/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Charter now Comcast's biggest nationwide rival after TWC approval Teaser (s): Charter's new footprint. (The numbers are slightly lower than actual as they're based on year-old data.) Charter. The Federal Communications Commission just announced that it approved Charter's acquisitions of Time Warner Cable (TWC) and Bright House ... Source (s): Ars Technica DocumentDate (s): 21 minutes ago DocumentDate_raw (n): 1462565700000 Link (s): http://arstechnica.com/business/2016/05/charter-wins-fcc-approval-of-twc-merger-will-have-25-million-customers/ DocumentKey (s): HTTParstechnica.com/business/2016/05/charter-wins-fcc-approval-of-twc-merger-will-have-25-million-customers/ DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): 'Toxic' Endo International Falls 40% on Slashed Guidance Teaser (s): In one day, Endo International (ENDP) shed 40% of its market capitalization, leading many to wonder what went wrong. Investors rushed for the exits after the company announced guidance cuts and leadership changes. Source (s): TheStreet.com DocumentDate (s): 44 minutes ago DocumentDate_raw (n): 1462564350000 Link (s): http://realmoney.thestreet.com/articles/05/06/2016/toxic-endo-international-falls-40-slashed-guidance DocumentKey (s): HTTPrealmoney.thestreet.com/articles/05/06/2016/toxic-endo-international-falls-40-slashed-guidance DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Wages Are Growing, But Are They Growing Fast Enough? Link (s): http://folionation.squarespace.com/news/2016/5/6/wages-are-growing-but-are-they-growing-fast-enough.html Thumbnail (s): DocumentDate_raw (n): 1462562940000 DocumentDate (s): May 6, 2016 DocumentDate_smart (s): 3:29 PM DocumentKey (s): 1107-290734296785735679471-0OC3UMRRR16LCCETBOQ0S1PA12 ContentType (s): Article TrackingPixel (s): Teaser (s):

The April jobs report was weak, though higher wages was a bright spot. Still, all is not well on the wages front.

Everybody's working for the weekend, but most Americans are doing it for lackluster wages. According to an NPR report, citing the Economic Policy Institute, four out of five Americans saw stagnant or declining wages between 2007 and 2014, though, on average, wages for the American worker haven't grown significantly since the early '70s. And for the past six years, annual wage growth has hovered around 2%.

That's why the 2.5% year-over-year growth in hourly earnings in Friday's April jobs report was considered a bright spot amid mixed results, including the lower-than-expected addition of 160,000 new jobs. Though wages grew by 2.5% in January, growth slowed to just 2.2% in February and 2.3% in March. 

Considering the cost of living, the 2.5% increase in wages isn't likely to comfort many American workers. In 2015, the Kaiser Family Foundation discovered that employee deductibles had risen by 67% since 2010, meaning employees are increasingly paying out of pocket for their medical treatments. Given that 81% of health insurance plans have deductibles, this means that an overwhelming number of workers have less money to spend. 

Despite issues with wage growth, the economic recovery has led to a better job market overall: unemployment is at 5% compared to the recession high of 10% in October 2009. Perhaps this helps explain why Americans' perception of their financial situation is evenly split: according to a recent Gallup poll of 1,015 U.S. adults, 50% view it positively, while the other 50% view it negatively. 

Read Next: The Trouble With The Typical Millennial Starting Salary

3 (o): [object Object] Headline (s): Feinberg Rejects Central States' Plan for Pension Cutbacks Teaser (s): U.S. federal mediator Kenneth Feinberg rejected the Central States Pension Fund's rescue plan that would have cut benefits for more than 250,000 working and retired union members. Source (s): Bloomberg DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1462562321000 Link (s): http://www.bloomberg.com/news/articles/2016-05-06/feinberg-rejects-central-states-plan-to-cut-teamsters-pensions DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2016-05-06/feinberg-rejects-central-states-plan-to-cut-teamsters-pensions DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): US consumer borrowing jumps 10 percent in March Teaser (s): WASHINGTON (AP) - U.S. consumers sharply increased use of their credit cards in March, pushing up total borrowing at the fastest pace in more than a decade. Source (s): Appeal-Democrat DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1462561650000 Link (s): http://www.appeal-democrat.com/business/national/us-consumer-borrowing-jumps-percent-in-march/article_5798786e-9b37-5a82-b7c3-ec94e43c0ab5.html DocumentKey (s): HTTPwww.appeal-democrat.com/business/national/us-consumer-borrowing-jumps-percent-in-march/article_5798786e-9b37-5a82-b7c3-ec94e43c0ab5.html DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Panama Papers source breaks silence, denies being a spy - Sueddeutsche Zeitung Teaser (s): BERLIN Sueddeutsche Zeitung said on Friday that the source of millions of documents leaked to the German newspaper from Panamanian law firm Mossack Fonseca had sent them a manifesto, saying his motivation was the "scale of injustices" the papers ... Source (s): Reuters DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1462558950000 Link (s): http://in.reuters.com/article/panama-tax-source-idINKCN0XX20V DocumentKey (s): HTTPin.reuters.com/article/panama-tax-source-idINKCN0XX20V DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Square Faces Questions on Lending Strategy as Shares Drop Nearly 20% Teaser (s): Shares in payment provider Square Inc. SQ -19.47 % fell Friday at the fastest clip since the company's initial public offering, a day after the firm reported deepening losses and slow growth in its lending business. Source (s): Wall Street Journal DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1462558275000 Link (s): http://www.wsj.com/articles/square-faces-questions-on-lending-strategy-as-shares-drop-nearly-20-1462558798 DocumentKey (s): HTTPwww.wsj.com/articles/square-faces-questions-on-lending-strategy-as-shares-drop-nearly-20-1462558798 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Buy Berkshire Hathaway for a 13% Profit? 3 Things You Need to Know Teaser (s): Down 3% over the past year, Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) stock is a giant of American industry that is basically tracking the performance of the rest of American industry (i. Source (s): Motley Fool DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1462555575000 Link (s): http://www.fool.com/investing/general/2016/05/06/buy-berkshire-hathaway-for-a-13-profit-3-things-yo.aspx DocumentKey (s): HTTPwww.fool.com/investing/general/2016/05/06/buy-berkshire-hathaway-for-a-13-profit-3-things-yo.aspx DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Jamba Juice will move headquarters from Bay Area to Texas Teaser (s): Jamba Inc., the owner of smoothie company Jamba Juice, will move its headquarters from Emeryville, Calif., to Texas within eight months. Source (s): Los Angeles Times DocumentDate (s): 5 hours ago DocumentDate_raw (n): 1462548503000 Link (s): http://www.latimes.com/business/la-fi-jamba-juice-20160506-snap-story.html DocumentKey (s): HTTPwww.latimes.com/business/la-fi-jamba-juice-20160506-snap-story.html DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Stock market shakes off an early loss and turns higher Teaser (s): Stocks were turning modestly higher Friday, after the U.S. government's disappointing jobs report added to speculation that the Federal Reserve might keep interest rates low for another year. Source (s): Los Angeles Times DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1462542716000 Link (s): http://www.latimes.com/business/la-fi-financial-markets-20160507-story.html DocumentKey (s): HTTPwww.latimes.com/business/la-fi-financial-markets-20160507-story.html DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): Smallest US job gains in seven months temper rate hike expectations Teaser (s): WASHINGTON The U.S. economy added the fewest number of jobs in seven months in April and Americans dropped out of the labor force, signs of weakness that left some economists anticipating only one interest rate hike from the Federal Reserve this year. Source (s): Reuters DocumentDate (s): 15 hours ago DocumentDate_raw (n): 1462511426000 Link (s): http://www.reuters.com/article/us-usa-economy-idUSKCN0XX0A3 DocumentKey (s): HTTPwww.reuters.com/article/us-usa-economy-idUSKCN0XX0A3 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): |41742|4541440|3346440 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Sell In May and Go Away? Link (s): http://folionation.squarespace.com/news/2016/5/4/sell-in-may-and-go-away.html Thumbnail (s): DocumentDate_raw (n): 1462381200000 DocumentDate (s): May 4, 2016 DocumentDate_smart (s): May 4, 2016 DocumentKey (s): 1107-290734296785735677591-0M1C46PR5VVN098PJJQFKRJCJV ContentType (s): Article TrackingPixel (s): Teaser (s):

Just as schoolchildren learn "April showers bring May flowers," investors know "Sell in May and go away." 

"Sell in May and go away" is one of Wall Street's most beloved cliches. The idea behind the saying is that investors should sell their stocks in May to avoid the seasonal underperformance that takes place between May and October. Per Investopedia, citing the Stock Trader's Almanac, the average return of the Dow Jones Industrial Average is 0.3% between May and October, compared to 7.5% between November and April since 1950.

Of course, following cliches may not be the best investing strategy, especially since past performance isn't indicative of future performance. Take last May, for example. At the end of the month, the Dow and S&P 500 were up 1%, while the Nasdaq gained roughly 3%.

The three indices also had a good May back in 2014; the Dow hit a new high, the S&P 500 rose over 2% and the Nasdaq surged 3.1%. And as Brian Lund pointed out over at Daily Finance, the SPDR S&P 500 ETF (SPY) and the Powershares QQQ ETF (QQQ), which track the S&P 500 and Nasdaq, respectively, rose 6% and 14% between May 2 and September 2, 2014.

On the other hand, following investor selling can be a useful metric when considering a stock. Significant selling by institutional investors, such as hedge funds and mutual funds, and company insiders can indicate increased bearishness towards a stock. Both groups of investors are likely to have a better understanding of the company's specific industry—as well as the various conditions that can affect its success—than the average investor. When insiders sell, lack of faith in the company's future may be why, though there are other possible explanations as well.

Screening for stocks with an uptick in selling by institutional investors and insiders is one way to get a sense of how bearish informed investors are towards a stock. With that in mind, here are three stocks with very negative institutional and insider transactions. That means that the net activity for both institutional and insider transactions has been at least 20% negative. 

Click on the interactive chart to view data over time. 

 

1. Alliance Healthcare Services Inc. (AIQ): Provides outpatient diagnostic imaging services and radiation therapy services in the United States. Market cap at $74.55M, most recent closing price at $7.02.

Insider transactions at -26.68%.

Institutional transactions at -55.05%,

 

2. Lake Shore Bancorp Inc. (LSBK): Operates as the holding company for Lake Shore Savings Bank that provides banking products and services in New York. Market cap at $89.29M, most recent closing price at $14.25.

Insider transactions at -23.15%.

Institutional transactions at -26.61%.

 

3. PharmAthene Inc. (PIP): Engages in the development and commercialization of medical countermeasures against biological and chemical weapons in the United States. Market cap at $156.11M, most recent closing price at $2.40.

Insider transactions at -28.85%.

Institutional transactions at -22.87%,

 

 (Monthly return data provided by MOD. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): The Dire Straits of Puerto Rico Link (s): http://folionation.squarespace.com/news/2016/4/29/the-dire-straits-of-puerto-rico.html Thumbnail (s): DocumentDate_raw (n): 1461962820000 DocumentDate (s): April 29, 2016 DocumentDate_smart (s): Apr 29, 2016 DocumentKey (s): 1107-290734296785735673852-4GS1NUE80E5KUCDTM7OV928VKV ContentType (s): Article TrackingPixel (s): Teaser (s):

Puerto Rico can't pay its creditors, and Congress is dragging its heels with a relief measure to help the island.

May Day is a holiday celebrated around the world, but this year, the first day of May signals the dawn of a new economic nightmare for Puerto Rico. The small island, which became a U.S. territory in 1898, is supposed to make a $422 million payment to its creditors the following day, May 2. Unfortunately, after nine years of recession, Puerto Rico is broke, and missing Monday's payment means that the island will default on its debt. 

How It Happened

The severity of Puerto Rico's fiscal crisis made international headlines in June 2015 when Governor Alejandro Garcia Padilla made an astonishing announcement: the island was unable to pay its $72 billion debt. Padilla expressed his desire to make arrangements to restructure Puerto Rico's debt with its creditors. 

But as a commonwealth, Puerto Rico is only entitled to some of the benefits that states enjoy. Citizenship is one of them; bankruptcy protection isn't. And the differences don't end there: while the U.S. gradually bounced back from the 2008 economic crisis, Puerto Rico continued to flounder.

Part of the reason for Puerto Rico's sustained economic demise stems from its nearly decade-long recession. The island slid into a recession in 2006 after the U.S. government eliminated the Section 936 tax incentive, which gave American businesses based in Puerto Rico a federal tax exemption. The Clinton Administration decided to eliminate Section 936 in the '90s an effort to raise revenue to shrink the Federal deficit despite then-Governor Dr. Pedro J. Rossello and various business groups arguing that removing Section 936 would devastate the Puerto Rican economy

Lo and behold, in 2006, at the completion of the 10-year plan to phase out Section 936, Puerto Rico's economy contracted. And in the years that followed, the Puerto Rican government borrowed lots of money to run the country.

Where Things Stand

Ten months after Padilla's announcement, and Puerto Rico's situation has only worsened. In July 2015, 34 hedge funds—clearly unbothered by the vulture fund nickname—suggested that the government close schools and fire teachers. The funds reasoned the government could then use funds that were earmarked for education to pay off its debts. 

Even though the government didn't take the funds' advice, public programs have suffered amid the crisis. The government was unable to make a $250 million payment to its hospitals last year, further exasperating an already underfunded and overwhelmed healthcare system.

As a result, services and hours have been cut, and now coverage is on the chopping block. Ricardo Rivera-Cardona, the head of the Health Insurance Administration, told NPR last month that if Congress doesn't lift Puerto Rico's Medicaid reimbursement cap—which would give the island the same amount of funding as states—one million out of 1.6 million Medicaid patients will lose coverage. 

Also in March, Puerto Rico went before the Supreme Court to argue for a local law that would allow public utilities to restructure their debt, though a ruling on that case is likely months away.

Congress could provide Puerto Rico with the relief it needs in managing its crushing debt. However, despite House Speaker Paul Ryan's insistence in December that lawmakers come up with a "reasonable solution" by March, Congress has failed to make meaningful progress on a bill. Although the way Ryan tells it in his response to Hamilton creator Lin-Manuel Miranda's critical rap on Last Night Tonight With John Oliver, Congress is making progress

(Skip to 19:01 for Miranda's rap) 

Ryan commented on the situation on Tuesday. Three days later, and there still isn't a bill.

13 (o): [object Object] WSODIssue (s): |45294|72887506|228906|20623115 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): How Much Would You Spend On a Smart Home? Link (s): http://folionation.squarespace.com/news/2016/4/27/how-much-would-you-spend-on-a-smart-home.html Thumbnail (s): DocumentDate_raw (n): 1461778800000 DocumentDate (s): April 27, 2016 DocumentDate_smart (s): Apr 27, 2016 DocumentKey (s): 1107-290734296785735671940-13TLJUV0L9KCGRSQ0KCIRI6MRT ContentType (s): Article TrackingPixel (s): Teaser (s):

Talk of smart homes has floated around for years, but what will it take for smart home to become the norm?

The smart home is nothing new—just watch an episode of The Jetsons for a glimpse of home automation, or check out Ford's (F) 1967 short film 1999 AD for another take on the domicile of the future. People have long dreamed of controlling their home's operations with a simple flip of a switch, press of a button, vocal command or tap/swipe on a screen.

And we're getting closer to that, albeit slowly. Market research firm Gartner predicts that the typical family home may have 500 smart devices in 2022. One company that may pop up in more homes by that time is Nest Labs, one of the best-known companies in the Internet-connected home devices space. Nest makes smart thermostats, smoke and carbon monoxide detectors and security systems, and it was acquired by Google—now Alphabet (GOOG)—for a staggering $3.2 billion in January 2014.

Unfortunately for Nest, it has struggled to meet its parent company's $300 million annual sales target; Re/code reports that the company generated $340 million in revenue last year only after incorporating sales from Dropcam (which it acquired in 2014).

Nest's sales may not be growing fast enough to satisfy Alphabet management, but interest in smart homes is strong. In its 2015 State of the Smart Home report, which surveyed 1,600 adults in the U.S. and Canada, smart home solutions provider Icontrol found that 54% of U.S. respondents intended to purchase at least one smart home device in the coming year. 

Millennials, in particular, are interested in smart home technology—and it's not because of laziness, stupidity, or general being-the-worst-ness. According to Better Homes and Gardens's 2015 Home Factor survey, 74% of Gen Y respondents believed smart home technology was "customizable to their needs," 70% thought it would increase energy efficiency and 67% expected it to save time. Part of that customization means plug-and-play solutions, such as Koninklijke Philips NV's (PHG) Hue wireless lighting, that renters can easily install, uninstall and move. 

Additionally, 68% of millennials said smart home technology was a "good investment," up from 57% in 2014.

Smart home technology may be considered a good investment by most, but it's also considered an expensive investment by most, too. Per the Home Factor survey, just 51% of millennial respondents thought their budget could accommodate smart technology purchases. That's better than the feeling in the general survey pool: 7 in 10 respondents said the technology was too costly. 

So, how much is too much when it comes to making a home smart? In the State of the Smart Home report, respondents 45-years-old and younger expected to spend $2,000 to $3,000 on smart home upgrades while respondents over age 45 capped spending at $500.

With that in mind, below is a list of three stocks that offer smart home products, as well as the retail price for these devices. If you, like four in 10 millennials, find smart homes appealing, do you plan to buy these products? Or would you rather invest in the companies behind these technologies? Or...

 

Click on the interactive chart to view data over time. 

1. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as a global online retailer and offers cloud computing services through its Amazon Web Services platform Market cap at $291.49B, most recent closing price at $620.50.

Amazon Echo, a wireless speaker and voice command device, retails for $179.99. There's also a payment plan of five monthly payments of $36.00.

 

2. Alphabet Inc. (GOOG, Earnings, Analysts, Financials): Provides online advertising services, assorted Internet products and hardware through its Google segment and runs speculative businesses through its Other Bets segment. Market cap at $495.14B, most recent closing price at $718.77.

Subsidiary Nest Labs develops and markets the Nest Learning Thermostat, which retails for $249, Nest Protect smoke and carbon monoxide dector, which retails for $99, and Nest Cam security camera, which retails for $199.

 

3. Koninklijke Philips N.V. (PHG, Earnings, Analysts, Financials): Engages in the healthcare, consumer lifestyle, and lighting product businesses worldwide. Market cap at $24.79B, most recent closing price at $28.28.

The Hue wireless lighting starter kit retails for $79.95.

 

4. Spectrum Brands Holdings Inc. (SPB, Earnings, Analysts, Financials): Operates as a consumer products company worldwide and, through its Hardware and Home Improvement group, owns lock manufacturer Kwikset. Market cap at $6.61B, most recent closing price at $111.89.

Subsidiary Kwikset manufactures and sells the Kevo lock, which opens with a key or smartphone and retails for $199, and offers other connected lock solutions.

 

(Quarterly sales data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

14 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): All It Takes Is One Bad Apple (Earnings Report) Link (s): http://folionation.squarespace.com/news/2016/4/27/all-it-takes-is-one-bad-apple-earnings-report.html Thumbnail (s): DocumentDate_raw (n): 1461778740000 DocumentDate (s): April 27, 2016 DocumentDate_smart (s): Apr 27, 2016 DocumentKey (s): 1107-290734296785735671927-1K9MVQR24CDFC3NEFO4NCNG9RJ ContentType (s): Article TrackingPixel (s): Teaser (s):

Apple's first-quarter earnings fell short of expectations because people just aren't buying iPhones like they used to.

Unlucky number 13 reared its ugly head when Apple (AAPL) released its first-quarter earnings after market close on Monday. The consumer tech giant reported its first year-over-year decline in revenue since 2003 due to a slowdown in iPhone sales. Following the earnings release, the stock fell roughly 6% and lost over $40 billion in value in after hours trading, making it the worst performer in the Dow Jones Industrial Average since being added on March 18, 2015—a little over 13 months ago. 

Apple shares recovered some of their losses in Wednesday morning trading. The stock is down 6.20% as of 1:35PM EST. 

15 (o): [object Object] WSODIssue (s): |70660|80204|97838|137951|170676|225857|272896 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Brazil Impeachment Looks Bad for Dilma, Less So For Stocks Link (s): http://folionation.squarespace.com/news/2016/4/18/brazil-impeachment-looks-bad-for-dilma-less-so-for-stocks.html Thumbnail (s): DocumentDate_raw (n): 1461008100000 DocumentDate (s): April 18, 2016 DocumentDate_smart (s): Apr 18, 2016 DocumentKey (s): 1107-290734296785735664280-1TTS2VQ8AIS38BJM2UFDGA6C7I ContentType (s): Article TrackingPixel (s): Teaser (s):

As an impeachment motion gains steam, Brazilian stocks and the Brazilian real rally. What gives? 

It's a Manic Monday in Brazil. On Sunday night, the lower house of Brazil's congress voted overwhelmingly to impeach two-term leftist President Dilma Rousseff. House Speaker Eduardo Cunha, who is facing charges of corruption and perjury, led the charge against Rousseff, which resulted in 367 of the lower house's 513 deputies voting for her impeachment. The motion only needed two-thirds majority support to advance to the Senate. 

Now, Rousseff, who is Brazil's first female president, sees her political life hanging by a thread. After gaining an impressively high approval rating of 92% in the early days of her presidency, her approval rating has since plummeted. In June 2015, her approval rating fell to the lowest level for a Brazilian president since Fernando Collor de Meleo (who was impeached in 1992).

Rousseff's tenure has been marred by a corruption scandal involving Petrobras (PBR), the government-run oil company, a recession, rising inflation and disillusionment from her former supporters. But the formal reason given for her impeachment has nothing to do with the aforementioned issues; Rousseff's opponents, including her nemesis Cunha, have accused her of deliberately misrepresenting the size of the budget deficit while campaigning for her second term.  Rousseff hasn't been charged with corruption, although the Guardian reports that more than 150 deputies (who voted yes on Sunday) have actually been implicated in crimes. 

Sunday's vote means that the Senate has to decide whether or not it accepts the impeachment motion. If at least 41 of the 81 Senators approve the motion—the expected outcome at this point—Rousseff has to temporarily step down for 180 days as the charges are investigated. Vice Preisdent Michel Temer would then become the interim president. To the markets' delight, Temer is a pro-business politician; his party, the Brazilian Democratic Movement Party (PMDB), released a liberal economic platform this past October, which called for public spending cuts, pension reform and greater private investment.

Following Sunday night's vote, investors sent the Brazilian real up Monday morning, forcing the central bank to intervene to stop the currency from appreciating too much. If the real were to become too strong, the price of Brazilian exports would increase and make Brazilian goods less competitive in the global market, further exacerbating the country's poor economic situation. 

Per the Financial Times, the real rose 1.5% to 3.478 reais to the dollar on Monday before the central bank erased all of the gains by selling nearly 70,000 reverse currency swaps out of 320,000. Reverse currency swaps are a financial instrument the central bank can use to weaken the real through the purchase of U.S. dollars in the futures market. Investors are paid the overnight interbank rate in reais and receive a fixed interest rate in dollars. 

Still, the optimism surrounding the possibilities that accompany a new administration has its limits. As Bloomberg reports, analysts surveyed by the Brazilian central bank believe the economy will contract yet again in 2016, this time by 3.8%.

Below is a list of eight Brazilian stocks that have underperformed the market over the past year and have negative EPS growth this year. The infamous Petrobras is included in the list. All of the stocks have outperformed the market so far this year.

These stocks are also rallying about their 20-day, 50-day and 200-day simple moving averages (SMA) as of 1:25PM EST. That rally echoes Brazil's benchmark Bovespa index's 23% rally since the beginning of the year, which Bloomberg attributes to the bullish belief that a Temer adminstration would be more business friendly than Rousseff's.

Click on the interactive chart to view data over time. 

 

1. Companhia Brasileira de Distribuicao (CBD, Earnings, Analysts, Financials): Operates as a retailer of food products, clothing, home appliances, and other products through its chain of hypermarkets, supermarkets, specialized and department stores, convenience stores, and the internet in Brazil. Market cap at $3.82B, most recent closing price at $14.70.

EPS growth this year at -80.30%.

Performance over the past year at -54.16%.

Performance year to date at 39.73%.

The stock is rallying 3.78% above its 20-day SMA, 16.77% above its 50-day SMA and 1.43% above its 200-day SMA. 

 

2. CPFL Energia S.A. (CPL, Earnings, Analysts, Financials): Engages in the generation, distribution, and sale of electricity in Brazil. Market cap at $5.38B, most recent closing price at $11.03.

EPS growth this year at -8.90%.

Performance over the past year at -17.21%.

Performance year to date at 48.65%.

The stock is rallying 0.23% above its 20-day SMA, 11.62% above its 50-day SMA and 20.20% above its 200-day SMA. 

 

3. Companhia Paranaense de Energia (ELP, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electricity for industrial, residential, commercial, and rural customers primarily in the State of Parana, Brazil. Market cap at $2.19B, most recent closing price at $8.12.

EPS growth this year at -1.10%.

Performance over the past year at -28.47%.

Performance year to date at 38.33%.

The stock is rallying 1.06% above its 20-day SMA, 14.29% above its 50-day SMA and 3.09% above its 200-day SMA. 

 

4. Gerdau S.A. (GGB, Earnings, Analysts, Financials): Engages in the production and sale of steel products in Brazil and internationally. Market cap at $3.61B, most recent closing price at $2.21.

EPS growth this year at -427.90%.

Performance over the past year at -29.05%.

Performance year to date at 84.17%.

The stock is rallying 14.67% above its 20-day SMA, 49.92% above its 50-day SMA and 43.66% above its 200-day SMA. 

 

5. Itau Unibanco Holding S.A. (ITUB, Earnings, Analysts, Financials): Provides commercial, corporate, and investment banking services to individuals, small and middle-market companies, and large corporations in Brazil and internationally. Market cap at $54.12B, most recent closing price at $9.29.

EPS growth this year at -5.50%.

Performance over the past year at -20.09%.

Performance year to date at 47.05%.

The stock is rallying 3.83% above its 20-day SMA, 18.38% above its 50-day SMA and 25.27% above its 200-day SMA. 

 

6. Petroleo Brasileiro S.A. (PBR, Earnings, Analysts, Financials): Engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. Market cap at $43.57B, most recent closing price at $6.72.

EPS growth this year at -372.90%.

Performance over the past year at -22.58%.

Performance year to date at 56.28%.

 The stock is rallying 14.44% above its 20-day SMA, 40.31% above its 50-day SMA and 31.33% above its 200-day SMA. 

 

7. Telefonia Brasila S.A. (VIV, Earnings, Analysts, Financials): Provides fixed-line and mobile telecommunications services to residential and corporate customers in Brazil. Market cap at $21.34B, most recent closing price at $13.32.

EPS growth this year at -47.80%.

Performance over the past year at -15.13%.

Performance year to date at 40.47%.

The stock is rallying 0.95% above its 20-day SMA, 14.13% above its 50-day SMA and 18.32% above its 200-day SMA. 

 

(One-month return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

*/ undefined

Article Not Found.

Articles