NVS

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Earnings Update on European Big Pharma Featuring Novartis, Sanofi, and AstraZeneca

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The drug industry is a global market with an impressive array of competitors headquartered outside the US. The quest to bring forth novel treatments continues. We continue to focus on the large-cap traditional pharmaceutical companies for their defensive characteristics, and many also pay a generous dividend. By Alexander J. Poulos Novartis Poised to Cycle Through Loss of Patent Exclusivity on Gleevec Shares of European heavyweight Novartis (NVS) jumped sharply after posting first-quarter earnings April 25. Growth in the pharmaceutical segment remains hampered as the company lapses the loss of patent exclusivity of one of its top-selling products Gleevec. We are looking past the patent cliff and remain focused on the growth products currently in Novartis’ lineup. Cosentyx, a treatment for … Read more

How to Think About Corporate Tax Reform

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Excited By COVID-19 Vaccine Candidates

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Image Shown: The race is on to find a cure, or better yet a vaccine, for COVID-19. Image Source: Pfizer Inc – First Quarter 2020 Earnings IR Presentation Key Takeaways The race for a COVID-19 cure and vaccine is rapidly evolving with a lot of exciting press releases being put forth. Gilead has taken the lead with a viable treatment, Sorrento is working toward a cure, and it seems most all of big pharma and biotech is racing to find a vaccine, from Johnson & Johnson to Sanofi/GSK and beyond. Though the evaluation of the full data set from a Phase 2 clinical trial means a lot more than the evaluation of a limited set of data from a Phase … Read more

Generic Pharmaceuticals: Patent Expiration and Low Global Utilization Rates Create Opportunities

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Key Takeaways: ·       The generic pharmaceutical industry will benefit from a patent expiry “mountain” in 2015. ·       Penetration and utilization rates of generics vary considerably by country. Japan, Italy, Spain, France, and Australia are most likely to see the greatest increases in generic penetration rates. ·       We expect further M&A activity in Japan, as global players seek to gain a generics stronghold in this under-penetrated, yet burgeoning pharmaceutical market. ·       Emerging market growth will offer significant opportunities for firms levered to Latin America and South Africa. ·       The potential for biosimilars remains a key catalyst for the group. ·       Ideas o       Teva Pharma (TEVA) is our favorite idea in the generics space thanks primarily to its upside valuation potential and global position. We’re particularly big fans … Read more

2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?

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Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more

Dividend Increases/Decreases for the Week of February 3

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Below we provide a list of firms that raised their dividends during the week ending February 3. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                AFLAC (AFL): now $0.42 per share quarterly dividend, was $0.40. ALLETE (ALE): now $0.6775 per share quarterly dividend, was $0.6500. American Financial (AFG): now $4.00 per share special dividend, was $0.63. Avista (AVA): now $0.46 per share quarterly dividend, was $0.44. Bank of Botetourt (BORT): now $0.1925 per share quarterly dividend, was $0.1850. BCE (BCE): now CAD 0.9675 per share quarterly dividend, was CAD 0.9200. … Read more

US Congress Is Getting Ready to Pass a Massive ~$2.2 Trillion Fiscal Stimulus Bill

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Image Shown: US equities have started to recover some of their lost ground as the likelihood that the US Congress will pass a massive ~$2.2 trillion fiscal stimulus and emergency spending package, dubbed the CARES Act, has increased significantly over the past week as seen through the bounce in the SPDR S&P 500 ETF Trust (SPY). President Trump has clearly indicated that he intends to sign such a bill into law as soon as possible, with the US House of Representatives expected to take up the legislation this upcoming Friday morning on March 27. By Callum Turcan On March 25, the US Senate worked late into the night to secure a bipartisan compromise on a massive ~$2.2 trillion fiscal stimulus … Read more

Dividend Increases/Decreases for the Week of January 31

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Below we provide a list of firms that raised their dividends during the week ending January 31. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          AES (AES): now $0.1759 per share quarterly dividend, was $0.1725. ALLETE (ALE): now $0.730 per share quarterly dividend, was $0.705. Applied Industrial Technologies (AIT): now $0.46 per share quarterly dividend, was $0.37. Archrock (AROC): now $0.190 per share quarterly dividend, was $0.175. Arthur J. Gallagher (AJG): now $0.65 per share quarterly dividend, was $0.60. Baker Hughes (BKR): now $0.23 per share quarterly dividend, was … Read more