pushing and up and off of the 200-day moving average line (green) after finding support there last week. It was a short-lived effort, setting up a drastic change of heart – the people who regretted not getting out a month ago took the small uptick as a second chance to do so. Only this time, the sellers weren’t so shy. TACO broker under the 200-day moving average that had been support just a week earlier, and did so on higher volume. Today’s bearish follow-through is the clincher.

  • [By WWW.THESTREET.COM]

    Cramer’s game plan starts on Monday, with earnings from Del Taco Restaurants (TACO)  . Despite strong same-store sales last quarter, Cramer said he’s expecting a struggle this quarter.

  • [By Lee Jackson]

    Del Taco Restaurants Inc. (NASDAQ: TACO) had a director at the company selling stock last week. The board member shed a total of 831,314 sharesat between $11.40 and $11.84 apiece. The total for the sale was $10 million. The shares ended the weekat $12.36, in a 52-week range of$8.43 to $15.32. The consensus price target is $17.07.

  • [By Peter Graham]

    Small cap Mexican restaurant stock Del Taco Restaurants (NASDAQ: TACO) reported fiscal Q3 2017 earnings after the market closed on Thursday with earnings meeting Wall Street expectations plus the Company also revised its guidance for fiscal year 2017 on several key metrics. Total revenuerose 6.3% to$111.0 million driven by a 6.1% increase in Company restaurant sales and a 7.9% increase in franchise revenue. Comparable restaurant sales increased 4.1% system-wide for the fiscal third quarter 2017, resulting in a 10.8% increase on a two-year basis. The Del Taco system has now generated comparable restaurant sales growth for 16 consecutive quarters whileCompany-operated comparable restaurant sales increased 3.7% marking the 21st consecutive quarter of comparable restaurant sales growth. Franchise comparable restaurant sales increased 4.6%. Net income was $5.1 million versus$4.9 million. The CEO commented:

Top 10 Undervalued Stocks To Invest In Right Now: Apollo Global Management, LLC(APO)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of Netflix close to all time highsgoing into earnings while potential performance peer or competitor Amazon.com, Inc (NASDAQ: AMZN) has continueda more steadyrise and small cap Outerwall Inc (NASDAQ: OUTR), which owned the Redbox business,got swallowed up Apollo Global Management, LLC (NYSE: APO) late last year:

  • [By Lee Jackson]

    Apollo Global Management LLC (NYSE: APO) had a huge hedge fund once again acquiring shares last week. Tiger Global Management bought 202,100 shares of the private equity giant at prices that ranged from $26.75 to $27.01. The total for the purchase was reported at 5.5 million. The stock close last Friday at $26.10, and the 52-week range for the shares is $14.25 to $27.78. The consensus price target is $30.

  • [By Peter Graham]

    A long term performance chart shows shares of Netflix at all time highswhile potential performance peer or competitor Amazon.com, Inc (NASDAQ: AMZN) has continueda more steadyrise and small cap Outerwall Inc (NASDAQ: OUTR), which owned the Redbox business,was swallowed up Apollo Global Management, LLC (NYSE: APO) late last year:

Top 10 Undervalued Stocks To Invest In Right Now: RetailMeNot, Inc.(SALE)

Advisors’ Opinion:

  • [By Demitrios Kalogeropoulos]

    As for individual stocks, RetailMeNot (NASDAQ:SALE) and SUPERVALU (NYSE:SVU) attracted heavy investor interest following merger and acquisition news.

  • [By Lisa Levin]

    Shares of RetailMeNot Inc (NASDAQ: SALE) got a boost, shooting up 12 percent to $8.42. RetailMeNot announced after Thursday’s close it has entered into an agreement to acquire GiftCard Zen, a secondary marketplace for gift cards. The company reported preliminary Q1 revenue of $54 million to $54.5 million and FY16 revenue of $228 million to $241 million.

Broadcom Ltd (AVGO) President and CEO Hock E Tan Sold $5.2 million of Shares

President and CEO of Broadcom Ltd (NASDAQ:AVGO) Hock E Tan sold 20,000 shares of AVGO on 11/15/2017 at an average price of $260.03 a share. The total sale was $5.2 million.

Broadcom Ltd is engaged in designing, developing and supplying analog and digital semiconductor connectivity solutions. Its product portfolio serves wired infrastructure, wireless communications, enterprise storage and industrial and other end markets. Broadcom Ltd has a market cap of $110.91 billion; its shares were traded at around $271.86 with a P/E ratio of 242.74 and P/S ratio of 7.02. The dividend yield of Broadcom Ltd stocks is 1.48%. Broadcom Ltd had annual average EBITDA growth of 25.30% over the past five years.

CEO Recent Trades:

President and CEO Hock E Tan sold 20,000 shares of AVGO stock on 11/15/2017 at the average price of $260.03. The price of the stock has increased by 4.55% since.

CFO Recent Trades:

VP & CFO Thomas H. Krause sold 2,595 shares of AVGO stock on 11/16/2017 at the average price of $267.34. The price of the stock has increased by 1.69% since.

For the complete insider trading history of AVGO, click here

.

Bubble Dynamics and Market Crashes

To paraphrase one of the great gems of Wall Street wisdom, Nothing infuriates a man more than the sight of other people making money.

Thats a pretty good description of what happens during the late stage of a stock market bubble. The bubble participants are making money (at least on a mark-to-market basis) every day.

Meanwhile, the more patient, prudent investor is stuck on the sidelines allocated to cash or low-risk investments while watching everyone else have fun. This is especially true today when the bubble is not confined to the stock market but includes exotic sideshows like crypto-currencies and Chinese real estate.

It gets even worse when investors are taunted by headlines like the one in a recent article, Investors Can Either Buy Bubbles or Be Left Far Behind. The article is a case study in the Bubblicious Portfolio. Infuriating indeed. Actually it should not be.

On a risk-adjusted basis, the prudent investor is not missing much.

When markets go up 10%, 20% or more in short periods, market participants think of their gains as money in the bank. Yet, thats not true unless you sell and cash out of the market. Few do this because theyre afraid to miss out on continued gains.

The problem comes when the bubble bursts and losses of 30%, 40% or more pile up quickly. Investors tell themselves theyll be smart enough to get out in time, but thats not true either.

Typically investors dont believe the tape. They buy the dips, (which keep dipping lower), then they refuse to sell until they get back to even, which can take ten years. These are predictable behaviors of real investors caught up in real bubbles.

Its better just to diversity, build up a cash reserve, have some gold for catastrophe insurance, and then wait out the bubble crowd. When the crash comes, which it always does, youll be well positioned to shop for high-quality bargains amid the rubble. Then youll participate in the next long upswing without todays risks of a sudden meltdown.

OK, so I just argued that the stock market (and other markets) are in bubbles. But wheres the actual proof for this?

Actually, its everywhere.

The Shiller CAPE ratio (a good indicator of how expensive stocks are) is at levels only seen at the 1929 crash that started the Great Depression, and the 2000 dot.com bubble. Likewise, the market capitalization-to-GDP ratio is above the level of the 2008 panic and comparable to the 1929 crash.

The list goes on, including historically low volatility and unprecedented complacency on the part of investors.

For almost a year, one of the most profitable trading strategies has been to sell volatility. Thats about to change

Since the election of Donald Trump stocks have been a one-way bet. They almost always go up, and have hit record highs day after day. The strategy of selling volatility has been so profitable that promoters tout it to investors as a source of steady, low-risk income.

Nothing could be further from the truth.

Yes, sellers of volatility have made steady profits the past year. But the strategy is extremely risky and you could lose all of your profits in a single bad day.

Think of this strategy as betting your lifes savings on red at a roulette table. If the wheel comes up red, you double your money. But if you keep playing eventually the wheel will come up black and youll lose everything.

Thats what its like to sell volatility. It feels good for a while, but eventually a black swan appears like the black number on the roulette wheel, and the sellers get wiped out. I focus on the shocks and unexpected events that others dont see.

In short, we have been on a volatility holiday. Volatility is historically low and has remained so for an unusually long period of time. The sellers of volatility have been collecting steady income, yet this is really just a winning streak at the volatility casino.

I expect the wheel of fortune to turn and for luck to run out for the sellers.

But its time to add another warning sign to the list. Certain high-yield (or junk bond) indices have fallen below their 200-day moving average. This can be indicative of a stock market correction.

Junk bonds are riskier than equity. When they get in trouble, its a sign that the corporate issuers are having trouble meeting their obligations. That in turn is indicative of reduced revenues or profits, tight financial conditions, and lower earnings.

Panics in October 1987 and December 1994 were preceded by distress in bonds about six months earlier. While there is no deterministic relationship, bonds are a good leading indicator of stocks because they are higher in the capital table and feel distress sooner. The October 1987 one-day 22% decline in stocks, and the December 1994 Tequila Crisis in Mexican debt were ugly for investors. The bond market gave a six-month early warning both times.

It may be doing so again.

But what the Fed? Is it setting markets up for a fall?

Its true that the Fed has been raising interest rates since 2015, and had engaged in tapering for two years before that. Yet, these actions hardly constitute tight money. The tightness or ease of monetary policy needs to be judged relative to financial and economic conditions.

You can have easy money at a 10% interest rate if inflation is running at 15% (something like the conditions of the late 1970s). In that world, the real interest rate is negative 5.0%, (10% 15% = -5%).

In effect, the bank pays you to borrow. Thats easy money.

By most models including the famous Taylor Rule, rates in the U.S. today should be about 2.5% instead of 1.0%. We have easy money today and have had since 2006. This comes on top of the too low, for too long policy of Alan Greenspan from 2002-04, which led directly to the housing bubble and collapse in 2007.

The U.S. really has not had a hard money period since the mid-1990s. Thats true of most of the developed economies also.

Whats going to happen when central banks start to normalize interest rates and balance sheets and return to a true tight money policy in preparation for the next recession?

Were about to find out.

Central banks all over the world including the Fed, ECB, and the Peoples Bank of China are in the early stages of ending their decade-long (or longer) easy money policies. This tightening trend has little to do with inflation (there isnt any) and more to do with deflating asset bubbles and getting ready for a new downturn.

But, in following this policy, central bankers may actually pop the bubbles and cause the downturn they are getting ready to cure. This is one more reason, in addition to those described above, why the stock market bubble is about to implode.

Its important to realize that market crashes often happen not when everyone is worried about them, but when no one is worried about them.

Complacency and overconfidence are good leading indicators of an overvalued market set for a correction or worse.

Regards,

Jim Rickards
forThe Daily Reckoning

stock trading strategies

A leading U.S. lawmaker has a message for Wells Fargo: Quit dodging our questions.

U.S. Senator Sherrod Brown blasted Wells Fargo on Friday for “stonewalling” on questions related to the bank’s creation of as many as 2 million fake accounts.

Wells Fargo’s failure to adequately respond in writing to key questions from lawmakers, according to Brown, explains why “so many hardworking Americans believe the system is rigged against them and in Wall Street’s favor.”

For instance, Wells Fargo (WFC) has yet to tell the Senate Banking Committee precisely when former CEO John Stumpf first learned of the illegal sales activity.

Brown said he will “do everything in my power” to make sure the Senate Banking Committee keeps pushing to “get to the bottom” of the Wells Fargo scandal.

In response to Brown’s criticism, Wells Fargo told CNNMoney: “We appreciate the role of Congress and we will continue our efforts to be responsive to lawmakers.”

Wells Fargo noted it has worked to fix problems uncovered by the scandal, including by eliminating controversial sales goals and hiring new leadership.

stock trading strategies: Cimpress N.V(CMPR)

Advisors’ Opinion:

  • [By Steve Symington]

    Shares ofCimpress NV(NASDAQ:CMPR)climbed 14.6% in 2016,according to data from S&P Global Market Intelligence, as the mass customization specialist steadfastly pursued its novel long-term efforts to generate shareholder value.

stock trading strategies: MGC Diagnostics Corporation(MGCD)

Advisors’ Opinion:

  • [By Monica Gerson]

    MGC Diagnostics Corp (NASDAQ: MGCD) is projected to post earnings for the latest quarter.

    Lands’ End, Inc. (NASDAQ: LE) is estimated to report its quarterly earnings at $0.02 per share on revenue of $293.24 million.

stock trading strategies: Heartware International, Inc.(HTWR)

Advisors’ Opinion:

  • [By Spencer Israel]

    4. HeartWare International Inc (NASDAQ: HTWR) – The heart device maker agreed to be acquired by Medtronic for $58 per share in cash two weeks ago. Prior to that the stock had been trading just above $30. 

stock trading strategies: Digital Ally Inc.(DGLY)

Advisors’ Opinion:

  • [By Lisa Levin]

    Digital Ally, Inc. (NASDAQ: DGLY) shares shot up 33 percent to $4.20 after the company reported “significant victory” in its legal battle with Axon Enterprise Inc (NASDAQ: AAXN). The U.S. Patent and Trademark Office (PTO) denied Axon’s petition for inter partes review (IPR) of Digital Ally’s ‘452 patent, one of four IPRs Axon submitted in an attempt to invalidate Digital Ally’s lawsuit. Axon received a favorable PTO ruling on the ‘292 patent, the original point of dispute, in June.

  • [By Wayne Duggan]

    Aggressive military and law enforcement spending could be good news for Northrop Grumman Corporation (NYSE: NOC), United Technologies Corporation (NYSE: UTX), Lockheed Martin Corporation (NYSE: LMT), TASER International, Inc. (NASDAQ: TASR) and Digital Ally, Inc. (NASDAQ: DGLY).

  • [By Lisa Levin]

    Digital Ally, Inc. (NASDAQ: DGLY) shares shot up 35 percent to $4.25 after the company reported “significant victory” in its legal battle with Axon Enterprise Inc (NASDAQ: AAXN). The U.S. Patent and Trademark Office (PTO) denied Axon’s petition for inter partes review (IPR) of Digital Ally’s ‘452 patent, one of four IPRs Axon submitted in an attempt to invalidate Digital Ally’s lawsuit. Axon received a favorable PTO ruling on the ‘292 patent, the original point of dispute, in June.

  • [By Peter Graham]

    Small cap police body cam stockDigital Ally, Inc (NASDAQ: DGLY) reported Q1 2017 earnings before the market opened today. Total Q1 revenue increased 19% to approximately $5.2 million primarily due to the large commercial order received in the first quarter 2017 from AMR for DVM-250 event recorders with FleetVU and asset tracking service. The AMR contract was for 1,550 DVM-250 systems as well as FleetVU manager cloud storage and system implementation, most of which were delivered in first quarter 2017 and had a positive impact on revenues. The net loss was $2,032,955 versus a net loss of $2,313,125.

stock trading strategies: CareTrust REIT, Inc.(CTRE)

Advisors’ Opinion:

  • [By Monica Gerson]

    Caretrust REIT Inc (NASDAQ: CTRE) is estimated to post its quarterly earnings at $0.26 per share on revenue of $22.21 million.

    China Lodging Group, Ltd (ADR) (NASDAQ: HTHT) is projected to post its quarterly earnings at $0.41 per share on revenue of $1.39 billion.

Top Oil Stocks To Watch For 2018

October Sugar is trading at 20.85, up 0.50 cents/lb. March Sugar is trading at 21.20, up 0.49 cents/lb.

Sugar futures have extended the early session gains.

Market chatter about weather for Brazil’s sugar harvest and India’s sugar production has kept buyers active.

Some talk about producer selling at levels just above current prices Is starting to show up.

In other New York Soft commodities;
September Coffee is trading at 143.60, up 1.10 cents/lb.
September Cocoa is trading at 3027, up 6 $/MT,
December Cotton is trading at 76.24, down 0.50 cents/lb.
November Orange Juice is trading at 186.50, up 2.65 cents/lb.

Posted-In: Sugar futuresFutures Commodities Markets

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

 
Related Articles Set Your Calendar, Oil Investors: OPEC Confirms A Meeting Set For September

Top Oil Stocks To Watch For 2018: Transocean Inc.(RIG)

Advisors’ Opinion:

  • [By Paul Ausick]

    Transocean Ltd. (NYSE: RIG) dropped about 6.3% Wednesday to post a new 52-week low of $8.68 after closing Tuesday at $9.26. The 52-week high is $6.96. Volume rose to about 50% more than the daily average of about 12 million shares. The company had no specific news, but consolidation in the offshore drilling business is not a positive for Transocean or any other driller still standing by itself.

  • [By Jon C. Ogg]

    Transocean Ltd. (NYSE: RIG) was last seen trading up 17.1% at $12.91. Its volume of more than 42 million shares equated to right at 3 times normal volume. Transocean has a consensus analyst price target of $9.72 and a 52-week trading range of $7.67 to $14.50. The company has a total market cap of $4.7 billion.

  • [By Paul Ausick]

    Transocean Ltd. (NYSE: RIG) dropped about 5.4% Wednesday to post a new 52-week low of $7.48 after closing at $7.91 on Tuesday. The stock’s 52-week high is $16.66. Volume of more than 20 million was about a third higher than the daily average of about 16 million. The company announced Tuesday that it had agreed to buy Norwegian firm Songa Offshore for $3.4 billion, including $2.3 billion in Songa’s debt. Investors don’t like the deal.

Top Oil Stocks To Watch For 2018: Whiting Petroleum Corporation(WLL)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Monday, energy shares were relative laggards, down on the day by about 0.67 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 5 percent, and Gulfport Energy Corporation (NASDAQ: GPOR) down 6 percent.

  • [By Lisa Levin]

    In trading on Wednesday, energy shares fell by 1.43 percent. Meanwhile, top losers in the sector included Westmoreland Coal Company (NYSE: WLB), down 9 percent, and Whiting Petroleum Corp (NYSE: WLL), down 7 percent.

  • [By Jon C. Ogg]

    Whiting Petroleum Corporation (NYSE: WLL) saw its shares rocket up by 30.2% to $12.21 on 79.5 million shares on Wednesday. That represents almost 4 times normal trading volume. Whiting Petroleum has a total market cap of $3.5 billion. The company has a consensus analyst price target of $11.39 and a 52-week trading range of $3.35 to $16.62.

  • [By Lisa Levin]

    In trading on Friday, energy shares fell 1.02 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 8 percent, and Calumet Specialty Products Partners, L.P (NASDAQ: CLMT) down 7 percent.

  • [By Ben Levisohn]

    Whiting Petroleum (WLL) has gained 2.9% to $8.30 after reporting a smaller-than-expected loss.

    Weight Watchers International (WTW) has jumped 7.9% to $21.75 after hiring HSN’sMindy Grossman as its new CEO.

Top Oil Stocks To Watch For 2018: Crescent Point Energy Corp (16)

Advisors’ Opinion:

  • [By Kana Nishizawa]

    China Coal Energy Co., the countrys second-largest producer of the fuel, sank 3.1 percent after the government said it will cut coal consumption. Sun Hung Kai Properties Ltd. (16), the worlds second-biggest developer, fell 1.4 percent after trimming its sales target. Gold producers led materials companies lower as the precious metal headed for its steepest weekly loss since June amid expectations the U.S. Federal Open Market Committee will next week decide to reduce stimulus.

Top Oil Stocks To Watch For 2018: ONEOK Partners L.P.(OKS)

Advisors’ Opinion:

  • [By Garrett Cook]

    Citi maintains Buy ratings on Targa Resources (NYSE: TRGP), ONEOK (NYSE: OKE) and Oneok Partners (NYSE: OKS) citing the companies stories around natural gas liquids (NGLs).

  • [By Matthew DiLallo]

    Energy infrastructure companies ONEOK (NYSE:OKE) and TransCanada (NYSE:TRP) are both emerging from the energy market downturn as stronger entities. Each made smart acquisitions, with TransCanada buying U.S. gas pipeline company Columbia Pipeline Group, while ONEOK is in the process of gobbling up its MLP,ONEOK Partners (NYSE:OKS). While these deals enhanced the growth profiles of both companies, TransCanada still stands out as the better buy for long-term income investors. Here’s why.

Top Oil Stocks To Watch For 2018: Talisman Energy Inc.(TLM)

Advisors’ Opinion:

  • [By Jayson Derrick]

    On the other hand, the analysts are Underweight on Eni SpA (ADR) (NYSE: E), Repsol Oil & Gas Canada Inc (USA) (NYSE: TLM) and OMV AG given their asset bases, which offer an inferior risk to reward profile and limited differentiation in cost reductions.