Early premarket gappers
- Gapping up:
- OCX +11.9%, OSUR +7.3%, LCTX +6.7%, APT +4.7%, BLD +4.4%, GLPG +3.8%, KMI +3.1%, PLXS +2.6%, FBC +1.4%, CMRX +1.3%, HWC +1.3%, WU +1.1%, FTOC +1.1%, MTB +0.7%, MTB +0.7%, AQB +0.6%, DVAX +0.6%, SPNE +0.5%, TFC +0.5%
- Gapping down:
- AWH -7.9%, CTMX -5.6%, INO -5.2%, VNET -5.2%, ORC -3.1%, ONCS -3%, TAL -2.3%, SI -2.2%, UAL -2.1%, DFS -1.7%, EDIT -1.3%, NVTA -1.2%, DCBO -1.2%, ATHA -1.1%, AA -1.1%, WTFC -1.1%, CYRX -0.9%, NEXT -0.8%
This is nuts, where are the profits?
Once again, the market is doing that thing.
It’s not often you come across a chart that makes you immediately spit your peppermint tea out, copy and paste the link, and send it to all your finance banter WhatsApp groups (soon to be Signal, obvs).
So it is with great pleasure that we present to you the below from Jim Bianco of Bianco Research.
It shows a Goldman Sachs constructed index of non-profitable US listed firms, and it’s fair to say that after a few years of trundling sideways these companies’ share prices have done rather well since the Covid crash.
And if you’re wondering about the constituents, here’s a breakdown off Twitter, courtesy of account @elasticretreat.
Now there are two ways to frame this chart.
One is that the stock market has totally lost its marbles, and in a bid to make as much money in as little time as possible has decided to become one giant momentum trade which consumes ever more of itself as it feeds itself. Plausible sure, but a bit simplistic for our tastes.
The second take is that a lot of these companies -- such as Cloudflare, MongoDB and Roku -- are high growth, high-gross margin companies which should be re-investing all of their revenues back into the business to achieve scale. In fact, if they were making profits, it would be an admission that their end markets aren’t as big, or as lucrative, as once thought.
The reality is, both are true. Chinese electric car company Nio and hydrogen fuel cell business Plug Power have clearly become wild vehicles for speculative activity (they’re both in our EV Bubble spreadsheet), while Spotify has solid prospects to become the outright winner in digital audio. And, to get there, it needs to invest in line items such as research and development and whizz-kid coders.
It does leave a question though: when a few of these more spivvy names crack -- will it take the decent companies with them? To be honest, we don’t have a clue.
>>> Up
* Ashtead Raised to Buy at Deutsche Bank; PT 4,100 pence
* BASF Raised to Buy at M.M. Warburg; PT 77 euros (+)
* Carlsberg Raised to Buy at ABG; PT 1,100 kroner
* HighCo Raised to Buy at Oddo BHF (+)
* NENT Raised to Buy at Nordea (+)
* Odfjell Drilling Raised to Buy at ABG; PT 30 kroner
* Palfinger Raised to Accumulate at Erste Group; PT 34.10 euros
* Renault Raised to Hold at Jefferies; PT 37 euros
* Renault Raised to Hold at Jefferies; PT 37 euros
* Richemont Raised to Market Perform at ZKB
* Richter PT Raised to 10,000 forint at Jefferies
* Rotork Raised to Overweight at Barclays; PT 375 pence
* Sainsbury Raised to Hold at Berenberg; PT 214 pence
* Voestalpine Raised to Accumulate at Erste Group; PT 36.50 euros
>>> Down
>>> Down
* AB InBev Cut to Sell at SocGen; PT 50 euros
* Ambu Cut to Sell at ABG; PT 197 kroner
* Ambu Cut to Hold at SEB Equities; PT 270 kroner
* Ambu Cut to Hold at SEB Equities; PT 270 kroner
* Equinor Cut to Hold at Grupo Santander; PT 190 kroner
* Hiscox Cut to Hold at Jefferies; PT 1,000 pence
* Lundin Energy Cut to Hold at ABG; PT 260 kronor
* Piippo Cut to Sell at Inderes; PT 3 euros
* Royal Unibrew Cut to Hold at ABG; PT 650 kroner
* Soprano Cut to Sell at Inderes; PT 30 euro cents
* Wartsila Cut to Reduce at Inderes; PT 9.40 euros
>>> Initiation
>>> Initiation
* AJ Bell New Business Flows ‘Well Ahead’ of Consensus: Jefferies (+)
* Autoneum Up in Pre-Market, ZKB Says Guidance ‘Very Good News’ (+)
* BP Reinstated Hold at Jefferies; PT 270 pence
* BP ADRs Reinstated Hold at Jefferies; PT $20.80
* Eni Reinstated Hold at Jefferies; PT 8.60 euros
* Entain PLC Resumed Overweight at Morgan Stanley; PT 1,500 pence
* Galp Reinstated Hold at Jefferies; PT 9.20 euros
* Equinor Reinstated Buy at Jefferies; PT 190 kroner
* Moncler Rated New Buy at Oddo BHF; PT 56 euros
* Neste Reinstated Hold at Jefferies; PT 62.10 euros
* OMV Reinstated Buy at Jefferies; PT 46.50 euros
* Ontex Cut to Sell at Goldman; PT 8.50 euros
* Repsol Reinstated Hold at Jefferies; PT 9.10 euros
* Shell Reinstated Buy at Jefferies; PT 1,780 pence
* Shell ADRs Reinstated Buy at Jefferies; PT $45.70
* Skitude Holding Rated New Buy at Arctic Securities; PT 14 kroner
* Skitude Holding Rated New Buy at Arctic Securities; PT 14 kroner
* Total SE Reinstated Buy at Jefferies; PT 42 euros
* Ubisoft Rated New Buy at HSBC; PT 100 euros
>>> Call
>>> Call
* Asos, Ocado in Berenberg’s U.K. Consumer Picks; Sainsbury Raised
* Equinor, Total, OMV, Shell Reinstated as Buy at Jefferies
* Equinor, Total, OMV, Shell Reinstated as Buy at Jefferies
* Ferragamo Board Changes Could Be Far-Reaching, Jefferies Says (+)
* Renault Upgraded at Jefferies, Goals Sound But Unimaginative
* Richter Women’s Health Line Underappreciated, Jefferies Says
* Sage Update Shows ‘Strong’ Start to 2021, Jefferies Says (+)
- Nokia (NOA3 TH) +1.5%
- Just Eat Takeaway (T5W TH) +1.3%
-
NEL (D7G TH) +1.3%
- Nel Sees Ebitda Loss in 2021, Targets $1.5/kg Hydrogen Cost 2025
- Air Liquide (AIL TH) +1.1%
-
Galapagos (GXE TH) +1.1%
- Galapagos: U.K.’s NICE Recommends Jyseleca on NHS
-
Renault (RNL TH) +1.1%
- Renault 2023-25 Turnaround Plan Prioritizes EV But Lacks Spark
- LVMH (MOH TH) +1%
- Vodafone (VODI TH) +0.9%
- Varta (VAR1 TH) +0.9%
- AB InBev (1NBA TH) -1.1%
- Rational (RAA TH) -1.3%
- CD Projekt (7CD TH) -2.2%
DAX:
- Deutsche Bank (DBK TH) +1.4%
- Fresenius SE (FRE TH) +1.3%
- HeidelbergCement (HEI TH) +1%
MDAX:
- HelloFresh (HFG TH) +1.7%
- Aareal Bank (ARL TH) +1.5%
- K+S (SDF TH) +1.2%
- Varta (VAR1 TH) +1.1%
- Hugo Boss (BOSS TH) +1.1%
SDAX:
- Eckert & Ziegler Strahlen- und Medizintechnik AG (EUZ TH) +2%
- Befesa (BFSA TH) +1.7%
- Dermapharm (DMP TH) +1.3%
- Schaeffler (SHA TH) +1.3%
- Hensoldt AG (HAG TH) +1.3%
- LPKF (LPK TH) -0.7%
Stocks climbed to another all-time high Thursday and U.S. and European equity futures rose on optimism that fiscal spending will revive economic growth and bolster corporate earnings. The dollar weakened.
Asian shares rose for a third session as Chinese stocks outperformed and Hong Kong’s Hang Seng index hit 30,000 points for the first time since May 2019. S&P 500 futures edged higher after the index posted its best first-day reaction to a presidential inauguration since at least 1937. The tech-heavy Nasdaq 100 Index jumped more than 2%. Netflix Inc. was among companies that gained on solid results. Treasuries were little changed.
In China, the nation’s three biggest telecommunications firms said they requested a review of the New York Stock Exchange’s decision to delist their shares. Separately, Twitter Inc. locked the official account of the Chinese embassy to the U.S., citing a violation of its “dehumanization” policy.
Elsewhere, oil dipped as concerns over lackluster consumption amid the pandemic crept back in. The yen was steady after the Bank of Japan kept its main policy settings unchanged. The Australian dollar advanced as the nation’s unemployment rate dropped.
US After Hours President Biden signs multiple executive orders; AA -2.5%, UAL -2.4% trade lower on earnings; KMI +3.1%, PLXS +2.2% tick higher on earnings
Nikkei +0.82% Hang Seng -0.59% CSI +1.53% Shanghai +0.98% Shenzen +1.50%
Eur$ 1.2131 CNH 6.4593 CNY 6.402 JPY 103.40 GBP 1.3703 CHF 0.8887 RUB 73.2405 TRY 7.4072 WTI$ 53.21 -0.15%
S&P +0.24% Nasdaq +0.947 EuroStoxx +0.36% FTSE +0.39% Dax +0.39% SMI +0.28%
Macro :
- China Telcos Seek Reviews of NYSE Delisting
- U.K. Suffers Deadliest Day With Some Hospitals ‘Like a War Zone’
- Biden Team Sees Virus Vow at Risk on New Strain, Vaccine Stumble
- Italy’s Embattled Conte Readies $39 Billion in New Stimulus (2)
Keep an eye on :
- AGFB BB : Agfa Plans to Reorganize Offset Solutions to Boost Profitability
- AF FP : Air France Still Expects Recovery in Spring, CEO Tells Tribune
- AKERBP NO : Aker BP 4Q Output Rises to 223,100 boepd, Sees $55m Impairment
- AUTN SW : Autoneum FY Sales CHF1.74B Vs. CHF2.30B Y/y
- AZA SS : Avanza 4Q Net Income Beats Estimates
- BMPS IM : Paschi Struggles to Lure Potential Buyers to Data Room: Reuters
- BEAN SW : Belimo FY Sales Miss Estimates
- BKW SW : BKW Says Chairman Urs Gasche to Step Down
- CAI AV : Aggregate Confirms It’s Considering Purchase of CA Immo Stake
- CA FP : Challenges Article attached
- CLNX SM : Cellnex, Deutsche Telekom Close to Pact for Towers: Confidencial
- CDA FP : French Minister Warns Ski Lifts May Remain Closed All Season
- AM FP : Challenges Article attached
- GALE SW : Galenica FY Sales Beat Estimates
- GET FP : Getlink 2020 Rev. EU816M, Est. EU805M
- SFER IM : Ferragamo Parent Hires Firm to Propose Ferragamo Board Members
- IBAB BB : Ion Beam Sees Positive Rebit, Net Result for FY 2020
- GHC IM : Garofalo, Founding Family to Sell 12.7m Shares: Terms
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Fell 17% in December
- BAER SW : Finma to Initiate Proceedings Against One Julius Baer Person
- MRNA US : California: OK to Use Moderna Vaccine After Illness Reports
- MYT NA : *MYT NETHERLANDS PRICES 15.6M ADS AT $26 EACH: IPO BOUTIQUE
- MYTE US : Mytheresa IPO Priced at $26.00 Per ADS
- NEL NO : Nel Sees Ebitda Loss in 2021, Targets $1.5/kg Hydrogen Cost 2025
- NORGOLD IPO : Nordgold Is Said to Pick Citi, JPMorgan, MS for London IPO
- QDT FP : Quadient to Book ~EU19M Non Cash Non-Current Charges In 2020
- RLF SW : Relief to Sell Up to CHF50m in Shares to Main Shareholder
- RNO FP : Renault in Talks With LG, Verkor to Build Battery Plant: Echos
- ROG SW : Genentech’s Esbriet for UILD Treatment Gets FDA Priority Review
- AM3D GY : SLM Solutions Names Sam O’Leary CEO as Meddah Hadjar Resigns
- SPK SM : Santander, SocGen Announce Placement of Solarpack Shares, Sell 4.12m Shares at EU24.50-Shr
- SOI FP ; SOITEC 3Q Like-for-like Sales +14.7%
- SEV FP : Challenges Article attached
- SUS SS : Surgical Science Sweden Offering Prices 3.28m Shrs SEK98.30/Shr
- TIT IM : Telecom Italia Confirms Starting Discussions on Board Renewal
- ULVR LN : Unilever Plans Tenfold Spending Increase With Minority Suppliers
- VAC FP : French Minister Warns Ski Lifts May Remain Closed All Season
- VRLA FP : French Bottle Maker Verallia to Cut C02 Emissions 27.5% by 2030
- ROSE SW : Zur Rose FY Sales CHF1.48B Vs. CHF1.36B Y/y
>>> Up
* Ashtead Raised to Buy at Deutsche Bank; PT 4,100 pence
* Carlsberg Raised to Buy at ABG; PT 1,100 kroner
* Odfjell Drilling Raised to Buy at ABG; PT 30 kroner
* Palfinger Raised to Accumulate at Erste Group; PT 34.10 euros
* Renault Raised to Hold at Jefferies; PT 37 euros
* Renault Raised to Hold at Jefferies; PT 37 euros
* Richter PT Raised to 10,000 forint at Jefferies
* Rotork Raised to Overweight at Barclays; PT 375 pence
* Sainsbury Raised to Hold at Berenberg; PT 214 pence
* Voestalpine Raised to Accumulate at Erste Group; PT 36.50 euros
>>> Down
>>> Down
* AB InBev Cut to Sell at SocGen; PT 50 euros
* Ambu Cut to Sell at ABG; PT 197 kroner
* Ambu Cut to Hold at SEB Equities; PT 270 kroner
* Ambu Cut to Hold at SEB Equities; PT 270 kroner
* Equinor Cut to Hold at Grupo Santander; PT 190 kroner
* Hiscox Cut to Hold at Jefferies; PT 1,000 pence
* Lundin Energy Cut to Hold at ABG; PT 260 kronor
* Piippo Cut to Sell at Inderes; PT 3 euros
* Royal Unibrew Cut to Hold at ABG; PT 650 kroner
* Soprano Cut to Sell at Inderes; PT 30 euro cents
* Wartsila Cut to Reduce at Inderes; PT 9.40 euros
>>> Initiation
>>> Initiation
* BP Reinstated Hold at Jefferies; PT 270 pence
* BP ADRs Reinstated Hold at Jefferies; PT $20.80
* Eni Reinstated Hold at Jefferies; PT 8.60 euros
* Galp Reinstated Hold at Jefferies; PT 9.20 euros
* Equinor Reinstated Buy at Jefferies; PT 190 kroner
* Moncler Rated New Buy at Oddo BHF; PT 56 euros
* Neste Reinstated Hold at Jefferies; PT 62.10 euros
* OMV Reinstated Buy at Jefferies; PT 46.50 euros
* Ontex Cut to Sell at Goldman; PT 8.50 euros
* Repsol Reinstated Hold at Jefferies; PT 9.10 euros
* Shell Reinstated Buy at Jefferies; PT 1,780 pence
* Shell ADRs Reinstated Buy at Jefferies; PT $45.70
* Skitude Holding Rated New Buy at Arctic Securities; PT 14 kroner
* Skitude Holding Rated New Buy at Arctic Securities; PT 14 kroner
* Total SE Reinstated Buy at Jefferies; PT 42 euros
* Ubisoft Rated New Buy at HSBC; PT 100 euros
>>> Call
>>> Call
* Asos, Ocado in Berenberg’s U.K. Consumer Picks; Sainsbury Raised
* Equinor, Total, OMV, Shell Reinstated as Buy at Jefferies
* Equinor, Total, OMV, Shell Reinstated as Buy at Jefferies
* Renault Upgraded at Jefferies, Goals Sound But Unimaginative
* Richter Women’s Health Line Underappreciated, Jefferies Says