• Near Its All-Time Low, Is Norwegian Cruise Line Stock a Buy?
    Motley Fool

    Near Its All-Time Low, Is Norwegian Cruise Line Stock a Buy?

    Without revenue from normal operations since March, Norwegian Cruise Line Holdings (NYSE: NCLH) has seen its shares plummet as the COVID-19 pandemic turned the travel industry on its head. Costs have been cut dramatically, an entire fleet of ships idled, customers appeased with refunds or 125% credits toward new trips, and liquidity bolstered to survive 18 months without revenue.

  • Bloomberg

    U.S. Cases Rise; Trump G-7 May Draw Fewer Leaders: Virus Update

    (Bloomberg) -- New York is targeting “hotspots” as New York City prepares to reopen in less than two weeks. U.S. cases increased 1.7%, faster than the one-week daily average.Attendance at a June U.S.-hosted meeting of world leaders could shrink because of the outbreak. Siemens Healthineers received U.S. emergency authorization for a coronavirus antibody test.European Union leaders urged the U.S. to reverse a decision to quit the World Health Organization. Italian cases trended lower as the government starts to allow travel, despite objections over letting people leave the hard-hit region near Milan.Key Developments:Virus Tracker: Cases top 6 million; deaths over 367,000Indonesia to open malls, entertainment sites as cases riseTexas shows the world how to reopen cautiously, for nowChinese vaccine expected to begin mass output soonRace to the freezer: Europe’s food glut has nowhere to goPizza chains have windfall on surge in takeout, deliveriesBaseball on ESPN: Korea’s major league plays through outbreakSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus. For a look back at this week’s top stories from QuickTake, click here.U.K., France Mull G-7 as Germany Skips (5 p.m. NY)The Covid-19 outbreak may deter German Chancellor Angela Merkel from attending a Group of Seven leaders meeting in the U.S., but other leaders are still in talks with the host, President Donald Trump.Trump spoke with French President Emmanuel Macron on Saturday with “progress on convening the G-7” among the topics, the White House said. On Friday, U.K. Prime Minister Boris Johnson and Trump “discussed the importance of leaders meeting in the U.S. in person, if possible,” according to Johnson’s office. A Merkel spokesman on Saturday said “she’s unable to confirm her personal participation” given the current state of events.The meeting was planned for Trump’s Doral resort in Florida, was moved to Camp David then became a video conference because of the pandemic. Trump is pushing the G-7 leaders to travel to the U.S. for an in-person meeting.U.S. Cases Rise 1.7%, Above Week’s Average (4 p.m. NY)U.S. cases increased 1.7% from the same time Friday, to 1.76 million, according to data collected by Johns Hopkins University and Bloomberg News. The national increase exceeded the average daily increase of 1.3% for the past week and was the biggest percentage rise since May 22. Deaths climbed 1.2% to 103,389.New York reported 1,376 new cases, for a total of 369,660, with 67 deaths -- the same as Friday and the fifth day of fatalities under 75. Deaths totaled 23,848.New Jersey had 910 new cases, pushing the total to 159,608, with 113 new deaths for a total of 11,634, Governor Phil Murphy reported.California reported 2,992 new cases, for a total of 106,878, and added 88 deaths, with the fatality count at 4,156.Pennsylvania reported 680 new cases, for a total of 71,415, and 73 new deaths, to total 5,537, the state health department said.Florida’s cases rose 1.7% to 55,424 and deaths rose to 2,447, the health department said.Greece Allows More Flights from Mid-June (3:30 p.m. NY)Greece will allow visitors from more nations, including the U.S. and U.K., to arrive at Athens and Thessaloniki airports starting June 15, the Foreign Ministry said. After July 1, flights can land at all Greek airports.The government will use the European Union Aviation Safety Agency’s list of airports to determine testing for arriving passengers. If travel originates at an airport not on the affected-area list, then visitors are subject to random tests, the Foreign Ministry said. If the journey begins at an airport on the EASA list, then visitors who test negative will self-quarantine for seven days and if positive will be under supervised quarantine for 14 days.Greece will reopen borders with Albania, Bulgaria and North Macedonia on June 15, the Foreign Ministry said with visitors subject to random tests. Arrivals by sea will begin July 1.French Cases Inch Higher (2:10 p.m. NY)France reported 57 new deaths, raising the total to 28,771, based on hospital data, with reporting of nursing-home fatalities delayed to Tuesday. New cases climbed by 1,828, or 0.8%, to 225,898.FDA Authorizes Siemens Antibody Test (2:10 p.m. NY)Siemens Healthineers AG received U.S. Food and Drug Administration emergency use authorization for a coronavirus antibody test, used to identify recent or prior infection in humans. The company had expected the test to be available by late May and aims to produce more than 50 million tests a month starting in June.N.Y. Targets NYC ‘Hotspots’ (2 p.m. NY)Governor Andrew Cuomo said the state plans to get New York City reopened by focusing on “hotspots” -- neighborhoods where positive cases can be nearly 50% and are largely in minority communities. The city average rate is about 20%.“We have work to do but we’ll still get it done by June 8,” he said.Cuomo also signed a law to compensate the families of hundreds of essential workers who have died in the outbreak.Italy Cases on Declining Trend (12:01 pm NY)Italy reported 416 new cases, up from 516 a day earlier, confirming a declining trend as the total reached 232,664. Total deaths rose to 33,340. The government confirmed plans to allow travel between regions starting June 3 even as some regional governors opposed letting people from the hard-hit Lombardy region move freely.N.Y. Daily Deaths Unchanged (11:45 a.m. NY)New York reported 67 new deaths, Governor Andrew Cuomo said at a Saturday press conference. The figure is the same as reported on Friday and the fifth straight day below 75 fatalities. The state reported 1,376 new cases, for a total of 369,660.U.K. Permits Live Sports Events (11:30 a.m. NY)The U.K. will allow live sports events, without spectators, and further relax restrictions on physical exercise starting Monday as the country eases lockdown measures.Horse racing will be allowed behind closed doors, with other sports like soccer, rugby, cricket, golf and snooker to follow, but without fans, Culture Secretary Oliver Dowden said at a press conference. “British sports recovery has begun,” Dowden said.England’s Premier League plans to resume matches on June 17, after consulting with the clubs, players and managers, Chief Executive Richard Masters said after the government announcement.Spain Deaths Rise (11:25 a.m. NY)The Spanish health ministry said total coronavirus cases increased by 271 to 239,228 in the past 24 hours. Total fatalities rose to 27,125 with 43 new deaths reported in the past seven days.Somalia Votes in 2021, Despite Outbreak (10:30 a.m. NY)Somalia will push ahead with elections in early 2021, Prime Minister Hassan Ali Kheyre said after a cabinet meeting, removing doubt that the spread of Covid-19 will delay the vote.The Horn-of-Africa nation is seeking debt relief as the pandemic adds to its woes, from an insurgency to locusts. It has almost 2,000 cases and a health system ill-equipped to handle the outbreak.South Africa Allows Domestic Flights (10:20 a.m. NY)South Africa will permit air travel from four main airports starting Monday as the nation eases lockdown measures. Limited domestic flights will be allowed for business, and passengers must give a reason, Transport Minister Fikile Mbalula said in a televised briefing on Saturday.India to Ease Lockdown in Stages (8:52 a.m. NY)India announced a phased lifting of the nationwide lockdown by allowing malls, restaurants and places of worship to open from June 8, the interior ministry said in a statement.The country, which had enforced sweeping and strict stay-at-home orders from March 25, will limit the stringent rules to areas that have a large number of active cases. Authorities will decide to open schools and colleges in July, while international air travel will resume in the final phase. The exit plan comes even as India has been unable to flatten its curve despite the restrictions which have left its already troubled economy in deep disrepair.EU Urges U.S. to Reconsider WHO Decision (8:24 a.m. NY)The European Union called on the U.S. to reconsider its decision to terminate its relationship with the World Health Organization, which President Donald Trump has accused of being too deferential to China.“Global cooperation and solidarity through multilateral efforts are the only effective and viable avenues to win this battle the world is facing,” according to a joint statement Saturday from European Commission President Ursula von der Leyen and the bloc’s chief foreign envoy, Josep Borrell. “We urge the U.S. to reconsider its announced decision.”Portugal’s Virus Cases Slow (8:04 a.m. NY)Portugal reported 257 new coronavirus cases on Saturday, taking the total to 32,203, after recording more than 300 infections in each of the two previous days, the government said. The increase in new cases has been mostly in the greater Lisbon area and led the government on Friday to delay the planned reopening of malls in that region. The number of cases in intensive care units fell to 63 on Saturday, remaining at the lowest level since March.Macau’s Economy Shrinks by Almost Half (6:46 a.m. NY)Macau’s economy posted a deeper contraction in the first quarter as lockdown measures introduced to contain the virus outbreak hit revenue from gambling, hotels, and tourism.Gross domestic product in Macau plummeted 48.7% in the first three months of 2020, according to the city’s statistics department. That is the fifth straight quarterly decline.Belgium’s Socialists Propose $41.7 Billion Stimulus (6:14 a.m. NY)Paul Magnette, the head of Belgium’s Socialist party, proposed a 37.6 billion-euro ($41.7 billion) stimulus package to combat the economic toll of the global pandemic, according to an interview with Le Soir. The aid would target catering, cultural and health-care industries, he said.Iran Reports Fewer New Cases (6:12 a.m. NY)Iran’s infection tally rose to 148,950 as the daily number of new cases dropped to 2,282 from 2,819 on Friday, the highest daily number of cases in eight weeks. The virus death toll reached 7,734 with 57 more deaths overnight.S&P Sees Abu Dhabi, Bahrain Economies Shrinking (5:20 p.m. HK)Abu Dhabi’s economy will contract 7.5% this year, S&P Global Ratings said, citing lower oil production and the pandemic.Bahrain’s economy will shrink 5% this year because of low oil prices, although government stimulus measures should provide some support, S&P said. The ratings company expects Bahrain’s economy to rebound in 2021 as oil prices recover and regional activity increases.Indonesia Gears Up for Post-Holiday Return (5:02 p.m. HK)Indonesia’s capital Jakarta is anticipating one million vehicles will enter the city as people return from Eid al-Fitr holidays. Traffic, including motorcycles, is projected to peak from Saturday to Monday, according to a Cabinet Secretariat statement. While the figure is lower compared to the 2.8 million vehicles recorded last year, the flow of so many travelers is raising concern as the nation’s coronavirus cases grow.Indonesia now has the highest coronavirus death toll in Southeast Asia, with 1,573 people succumbing to the disease as of Saturday. New cases have more than doubled in May, with the total reaching 25,773.Uzbekistan Extends Lockdown (3:36 p.m. HK)The Uzbek government has decided to extend lockdown restrictions until June 15. Central Asia’s most populous nation has confirmed 3,513 cases of infection of the coronavirus, with 14 deaths and 2,728 recoveries.Singapore Reports 506 New Cases (3:30 p.m. HK)Singapore reported 506 new infections as of Saturday, according to a statement from its Health Ministry. A vast majority of the additional infections are of work permit-holders who live in foreign workers’ dormitories, according to the statement. The ministry is expected to provide additional details in the evening, it added.Chinese Vaccine Expected to Begin Mass Output This Year (3:25 p.m. HK)A front-running Covid-19 vaccine being developed in China is expected to be available as soon as the end of this year, according to a report published in the official Wechat account of the State-owned Assets Supervision and Administration Commission.The vaccine, jointly developed by the Beijing Institute of Biological Products and China National Biotec Group Co., has completed phase II testing and may be ready for the market at the end of this year or early next year, said the report.The production line for the vaccine will be fully disinfected and closed in preparation for output to start Saturday, and will have a manufacturing capacity of 100 million-120 million vaccines each year.Iran Lifts Restriction on Shopping Hours (2:26 p.m. HK)Iran has lifted a restriction on the operating hours of shopping malls in the latest step of reopening the economy. Meanwhile, all mosques in the country will be open to worshipers for daily prayers three times a day, President Hassan Rouhani said in a national coronavirus taskforce briefing broadcast on state TV.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    The Dividend Massacre That Was May

    In May, 18 S&P 500 companies said they were suspending their payouts and five others announced cuts, according to S&P Dow Jones Indices.

  • 4 Oil Stocks to Avoid in June
    Motley Fool

    4 Oil Stocks to Avoid in June

    The price of oil seems to be trending upward; maybe this is a buying opportunity. Four stocks in particular to avoid in June are Halliburton (NYSE: HAL), United States Oil Fund (NYSEMKT: USO), Occidental Petroleum (NYSE: OXY), and Patterson-UTI Energy (NASDAQ: PTEN). Here's why these Motley Fool contributors say you shouldn't be tricked into picking up shares of these likely underperformers.

  • American Airlines Plans To Cut 30% Of Its Management Staff

    American Airlines Plans To Cut 30% Of Its Management Staff

    American Airlines Group Inc (AAL) said it plans to cut 30% of its management and support staff (MSS) to reduce costs as the debt-strapped U.S. airline grapples with the financial fallout of the coronavirus pandemic.Affected employees will be notified of the layoffs in July, but will remain on payroll through Sept. 3, and will receive full pay and benefits through the U.S. CARES Act Payroll Support Program. The indebted airline is also offering a voluntary early out program for MSS employees but if there are not enough volunteers it will begin layoffs.“We will be a smaller airline, with fewer routes and fewer flights,” Elise Eberwein, Executive VP, wrote in a memo to employees. “Our preferred outcome is to properly size our frontline team for the future without having to implement involuntary furloughs. This is a goal, though, not a commitment, and a stretch goal at that.”Eberwein added that the airline has already taken a number of steps to downsize with nearly 39,000 workers choosing to take a voluntary leave or early retirement. In addition, fleet retirement accelerations are underway, which is expected to result in flying roughly 100 fewer aircraft next summer than was originally planned.American Airlines stock has lost two-third of its value so far this year as stringent travel restrictions tied to the coronavirus pandemic have brought travel demand to an almost halt. U.S. airlines have been burning through billions of dollars in the first quarter incurring huge losses and implementing broad cost-cutting plans, as well as taking steps to shore up cash buffers.The airline’s stock dropped 4.4% to $10.50 on Friday.Earlier this month, five-star analyst Brandon Oglenski at Barclays lowered the stock’s rating to Sell from Hold, with a $7 price target, (reflecting 33% downside potential) saying the future is uncertain on travel demand but definite on "plenty of additional debt."Overall Wall Street analysts are sitting on the fence when it comes to American Airlines stock. The Hold consensus is divided into 4 Hold, 8 Sell and 4 Buy ratings. The $13.36 average price target is less bearish than Barclays’ outlook and implies 27% upside potential in the shares in the coming year. (See American Airlines stock analysis on TipRanks).Related News: Ryanair Cuts Traffic Target By Almost 50% For Coming Year, Seeks To Reduce Boeing Plane Deliveries Boeing Gets No Orders in April, Customers Cancel 737 MAX Jets Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes More recent articles from Smarter Analyst: * China’s Tencent In Talks To Buy $200 Million Stake In Warner Music - Report * Quest’s Covid-19 Self-Collection Test Kit Gets FDA Nod For Emergency Use * Minerva Shares Tank 72% As Schizophrenia Drug Misses Trial Goals * Beyond Meat Teams Up With KFC, Pizza Hut In China

  • DXC Technology Company (DXC): Are Hedge Funds Right About This Stock?
    Insider Monkey

    DXC Technology Company (DXC): Are Hedge Funds Right About This Stock?

    The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]

  • Investor turns $100,000 into $2.2 million — now he’s banking on a cruise line to reach his early retirement goals

    Investor turns $100,000 into $2.2 million — now he’s banking on a cruise line to reach his early retirement goals

    The buy-and-hold approach to the stock market generally isn’t a celebrated strategy among Reddit’s “Wall Street Bets” bunch, but more than a few glasses are being raised for one member of the meme-making trading community who claims to have made an absolute killing in recent years.

  • Hedge Funds Have Never Been Less Bullish On United Airlines Holdings (UAL)
    Insider Monkey

    Hedge Funds Have Never Been Less Bullish On United Airlines Holdings (UAL)

    The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]

  • Barrons.com

    Casinos and Theme Parks Are Reopening This Summer. It Could Be Good News for Airlines.

    Visits to hotels, casinos, and vacation websites are picking up—signs that a recovery in leisure air travel may be under way as the summer vacation season kicks off.

  • Wait for Another Pullback Before Buying American Airlines

    Wait for Another Pullback Before Buying American Airlines

    [Editor's Note: "Wait For Another Pullback Before Buying AAL Stock" was originally published April 22, 2020. It is regularly updated to include the most relevant information.]Source: GagliardiPhotography / Shutterstock.com Novel coronavirus headwinds continue for American Airlines (NASDAQ:AAL). Since the outbreak first hit China, AAL stock has cratered from around $30 per share to just above $10 per share. But, could a low share price mean a solid "bottom-fishing" opportunity?It depends. Airline stocks have moved higher in recent days, on optimism for a post-pandemic recovery. But, keep in mind the many fleas on this legacy carrier. Even before the pandemic affected air travel.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs I previously discussed, American Airlines already had a heavy debt load and other operating issues.And despite the company receiving $5.8 billion in payroll support from the $2 trillion CARES Act stimulus package, they could burn through billions more as air travel volumes remain depressed.The worst of the coronavirus in America may already be over. But, it could be years before airline stocks like American start rebounding again. With this in mind, today's prices may not be enough to justify a buy in the near-term.Yet, that doesn't completely rule out American Airlines as a buy at lower prices. Let's dive in, and see why a "wait-and-see" approach may be the best way to play this hard-hit airline stock. Slow Recovery Means More Bad News for AAL StockThings may be starting to "return to normal." But, don't take that to mean smooth sailing ahead for the U.S. economy. The damage caused by the pandemic and its associated shutdowns could linger on throughout the year. And that's especially the case for the airline industry.There are many reasons why the stimulus package is far from being a "silver bullet" for American and the other airlines. Firstly, airlines continue to burn through cash at a rapid clip. This airline alone anticipates losing $70 million a day through June. In other words, over $2 billion a month, or $6 billion a quarter. Losses are expected to come down this summer, but will still be in the billions per month.Also, don't expect travelers to return to the skies right away. As our own Louis Navellier recently pointed out, the airline industry's "new normal" doesn't look too pretty. Social distancing and safety efforts are going to make air travel unattractive for quite some time.This may explain why industry leaders like Airbus (OTCMKTS:EADSY) CEO Guillaume Faury say it could be "three to five years" before the industry recovers. With a long road to recovery, it's tough to be confident in the near-term prospects for American. Darkest Before the Dawn?Things sound bleak for American Airlines. Yet, with shares bouncing back from single-digit to above $10 per share, we may be reaching a bottom. Granted, investors who bought on prior "dead cat bounces" in March and April lost out when shares continued to trend lower.But, if shares retest prices in the single-digits, are the odds on your side? As InvestorPlace's Tom Taulli wrote last month, it's likely American Airlines survives coronavirus. Mainly because Washington won't want to see an airline file for Chapter 11.Yet, with Boeing (NYSE:BA) CEO Dave Calhoun predicting an airline bankruptcy in 2020, this risk should be top of mind. And considering American's weak financials, this airline could be the leading candidate.What does the airline itself say? Recently, CEO Doug Parker reassured investors, saying "we're all going to be fine." But, considering Parker said a few years back that the airline would never again go in the red, it's tough to confident in his forecast.In short, the current darkness may not be signalling that dawn is near. And at today's valuation, risk of bankruptcy (which would wipe out shareholders) may not be fully priced into the stock. Wait-and-See Is the Key With AAL StockWhen I last wrote about American Airlines stock, I said it was too early to buy but too late to go short. But now, I'm a bit more bearish. With Warren Buffett recently selling his airline stocks, and aviation industry leaders calling for continued challenges, shares may head lower.On the other hand, airline stocks have trended higher, as speculators bet on a swift recovery. Yet, this excitement could quickly change course if reality does not match expectations.That's not to say the legacy carrier is going bankrupt, as some have hinted. But, it may be best to buy only when a rebound isn't priced into the stock.Bottom line: wait for American Airlines shares to head lower before entering a position. If shares fall back into the single-digits, the potential price appreciation could more than make up for the risk.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Wait for Another Pullback Before Buying American Airlines appeared first on InvestorPlace.

  • Barrons.com

    Recent Stock Rally May Trip Up Activist Investors

    This season has been more subtle than previous years, as the coronavirus pandemic has slowed campaigns. Many assumed that investors would quietly increase stakes. But while the broader market still trades below February highs, many sectors aren’t exactly cheap.

  • Bloomberg

    Coty Shares Tumble After Forbes Questions Kylie Jenner’s Wealth

    (Bloomberg) -- Coty Inc. tumbled Friday after Forbes reported that Kylie Jenner allegedly provided the magazine with misleading financial information about her cosmetics brand.Shares of Coty, which acquired a majority stake in Kylie Cosmetics last year, dropped 13% to close at $3.63, extending its 2020 decline to 68%.The news report raises questions about one of Coty’s most visible brands as it seeks to overcome stagnating sales, changing consumer tastes and retail challenges caused by the coronavirus pandemic. The company, which took billions of dollars in writedowns last year, agreed this month to sell the Wella and Clairol brands to buyout firm KKR & Co. as part of a $4.3 billion deal, allowing it to focus on mass beauty and the Jenner brand. Last week, it launched the Kylie Skin beauty line in Europe.Representatives at management company Jenner Communications and her publicist, Christy Welder, didn’t immediately reply to messages seeking comment, nor did Lisa Kessler, a spokeswoman for New York-based Coty.“All I see are a number of inaccurate statements and unproven assumptions,” Jenner said Friday in one of several tweets responding to the Forbes report. “I can name a list of 100 things more important right now than fixating on how much money I have.”Forbes spokesman Matthew Hutchison defended the report.“Today’s extensively-reported investigation was triggered by newly filed documents that revealed glaring discrepancies between information privately supplied to journalists and information publicly supplied to shareholders,” he said in an email. “Our reporters spotted the inaccuracies and spent months uncovering the facts.”Diminished FortuneJenner, 22, a scion of the Kardashian family, became the world’s youngest self-made billionaire in March 2019 and agreed to sell a 51% stake in her cosmetics line to Coty in November. The $600 million deal valued her business at roughly $1.2 billion.Some analysts questioned the price tag at the time and, on top of the recent writedowns, “any renewed suggestion they overpaid for Kylie Cosmetics will shake investors,” said Deborah Aitken at Bloomberg Intelligence.The pandemic has diminished her net worth, leaving her with a fortune of less than $1 billion. Forbes said the social media star spent years inflating the size and success of her business to the magazine in order to boost its estimate of her wealth.Jenner, in one of the tweets, said: “I’ve never asked for any title or tried to lie my way there EVER. Period.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.


    FIRST FIRM TO INVESTIGATE ALERT: The Schall Law Firm Announces it is Investigating Claims Against Carnival Corporation & Plc and Encourages Investors with Losses of $500,000 to Contact the Firm

    LOS ANGELES, CA / ACCESSWIRE / May 29, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Carnival Corporation & Plc ("Carnival" or "the Company") (NYSE:CCL) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

  • Occidental Cuts Dividend to a Penny With Debt Woes Mounting

    Occidental Cuts Dividend to a Penny With Debt Woes Mounting

    (Bloomberg) -- Occidental Petroleum Corp. cut its quarterly dividend by 91% to the lowest since at least the 1970s amid the pandemic-driven collapse in energy demand that has strained the oil explorer’s ability to shoulder its debt.Occidental shareholders will receive a penny per share on July 15, the Houston-based company said in a statement Friday. The move extends a cut announced in March when it trimmed the payout to 11 cents from 79 cents.The surprise cut came the same day under-fire Chief Executive Vicki Hollub and the rest of the board of directors won re-election at Occidental’s annual shareholders’ meeting. The company will announce the final vote tallies in a regulatory filing later.Hollub has weathered extreme pressure from shareholders ever since outbidding Chevron Corp. to win the purchase of Anadarko Petroleum Corp. last year. The deal saddled Occidental with some $40 billion of debt that was looking hard to pay off even before Covid-19 wiped out global oil demand, sending crude prices plunging to an unprecedented minus $40 a barrel at one point last month.The benchmark U.S. oil price rebounded 88% in May to close the month above $35 a barrel, but it’s still 44% down from its high point in January and below a level that would ensure healthy cash flow for most producers.The dividend reduction will save Occidental about $360 million a year, but it’s a drop in the ocean compared to the wall of debt due over the coming years. The company probably kept a token payout to avoid mandatory selling of the stock by dividend funds and to signal that it aims to restock the stipend at some point in the future, according to Leo Mariani, an analyst at KeyBanc Capital Markets.“They need that extra money at $35 a barrel oil, so it’s the right move,” Mariani said by phone. “They’ve got to do whatever they can to survive.”What Bloomberg Intelligence SaysAlready reeling from elevated debt, a weak fundamental backdrop and investors disgruntled by the Anadarko deal, Occidental doesn’t have many near-term positives we can speak to.\-- Vincent G. Piazza and Evan Lee, analystsRead the full report here.The company’s primary focus is on “maximizing liquidity and reducing debt,” Hollub said at the annual meeting, held virtually on Friday. The company has gone from being a steady, diversified oil producer to a debt-laden, shale-focused driller that now has a market value of just $11.7 billion, less than a third of the price it paid for Anadarko. Its credit rating was downgraded to junk in March.The stock dropped 5.1% to $12.95 in New York on a day when West Texas Intermediate oil futures jumped more than 5%.Hollub fended off a shareholder revolt by making peace with the company’s second-largest shareholder, billionaire Carl Icahn, ending a nine-month public battle that included personal barbs against the CEO. However, it came at a cost. Hollub and her fellow directors agreed to cede some control by putting nominees of the activist investor on the board.(Updates with analyst’s comment from sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • 4 Top Stock Trades for Monday: ZS, CGC, OXY, UBER

    4 Top Stock Trades for Monday: ZS, CGC, OXY, UBER

    After a bumpy couple of days, the S&P 500 traded somewhat quietly on Friday, after bouncing off the 3,000 area and 200-day moving average. With that in mind, let's look at a few top stock trades for next week. Top Stock Trades for Monday No. 1: Zscaler (ZS) Click to EnlargeSource: Chart courtesy of StockCharts.com Zscaler (NASDAQ:ZS) shares are ripping higher after better-than-expected earnings.Coming into the event, shares were trading higher, grinding up in a modest channel (blue lines) and maintaining about the 20-day moving average. However, shares were struggling to clear the $77.50 level.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat is, until earnings. The stock opened up near prior 2019 resistance around $85, before surging up to $98 as shares ended the day Friday up 29%. From here, I wouldn't be surprised to see $100 hit, with the 123.6% extension up near $101.On the downside, however, I want to see prior resistance hold as support at $85 -- along with the prior high near $90. Top Stock Trades for Monday No. 2: Canopy Growth (CGC) Click to EnlargeSource: Chart courtesy of StockCharts.com Canopy Growth (NYSE:CGC) stock is getting crushed on Friday, down just about 20% after disappointing quarterly results.The move comes after last week's breakout and this week's continuation above the 200-day moving average and $20 mark. So, what now?As you can see on the chart above, CGC stock tried to rally back over the $18.25-ish area, which was the April high and a significant level dating back to October 2019. However, shares were rejected on this move.Bulls need to see this level reclaimed. If it can, it puts a gap-fill back up toward $20 in play, as well as the 200-day moving average. On the downside, I want to see the 50-day moving average and the backside of prior downtrend resistance (blue line) hold as support. Below puts $14 on the table. Top Stock Trades for Monday No. 3: Occidental Petroleum (OXY) Click to EnlargeSource: Chart courtesy of StockCharts.com Occidental Petroleum (NYSE:OXY) isn't looking too hot, down 5% on Friday. Shares were unable to push higher, most recently failing at $15 before rolling over.However, the lack of bullishness has been a multi-month process. Shares failed to reclaim the 23.6% retracement, before forming a series of lower highs. Now, it's losing the 50-day moving average, as well as uptrend support.From here, bulls need to see the $12.75 area hold as support. Below $12.50 and a retest of $10 isn't out of the question.Given how poorly the stock has done amid the big rebound in the S&P 500 and crude oil, traders may be better off looking elsewhere than OXY. I mean sheesh, crude just had its best month ever and Occidental is down about 20% for May.Shares do not look attractive amid the current setup. Top Stock Trades for Monday No. 4: Uber (UBER) Click to EnlargeSource: Chart courtesy of StockCharts.com Shares of Uber (NYSE:UBER) have made an impressive climb from the March lows. The stock hit $14 in March and continues knocking on the 78.6% retracement just below $36.The firm is in talks with GrubHub (NYSE:GRUB) to hammer out an all-stock deal. If the stock reacts bearishly to the news, we have to consider a pullback. In this case, look to the $31 area, where Uber will find its 200-day moving average and uptrend support (blue line).On a breakout over the 78.6% retracement, look for a possible gap-fill up toward $40.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post 4 Top Stock Trades for Monday: ZS, CGC, OXY, UBER appeared first on InvestorPlace.

  • With Eye On Rebound, United Looks For Alternative To Furloughs

    With Eye On Rebound, United Looks For Alternative To Furloughs

    Domestic airlines this week announced plans to permanently eliminate large numbers of management and administrative jobs as a prelude to even larger reductions in frontline forces. But United Airlines (NASDAQ: UAL) CEO Scott Kirby dismissed furloughs as an a primary option, saying they are a temporary solution that undermines the ability to capitalize on growth opportunities when coronavirus fears subside and travel takes off again.No one knows when strong demand will return, so United's priority is to create an extremely flexible cost structure centered on labor that allows the company to make money at any level of traffic, Kirby told investors Thursday. The company is negotiating with unions to adjust contracts to a new world in which passenger business could take years to recover to 2019 levels."The reality is our contracts were not designed for a world where demand might be down 50% or 70%. They were designed for a recession where demand is down 5% and you furlough 5% of the people," the new CEO said in a virtual presentation to the Bernstein conference. "If you furlough tens of thousands of people, the bounce back is almost impossible. You lose the experience, you lose the people, all the training that has to occur," he said. "And so finding a solution where we don't furlough is really about the bounce back. It's not as much about getting through the crisis as it is about bouncing back."From the beginning, United stood out in not sugarcoating the severity of the coronavirus travel restrictions on airline finances and jobs. The company slashed passenger operations, as well as discretionary and capital expenditures, to the bone; borrowed heavily from capital markets to increase liquidity; and encouraged tens of thousands of employees to take voluntary, unpaid leave for various lengths of time. United, which lost $1.7 billion in the first quarter, also warned early on that government coronavirus relief to protect industry jobs through September was a temporary salve and that mass layoffs were inevitable as airlines restructured into smaller entities. The Chicago-based carrier is receiving $5 billion in U.S. assistance. Two-thirds of the amount is in direct grants, but the money covers slightly more than half of the airline's $6.5 billion in salary and benefit expenses over a six-month period.In mid-May, United began offering voluntary separation agreements in an effort to reduce management and administrative headcount by more than 30%. The deals include some continuation of pay, access to medical benefits and travel privileges. Midlevel employees are also being forced to take 20 unpaid days off and use up 50% of vacation by the end of September.On Thursday, American Airlines announced a similar 30% reduction in middle-management and support staff, as well as benefits.And in an internal memo shared with the media on Wednesday, Delta Air Lines CEO Ed Bastian said the company will soon begin offering eligible employees an enhanced early retirement package and a voluntary separation for most employees. Delta is also discussing with labor representatives a similar early retirement plan for pilots, details of which could be released next week."The only thing we can be sure of today is that the more people choose to depart voluntarily, the greater our chances for avoiding furloughs this fall," he said.Prosperity Over SurvivalKirby said an improvement in labor relations under Oscar Munoz, who retired as CEO earlier this month, and the company's openness about the slow market recovery from the pandemic make it easier to achieve union concessions."We've been upfront and realistic with our people. That transparency goes a long way," he said. "People may not like the message, but, by and large, they appreciate the ... honesty. And that sets the groundwork for actually getting deals done. If you're saying everything is rainbows and sunshine and then you come in one day and say, ‘Oh, but now we need to furlough 30% of the people,' that's a really, really hard conversation."United's goal is a temporary workforce accommodation that will enable the company to prosper again.Being able to jump on the recovery and not only defend the existing markets we have, but to take advantage of the fact that not everyone is going to be able to bounce back quickly" will be an advantage, Kirby said. "We know what we can do under the existing contracts to survive. The negotiations with the unions are not about the survival, they are absolutely about the bounce back."Some industry observers say some U.S. airlines will be forced into bankruptcy, but Kirby, who was United's president for four years, ruled that out as a viable option."It would be the absolute last thing we could do. I can't imagine why people think that's a good business strategy. ... It's worse for shareholders, for creditors, for employees. It's worse for every constituent that we have and that is not even remotely in the plans at United Airlines," he said. American Airlines (NASDAQ: AAL) CEO Doug Parker a day earlier said bankruptcy is not an option even though the carrier came into the crisis with a large debt burden.In the past two weeks South American carriers Avianca and LATAM Airlines have moved to restructure under U.S. bankruptcy laws. Smaller airlines have also gone into receivership or shut down, and others warn they could too without bailouts from national governments.United stands to lose money after lending Avianca money to facilitate a joint venture.Once the immediate crisis is past, the third-largest airline by passenger volume will focus on repairing its balance sheet. United's goal is to bring its cash burn down to $20 million by the fourth quarter and be cash flow-breakeven soon after. Spare cash will go toward paying down debt rather than capital expenditures.Kirby said the airline will spend nothing for new aircraft for the next two or three years, with general capital expenditures annually ranging between $500 million and $1 billion, down from about $4.7 billion total in 2019. Instead of retiring some planes at 15 years of age and selling off the parts, United will take the less risky approach of holding onto aircraft until they are 20 or 25 years old even if they are less efficient to operate."I think it's going to be awhile before we're taking new deliveries" or leasing aircraft, the CEO said, adding that he's going to wait out the market before deciding on whether to retire any aircraft types from the fleet.See more from Benzinga * Appeals Court Revives CRST's Driver-Poaching Lawsuit * ZIM's Loss drops as EBITDA and Cash Flow Jump * New Mexico trucking attorney nominated for seat on federal bench(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • United Airlines cutting 13 top jobs, adding international flights in July

    United Airlines cutting 13 top jobs, adding international flights in July

    Chicago-based United said it is increasing trans-Atlantic service from Washington, D.C. and San Francisco to cities across Europe in July thanks to a modest rise in demand, and re-starting service to Tokyo-Haneda, Hong Kong, Singapore and Seoul.

  • Park Hotels & Resorts Inc. Announces Closing of $650 Million Aggregate Principal Amount of 7.500% Senior Secured Notes Due 2025
    Business Wire

    Park Hotels & Resorts Inc. Announces Closing of $650 Million Aggregate Principal Amount of 7.500% Senior Secured Notes Due 2025

    Park Hotels & Resorts announces closing of $650 million aggregate principal amount of 7.500% senior secured notes due 2025.

  • Don’t Miss the RCL Stock Rally

    Don’t Miss the RCL Stock Rally

    Royal Caribbean (NYSE:RCL) just got its head back above water. In fact, since May 11, RCL stock has exploded from $37.78 to about $52. Even now, it's still a very solid opportunity. And if it can stay afloat, as the economy recovers, I strongly believe it can refill its gap around $108.Source: Laszlo Halasi / Shutterstock.com The last time I weighed in on oversold cruise stocks, I said Carnival (NYSE:CCL) was a solid blood-in-the-street opportunity. That was May 11, as the CCL stock traded at $14.21. It rose to about $18 and is trading at about $15.However, it's not the only sunken cruise stock to consider. Plenty of patience will be required, of course.InvestorPlace - Stock Market News, Stock Advice & Trading Tips RCL Stock Losses Were ExpectedAt the moment, there's still a no-sail order still on the books from the U.S. CDC effective through July 24. However, there's hope that will not be extended and that Royal Caribbean can resume operations by Aug. 1. * 7 Red-Hot Biotech Stocks Racing to Develop a Coronavirus VaccineIf the cruise lines can get back to sea, and the economy can successfully reopen, I strongly believe RCL stock could do well this year.It wasn't a shock that Royal Caribbean posted a sizable first-quarter loss. After all, the novel coronavirus ground the cruise industry to a halt.The company posted a loss of $6.91 a share in the quarter, as compared to EPS of $1.31 year over year. Adjusted, the company lost $1.49 a share after earning $1.31 a year prior. Revenue fell 17% to about $2 billion. "The magnitude, duration and speed of COVID-19 remains uncertain," and it "can't estimate the impact of COVID-19 on its business, financial condition or near or longer-term financial or operational results with reasonable certainty."However, I believe that bad news is priced in, and that it may be smoother sailing from here. Time to Consider Cruise StocksCredit Suisse's Benjamin Chaiken just initiated coverage of the RCL stock with an "Outperform" rating, giving it a price target of $67. None of the major cruise lines, he argues are at risk of running out of cash."[Cruise stocks] are at all-time lows, and all three operators are now in cash preservation mode, having entered into liquidity enhancing credit agreements. With the risk of a liquidity crunch partially priced in, we think current levels offer an attractive entry point."Wedbush analyst James Hardiman says the RCL stock is in good financial position, too."RCL seems to have given itself maximum flexibility/optionality with respect to its capital needs, and may yet avoid the significant amount of equity dilution that has befallen its two peers. Additionally, we would argue that RCL had the best momentum headed into the pandemic and see no reason this will not be the case coming out of the pandemic."Hardiman has a "Outperform" rating on the stock with a target price of $63 a share.At the same time, cruise bookings are soaring. Carnival, for example, says bookings are up 200% year over year with travelers seemingly desperate to take a vacation. Fear Is Priced Into Cruise SharesWhile the cruise industry has been hit hard by the coronavirus outbreak, much of that fear has been priced into oversold cruise stocks. Most will survive, and have become buying opportunities. In fact, the time to buy stocks like RCL is when they're the most hated.Some of the best investors have said the same. As we've learned from Baron Rothschild, who would tell investors, "The time to buy is when there's blood in the streets, even if the blood is your own." Even Sir John Templeton would tell investors to buy excessive pessimism, which we see now.If you wait too long, you'll miss the recovery rally.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Don't Miss the RCL Stock Rally appeared first on InvestorPlace.

  • 3 Sports Apparel Stocks to Trade for Players and Spectators Alike

    3 Sports Apparel Stocks to Trade for Players and Spectators Alike

    A forced timeout stopped neither bulls nor bears from participating in sports apparel stocks. But for today's investors, is now a better time to buy or sell? Let's look at the current champs on Wall Street, and where each stands off and on the price chart before breaking out the pompoms.The novel coronavirus has devastated individuals, businesses and economies around the world. It's also hit our love of sports from every imaginable angle.For some, that's meant a closed gym. For others, Covid-19 has prevented going for a trail run or hike on public lands shuttered by the pandemic. And of course, individual and team sports from recreational endeavors and all the way to the big leagues have been disrupted for participants and spectators alikeInvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Yet, despite the near universal stoppage time and reduced load of sweaty clothes to wash and wear, many sports apparel stocks have been on an inexplicable tear. Others, more logically so, haven't: * Nike (NYSE:NKE) * Lululemon (NASDAQ:LULU) * Under Armour (NYSE:UAA)In the end champion stocks cheered on by today's investors, and those booed like the NY Jets, aren't future guarantees for bulls and bears that find themselves on the right side of action. The trend is your friend until it's not. And sometimes you'll find a hidden gem buried in the bargain bin. Sports Apparel Stocks to Trade: Nike (NKE) Source: Charts by TradingViewThe first of our sports apparel stocks to trade are shares of Nike. Right now the world's largest retail sports brand looks ready to grow even bigger based on the price chart, setting the stock as a clear "buy,"Technically, the sporting goods giant's shares have formed a 'V-like' bottom on the monthly chart. It's a type of base often seen as less durable than a bottom developed over the longer-term. But Nike's panic low was also a very well-supported (and successful) test of both its long-term uptrend and a pair of key Fibonacci levels. And there's more too.With a bullish stochastics crossover now signaling inside neutral territory and an earnings catalyst next Thursday, the consensus is that this apparel stock is well-positioned to breakout.For investors looking to play this apparel stock for upside, one favored options strategy to limit and reduce risk, as well as offer realistic but big-time profit potential is the July $105 / $110 bull call spread. Lululemon (LULU) Source: Charts by TradingViewThe next of our sports apparel stocks to trade is athleisure and yoga-centric powerhouse Lululemon. Similar to Nike shares, Lululemon is another name that's been championed by investors since the darkest hours of the coronavirus on Wall Street. Here though, bulls could be getting ahead of themselves.Earnings are due in roughly two weeks, but investors aren't waiting around for the quarterly release. Shares have already broken out to fresh all-time-highs. This apparel stock's 'V' bottom was also a technically well-supported one to cheer on initially. But Lululemon now looks too pricey to justify a purchase. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Bottom-line, with the stock roughly 10% past the prior and pattern high and trading through the upper Bollinger Band, Wall Street's pom-poms could easily be replaced with profit-taking in front of or certainly following earnings. As much, Lululemon is a champion apparel stock that's best watched from the sidelines. Under Armour (UAA) Source: Charts by TradingViewUnder Armour is the last of today's sports apparel stocks on our radar. This underdog most recently crashed on the back of a massive quarterly loss, slumping revenues and forecast that has lacked any indication the company can rebound to the black anytime soon. In a nutshell, what had been a turnaround play prior to the coronavirus now finds that path looking even more difficult to navigate.That all sounds bad, but things also look really bad for Under Armour, on the price-chart. Technically, the stock began showing signs of failure within its comeback story ahead of Covid-19.The monthly chart showed an early warning as shares fell beneath channel support late last year. That price action was then compounded by the pandemic as the stock tumbled cleanly below its lifetime 76% retracement level. But I'm not bearish.With the Under Armour story looking so unfixable off and on the price chart, I can't help but be a fan of this apparel stock. Some of that optimism is helped by the lower-low divergence in shares relative to stochastics. A third month of price action outside the lower Bollinger Band also has our attention. Lastly and as we finish up May with a promising hammer bottom in hand and an imminent oversold and bullish crossover in tow, it could be time to suit up shortly as a bull.Disclosure: Investment accounts under Christopher Tyler's management does not own any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post 3 Sports Apparel Stocks to Trade for Players and Spectators Alike appeared first on InvestorPlace.

  • Should You Buy Airline Stocks & ETF Upon Takeoff?

    Should You Buy Airline Stocks & ETF Upon Takeoff?

    The Airline ETF has seen enormous investor interest of late, find out why.