penny stock tips

Baird’s David George and Garrett Holland recommend investors “reduce bank exposure into strength,” calling “risk/reward not very compelling up here.” They explain why:

Agence France-Presse/Getty Images

There is a positive bias to low expectations for Q2 capital markets results (primarily trading) and credit provisioning (given move in oil), but the significant flattening in the yield curve potentially signals a deteriorating 2H16/2017 outlook. Bank investor sentiment also seems too complacent in this risky market/economic environment. We would sell banks around more optimism for Fed tightening and CCAR results…

The charts may look better following the gains in Q2 (KBW Bank Index +8% QTD, +6% vs. S&P 500), but fundamentally it is harder to overweight banks today. While not historically expensive (in line with historical forward multiples unlike equities generally) and structurally safer given higher capital ratios and regulatory scrutiny, the extended low rate environment continues to pressure bank revenue and credit risk is rebuilding (examples: corporate lending, multifamily CRE, indirect auto). We expect volatile market conditions to persist and think investors will once again get a better opportunity to buy banks.

penny stock tips: Atwood Oceanics, Inc.(ATW)

Advisors' Opinion:

• [By Ben Levisohn]

  Atwood Oceanics (ATW) has gained 5.3% to $5.60 after the offshore driller’s earnings beat the Street consensus.

  3M (MMM) has gained 1.8% to $150.50 after announcing that it would keep and reinvest in its health information systems unit. 3M also said it would increase its dividend.

• [By Lisa Levin]

  Energy shares surged around 1.85 percent in trading on Monday. Top gainers in the sector included Legacy Reserves LP (NASDAQ: LGCY), Whiting Petroleum Corp (NYSE: WLL), and Atwood Oceanics, Inc. (NYSE: ATW).

• [By Ben Levisohn]

  Shares of Ensco have dropped 0.9% to $10.51 at 9:54 a.m. today today, but it’s not the only offshore driller that’s feeling pain. Atwood Oceanics (ATW) has fallen 2.4% to $8.23 after getting cut to sell at Barclays.

• [By Ben Levisohn]

  Oh, and offshore drillers got smacked again following earnings from Rowan (RDC) and Atwood Oceanics (ATW).

  We highlighted JPMorgan’s argument that the S&P 500, which has been trading like a bond, is headed for a fall, and looked at today’s drop here and here.

• [By Benzinga News Desk]

  Stephens (Equal-Weight) and Citi (Sell) both downgraded Atwood Oceanics (NYSE: ATW).

  Sell-Side's Most Noteworthy Calls Investec downgraded Anheuser-Busch (NYSE: BUD) to Hold. Deutsche Bank downgraded Freeport McMoRan (NYSE: FCX) to Hold. Goldman Sachs upgraded Microsoft (NASDAQ: MSFT) to Buy. Barclays upgraded Teck Resources (NYSE: TCK) to Overweight. BTIG started Adobe (NASDAQ: ADBE) at Neutral. Deal Talk

  U.S. oil refiner Tesoro (NYSE: TSO) said it would buy Western Refining (NYSE: WNR) for $4.1 billion to add refineries in Texas, New Mexico and Minnesota. The combined company will have refining capacity of over 1.1 million barrels per day. Tesoro has refineries in California, Washington, Alaska, Utah and North Dakota.

• [By Ben Levisohn]

  Shares of Transocean (RIG) are getting hit today but not nearly as hard as other offshore drillers, including Ensco (ESV), Diamond Offshore Drilling (DO), Atwood Oceanics (ATW) and Noble (NE). The reason: Transocean announced the results of a tender offer to buy back debt. RBC’s�Kurt Hallead and�Benjamin Owens explain:

penny stock tips: InterCloud Systems, Inc(ICLD)

Advisors' Opinion:

• [By Monica Gerson]

  InterCloud Systems Inc (NASDAQ: ICLD) is expected to post a quarterly loss at $0.14 per share on revenue of $24.00 million.

  Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

penny stock tips: Ameresco, Inc.(AMRC)

Advisors' Opinion:

• [By Manikandan Raman]

  There also some lesser known clean energy stocks that may witness downward movement on potential Trump win on negative sentiment. They include Pattern Energy Group Inc (NASDAQ: PEGI), Enviva Partners LP (NYSE: EVA), TerraForm Global Inc (NASDAQ: GLBL), Renewable Energy Group Inc (NASDAQ: REGI) and Ameresco Inc (NYSE: AMRC).

penny stock tips: Fidelity Southern Corporation(LION)

Advisors' Opinion:

• [By Lisa Levin]

  Here is the list of stocks going ex-dividend on Monday.

  AptarGroup, Inc. (NYSE: ATR) - $0.3200 dividend, 1.6780 percent yield. AptarGroup reported weaker-than-expected Q3 results on Thursday. Fidelity Southern Corporation (NASDAQ: LION) - $0.1200 dividend, 2.6359 percent yield. The company, based in Atlanta, Georgia, provides financial products and services for customers. Apple Hospitality REIT Inc (NYSE: APLE) - $0.1000 dividend, 6.5826 percent yield. Apple Hospitality REIT, based in Richmond, Virginia, operates as a subsidiary of Apple REIT Companies. Targa Resources Corp (NYSE: TRGP) - $0.9100 dividend, 7.7299 percent yield. The Houston, Texas-based company provides midstream natura

penny stock tips: The Joint Corp.(JYNT)

Advisors' Opinion:

• [By Monica Gerson]

  Joint Corp (NASDAQ: JYNT) is estimated to post a quarterly loss at $0.28 per share on revenue of $4.13 million.

  Synacor Inc (NASDAQ: SYNC) is projected to post a quarterly loss at $0.03 per share on revenue of $30.00 million.

penny stock tips: CVR Partners LP(UAN)

Advisors' Opinion:

• [By Robert Rapier]

  Enter CVR Partners LP (NYSE: UAN), the only company in the US to produce fertilizer from petroleum coke (petcoke). Petcoke is a byproduct of petroleum refining, and prices are usually set off coal prices, since these two products compete in the same niche. Thus the same dynamics that currently threaten the distributions of Rentech Nitrogen Partners and Terra Nitrogen Company play in CVR Partners’ favor.

• [By Cameron Swinehart]

  Going forward I will be looking to add investments on my watchlist and trim other positions. It will be interesting to see how an overweight commodity portfolio will perform relative to the rest of the market.

   Cost Basis# SharesCurrent Price% of PortfolioCurrent ValueReturnMetal/Miners      Sprott Physical Gold Trust (PHYS)$12.4985$11.043.75%$938.40-13.13%Sprott Physical Silver Trust (PSLV)$7.95125$8.744.37%$1,092.509.04%FreePort-McMoran (FCX)$31.6731$33.874.20%$1,049.976.50%Ishares MSCI Global Gold Miners ETF (RING)$13.0695$10.644.04%$1,010.80-22.74%Energy      Statoil ASA(STO)$21.7940$22.683.63%$907.203.92%Vanguard Natural Resources LLC (VNR)$27.5636$27.874.01%$1,003.321.11%ConocoPhillips (COP)$63.6822.43$71.006.37%$1,592.5310.31%Agriculture      CVR Partner LP (UAN)$26.3630.9$18.932.34%$584.94-39.25%Adecoagro$6.78125$7.443.72%$930.008.87%Archer-Daniels Midland (ADM)$34.8030$37.244.47%$1,117.206.55%Mixed Commodity      Powershares DB Commodity Index (DBC)$26.3540$25.954.15%$1,038.00-1.54%Sprott Resource Corp$3.34400$2.714.34%$1,084.00-23.25%    Total % of portfolio49.40%               Cost Basis12,666.00      Current Value12,348.86      Return-2.50%  Source: Investing For The Future Surge In Commodity Prices

  Disclosure: I am long ADM, FCX, UAN, AGRO, RING, VNR, SCPZF.PK, COP, DBC, PHYS, PSLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

• [By Lisa Levin]

  In trading on Tuesday, basic materials shares declined by 1.82 percent. Meanwhile, top losers in the sector included CVR Partners LP (NYSE: UAN), down 10 percent, and Resolute Forest Products Inc (NYSE: RFP), down 9 percent.