The Painful Lesson Of GE's Downfall

Once again, an old-school company fails to keep up. Or just fails.

General Electric (NYSE: GE), which just a month or so ago seemed to be out of the woods after two years of declining earnings and dividend cuts, just warned investors of another year of lower profits and forecasted that its industrial operations -- formerly its bread and butter -- could be up to $2 billion cash-flow negative this year.

Just a month ago, the market was cheering GE's decision to sell one of its important assets, the company's biopharma unit, to Danaher (NYSE: DHR) for $21.4 billion. The deal is expected to close in the fourth quarter. But the proceeds won't be reinvested in the business. Rather, the proceeds will be used to reduce GE's enormous debt. At year-end, GE had $108 billion in debt (almost as much as it had taken in revenue during the entire year, which was $121.6 billion).

​

The decision to reduce debt is the right one. The size of a company's debt matters, especially when business suddenly slows. Too much debt can often lead to bankruptcy -- even in a strong economy like ours today, let alone in leaner times. But when investors in supposedly "safe" stocks like GE are subjected to these kinds of rattling moves, it begs some serious questions about how we as investors should be approaching our decisions.

Take for example Windstream, a rural telecom whose business had called for leveraging, filed for Chapter 11 bankruptcy protection February 25. Windstream had more than $5.8 billion in debt and loans and its bankruptcy filing was, in fact, triggered by a violation of a bond covenant. I don't need to tell you what such an event does to stock investors who are among the last to have any claims for a company's assets. Windstream's share price plunged from a 52-week high of $8.95 a year ago to just pennies today.

And since we're on the subject, a company's ability (or inability) to grow also matters a great deal to investors, even income investors. To put it simply, revenue and profit growth means that the company in question has a future. It's also an indication of business health. Investors want to be sure they're not buying into a deteriorating or stagnating situation. They'll often review "growth" metrics first, even if they're investing for income.

Similarly, businesses want to be sure they're in a good situation for many years to come; if they're facing stagnating or deteriorating sales, one quick fix is to buy a revenue and profit stream in the form of another company.

Grow Or Die
For a pharma company facing a reduction in sales because a product is going off-patent, this decision is even easier. That's what's been happening in the large pharmaceutical and the biotech industries for a while now. 

As I mentioned earlier today, it is well known that the patent cliff -- the projected sharp revenue decline when a major drug's patent is set to expire -- has cost large pharma companies many billions in revenues. In 2011, for instance, patents on drugs with annual sales totaling $12 billion expired. In November of that year alone, four major drugs totaling more than $7 billion in sales -- including best-selling Lipitor -- lost patent protection.

It's no coincidence that M&A activity heated up in the year or two immediately preceding the 2011 patent cliff. In 2009 alone, Pfizer (NYSE: PFE) bought Wyeth Pharmaceuticals for $68 billion, the seventh-largest pharma deal ever, and Merck (NYSE: MRK) bought Schering-Plough for $41.1 billion.

Large pharma is still in danger of losing large chunks of revenue as patent protection -- even for biologics, a newer type of drug made from live organisms or components of live organisms. (In this article, I reviewed the top medicines about to expire and the companies that own those drugs. The revenue lost from these drugs will make for a big hurt going forward or drive them to buy a competitor -- or both. I highly recommend you read that piece to fully understand the point that growth is all-important in the world of business and investing.)

Action To Take
Sticking with the pharma example, this is why I've been telling readers so much about the trends happening in one field in particular: biotech. 

I know, I know, you've heard me talk about the potential of biotechnology, and you know well enough that today's advances in gene therapies and gene editing can address many genetic diseases and even cure several cancers. My latest recommendation over at Fast-Track Millionaire is one such company -- it can become a force on its own, not to mention a possible takeover target for a large pharmaceutical company facing a patent cliff.

The point is, as the world changes, so do investing opportunities and strategies. And no matter what kind of investor you think you are, you simply cannot rely on old-school companies like GE for your long-term financial health -- at least not fully, and not reliably. 

This is where my Fast-Track Millionaire service comes in. My readers and I are not satisfied with traditional companies and old-school investing; we want to know what's new in the world -- and how to profit from that knowledge.

The choice is simple, really. You can either stick with what you think is "safe" -- which could lead to another story like GE -- or worse... Or you can step out just a little bit and learn about some of the fascinating technologies and companies everyone will be hearing about months from now -- and have the chance to invest before they become household names. 

FedEx Earnings: FDX Stock Moves in Wrong Direction on EPS, Sales Miss

FedEx (NYSE:FDX) failed to impress investors on its financial results as its third quarter profit missed expectations, while an underwhelming fiscal 2019 guidance didn’t help matters.

For the aforementioned quarter, the courier delivery services provider amassed adjusted earnings of $3.03 per share, falling below the $3.11 per share that analysts predicted, according to Refinitiv. Revenue was also below expectations at $17.01 billion–Wall Street called for $17.67 billion in sales, per the Refinitiv survey.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,” said Alan B. Graf, Jr., FedEx executive vice president and CFO.

FedEx added that the business sees its fiscal 2019 earnings arriving at $15.10 to $15.90 per share, with the midpoint guidance of $15.50 per share well below the $15.97 a share that Wall Street projects, per Refinitiv. This marks the second reduction in the company’s full-year forecast.

For its fourth quarter of the year, earnings are slated to be in the range of $4.58 to $5.38 per share, also missing analysts’ outlook of $5.39 per share.

“Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth,” CEO Federick W. Smith said. “FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success.”

FDX stock is down about 5% after the bell on the company’s results.

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Uber's eye-popping valuation would make it worth more than Nvidia, 3M and PayPal

Uber is reaching for a lofty valuation in its upcoming initial public offering.

An expected $120 billion valuation for the ride-hailing company would make it more valuable than 3M, 21st Century Fox, Nvidia and other established names that have been raking in profits for years.

The 12-figure price-tag is a result of proposals from Wall Street banks and nearly double Uber's valuation from its last private fundraising in late 2018, The Wall Street Journal reported in October.

But Uber notably, is not making money. The Silicon Valley start-up has been mounting billion-dollar losses ahead of its highly anticipated market debut.

Last year it managed to stem some of the bleeding. Its adjusted losses slowed by 15 percent, to $1.8 billion, according to Uber's self-reported financials published in February. In 2017, Uber lost $2.2 billion. The company increased its revenue, though at a slower pace than in the previous year. Full-year revenue last year was $11.3 billion, up 43 percent year over year.

Its IPO plans are now neck-and-neck with rival Lyft, which released its long-awaited IPO prospectus in early March. That disclosure showed a loss of $911 million on $2.1 billion in revenue last year for Lyft.

Uber plans to release its S-1 filing and start an IPO road show in April, Reuters reported.

Slack, Pinterest and Palantir also plan to go public in 2019.

But tech companies are not known for making money ahead of public offerings. Twitter was losing money when it listed on the New York Stock Exchange in 2013. Snap, Spotify and SurveyMonkey — which all listed in 2018 — were also losing money.

Market capitalization, or "market cap," is the total dollar amount of a company's outstanding shares. It can be calculated by multiplying the firm's outstanding shares by the price of one share.

The market cap Uber reportedly wants also dwarfs those of major auto-manufacturers. General Motors is worth $53.8 billion while Ford has a market cap of $33.4 billion. Broadcom, Accenture, Costco and Altria would also be one-upped by Uber's valuation.

— CNBC's Peter Schacknow contributed reporting.

FII inflows, Fed rate decision to guide stock movement this week: Experts

In the absence of any immediate key domestic triggers, the equity market is expected to be guided by Fed interest rate decision, foreign fund inflows and crude oil prices in this holiday-shortened week, according to analysts.

Stock markets will remain closed on March 21 for Holi.

"Minor profit-booking is expected given sharp run-up in domestic markets and global factors. However, downside will be capped as emerging markets like India is likely to benefit from strong liquidity and reversal in FII flows. For the week ahead, FED interest rate decision is the key event," said Vinod Nair, Head of Research, Geojit Financial Services.

Besides, movement of foreign funds, rupee and oil would continue to play their part in market trend, the analysts added.

related news YSR Congress releases full list of candidates for Lok Sabha, Assembly polls in Andhra Pradesh Congress announces candidates for 5 reserved Lok Sabha seats in Chhattisgarh BJP steps up its 'Main bhi chowkidar' campaign

During the past week, the Sensex surged 1,352.89 points or 3.68 percent to close at 38,024.32 on Marc h 15.

"On the international front one can keep an eye on Fed's interest rate decision on Wednesday. Overhang on Brexit issue and OPEC's supply cut are likely to hit the domestic market in specific segment," said Debabrata Bhattacharjee, Head of Research, CapitalAim.

"During past fortnight, Indian markets have enjoyed one of the best stretches in the recent memory. FII inflows have crossed Rs 30,000 crore in Feb-March'19 till date resulting in a flood of inflows after 2018 drought.

"Most heartening aspect of the current rally is it is quite broad-based across the sectors. As border tensions appearing to have cooled-off, and global central bankers turned pro-liquidity, Indian markets are in risk-on mood," said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Limited. First Published on Mar 17, 2019 11:22 am

On the charts | Be ready for rally in Eveready after fall of over 40% in past year

Eveready Industries saw a stable 2019 after falling by over 40 percent in the last one year and the chart patterns are suggesting an up move in offing. The stock was trading at Rs 366.15 on March 13, 2018.

The weekly timeframe chart of Eveready (given below) signals an upside reversal pattern. After showing weakness in the last 5-6 weeks, the stock price has witnessed an upside bounce in the last week.

"We observed formation of a bullish engulfing pattern in the last week and the stock price is now showing a follow-through up move in this week. We also observe a consistent higher bottom formation (indicative of orange uptrend line)," said an HDFC Securities note.

The stock can be bought now with a target price of Rs 234-265, and a stop loss of Rs 189. The time period for the trade kept by analysts at HDFC Securities is 1-2 months.

related news Top buy and sell ideas by Sudarshan Sukhani, Mitessh Thakkar, Prakash Gaba for short term Podcast | Stock picks of the day: Why PVR & Canara Bank are a buy for short term

The volume has expanded sharply during an upside bounce in the stock price over the last two months. This could mean increasing participation of bulls at lower levels, and another prominent indicator of a bottom reversalin the stock price.

The stock price is now making an attempt to move above the intermediate term moving average (green curvy line-weekly 20cperiod EMA) at Rs 210 levels. Hence, one may expect further upside in the stock price for the near term.

Weekly 14 period RSI shows a positive indication. This RSI pattern could mean a possibility of further strengthening of upside momentum in the stock price for the near-term.

"The overall positive chart pattern of Eveready Industries India shows a long trading opportunity," said the note.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Mar 14, 2019 11:15 am

Next-gen satellites gave federal officials key data in Boeing 737 Max probe

Only a few months after SpaceX launched the last set of Iridium Communications satellites into orbit, the new network is helping deliver critical data to aviation officials.

The Federal Aviation Administration, or FAA, grounded Boeing's 737 Max airplanes on Wednesday, after receiving data from air traffic surveillance company Aireon about the deadly crash of Ethiopian Airlines Flight 302.

Aireon's system piggybacks on Iridium's network of 75 satellites. Expected to become fully operational in a few weeks, Aireon can track airplanes anywhere on the planet. But the company's data is already proving to be critical, as Aireon said in a statement to CNBC that "the system was able to capture information associated with Flight 302."

While Aireon declined to make company officials available for an interview while the investigation is ongoing, the company said it is working with federal officials to provide them with raw data. Even though the Aireon system has not been fully rolled out, the company is able to provide investigators with information about an aircraft's location, velocity, altitude and more.

"Our sympathies go out to the families of the passengers and crew of Ethiopian Airlines Flight 302," Aireon said in a statement. Aireon gave "the data transmitted from Flight 302" to support the investigations of the FAA and several other aviation authorities, the company said.

Even after dozens of countries grounded Boeing's 737 Max, the FAA did not. It was only until "actionable data" arrived from Aireon that the FAA made the decision, acting Administrator Daniel Elwell told CNBC.

"We cannot comment on the cause of the tragedy or the outcome of the investigation, only that we have provided the data," Aireon clarified in its statement.

Aireon, an aviation game changer

The Iridium NEXT constellation of satellites sits in low Earth orbit. While Iridium's network is focused on communications, Aireon leases space on the satellites for its tracking technology. Known as an Automatic Dependent Surveillance-Broadcast system, or ADS-B, Aireon's technology in space constantly and passively receives information from any aircraft equipped with an ADS-B transponder – essentially an antenna on a plane that is sending flight data to space.

What many airline passengers may not know is that airplanes are not constantly tracked by radar. While flying over land, airplanes keep in touch with air traffic controllers to relay information about the flight. But once a jet heads more than 100 to 150 miles offshore, it enters procedural airspace. At that point, air traffic controllers must rely on a pilot to relay an aircraft's position every 10 minutes.

Iridium CEO Matt Desch explained to CNBC a year ago that Aireon's system means that "airlines can fly more direct routes, which could reduce both the cost and time of air travel," he said.

"Aireon makes the whole planet visible to air traffic controllers," Desch said.

"They are already helping the air traveling public," Desch said in a tweet on Thursday after the FAA grounded Boeing's 737 Max planes.

Iridium shares are soaring

After about $3 billion in investment, Iridium's new network is finished. SpaceX launched each of Iridium's 75 satellites over the course of eight missions in two years. Once fully operational, Iridium NEXT will offer high-speed broadband communications for "Internet of Things" applications and more.

Additionally, Desch's company is partnered with Amazon Web Services, so the e-commerce giant "can extend their applications to the satellite realm," he said.

Billionaire investor Ron Baron told CNBC's Squawk Box that the importance of Aireon's data to the FAA is just one example of why Iridium's constellation is going to prove incredibly valuable.

Baron, whose fund is also an investor in SpaceX, bought Iridium shares at about a quarter the price they are today. While Iridium's stock is near all-time highs at about $24 a share now, Baron's fund bought 10 percent of Iridium at $6.75 a share.

Baron now believes that Iridium's stock is going to double over the next four to five years.

"For three years after we bought it, while they were making and launching satellites, the stock was unchanged," Baron said. "Now all of a sudden they're going to generate revenues."

show chapters Iridium Communications CEO: We're the only communication provider with 100% coverage of the planet    7:06 AM ET Fri, 9 Nov 2018 | 03:38

— CNBC's Lori Ann Larocco contributed to this report.

Top 5 Undervalued Stocks To Own For 2019

tags:IRET,HSEA,UEPS,MSFT,ITRI,

Last week, I wrote an article detailing how Crescent Point Energy Corporation (CPG) not only has perhaps the most economic collection of assets in Canada on a profit-investment ratio basis but is also the most undervalued in its peer group on a 2018 EV/DACF basis. However, in order for undervaluation to be resolved, investors need to care. After two dividend cuts and a poorly communicated large equity financing (immediately after a new commitment to organic growth), Crescent Point has soured relations with both institutional and retail investors.

The company, however, has multiple upside catalysts that could serve to restore investor interest in the stock and remedy its chronic undervaluation. These catalysts should play out over the next 12 months, and the upside for Crescent Point is substantial given where it is trading relative to its peers and its own historical valuation:

Top 5 Undervalued Stocks To Own For 2019: Investors Real Estate Trust(IRET)

Advisors' Opinion:

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on INVESTORS REAL ESTATE TRUST REIT Common Stock (IRET)

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• [By Shane Hupp]

  Get a free copy of the Zacks research report on INVESTORS REAL ESTATE TRUST REIT Common Stock (IRET)

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• [By Motley Fool Staff]

  Investors Real Estate Trust (NYSE:IRET) Q4 2018 Earnings Conference CallJun. 28, 2018 10:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

Top 5 Undervalued Stocks To Own For 2019: HSBC Holdings plc(HSEA)

Advisors' Opinion:

• [By Lisa Levin]

  Check out these big penny stock gainers and losers

  Losers Fluor Corporation (NYSE: FLR) fell 13.4 percent to $51.10 in pre-market trading after the company reported downbeat earnings for its first quarter and lowered its profit outlook for the year. Integrated Media Technology Limited (NASDAQ: IMTE) fell 9.8 percent to $28.97 in pre-market trading after surging 46.29 percent on Thursday. Gogo Inc. (NASDAQ: GOGO) shares fell 8.2 percent to $8.81 in pre-market trading after the company reported Q1 results and disclosed that it is withdrawing its FY18 outlook for adjusted EBITDA, airborne cash capex, airborne equipment inventory purchases and free cash flow. Sharing Economy International Inc. (NASDAQ: SEII) shares fell 7.5 percent to $3.98 in pre-market trading after climbing 22.16 percent on Thursday. Arista Networks, Inc. (NYSE: ANET) fell 7.4 percent to $248.00 in pre-market trading following first-quarter earnings. Web.com Group, Inc. (NASDAQ: WEB) fell 6.7 percent to $18.00 in pre-market trading after reporting Q1 results. Varex Imaging Corporation (NASDAQ: VREX) fell 5.2 percent to $34 in pre-market trading after reporting Q2 results. Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) shares fell 5.2 percent to $7.60 in pre-market trading after dropping 3.02 percent on Thursday. AMN Healthcare Services, Inc (NYSE: AMN) shares fell 4.7 percent to $61.70 in pre-market trading following Q1 earnings. HSBC Holdings plc (NYSE: HSEA) fell 4.6 percent to $25.15 in pre-market trading after reporting Q1 results. Stratasys Ltd. (NASDAQ: SSYS) shares fell 4 percent to $16.66 in pre-market trading after dropping 2.86 percent on Thursday. Melco Resorts & Entertainment Limited (NASDAQ: MLCO) fell 4 percent to $30.65 in pre-market trading. Century Aluminum Co (NASDAQ: CENX) fell 4 percent to $15.76 in pre-market trading following Q1 results. HSBC Holdings plc (NYSE: HSBC) shares fell 3.5 percent to $48.10 in pre-market tr
• [By Lisa Levin] Gainers Bio-Path Holdings, Inc. (NASDAQ: BPTH) shares rose 29.5 percent to $2.15 in pre-market trading after reporting pre-clinical data demonstrating potential of Prexigebersen presented at the annual American Association for Cancer Research meeting in Chicago. Sientra, Inc. (NASDAQ: SIEN) rose 16.7 percent to $12.90 in pre-market trading following the announcement of FDA approval for PMA supplement. Aqua Metals, Inc. (NASDAQ: AQMS) rose 13.5 percent to $2.95 in pre-market trading after climbing 14.04 percent on Wednesday. Harmony Gold Mining Company Limited (NYSE: HMY) rose 5.6 percent to $2.09 in pre-market trading. Alcoa Corporation (NYSE: AA) shares rose 5 percent to $62.32 in pre-market trading after the company reported better-than-expected earnings for its first quarter and raised its FY18 adjusted EBITDA outlook. Gold Fields Limited (ADR) (NYSE: GFI) shares rose 4.9 percent to $4.11 in pre-market trading after gaining 1.03 percent on Wednesday. ABB Ltd (NYSE: ABB) shares rose 4.3 percent to $24.47 in pre-market trading after reporting Q1 results. WPP plc (NYSE: WPP) rose 4.2 percent to $82.99 in pre-market trading. American Express Company (NYSE: AXP) rose 4 percent to $98.95 in pre-market trading after the company reported stronger-than-expected profit for its first quarter. HSBC Holdings plc (NYSE: HSEA) rose 3.4 percent to $27.30 in pre-market trading. Shire plc (NASDAQ: SHPG) rose 3.4 percent to $167.95 in pre-market trading. Takada offered to buy Shire at £46.50 per share, Reuters reported. Vipshop Holdings Limited (NYSE: VIPS) rose 3.1 percent to $16.43 in pre-market trading. iRobot Corporation (NASDAQ: IRBT) shares rose 3 percent to $63.66 in the pre-market trading session.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Top 5 Undervalued Stocks To Own For 2019: Net 1 UEPS Technologies, Inc.(UEPS)

Advisors' Opinion:

• [By Timothy Green]

  Shares of Net 1 UEPS Technologies Inc. (NASDAQ:UEPS) slumped Thursday after the payment solutions and transaction processing services provider reported preliminary fourth-quarter results. Both revenue and earnings declined as the company completed what it called "a turbulent year." The stock was down about 16.6% at 11:15 a.m. EDT.

• [By Lisa Levin] Gainers The Trade Desk, Inc. (NASDAQ: TTD) jumped 36.2 percent to $71.82 after the company reported upbeat results for its first quarter. The company also issued strong second-quarter and FY18 sales guidance. WideOpenWest, Inc. (NYSE: WOW) jumped 30.4 percent to $8.80 after the company reported Q1 results. MoSys, Inc. (NASDAQ: MOSY) shares surged 28.6 percent to $1.9541 after the company reported better-than-expected Q1 results and issued strong Q2 forecast. Boxlight Corporation (NASDAQ: BOXL) gained 24 percent to $6.39. Akcea Therapeutics, Inc. (NASDAQ: AKCA) shares gained 19.1 percent to $24.60. Akcea Therapeutics, an affiliate of Ionis Pharmaceuticals Inc (NASDAQ: IONS) announced that the Endocrinologic and Metabolic Drugs Advisory Committee, which met to discuss the safety and efficacy of subcutaneously injected volanesoren solution for patients with familial chylomicronemia syndrome, voted 12-8 to support its approval. Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares rose 17 percent to $10.31 after reporting Q3 results. ArcBest Corporation (NASDAQ: ARCB) gained 16.8 percent to $43.1457 after reporting upbeat quarterly earnings. Amtech Systems, Inc. (NASDAQ: ASYS) rose 16.2 percent to $8.60. Amtech posted Q2 earnings of $0.19 per share on sales of $32.783 million. Identiv, Inc (NASDAQ: INVE) surged 14.4 percent to $3.8450 following Q1 results. Omeros Corporation (NASDAQ: OMER) shares rose 14.3 percent to $18.43 following Q1 results. VivoPower International PLC (NASDAQ: VVPR) gained 11.5 percent to $2.71. Intersections Inc. (NASDAQ: INTX) gained 11.4 percent to $2.55 after reporting Q1 results. Noodles & Company (NASDAQ: NDLS) shares rose 10.9 percent to $8.65 following Q1 results. Voyager Therapeutics, Inc. (NASDAQ: VYGR) climbed 10.6 percent to $18.54 following Q1 results. Blink Charging Co. (NASDAQ: BLNK) rose 10.4 percent to $5.739. Immersion Corporation (NASDAQ: IMMR) gained 9.6 percent to $12.69
• [By Steve Symington]

  Shares of Net1 UEPS Technologies (NASDAQ:UEPS) jumped 15.7% on Friday after the alternative-payment systems specialist announced stronger-than-expected fiscal third-quarter 2018 results and an encouraging development regarding its social grants payments contract in South Africa.

• [By Lisa Levin] Gainers TransEnterix, Inc. (NYSE: TRXC) rose 28.8 percent to $4.03 in pre-market trading after the company disclosed that it has received the FDA clearance for expanded indications for its Senhance Surgical System. Global Eagle Entertainment Inc. (NASDAQ: ENT) rose 15.6 percent to $2.30 in pre-market trading. Companhia Brasileira de Distribuição (NYSE: CBD) rose 13.2 percent to $24.20 in pre-market trading. ZTO Express (Cayman) Inc. (NYSE: ZTO) rose 12.2 percent to $21.65 in pre-market trading. Alibaba and Cainiao agreed to make strategic investment in ZTO Express of $1.38 billion. DHI Group, Inc. (NYSE: DHX) rose 10.8 percent to $2.05 in pre-market trading. Momo Inc. (NASDAQ: MOMO) shares rose 9.6 percent to $42.68 in pre-market trading after the company reported better-than-expected results for its first quarter and issued strong sales forecast for the second quarter. Xenon Pharmaceuticals Inc. (NASDAQ: XENE) shares rose 9.1 percent to $6.00 in pre-market trading. Universal Display Corporation (NASDAQ: OLED) rose 8.4 percent to $108.00 in pre-market trading. Jupai Holdings Limited (NYSE: JP) shares rose 7 percent to $24.50 in pre-market trading after reporting Q1 results. Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) rose 5.9 percent to $10.61 in pre-market trading. Frontline Ltd. (NYSE: FRO) rose 5.9 percent to $5.04 in pre-market trading. Evogene Ltd. (NASDAQ: EVGN) rose 5.5 percent to $3.27 in pre-market trading after reporting Q1 results. Sears Holdings Corporation (NASDAQ: SHLD) rose 5.5 percent to $3.68 in pre-market trading after gaining 5.44 percent on Friday. Kitov Pharma Ltd (NASDAQ: KTOV) shares rose 5.4 percent to $2.16 in pre-market trading.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

• [By Lisa Levin] Gainers TherapeuticsMD, Inc. (NASDAQ: TXMD) rose 7.3 percent to $6.90 in pre-market trading after the company reported the FDA approval of TX-004HR: IMVEXXY (estradiol vaginal inserts) for moderate to severe dyspareunia due to menopause. Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) rose 6.1 percent to $10.50 in pre-market trading after falling 1.20 percent on Tuesday Movado Group, Inc. (NYSE: MOV) shares rose 5.7 percent to $44.60 in pre-market trading after the company reported better-than-expected Q1 results and raised its guidance. salesforce.com, inc. (NYSE: CRM) rose 5.4 percent to $133.67 in pre-market trading after the company reported better-than-expected earnings for its first quarter and raised its forecast for the full year. Sirius XM Holdings Inc. (NASDAQ: SIRI) rose 5.3 percent to $7.35 in pre-market trading. PagSeguro Digital Ltd. (NYSE: PAGS) rose 5.3 percent to $33.50 in pre-market trading after reporting Q1 results. SpartanNash Co (NASDAQ: SPTN) rose 4.9 percent to $19.80 in pre-market trading after the company reported upbeat earnings for its first quarter on Tuesday. Groupon, Inc. (NASDAQ: GRPN) rose 4.9 percent to $4.95 in pre-market trading. Dalian Wanda will set up a joint venture with Tencent and Groupon's former local unit, Reuters reported. Okta, Inc. (NASDAQ: OKTA) rose 4.4 percent to $56 in pre-market trading after gaining 3.43 percent on Tuesday Elbit Systems Ltd. (NASDAQ: ESLT) rose 4.3 percent to $120.92 in pre-market trading after gaining 2.05 percent on Tuesday. STMicroelectronics N.V. (NYSE: STM) shares rose 3.7 percent to $23.78 in pre-market trading after falling 4.70 percent on Tuesday. EVINE Live Inc (NASDAQ: EVLV) shares rose 2.7 percent to $1.14 in pre-market trading after reporting Q1 results.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Top 5 Undervalued Stocks To Own For 2019: Microsoft Corporation(MSFT)

Advisors' Opinion:

• [By Daniel Sparks]

  An analyst covering Microsoft (NASDAQ:MSFT) is similarly bullish on shares now that they're trading lower. Shares were down about 6% this week before the stock recovered some of the decline on Friday. The rebound was driven both by the analyst's price target increase for the stock and the rise in tech stocks overall on Friday. Macquarie analyst Sarah Hindlian upgraded the stock from "neutral" to "outperform" and increased her price target from $106 to $121. She cited the company's momentum with its cloud-computing business, Azure; her optimistic outlook for the company's gaming business; and improving margins as some of the reasons for her optimism.

• [By Leo Sun]

  Oracle reported flat year-over-year revenue growth last quarter. This indicates that Oracle is struggling to compete against bigger fish in the cloud services market like Amazon (NASDAQ:AMZN) Web Services (AWS) and Microsoft's (NASDAQ:MSFT) Azure.

• [By Lisa Levin]

  Some of the stocks that may grab investor focus today are:

  Wall Street expects General Motors Company (NYSE: GM) to report quarterly earnings at $1.24 per share on revenue of $34.66 billion before the opening bell. GM shares gained 1.44 percent to $38.66 in after-hours trading. Analysts expect Microsoft Corporation (NASDAQ: MSFT) to post quarterly earnings at $0.85 per share on revenue of $25.77 billion after the closing bell. Microsoft shares gained 1.72 percent to $93.90 in after-hours trading. Facebook, Inc. (NASDAQ: FB) reported better-than-expected earnings for its first quarter on Wednesday. Facebook shares jumped 7.33 percent to $171.40 in the after-hours trading session. After the markets close, Intel Corporation (NASDAQ: INTC) is projected to post quarterly earnings at $0.72 per share on revenue of $15.05 billion. Intel shares gained 2.36 percent to $52.59 in after-hours trading. Analysts are expecting Time Warner Inc. (NYSE: TWX) to have earned $1.74 per share on revenue of $7.91 billion in the latest quarter. Time Warner will release earnings before the markets open. Time Warner shares declined 1.12 percent to $95.20 in after-hours trading. Chipotle Mexican Grill, Inc. (NYSE: CMG) reported stronger-than-expected results for its first quarter on Wednesday. Chipotle shares surged 10.74 percent to $375.97 in the after-hours trading session. Wall Street expects Amazon.com, Inc. (NASDAQ: AMZN) to post quarterly earnings at $1.25 per share on revenue of $49.88 billion after the closing bell. Amazon shares rose 1.79 percent to $1,486.30 in after-hours trading.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

• [By Money Morning Staff Reports]

  Just ask early investors of Apple Inc. (Nasdaq: AAPL) and Microsoft Corp. (Nasdaq: MSFT) how getting in early on a new tech revolution worked out for them…

• [By Douglas A. McIntyre]

  Microsoft Corp. (NASDAQ: MSFT), the second largest U.S. company based on market cap, has a current value of $660 billion.

  The U.S. president imposed huge tariffs on some U.S. imports. According to The Wall Street Journal:

Top 5 Undervalued Stocks To Own For 2019: Itron Inc.(ITRI)

Advisors' Opinion:

• [By Stephan Byrd]

  Itron (NASDAQ:ITRI) major shareholder Scopia Capital Management Lp purchased 114,129 shares of the company’s stock in a transaction dated Monday, May 21st. The stock was purchased at an average price of $59.34 per share, for a total transaction of $6,772,414.86. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Major shareholders that own more than 10% of a company’s stock are required to disclose their transactions with the SEC.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Itron (ITRI)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Logan Wallace]

  TheStreet cut shares of Itron (NASDAQ:ITRI) from a b rating to a c rating in a research note issued to investors on Monday morning.

  Several other equities analysts also recently weighed in on ITRI. BidaskClub upgraded Itron from a hold rating to a buy rating in a research report on Friday, January 19th. Oppenheimer reiterated a buy rating and set a $78.00 price objective on shares of Itron in a research report on Monday, January 29th. Canaccord Genuity upgraded Itron from a hold rating to a buy rating and lifted their price objective for the stock from $78.00 to $84.00 in a research report on Tuesday, February 27th. Cowen upgraded Itron from a market perform rating to an outperform rating and lifted their price objective for the stock from $80.00 to $84.00 in a research report on Thursday, March 1st. Finally, JMP Securities set a $108.00 price objective on Itron and gave the stock a buy rating in a research report on Thursday, March 1st. Six equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and two have issued a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $83.36.

• [By Max Byerly]

  Data I/O (NASDAQ: DAIO) and Itron (NASDAQ:ITRI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

• [By Lisa Levin]

   

  Companies Reporting After The Bell Agilent Technologies, Inc. (NYSE: A) is estimated to post quarterly earnings at $0.64 per share on revenue of $1.21 billion. Vipshop Holdings Limited (NYSE: VIPS) is expected to post quarterly earnings at $0.18 per share on revenue of $3.10 billion. Rexnord Corporation (NYSE: RXN) is projected to post quarterly earnings at $0.39 per share on revenue of $551.94 million. Invitation Homes Inc. (NYSE: INVH) is estimated to post quarterly earnings at $0.03 per share on revenue of $423.13 million. Switch, Inc. (NYSE: SWCH) is expected to post quarterly earnings at $0.05 per share on revenue of $99.83 million. Itron, Inc. (NASDAQ: ITRI) is projected to post quarterly earnings at $0.13 per share on revenue of $579.85 million. Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) is expected to post quarterly earnings at $0.44 per share on revenue of $119.06 million. Amyris, Inc. (NASDAQ: AMRS) is estimated to post quarterly earnings at $0.07 per share on revenue of $68.14 million. Dicerna Pharmaceuticals, Inc. (NASDAQ: DRNA) is projected to post quarterly loss at $0.38 per share on revenue of $1.87 million. VOXX International Corporation (NASDAQ: VOXX) is expected to post quarterly earnings at $0.05 per share on revenue of $130.00 million. Phoenix New Media Limited (NYSE: FENG) is estimated to post quarterly loss at $0.12 per share on revenue of $45.38 million. Restoration Robotics, Inc. (NASDAQ: HAIR) is projected to post quarterly loss at $0.17 per share on revenue of $5.93 million. YogaWorks, Inc. (NASDAQ: YOGA) is estimated to post quarterly loss at $0.22 per share on revenue of

Brokerages Set Solaredge Technologies Inc (SEDG) Price Target at $54.42

Shares of Solaredge Technologies Inc (NASDAQ:SEDG) have earned a consensus recommendation of “Hold” from the fifteen brokerages that are presently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and nine have given a buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $54.42.

Several brokerages have recently issued reports on SEDG. BidaskClub cut Solaredge Technologies from a “buy” rating to a “hold” rating in a report on Saturday, February 23rd. Zacks Investment Research raised Solaredge Technologies from a “sell” rating to a “hold” rating in a report on Tuesday, February 19th. Cascend Securities raised Solaredge Technologies from a “hold” rating to a “buy” rating and set a $50.00 price objective on the stock in a report on Thursday, January 31st. JMP Securities cut Solaredge Technologies from a “market perform” rating to an “underperform” rating and set a $31.00 price objective on the stock. in a report on Thursday, January 17th. They noted that the move was a valuation call. Finally, ValuEngine raised Solaredge Technologies from a “sell” rating to a “hold” rating in a report on Thursday, December 6th.

Get Solaredge Technologies alerts:

Shares of SEDG opened at $39.89 on Friday. The company has a market cap of $1.84 billion, a PE ratio of 14.83, a PEG ratio of 0.67 and a beta of 0.23. Solaredge Technologies has a 1 year low of $32.42 and a 1 year high of $70.74. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.30 and a current ratio of 3.00.

Solaredge Technologies (NASDAQ:SEDG) last issued its quarterly earnings data on Wednesday, February 20th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by ($0.29). The firm had revenue of $263.67 million for the quarter, compared to analysts’ expectations of $249.68 million. Solaredge Technologies had a return on equity of 25.33% and a net margin of 13.75%. The firm’s revenue was up 39.3% on a year-over-year basis. During the same period last year, the company earned $0.85 earnings per share. As a group, equities analysts forecast that Solaredge Technologies will post 2.51 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Flinton Capital Management LLC grew its position in Solaredge Technologies by 4.3% in the 4th quarter. Flinton Capital Management LLC now owns 8,262 shares of the semiconductor company’s stock valued at $290,000 after acquiring an additional 340 shares during the last quarter. Piedmont Investment Advisors Inc. grew its position in Solaredge Technologies by 3.9% in the 4th quarter. Piedmont Investment Advisors Inc. now owns 9,477 shares of the semiconductor company’s stock valued at $333,000 after acquiring an additional 354 shares during the last quarter. Legal & General Group Plc grew its position in Solaredge Technologies by 0.4% in the 4th quarter. Legal & General Group Plc now owns 93,554 shares of the semiconductor company’s stock valued at $3,277,000 after acquiring an additional 418 shares during the last quarter. Comerica Bank grew its position in Solaredge Technologies by 1.1% in the 4th quarter. Comerica Bank now owns 40,437 shares of the semiconductor company’s stock valued at $1,698,000 after acquiring an additional 426 shares during the last quarter. Finally, Rehmann Capital Advisory Group grew its position in Solaredge Technologies by 298.2% in the 3rd quarter. Rehmann Capital Advisory Group now owns 661 shares of the semiconductor company’s stock valued at $25,000 after acquiring an additional 495 shares during the last quarter. 81.92% of the stock is currently owned by hedge funds and other institutional investors.

About Solaredge Technologies

SolarEdge Technologies, Inc, together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, the United States, the Netherlands, Europe, and internationally. The company's DC optimized inverter systems include power optimizers and inverters, as well as a cloud-based monitoring platform.

See Also: Current Ratio

Why Frontier Communications Stock Jumped 52.5% in February

What happened

Shares of Frontier Communications (NASDAQ:FTR) stock rose 52.5%% in February, according to data from S&P Global Market Intelligence. Despite last month's big gains, the stock is down roughly 67% over the last year.

FTR data by YCharts.

Frontier Communications has been hit hard by the cord-cutting that's reshaping the pay-TV industry, and the business' weak performance growth outlook has been reflected by its stock performance over the last several years. However, the company's fourth-quarter earnings report arrived with a rare bit of sunshine and triggered big stock gains.

Image source: Getty Images.

So what

The average analyst estimate called for Frontier to post $209 million in sales for its December quarter, but actual results surpassed that target -- coming in at $212 million. While its commercial segment once again posted declining sales, its consumer segment actually managed to boost sales -- largely thanks to an increase in revenue per customer. Overall sales for the quarter were down roughly 4.5% year over year but were flat sequentially.

The company reported a net loss of $219 million for the quarter and an adjusted per-share loss of $0.06 compared to the $0.04 loss per share target called for by the average analyst estimate. That might not sound like the type of performance that typically results in substantial stock gains, but Frontier stock had seen such dramatic losses that shares rebounded when the company managed to deliver flat sequential revenue. 

Now what

Frontier stock has given up some of its big February gains this month, with shares trading down 11.8% in March so far. 

FTR data by YCharts.

The fourth-quarter revenue beat was a welcome change, and there may be signs that the business is stabilizing, but Frontier's path to long-term growth continues to look challenging. The company's heavy exposure to the cable industry and comparatively weak position in the broadband service offerings that are softening the cord-cutting blow for other telecoms continues to be an issue. The business may be seeing some positive customer-retention trends, but it still looks like pricing hikes and operating expense reductions are Frontier's best shot at a turnaround. 

Cancer Genetics (CGIX) Trading Down 7.4%

Cancer Genetics Inc (NASDAQ:CGIX) shares were down 7.4% during trading on Thursday . The company traded as low as $0.25 and last traded at $0.25. Approximately 874,498 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 2,606,691 shares. The stock had previously closed at $0.27.

Several research firms have issued reports on CGIX. ValuEngine upgraded Cancer Genetics from a “hold” rating to a “buy” rating in a research note on Monday, February 4th. Maxim Group reiterated a “hold” rating on shares of Cancer Genetics in a research note on Tuesday, November 20th. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. Cancer Genetics presently has a consensus rating of “Hold” and a consensus price target of $4.50.

Get Cancer Genetics alerts:

The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $6.93 million, a PE ratio of -0.32 and a beta of 1.18.

In related news, CEO John A. Roberts acquired 185,436 shares of the company’s stock in a transaction on Thursday, January 31st. The stock was purchased at an average cost of $0.23 per share, for a total transaction of $42,650.28. Following the completion of the purchase, the chief executive officer now directly owns 297,636 shares of the company’s stock, valued at approximately $68,456.28. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director John Pappajohn acquired 1,000,000 shares of the company’s stock in a transaction on Monday, January 14th. The shares were bought at an average price of $0.23 per share, with a total value of $230,000.00. Following the completion of the purchase, the director now directly owns 3,781,204 shares of the company’s stock, valued at $869,676.92. The disclosure for this purchase can be found here. Insiders have acquired 2,435,436 shares of company stock valued at $560,150 over the last quarter. Corporate insiders own 21.30% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC raised its stake in Cancer Genetics by 106.6% during the fourth quarter. Geode Capital Management LLC now owns 221,803 shares of the medical research company’s stock worth $53,000 after acquiring an additional 114,448 shares in the last quarter. Renaissance Technologies LLC raised its stake in Cancer Genetics by 22.0% during the second quarter. Renaissance Technologies LLC now owns 587,300 shares of the medical research company’s stock worth $523,000 after acquiring an additional 105,900 shares in the last quarter. Vanguard Group Inc raised its stake in Cancer Genetics by 119.8% during the third quarter. Vanguard Group Inc now owns 532,426 shares of the medical research company’s stock worth $554,000 after acquiring an additional 290,146 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in Cancer Genetics by 119.8% during the third quarter. Vanguard Group Inc. now owns 532,426 shares of the medical research company’s stock worth $554,000 after acquiring an additional 290,146 shares in the last quarter. Hedge funds and other institutional investors own 11.46% of the company’s stock.

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Cancer Genetics Company Profile (NASDAQ:CGIX)

Cancer Genetics, Inc develops, commercializes, and provides molecular and biomarker-based tests and services in the United States, Europe, and Asia. Its tests enable physicians to personalize the clinical management of each individual patient by providing genomic information to diagnose, monitor, and inform cancer treatment; and enable biotech and pharmaceutical companies involved in oncology and immuno-oncology trials to select candidate populations and reduce adverse drug reactions by providing information regarding genomic factors influencing subject responses to therapeutics.

Read More: How Investors Can Profit from Options Trading

Gold prices are expected to trade lower today: Angel Commodities

Angel Commodities' report on Gold

On Thursday, Spot gold prices declined by 0.07 percent to close at $1285.5 per ounce. Gold prices recovered yesterday over change in the market sentiments but appreciating Dollar capped the gains.. Dovish stance by the ECB supported the U.S. Dollar Index which in turn limited the gains for the yellow metal. The ECB will hold back their monetary tightening until 2020. On the MCX, Gold prices declined by 0.42 percent to close at Rs.31948.0 per 10 gms. Silver On Thursday, Spot silver prices traded lower by 0.36 percent to close at $15.0 per ounce. On the MCX, silver prices declined by 0.30 percent to close at Rs.38612.0 per kg.

Outlook

Dovish stance by ECB led to a rally in Dollar in turn pressurizing the base metals. On the MCX, gold prices are expected to trade lower today; international markets are trading higher by 0.12 percent at $1287.65 per ounce.

For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More First Published on Mar 8, 2019 11:49 am

The Average Social Security Benefit Won't Even Cover Rent in These 8 States

For nearly eight decades, Social Security has been a financial rock for our nation's retired workforce. Today, according to an analysis conducted by the Center on Budget and Policy Priorities, more than a third of all beneficiaries (including survivors of deceased workers and the long-term disabled) are lifted out of poverty solely as a result of their guaranteed monthly payouts.

However, it's also a program that beneficiaries tend to lean on much more than they should. At last check, the Social Security Administration (SSA) found that 62% of retired workers were deriving at least half of their monthly income from Social Security, with 34% netting 90% to 100% of their income from the program.

Image source: Getty Images.

Trusting in Social Security as a primary income source is dangerous

This overreliance on Social Security is worrisome for two reasons. First, Social Security is in some pretty deep trouble over the long run. Since 1985, the Social Security Board of Trustees' annual report has been cautioning that the program wouldn't generate enough long-term revenue -- "long-term" is defined as the next 75 years -- to cover expenditures. In simpler terms, the program is going to spend way more money by issuing benefits to eligible recipients than it's going to collect from its payroll tax on earned income, the taxation of benefits, and interest income on its nearly $2.9 trillion in asset reserves.

Possibly beginning in 2019 or sometime very soon, Social Security will expend more than it collects for the first time since 1982. Ongoing demographic changes that include the retirement of baby boomers, increased longevity over many decades, lower fertility rates, and growing income inequality are all playing a role in weakening Social Security and making the current payout schedule unsustainable. Assuming the Trustees' forecast is correct, the program will have burned through its asset reserves by 2034. If Congress does nothing to raise additional revenue, this could lead to a 21% across-the-board benefit cut for then-current and future retirees.

Secondly, even if lawmakers come to the rescue of the program, just as they did in 1983, it doesn't change the fact that the average Social Security benefit isn't all that impressive on a nominal basis. As of January 2019, per the SSA, the average beneficiary -- which includes all 63 million beneficiaries and not just retired workers -- was receiving $1,344.38 per month, or $16,132.56 per year. That's only 29% more than the federal poverty level in 2019, or $12,490 for a single individual. If this is your sole source of income as a senior, you could seriously struggle to make ends meet. 

Image source: Getty Images.

Where you live matters

Of course, where you live can play a big role in determining how far your Social Security dollars will stretch -- in more ways than one.

For example, owning your own home and having that home paid off before entering retirement is often a big weight lifted off the shoulders of senior citizens. However, more than 15% of seniors over the age of 65 today are renting, but a separate study from national mortgage banker American Financing found that 44% of seniors between the ages of 60 and 70 are still paying a mortgage when they retire. Chances are that $1,344.38 per month for the typical beneficiary isn't going to get you very far.

According to data released earlier this year by apartment research site Abodo, national median rent in the country for a one-bedroom apartment hit $1,025 in 2018. This means 76% of the average Social Security benefit is being gobbled up by rent on the national level. When broken down further, eight states had a higher average monthly rent for a one-bedroom apartment than the typical Social Security beneficiary would receive in a month:

Massachusetts: $2,139 Rhode Island: $1,732 Hawaii: $1,676 New York: $1,633 California: $1,608 Maryland: $1,504 Vermont: $1,411 New Jersey: $1,355

Chances are that if you're a senior and Social Security is your sole or major source of income, you'll struggle to simply pay for shelter in the above eight states. There are an additional seven states that have an average one-bedroom apartment rental price of between $1,013 and $1,331, which wouldn't be affordable, either. 

Image source: Getty Images.

You could be taxed, too

The state you choose to call home could also tax a portion of your Social Security benefits.

At the federal level, half of your benefits become taxable at the federal ordinary income rate if your modified adjusted gross income plus one-half of your benefits exceeds $25,000 as a single taxpayer or $32,000 as a married couple filing jointly. Should a single taxpayer or married couple filing jointly surpass $34,000 or $44,000, respectively, 85% of their benefits can be exposed to taxation at the federal level.

If and when you give Uncle Sam his due -- an estimated 51% of senior households are paying tax on their Social Security benefits today, per The Senior Citizens League -- you may also be taxed on your benefits by your state. Currently, 13 states tax Social Security benefits to some varied degree.

For example, Missouri has a relatively low cost of living, but it's one of the 13 states that imposes tax on Social Security benefits. Thankfully, the exemption levels are high, with individuals and couples allowed to earn $85,000 and $100,000, respectively, before any state-level tax on Social Security benefits kick in. Meanwhile, states like Vermont and West Virginia mirror the federal tax schedule, meaning it's pretty easy for even moderate-earning Social Security beneficiaries in these states to fall victim to double taxation.

Image source: Getty Images.

Abide by the guidelines

As much as we might be born to break the rules, abiding by the SSA's recommendation of not counting on Social Security to replace more than 40% of the average worker's wages in retirement is a smart move. Even with the program lifting so many people out of poverty, a looming cash crunch, coupled with the fact that Social Security dollars continue to lose purchasing power over time, is all the more reason today's nonretirees should be focused on minimizing their reliance on the program.

To build on this point, it would also be a wise decision to consider the cost of living when you retire. If you're going to be somewhat reliant on your Social Security income, living in the Midwest, for instance, can allow your income to stretch much farther than if you were living in the Northeast or on the West Coast. Being mindful of the states that tax Social Security benefits, as well as the cost of living, can go a long way to help make your Social Security dollars count.

Top 5 Biotech Stocks For 2019

tags:ALNY,BIIB,AMGN,ARQL,

Happy Sunday! And welcome to another edition of "3 Things in Biotech You Should Learn Today," a daily digest dedicated to helping you gauge recent news in pharma and biotech. And there has been a lot of exciting stuff in the last few days...

So let's get into it!

Cara Therapeutics scores breakthrough in an odd affliction

We don't hear a lot about drug development in supportive care, often owing to the relatively low priority placed on it by the pharmaceutical industry. It's not out of malice; there's just not a ton of effective potential pharmacologic intervention for a lot of treatment- and disease-related side effects.

But that doesn't mean there is no forward momentum in supportive care. For example, Cara Therapeutics (NASDAQ:CARA) is developing CR845 for uremic pruritis that is a complication of chronic kidney disease.

Well, the FDA has seen fit to designate CR845 as a breakthrough drug, which gives you a sense of the importance of this unmet need. As always, breakthrough designations give some crucial benefits to a developmental agent, not the least of which is the potential for a significantly curtailed developmental pathway.

Top 5 Biotech Stocks For 2019: Alnylam Pharmaceuticals Inc.(ALNY)

Advisors' Opinion:

• [By Cory Renauer]

  Taking a medical breakthrough from concept through commercial success is like ascending a mountain that grows taller and more treacherous with every setback. It's taken Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) 16 years to launch its first drug, so challenges have had plenty of time to take up positions along this company's path to a successful first launch.

• [By Joseph Griffin]

  Northern Trust Corp lifted its holdings in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) by 4.4% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 492,768 shares of the biopharmaceutical company’s stock after purchasing an additional 20,992 shares during the period. Northern Trust Corp owned about 0.49% of Alnylam Pharmaceuticals worth $48,533,000 at the end of the most recent quarter.

• [By Cory Renauer]

  After 16 years as a public company, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) finally got the go-ahead to launch its first product earlier this month. Onpattro is the first in a new class of drugs that alter gene expression, but Pfizer, Inc. (NYSE:PFE) just reported some impressive results with a possible competitor that works a lot differently.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Alnylam Pharmaceuticals (ALNY)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Joseph Griffin]

  BidaskClub lowered shares of Alnylam Pharmaceuticals (NASDAQ:ALNY) from a strong-buy rating to a buy rating in a research report released on Monday.

• [By Jim Crumly]

  Drug giant Pfizer released details of a successful trial of a drug for heart damage from a rare disease, and although that company's stock had little reaction, falling 1.9%, shares of companies with potentially competing drugs reacted sharply. Alnylam Pharmaceuticals (NASDAQ:ALNY) soared 16.2%, Ionis Pharmaceuticals (NASDAQ:IONS) jumped 7.8%, and Eidos Therapeutics (NASDAQ:EIDX) plunged 31.1%.

Top 5 Biotech Stocks For 2019: Biogen Idec Inc(BIIB)

Advisors' Opinion:

• [By Jon C. Ogg]

  Biogen Inc. (NASDAQ: BIIB) was maintained as Market Perform and the price target was lowered to $318 from $337 (versus a $319.43 prior close) at RBC Capital Markets. The firm expects no growth in its stock price with its MS drug revenues at potential with flat or even lower sales trends ahead.

• [By Benzinga News Desk]

  A distillery in a small Spanish town has claimed it invented the original Coca-Cola (NYSE: KO) recipe and now wants recognition: Link

  ECONOMIC DATA Initial Jobless Claims For Week Ended May 25 221K vs 225K Economist Estimate, Down From 234K In Prior Week Personal Income Apr. Up 0.3%, Personal Spending Up 0.6% The Chicago PMI for May is schedule for release at 9:45 a.m. ET. The pending home sales index for April will be released at 10:00 a.m. ET. The Energy Information Administration’s weekly report on natural gas stocks in underground storage is schedule for release at 10:30 a.m. ET. The Energy Information Administration’s weekly report on petroleum inventories will be released at 11:00 a.m. ET. Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 12:30 p.m. ET. Fed Governor Lael Brainard will speak at 1:00 p.m. ET. Data on money supply for the recent week will be released at 4:30 p.m. ET. Federal Reserve Bank of Dallas President Robert Kaplan is set to speak at 8:30 p.m. ET. ANALYST RATINGS Canaccord upgrades Biogen (NASDAQ: BIIB) from Hold to Buy Morgan Stanley upgrades Corning (NYSE: GLW) from Equal-Weight to Overweight Morgan Stanley downgrades Micron (NASDAQ: MU) from Overweight to Equal-Weight Cantor downgrades HealthEquity (NASDAQ: HQY) from Overweight to Neutral

  This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.

• [By Chris Lange]

  Short interest in Biogen Inc. (NASDAQ: BIIB) decreased to 2.85 million shares from the previous 3.59 million. The stock recently traded at $316.87, within a 52-week range of $249.17 to $388.67.

• [By Chris Lange]

  Nightstar Therapeutics PLC (NASDAQ: NITE) shares exploded early on Monday after it was announced that the firm would be acquired by Biogen Inc. (NASDAQ: BIIB). The transaction is expected to close by mid-year 2019.

Top 5 Biotech Stocks For 2019: Amgen Inc.(AMGN)

Advisors' Opinion:

• [By Cory Renauer]

  There's a lot for investors to like about Amgen Inc. (NASDAQ:AMGN) and Biogen Inc. (NASDAQ:BIIB). Both of these biotech stocks have produced tremendous returns over the past couple of decades, and the businesses they represent still generate enormous profits. 

• [By Cory Renauer]

  Ajovy prevents migraine headaches by targeting the calcitonin gene-related peptide (CGRP), and it isn't the first of its kind to earn an approval. The Food and Drug Administration green-lighted Aimovig from partners Amgen (NASDAQ:AMGN) and Novartis (NYSE:NVS) in May, and by August, weekly prescriptions data prompted a Leerink analyst to predict $480 million in 2019 sales.

• [By ]

  In the Lightning Round, Cramer was bullish on The Blackstone Group (BX) , Nvidia  (NVDA) , Amgen (AMGN) , Regeneron Pharmaceuticals (REGN) , Hasbro (HAS) and Waste Management (WM) .

• [By Logan Wallace]

  Eqis Capital Management Inc. grew its position in Amgen, Inc. (NASDAQ:AMGN) by 3.3% in the second quarter, according to its most recent filing with the SEC. The fund owned 42,769 shares of the medical research company’s stock after acquiring an additional 1,361 shares during the period. Amgen accounts for approximately 0.5% of Eqis Capital Management Inc.’s investment portfolio, making the stock its 23rd biggest position. Eqis Capital Management Inc.’s holdings in Amgen were worth $7,895,000 at the end of the most recent reporting period.

Top 5 Biotech Stocks For 2019: ArQule Inc.(ARQL)

Advisors' Opinion:

• [By Maxx Chatsko]

  Shares of development-stage biopharma ArQule (NASDAQ:ARQL) rose nearly 17% today after the company announced two appointments to its management team in two newly created positions. Dr. Marc Schegerin will serve as senior vice president, corporate strategy, communication, and finance. Dr. Shirish Hirani will serve as senior vice president, program management and product planning. 

• [By Money Morning Staff Reports]

  But Blink and our other penny stocks to watch are unlikely to continue to lock in such spectacular gains in June. After looking at our 10 top penny stocks to watch this month, we'll show you a small-cap stock with great profit potential in its future…

  Penny Stock Current Share Price Law Month's Gain  Blink Charging Co. (Nasdaq: BLNK) $7.07 439.85% Senes Tech Inc. (Nasdaq: SNES) $1.27 175.40% Vivis Inc. (Nasdaq: VVUS) $0.77 150.41% Adomani Inc. (Nasdaq: ADOM) $1.49 137.68% NF Energy Saving Co. (Nasdaq: NFEC) $2.34 134.88% Vaalco Energy Inc. (NYSE: EGY) $2.15 109.06% Heat Biologics Inc. (Nasdaq: HTBX) $2.35 99.12% ArQule Inc. (Nasdaq: ARQL) $4.88 90.74% LiqTech International Inc. (NYSE: LIQT) $0.66 85.60% Transenterix Inc. (NYSE: TRXC) $3.46 77.84%

  While last month's gains are tremendous, they also illustrate the inherent dangers that come with investing in penny stocks.

• [By Joseph Griffin]

  ArQule (NASDAQ:ARQL)‘s stock had its “buy” rating restated by equities researchers at Needham & Company LLC in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. They currently have a $6.00 price target on the biotechnology company’s stock, up from their prior price target of $5.00. Needham & Company LLC’s price target suggests a potential upside of 134.38% from the company’s previous close.

• [By Stephan Byrd]

  ArQule, Inc. (NASDAQ:ARQL) Director Ronald M. Lindsay acquired 23,900 shares of the company’s stock in a transaction on Thursday, May 10th. The stock was acquired at an average price of $2.67 per share, for a total transaction of $63,813.00. Following the purchase, the director now directly owns 43,900 shares of the company’s stock, valued at $117,213. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on ArQule (ARQL)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Logan Wallace]

  BidaskClub upgraded shares of ArQule (NASDAQ:ARQL) from a hold rating to a buy rating in a report released on Saturday.

  A number of other research firms have also issued reports on ARQL. Roth Capital upped their price target on ArQule from $5.00 to $6.00 and gave the company a buy rating in a research report on Tuesday, April 17th. Leerink Swann upgraded ArQule from a market perform rating to an outperform rating in a research report on Thursday, April 5th. Zacks Investment Research lowered ArQule from a buy rating to a hold rating in a research report on Wednesday, April 4th. ValuEngine upgraded ArQule from a hold rating to a buy rating in a research report on Wednesday, May 2nd. Finally, B. Riley set a $4.00 price target on ArQule and gave the company a buy rating in a research report on Monday, March 26th. Seven analysts have rated the stock with a buy rating, The stock currently has an average rating of Buy and an average target price of $4.69.

Hot Oil Stocks To Own For 2019

tags:RRC,MRO,ECA,MMP,

June 28, 2018: Markets opened mixed Thursday, but investors started moving back in after a down day Wednesday and equities are on their way to a positive finish for the day. All 10 sectors are on track for a gain although the energy stocks are up just 0.01%. Technology and telecom stocks were the day’s best performers. First-quarter GDP growth was revised down to 2%, but that happened before markets opened.

WTI crude oil for August delivery settled at $73.45 a barrel, up nearly 1% on the day. August gold dropped about 0.4% to settle at $1,251.00, the yellow metal’s fourth straight down day. Equities were headed for a higher close about 10 minutes before the bell as the Dow traded up 0.48% for the day, the S&P 500 traded up 0.66%, and the Nasdaq Composite traded up 0.83%.

Bitcoin futures (XBTN8) for July delivery traded at $6,085, down about 0.5% on the CBOE after opening at $6,125 this morning. The trading range today was $6,050 to $6,175.

Hot Oil Stocks To Own For 2019: Range Resources Corporation(RRC)

Advisors' Opinion:

• [By Joseph Griffin]

  Media headlines about Range Resources (NYSE:RRC) have been trending somewhat positive on Saturday, Accern Sentiment Analysis reports. The research group identifies positive and negative press coverage by monitoring more than twenty million news and blog sources in real-time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Range Resources earned a daily sentiment score of 0.07 on Accern’s scale. Accern also gave media headlines about the oil and gas exploration company an impact score of 46.3371462950661 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the near future.

• [By Max Byerly]

  Range Resources Corp. (NYSE:RRC) has received an average recommendation of “Hold” from the thirty ratings firms that are currently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, twelve have issued a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $22.11.

• [By Matthew DiLallo]

  Shares of Range Resources (NYSE:RRC) rose more than 10% by 2:30 p.m. EST on Monday after the top-10 natural gas producer reported strong reserve numbers for 2018.

• [By Tyler Crowe, Matthew DiLallo, and Reuben Gregg Brewer]

  So we asked three of our investing contributors to each highlight a company they think has a compelling investment case right now in the oil and gas industry. Here's why they selected Devon Energy (NYSE:DVN), Range Resources (NYSE:RRC), and ExxonMobil (NYSE:XOM).

Hot Oil Stocks To Own For 2019: Marathon Oil Corporation(MRO)

Advisors' Opinion:

• [By Matthew DiLallo]

  Marathon Oil (NYSE:MRO) delivered strong operational and financial results through the third quarter of last year, which had the company on track to end 2018 on a high note. Investors will find out whether that's the case when the company reports its fourth-quarter results. That's one of several things they should keep their eye on when reviewing that report.

• [By Matthew DiLallo]

  Marathon Oil (NYSE:MRO) is another oil company built to thrive at lower oil prices. At $50 oil, Marathon can generate enough cash to grow production at a 10% to 14% annual pace for the next several years while living within cash flow. At $60 oil, Marathon's plan would generate about $500 million in free cash flow. With oil above that level even after the recent OPEC chatter, Marathon is on pace to produce a windfall of excess cash this year. 

• [By Dan Caplinger]

  The stock market largely gained ground on Friday, although triple-digit gains for the Dow Jones Industrial Average were offset somewhat by modest losses in the Nasdaq Composite. European Union tariffs were set to take effect today on more than $3 billion in U.S. goods, representing the latest escalation in trade tensions between the U.S. and trade partners across the globe. Yet investors were ready for a break after several days of poor performance for the overall market, and good news from several companies helped set a positive mood on Wall Street. Marathon Oil (NYSE:MRO), WillScot (NASDAQ: WSC), and Del Taco Restaurants (NASDAQ:TACO) were among the best performers on the day. Here's why they did so well.

Hot Oil Stocks To Own For 2019: Encana Corporation(ECA)

Advisors' Opinion:

• [By Joseph Griffin]

  These are some of the media stories that may have effected Accern’s scoring:

  Get Encana alerts: Should You Listen to This Stock? Encana Corporation (ECA) moves 51.44% away from One Year Low (nasdaqchronicle.com) Hot Mover of the Day – Encana Corporation (NYSE:ECA) (thestockgem.com) Enrapturing Stocks: Encana Corporation, (NYSE: ECA), AmTrust Financial Services, Inc., (NASDAQ: AFSI) (globalexportlines.com) Analysts, Options Traders Love This Lesser-Known Energy Stock (schaeffersresearch.com) Encana Corp (ECA) Expected to Announce Quarterly Sales of $1.12 Billion (americanbankingnews.com)

  ECA traded up $0.27 on Thursday, hitting $12.47. 9,071,326 shares of the stock were exchanged, compared to its average volume of 9,380,907. Encana has a 12 month low of $8.01 and a 12 month high of $14.31. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $11.70 billion, a price-to-earnings ratio of 29.00, a P/E/G ratio of 1.98 and a beta of 2.00.

• [By Stephan Byrd]

  COPYRIGHT VIOLATION NOTICE: “FDx Advisors Inc. Takes Position in Encana Corp (ECA)” was first posted by Ticker Report and is owned by of Ticker Report. If you are viewing this article on another website, it was copied illegally and reposted in violation of United States and international copyright laws. The correct version of this article can be accessed at https://www.tickerreport.com/banking-finance/4202858/fdx-advisors-inc-takes-position-in-encana-corp-eca.html.

• [By Shane Hupp]

  Electra (CURRENCY:ECA) traded down 5.1% against the U.S. dollar during the 24-hour period ending at 15:00 PM E.T. on June 12th. Over the last seven days, Electra has traded down 25.7% against the U.S. dollar. Electra has a market cap of $34.53 million and approximately $134,011.00 worth of Electra was traded on exchanges in the last 24 hours. One Electra coin can currently be bought for $0.0013 or 0.00000020 BTC on exchanges including CryptoBridge, Fatbtc, CoinFalcon and Coinhouse.

• [By Keith Noonan, Travis Hoium, and Matthew DiLallo]

  We asked three Motley Fool investors to profile some of the best under-the-radar growth stocks on the market today. Read on to see why they selected Encana (NYSE:ECA), Activision Blizzard (NASDAQ:ATVI), and Baozun (NASDAQ:BZUN) as top growth stocks for in-the-know investors.

• [By Max Byerly]

  Electra (CURRENCY:ECA) traded 8% higher against the U.S. dollar during the 1-day period ending at 22:00 PM ET on June 20th. In the last week, Electra has traded 12.6% higher against the U.S. dollar. Electra has a market capitalization of $34.87 million and $128,874.00 worth of Electra was traded on exchanges in the last 24 hours. One Electra coin can now be purchased for $0.0014 or 0.00000020 BTC on exchanges including Fatbtc, Novaexchange, CoinFalcon and CryptoBridge.

Hot Oil Stocks To Own For 2019: Magellan Midstream Partners L.P.(MMP)

Advisors' Opinion:

• [By John Bromels]

  Magellan Midstream Partners (NYSE:MMP), Royal Dutch Shell (NYSE:RDS-A)(NYSE:RDS-B), and Darling Ingredients (NYSE:DAR) are three energy industry companies that are safe bets to buy and then forget about all summer long. 

• [By Reuben Gregg Brewer]

  Enbridge Inc. (NYSE:ENB) has a roughly 6% yield, while Magellan Midstream Partners, L.P. (NYSE:MMP) offers a slightly lower 5.5%. Before simply buying the higher-yielding midstream company, step back and consider the risks at each today. When you do that, the slightly lower yield at Magellan looks a lot more enticing. Here's what you need to know to decide which is the better buy: Enbridge or Magellan.

• [By Reuben Gregg Brewer]

  For an example of just how important this is, take a look at the graph below. Midstream companies ONEOK Inc. (NYSE:OKE), Magellan Midstream Partners LP (NYSE:MMP), and Enterprise Products Partners L.P. (NYSE:EPD) have each increased their disbursements for more than a decade. However, there is a difference in the growth rates over time. Enterprise's 10-year annualized distribution increase was 5.7%, Magellan's was 10.9%, and ONEOK's dividend rose at an annualized 16.1% clip. Just a few percentage points here makes a huge difference in the growth of the disbursement over time, as the chart below clearly shows.

• [By Matthew DiLallo]

  Meanwhile, Valero Energy is investing in new midstream infrastructure that it could eventually drop down to its MLP, including those under construction in two joint ventures it formed with Magellan Midstream Partners (NYSE:MMP) last year. The first one will invest $380 million in building new refined products pipelines and storage assets in central Texas, which should start service by the middle of next year. Meanwhile, Valero and Magellan Midstream are also building a new marine terminal near Houston. Valero will pour $410 million into the terminal, which should start up in early 2020. Magellan sees the potential to invest another $700 million to double the terminal's size in the future, which is a project that it could partner with Valero.

• [By Lisa Levin] Gainers McDermott International, Inc. (NYSE: MDR) rose 19 percent to $7.20 in pre-market trading. Subsea 7 S.A. confirmed a $7.00 per share proposal to acquire McDermott. Clarus Corporation (NASDAQ: CLAR) rose 18.5 percent to $8.00 in pre-market trading. Enbridge Inc. (NYSE: ENB) rose 9.3 percent to $34.09 in pre-market trading after falling 2.41 percent on Friday. Lannett Company, Inc. (NYSE: LCI) rose 8.4 percent to $18 in pre-market trading. Lannett named Maureen M. Cavanaugh as senior vice president and chief commercial operations officer. Navios Maritime Midstream Partners L.P. (NYSE: NAP) rose 7.1 percent to $4.55 in pre-market trading after gaining 11.26 percent on Friday. Corcept Therapeutics Incorporated (NASDAQ: CORT) rose 6.9 percent to $18.80 in pre-market trading after falling 3.19 percent on Friday. Helios and Matheson Analytics Inc. (NASDAQ: HMNY) rose 5.7 percent to $2.40 in pre-market trading after falling 10.98 percent on Friday. Vectren Corporation (NYSE: VVC) shares rose 5.6 percent to $69.20 in pre-market trading. CenterPoint Energy, Inc. (NYSE: CNP) announced plans to acquire Vectren for $72 per share in cash Genprex, Inc. (NASDAQ: GNPX) shares rose 5.2 percent to $4.50 in pre-market trading. Atossa Genetics Inc. (NASDAQ: ATOS) rose 5.1 percent to $3.70 in pre-market trading after declining 19.35 percent on Friday. Sangamo Therapeutics, Inc. (NASDAQ: SGMO) shares rose 5 percent to $20 in pre-market trading. Magellan Midstream Partners, L.P. (NYSE: MMP) shares rose 5 percent to $68.41 in pre-market trading. Halozyme Therapeutics, Inc. (NASDAQ: HALO) shares rose 4.9 percent to $19.78 in the pre-market trading session.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Investors Buy Shares of SPDR Bloomberg Barclays High Yield Bond ETF (JNK) on Weakness

Investors bought shares of SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK) on weakness during trading hours on Monday. $132.65 million flowed into the stock on the tick-up and $81.55 million flowed out of the stock on the tick-down, for a money net flow of $51.10 million into the stock. Of all equities tracked, SPDR Bloomberg Barclays High Yield Bond ETF had the 14th highest net in-flow for the day. SPDR Bloomberg Barclays High Yield Bond ETF traded down ($0.04) for the day and closed at $35.55

The business also recently disclosed a monthly dividend, which will be paid on Thursday, March 7th. Shareholders of record on Monday, March 4th will be given a $0.1734 dividend. This represents a $2.08 annualized dividend and a yield of 5.85%. The ex-dividend date of this dividend is Friday, March 1st. This is a boost from SPDR Bloomberg Barclays High Yield Bond ETF’s previous monthly dividend of $0.17.

Get SPDR Bloomberg Barclays High Yield Bond ETF alerts:

A number of institutional investors and hedge funds have recently bought and sold shares of JNK. BlackRock Inc. grew its position in shares of SPDR Bloomberg Barclays High Yield Bond ETF by 299.4% during the 3rd quarter. BlackRock Inc. now owns 5,523,413 shares of the exchange traded fund’s stock worth $199,119,000 after buying an additional 4,140,423 shares during the period. Bluefin Trading LLC bought a new position in SPDR Bloomberg Barclays High Yield Bond ETF during the 4th quarter worth approximately $99,788,000. Merit Financial Group LLC boosted its stake in SPDR Bloomberg Barclays High Yield Bond ETF by 2,108.4% during the 4th quarter. Merit Financial Group LLC now owns 2,134,258 shares of the exchange traded fund’s stock worth $64,844,000 after acquiring an additional 2,037,614 shares during the last quarter. Hsbc Holdings PLC boosted its stake in SPDR Bloomberg Barclays High Yield Bond ETF by 68.8% during the 4th quarter. Hsbc Holdings PLC now owns 4,443,208 shares of the exchange traded fund’s stock worth $149,247,000 after acquiring an additional 1,811,465 shares during the last quarter. Finally, United Services Automobile Association boosted its stake in SPDR Bloomberg Barclays High Yield Bond ETF by 43.9% during the 3rd quarter. United Services Automobile Association now owns 4,837,880 shares of the exchange traded fund’s stock worth $174,406,000 after acquiring an additional 1,477,040 shares during the last quarter.

TRADEMARK VIOLATION NOTICE: “Investors Buy Shares of SPDR Bloomberg Barclays High Yield Bond ETF (JNK) on Weakness” was first posted by Ticker Report and is owned by of Ticker Report. If you are reading this article on another publication, it was illegally copied and reposted in violation of US & international copyright laws. The original version of this article can be viewed at https://www.tickerreport.com/banking-finance/4197115/investors-buy-shares-of-spdr-bloomberg-barclays-high-yield-bond-etf-jnk-on-weakness.html.

About SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK)

SPDR Barclays High Yield Bond ETF (the Fund), formerly SPDR Barclays Capital High Yield Bond ETF, seeks to provide investment results that correspond to the price and yield performance of the Barclays Capital High Yield Very Liquid Index (the Index). The Index includes publicly issued United States dollar denominated, non-investment grade, fixed-rate, taxable corporate bonds that have a remaining maturity of at least one year, regardless of optionality, are rated high-yield using the middle rating of Moody's, S&P, and Fitch, respectively, and have $600 million or more of outstanding face value.

Recommended Story: What is the Current Ratio?

Now may be the time to use bonds in portfolios

Is now the time to revisit bonds in your portfolio?

It may be, given that the Federal Reserve is advocating a "patient" approach to interest rates and a survey by the National Association for Business Economics has found that about 50 percent of U.S. business economists believe the country will be in a recession by the end of 2020.

Yes, said certified financial planner Douglas Kobak, CEO of Main Line Group Wealth Management. Other factors working against rising rates, he said, are slowing global economic expansion, increasing U.S. stock market volatility and uncertainty in Washington in areas such as a U.S./China agreement, immigration, the national debt, lack of bipartisan support, etc.

The yield from a short-term bond portfolio currently can beat the rate of inflation, he said.

More from Fixed Income Strategies:
Four overlooked Social Security-claiming strategies
This falling market offers a chance to cut taxes in retirement
2 accounts that can ramp up tax-free retirement income

"The right portfolio can add more safety, since individual bonds have a stated maturity date when compared to a mutual fund," Kobak said. "Investment-grade and government bonds also have a low correlation to the stock markets, which can lower the volatility within a portfolio.

"Bond funds and most fixed-income ETFs do not have set maturity dates," he added. "Therefore, in a rising interest-rate environment, there is no set date in the future when an investor will get his principal back."

Erika Safran, CFP, founder of Safran Wealth Advisors, said that "it's always time for bonds."

She added: "You just have to know why you are buying them. I find that a lot of the bond avoiders are alternative investments fans. I don't see the value."

Safran addde that there should be no fear of the bond market "unless, of course, you're investing on the long end or on low credit."

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"There should be no fear if you buy bonds for diversification and income," she said. "Naturally, there is undue risk if you invest for capital appreciation."

Now is a great time to consider incorporating conventional bonds into portfolios, said Brandon W. Garrett, CFP, president of Snow Garrett Wealth Management.

"As the yield curve has flattened over the last year, we have been given a gift in the form of attractive short-term rates," he said.

"Low rates over the past decade have forced more conservative investors into riskier assets," Garrett added. "With higher short-term rates, conservative investors can once again focus on high-quality, shorter-duration bonds as a more meaningful piece of their portfolio without sacrificing much return.

"Conservative clients should now feel comfortable knowing that the 'safe' portion of their portfolio is earning 2 [percent] to 3 percent rather than zero [percent], which should result in less risk drift and ultimately a better investor experience."

"Our clients appreciate the relative certainty and the predictability of the income flows, and the use of bond ladders lessens the worry about calls and the daily volatility of the bond market." -James N. Reardon, chief investment officer of ProActive Capital Management

Furthermore, Garrett said, if rates move, shorter-duration bonds will be less affected than their longer-duration counterparts.

For his part, James N. Reardon, CFP and chief investment officer of ProActive Capital Management, especially likes using bond ladders of higher-grade U.S. corporates, employing real non-callable bonds when practical. He also likes the more passive nature of bond portfolios.

"Our clients appreciate the relative certainty and the predictability of the income flows and the use of bond ladders lessens the worry about calls and the daily volatility of the bond market," he said. "It's great at the end of the year when the client can see some principal returned and the interest distributed or reinvested for their needs."

This is definitely a good time for municipal bonds, said Ian M. Weinberg, CFP, CEO of Family Wealth & Pension Management, citing loss of certain income-tax deductions, a benign interest rate policy by the Fed and very credit-worthy issuers nationwide. Compared to Treasurys, the net yields of munis are much higher because they are not subject to federal, state and local tax, he said, making them a good value at this time when they're giving investors 80 percent or more of Treasury yields.

designer491 | iStock | Getty Images

In contrast, James Shagawat, CFP, president of Windfall Wealth Advisors, said this is not a good time to look at munis. Factors that make them disadvantageous include interest rates at 50-year lows; bond insurance disappearing (6 percent of new issuance has insurance, down from 57 percent in 2005, according to an Alliance Bernstein report); reduced liquidity, especially for small position sizes; and limited available supply.

"Since the financial crisis, municipal bonds have dramatically been changed," he said. "The strategy that worked well has stopped working.

"What was buy-and-hold the bonds until maturity or until they are called can be a costly mistake."

Shagawat said some solutions including analyzing the bonds, selling them before maturity, doing credit research, or using bond mutual funds.

— By Deborah Nason, special to CNBC.com