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UBS lists six stocks with positive catalysts coming soon

  • The derivatives research team at UBS lists six companies on which investors should not use an option strategy, as it expects near-term catalysts to drive the stocks higher.
  • Abercrombie & Fitch (NYSE:ANF): UBS cites continuing share repurchases, leaner inventory and improving fashion offerings as possible catalysts.
  • Air Products (NYSE:APD): Don't overwrite or hedge the stock for 60 days, UBS says, as it sees activist investors becoming more aggressive in the name over the next two months.
  • PetSmart (NASDAQ:PETM): Activist pressure to unlock value has stepped up, and the company is talking with Wall Street banks for possible strategies.
  • Tesla (NASDAQ:TSLA): The UBS team says the possibility of a Gigafactory announcement could boost the stock, which has long been volatile.
  • Teva Pharma (NYSE:TEVA): It is well positioned to take advantage of the high number of branded drugs going off-patent in coming years, and there's no way UBS is hedging the stock with M&A rampant in the sector.
  • Weyerhaeuser (NYSE:WY): UBS expects volatility after it completes a corporate structural change, and an expected capital allocation announcement could prove to be a catalyst.
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Comments (13)
  • David at Imperial Beach
    , contributor
    Comments (4267) | Send Message
     
    Japanese media have been reporting that Panasonic is ready to sign on the dotted line for their share of Gigafactory 1 by the end of the month. However, they've also been reporting that the initial investment from Panasonic will be well below the $3B required to complete the project, so it remains to be seen how positive the news really is. My own supposition is that Panasonic wants an exclusive and will be willing to pony up an amount commensurate with that status. I note that Musk was expecting other partners to come on board, but there have thus far been no such announcements, leading me to believe that Panasonic is negotiating for an exclusive. News reporters are notorious for getting details wildly inaccurate and they could very easily have dropped a zero along the way. They were quoting 20 billion yen when 200 billion yen would be more appropriate for a "core participant" on a 510 billion yen project.
    19 Jul, 12:28 AM Reply Like
  • slevental
    , contributor
    Comments (269) | Send Message
     
    David, The problem with Panasonic is clear and they have said it almost explicitly. They lost huge amount of money on bad investment in Plasma TV. It almost destroyed them. So now they want to see a proof of demand before they go to another adventure of this type that some would argue that is much more riskier than TV. But a real proof of demand is hard to give now as Tesla model 3 doesn't exist yet ...
    19 Jul, 12:07 PM Reply Like
  • surferbroadband
    , contributor
    Comments (1808) | Send Message
     
    With Panasonic, then simply need to understand the American mindset. 2 oil shocks in the 70's, price of gasoline is lower than other places in world ( almost the lowest in the world ) and people want to travel with their vehicles.

     

    When the Gen 3 is being cranked out they will see demand, and the batteries will need to be available, but they are scared. Wanting to be an exclusive partner put them in a position to be the only princess at the ball, with no one else in the ballroom.

     

    I understand Panasonic getting burned by plasma TV's but this is a little different. Demand is there, and the demand is increasing. Get in the action and take a big chunk. Do it now Panasonic.
    19 Jul, 01:58 PM Reply Like
  • june1234
    , contributor
    Comments (2641) | Send Message
     
    13 marked first time online book sales exceeded retail bookstore ones. Petsmart is not immune to that trend online Pet360 is an SA advertiser
    19 Jul, 09:00 AM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (1903) | Send Message
     
    David, you really refuse to believe that the 20 billon number is right. Typical bull refuses to believe the truth. Panasonic's yearly profits are less than 200 billion and you expect them to gamble on a dream Musk has. Not so? Panasonic is not going to go there. The partnership was supposed to be announced in January but now they say the end of the year.
    19 Jul, 09:06 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Buy (NYSE:ANF) going into Christmas season. Santa always delivers.
    19 Jul, 09:57 AM Reply Like
  • SharkDude
    , contributor
    Comments (639) | Send Message
     
    Possibility of Gigafactory announcement? Are you kidding. There have been numerous announcements. What we do know it will cost billions. Not be built for years. And possibly be obsolete by the time they are cranking out batteries.
    19 Jul, 01:00 PM Reply Like
  • hughesrd
    , contributor
    Comments (150) | Send Message
     
    This is sheer speculation, but.... Musk/Strauble? has(have) said there is nothing particularly vulnerable about the round form factor for the batteries. The chemistry might change, the material might change, the electrolyte might change, but I can't imagine why that would change the manufacturing process, unless a chemical change becomes much more toxic, etc. That change would also affect other manufacturers, however.

     

    Panasonic knows that nothing is certain in life. In that sense, each day is a speculation. But then I am old; each day might be my last.
    19 Jul, 01:25 PM Reply Like
  • surferbroadband
    , contributor
    Comments (1808) | Send Message
     
    @hughesrd

     

    That was poetic. You should be a writer.
    19 Jul, 02:00 PM Reply Like
  • hughesrd
    , contributor
    Comments (150) | Send Message
     
    We're all poetic about our death.
    20 Jul, 03:47 PM Reply Like
  • surferbroadband
    , contributor
    Comments (1808) | Send Message
     
    Why is the first commenter one of the "Totally Tesla" people.

     

    This is a variation of OD on OJ from the 90's. People were so into the OJ Simpson trial during the 90's that their life was OJ.

     

    With OJ it was guilty or not-guilty.

     

    With Tesla it is long or short.

     

    Me long.
    19 Jul, 01:40 PM Reply Like
  • jayemel
    , contributor
    Comments (16) | Send Message
     
    Surferbb -- D@IB is simply looking to make a real killing
    20 Jul, 12:00 PM Reply Like
  • I need a bailout
    , contributor
    Comments (1571) | Send Message
     
    Tesla Model S Reliability - declining to below average

     

    If the Model S quality rating slips any further there may be no need to worry about the Giggle-Factory.

     

    "But the real question is why has the Model S fallen from a solid red dot to half a black dot in just one model year? Overall its reliability score is average but trending downward."

     

    Usually new cars improve with later model years. The Model S, however, is an anomaly with warranty provisions tripling in Q1 2014.

     

    http://bit.ly/1lizSwb

     

    For 2012, its first year on the market, the Model S earned Consumer Reports’ highest score: a big red dot. However, that figure dropped to below average in 2013 with owners reporting more problems. However, its overall predicted reliability — a combined score from the 2012 and 2013 model years — is average.

     

    “Typically cars do get better with subsequent model years,” Fisher said. When a new vehicle is introduced it generally has the most problems in its first year, then as time goes on the automaker sorts out various issues and quality improves. The situation with Tesla’s Model S is unusual, but he also said “it’s not completely out of the ordinary.”
    21 Jul, 01:39 PM Reply Like
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