McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) has been faced with a challenging healthcare landscape as political posturing, drug pricing scrutiny, overall sentiment towards pharmaceutical companies due to price gouging allegations and the overall rotation out of healthcare related stocks. This confluence of events has plagued McKesson’s stock, falling from $241 to $148 or 39% in just 9 months from May of 2015 through February 2016. MCK has been on an acquisition spree as of late and announced layoffs of 1,600 workers or about 4% of its U.S. workforce. These collective efforts are aimed to stem any losses in revenue from a hit to its customer base while continuing to drive value for shareholders. McKesson has acquired two medical firms that focus in oncology for a total of $1.2 billion and Ontario-based Rexall Health for $2.2 billion. McKesson is being proactive and aligning its cost structure in a fiscally responsible manner in order to remain competitive and add value to shareholders. At the writing of my previous article covering McKesson, it had hit a 52-week low of ~$150 in March. Since then, the stock has been on an uptick to current levels at $182 or 20% rise in its stock price. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program however concerns remain. Continue reading "McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain" →

It Feels Like Inflation

Posted on by The INO.com Team

By: Gary Tanashian of Biiwii.com

Last night’s post on the US stock market ended as follows:

“As far as the Fed and its puny rate hikes are concerned, that is irrelevant.  This market is flipping them the bird.  Markets can rise a long way before a rate hike regime finally kills them.  It feels like inflation folks.”

This prompted a question from an NFTRH subscriber about what markets would benefit, and in what differing ways would they benefit if an inflationary phase comes to dominate?  That is a far reaching question and a difficult one as well, because inflation’s effects have a way of being unpredictable (how many would have answered ‘US stock market’ in the spring of 2011 to the question “where will the post-crisis inflation to date manifest on this cycle”?).

Last weekend, in an NFTRH 396 excerpt we talked about Applied Materials stellar quarterly report and what it might mean for the economy, the Fed, the gold sector and most of all the idea of an inflationary backdrop becoming more readily apparent (2003-2007 Greenspan style). Continue reading "It Feels Like Inflation" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Crude Oil Futures

Crude oil futures in the July contract settled last Friday in New York at 48.41 a barrel while currently trading at 48.91 up about $.50 for the trading week still right near a 7 month high. I have been sitting on the sidelines in this market as I missed this trade to the upside and I do not like to chase markets so I will look at other trades that are beginning to trend. Oil prices are trading far above their 20 and 100-day moving average telling you that the short-term trend is higher because of production disruptions in the country of Nigeria coupled with the fact that Canada has also had problems in the province of Alberta sending prices above $50 in Thursday's trade only to come back on profit taking. The interesting thing to see is if rig counts start to increase as they have continually gone down over the last several months, but now that prices are near $50 it might be profitable to start production once again as time will tell if that situation develops. Continue reading "Weekly Futures Recap With Mike Seery" →

All Is Well This Memorial Day Weekend - Right?

Posted on by The INO.com Team

Hello MarketClub members everywhere. As we come to the end of the week and the trading month and face the long Memorial Day weekend, I have a slightly uneasy feeling about the markets.

Later on today, Janet Yellen the Fed chair is set to speak with Harvard professor Gregory Mankiw as she receives the University's Radcliffe Medal.

MarketClub's Mid-day Market Report

Boy, they sure like to give each other awards don't they? It's too bad that we can't give an award to the economy which still has sub 2% growth with record low-interest rates!!

Here's the problem as I see it, the FED said that it was it was going to rely on data as to whether or not it would raise interest rates. Now they're saying you have to see how things go – really?

It has seemed to me for quite some time now that the Fed has mishandled this whole financial meltdown and quite honestly have no clue as to what to do about it. It also seems that they lack any common sense even thinking about or talking about negative interest rates – how stupid can they be?

Ms. Yellen and President Obama - the answer is not complicated - lower taxes and cut all the red tape, hoops and hurdles that business have jump through. Then all you have to do is stand back and keep out of the way of the economy as speeds up growth and job creation.

Not complicated!

Okay, having gotten all that off my chest let's take a look at the markets. Continue reading "All Is Well This Memorial Day Weekend - Right?" →

Oil Climbs over $50: Can Investors Bank on a Recovery?

Posted on by admin

The price of a barrel of oil has almost doubled from its low of $28 at the start of the year, prompting speculation that a recovery is underway, which may result in the revival of companies in the exploration, production and services sectors that have foundered since prices collapsed in 2015.

Oil Supply Graph

According to news reports published today (Thursday, May 26), the pop above $50/bbl can be attributed to a drop in supply. The U.S. Energy Information Administration's "Summary of Weekly Petroleum Data for the Week Ending May 20, 2016" notes that "U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.2 million barrels from the previous week."

Since breaking the mark the price has sunk below the $50 level, but hovers in the vicinity, as it has for the past few weeks. Continue reading "Oil Climbs over $50: Can Investors Bank on a Recovery?" →