Barrons Summary: Positive on airlines, MRK, AMBA, RIG; cautious on OPK, FIT, UA
Cover story: Expose on the airline industry sees a further upside of up to 50% in some airline shares due to consolidation and other favorable trends. Cost cutting and increased prices have led to higher profits yet valuations are still depressed. Positive on AAL, DAL, LUV, and UAL
Features: Positive on Merck given its recent spate of positive data on new treatments. Sees potential for its new drugs to become blockbusters and replace the revenue lost by other drugs moving into patent expiration.
Positive on Nintendo following its recent foray into new product lines that reduce its reliance on video games. Moving into smartphones and the theme park space may lead to upside in its share price.
Cautious on the OPK-BRLI merger as both companies suffer problems. Shares of the combined company may not fare much better.
Tech Trader: Negative on prospects for recent IPO FIT as it is under threat from much competition and its other product lines are not profitable. Could end up being a takeover target however. Positive on AMBA assuming one feels as though GPRO will continue to be a success going forward given that it uses AMBA's tech. TXN could be undervalued as a stock vs its competitors given the focus on M&A activity in the space.
Trader: Positive on RIG's potential going forward as it currently is priced for extreme pessimism. The stocks valuation may protect it from further downside and allow better upside as the oil market stabilizes and a more normal drilling market resumes.
European Trader: Discusses the recent trials and tribulations for Adidas. After trading down significantly on profit warnings, the stock has recovered well in recent months. Its low valuation, strong capital return program and similar growth trajectory among peers place it in a strong position despite its loss in market share in North America. Risks to the stock include the FIFA scandal and european sentiment.
Asian Trader: Recommends seeking out large China technology firms that have assets that could be valued properly in the China stock markets.
Emerging Markets: Cautious on Russia as problems in Ukraine are still a possible risk factor for Russia markets even despite the recovery in crude oil prices.
Commodities: Sees potential for Nickel prices to decline further. There appears to be excess supply in the market with lacking demand. China has scaled back its purchases following the scrutiny on its use as collateral in financing deals.
Streetwise: Cautious on UA's recent decision to pursue separate share classes of stock. The move appears designed to make sure that found Plank gets to maintain control over the company while only owning 16% of shares.