Recent News and Stock Analysis
Impressive increase of AMD (NASDAQ:AMD) since I Know First bullish article
Underscoring AMD’s troubles, Moody’s on Tuesday cut its corporate family rating on AMD to Caa1 from B3, signaling a very high credit risk. It pointed to the company’s negative free-cash flow and operating losses in its PC-related business.
Despite Moody’s rating cut, a strong two-day rebound in AMD shares from all-time: AMD’s stock was up 10.7 percent at $1.96 on Wednesday, adding to a 9 percent gain the day before, with no obvious catalyst driving the rebound.
Starting in the second half of the year, the stock should start rising solidly, as the company returns to profitability increases its market share in high-growth areas. I Know First Research published a bullish article on AMD for the long-term time horizon, believing the stock price will rebound in the second half of the year and continue climbing from there.
Ford Motor delivered quarterly earnings that topped analysts’ expectations on Tuesday, based on the continued strength of North American sales, led by its popular F-150 pickup truck.
- The second largest U.S. automaker posted second-quarter earnings of 47 cents per share, up from 40 cents a share in the year-earlier period.
- Revenue rose to $37.3 billion from $35.37 billion a year ago.
Ford Motor Co. (NYSE:F) has struggled along with the rest of the automobile industry so far this year, falling 12% since the beginning of March. The company has just published its report for the second quarter earnings, and it is a good time for investors to consider adding this stock to their long-term portfolios. The main points that investors should look is the company’s progress in China gaining market share, its profitability in the European market, and the outlook going forward for the new, aluminum-bodies F-150.
Gilead Sciences (NASDAQ:GILD)
Second-quarter product sales came in at $8.1 billion versus $6.4 billion the prior-year quarter, with the increase largely attributable to better-than-expected sales of the new Harvoni drug for the treatment of Hepatitis C.
Roughly 54% of GILD stock revenues showed up in the bottom line, with net income coming in at $4.5 billion vs. $3.7 billion from the prior-year quarter.
According to I Know First Research, long-term investors should continue adding this stock at current prices. The recent pullback is a prime investing opportunity, as this stock is the most attractive option in not only the biotech sector, but quite possible of any stock on the market. The recent news that Harvoni was approved in Japan offers plenty of extra room for revenue growth, and the market in the US is far from drying out. Along with the new TFA drug trials for HIV patients and the potential for an acquisition to bolster its oncology offerings, there is plenty to be excited about moving forward.
Cliffs Natural resources (NYSE:CLF)
On July 28th, 2015, The I Know First algorithm gave a bullish signal of 11.27 for the ticker CLF (Cliffs Natural Resources), which had a strong predictability indicator of 0.26. In accordance with the algorithm’s prediction, Cliffs Natural Resources spiked 23.75% on trading day July 28th.
While the entire mining industry is suffering from lower iron ore prices, Cliffs Natural Resources, because of all its travails, has been underperforming its industry peers. Cliffs’ stock price has fallen far below its historical range relative to the global spot price of iron ore despite Cliffs’ meaningful steps to prepare for lower iron ore prices by signing long-term contracts and idling high cost Canadian mines. In accordance with I Know First’s algorithm, Cliffs has much room to rebound, ranking Cliffs as one of its top investments for both the medium and long-term time horizons.
Not as Bad as It Seems: Cliffs does face many real problems, but nearly all of these problems have already been factored into its stock price. In March, Citigroup’s analyst Clarke Wilkins said that “$US80 a tonne iron ore has already been priced in.” Additionally, while many analysts were initially concerned by Casablanca Capital’s activist role in the company, it now seems that Casablanca is proposing positive changes that will give shareholders more value for their equity.
There are also many factors that have put Cliffs in a good position for the upcoming years. Cliffs has established long-term contracts with large steelmakers such as ArcelorMittal to ensure a steady stream of income in the near future to hedge against the expected volatile iron prices on the spot market. The American economy is also expected to grow at a faster relative pace than the Chinese economy; thus American steel foundries are likely to have a greater relative demand for iron ore and Cliffs’ North American iron ore operations are perfectly situated to serve them..