Who is the next GameStop? These are the 10 most shortened stocks
Short selling is a trading strategy based on speculation that a company’s stock will fall in price. GameStop, a troubled retailer of mall video games, has been an attractive target for short sellers, but the stock has hit a rallying point for retail investors on Reddit, and stock prices have risen as short sellers have come under pressure. As of today’s closing bell, GameStop’s market value was $ 13.5 billion, or roughly the same as the New York Giants, Dallas Cowboys and New England Patriots, the three most valuable National Football League teams combined.
Tiny Driller Skyrockets 959% after Reddit Craze spread to oil
(Bloomberg) – An obscure five-person company that produces apparently negligible amounts of oil and natural gas from a few wells in Appalachia became the latest Reddit-fueled day trading craze, rising nearly 1,000% to $ 128 million New Concept Energy Inc. was mentioned by retailers on the WallStreetBets forum on Reddit on a day when brokers, including Robinhood Markets, started trading stocks like GameStop Corp. After some of the wildest stocks swayed the markets for a company that only produces 70 barrels of oil equivalent a day and has a board averaging 74 years old, that was still enough to get its stocks a whopping 959% to $ 25 increase, the highest since 2000. According to S3 Partners, the brief interest in New Concept Energy has fallen from 13% at the beginning of this month to 0.3% of its free float. The company did not immediately respond to a request for comment on the Meteroric Stock Perf. In late 2019, New Concept Energy had 153 producing gas wells and 44 non-producing wells with mineral leases covering 20,000 acres. This emerged from official approvals. The company lost 46 cents per share of $ 590,000 in revenue in 2019.For more items like this, please visit us at bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP
Robinhood raises $ 1 billion for cash after the merchant uprising
(Bloomberg) – New York markets had just heated up, and the investing world was preparing for Thursday’s episode of the ongoing drama: Legions of Robinhood Markets Investors Vs Goliaths Hedge Fund. But within minutes a shock wave invisible to the outside world has shaken the mechanics of Wall Street and made Robinhood earn more than a billion dollars in additional money. The exchange’s central clearing hub had demanded large collateral from brokers like Robinhood, which for weeks saw spectacular stock jumps like GameStop Corp. made possible. The Silicon Valley company with the popular no-fee trading app came to a crossroads. It has mitigated the risk to itself by banning certain deals and placing customer bets – which sparked an outcry from customers and even political leaders in the US. That night it was revealed that Robinhood raised more than $ 1 billion from existing investors and pulled hundreds of millions more from bank lines of credit to help weather the storm. « Look, it is non-negotiable that we meet our financial requirements and our clearinghouse deposits, » said Robinhood CEO Vlad Tenev as he defended his firm’s decisions in an interview with Bloomberg Television on Thursday. « We have to do that. » The capital injection is « a strong sign of investor confidence that will help us continue to serve our customers, » a Robinhood spokesman said later in a statement sent via email. The money will enable the company to « keep investing in record growth. » If the story of this month’s stock craze is being written, it could be a story of how retailers set out from Reddit message boards to claim the Q. Questioning Wall Street – Robinhood, on a mission to “democratize finance for all,” was their trading platform of choice for weeks as they inflicted billions in losses on hedge funds by sending stocks in these companies short into the stratosphere – a kind of populist crusade into the world of finance. Robinhood’s trade restrictions made virtually no one happy on Thursday, except perhaps the hedge funds. In a surreal scene, political arch enemies Alexandria Ocasio-Cortez and Ted Cruz found common ground on which to make the company’s decisions. Conspiracy theories broke out online. The question is whether such critics will meddle inside the industry as pressure increased on Robinhood and other companies to curtail certain businesses. This would create arcane parts of the market designed to prevent disaster, like the Depository Trust & amp; Clearing Corp. Not “Shameful” An important consideration for brokers, especially when it comes to soaring and volatile stocks like GameStop, is the money they have to raise with DTCC while waiting a few days for stock transactions to settle. These expenses, acting like a margin on a brokerage account, can lead to a money crisis on volatile days, such as when GameStop falls from $ 483 to $ 112, as it did at one point during Thursday’s session. « It’s not really Robinhood to do shameful things, » he told Larry Tabb, an analyst at Bloomberg Intelligence. « It’s the DTCC adage, » This stuff is just too risky. We don’t trust these people have the money to do these things in two days because in two days who knows what the price might be, it could be zero. “The problems on Thursday started around 10am when the DTCC went down n the turmoil, two people familiar with the matter asked for significantly more collateral from member brokers. A DTCC spokesman didn’t specify how much it needed from certain companies, but said in the end the industry-wide need for collateral rose from $ 26 billion to $ 33.5 billion. « Rare Circumstances » Brokerage executives rushed to figure out how to handle the funds. Robinhood’s reaction drew the most public attention, but the company wasn’t the only one restricting trading in stocks like GameStop and AMC Entertainment Holdings Inc. In fact, TD Ameritrade of Charles Schwab Corp. restricted transactions in both companies on Wednesday. Interactive Brokers Group Inc. and Morgan Stanley’s E * Trade took similar action on Thursday. Thomas Peterffy, billionaire chairman of Greenwich, Connecticut-based Interactive Brokers, told Bloomberg TV that the restrictions were due to concerns about the integrity of the market and the system, and E * Trade stressed that its actions were highly unusual. « We take such measures seriously and only initiate them in rare cases, » said spokesman Thayer Fox, adding that he expected normal trading to resume on Friday. Robinhood said after markets closed that « limited buying » would resume in affected countries in the securities. An attempt was also made to allay customer concerns with an email that evening: « This was a temporary decision made to continue serving you and was not an easy one to make. » Lines of creditThe company has at least several hundred million Dollar withdrawn from his bank credit lines, said one person with knowledge of the sit uation. The company’s lenders include JPMorgan Chase & amp; Co. and Goldman Sachs Group Inc., according to Bloomberg. Representatives from Robinhood and these banks declined to comment. Robinhood’s capital remains « strong, » CEO Tenev told Bloomberg TV, underscoring that the restrictions have helped protect both the broker and its clients. One question is whether frustrated customers will forgive what some see as treason Douglas Bray, a Connecticut software developer who has been using Robinhood for about five years, said he plans to withdraw around $ 100,000 after the trade restrictions. « I’m disappointed that I couldn’t keep my money at GME like any institutional investor, » said 32-year-old Bray, referring to GameStop. s ticker. “Hedge funds are on the verge of a massive short squeeze and seem to be calling the entire cavalry. Brokers are now protecting clients as a facade so they can reassure their institutional supporters. The entire community is outraged. “Other brokers might hope to capitalize on them right now. According to CEO Anthony Denier, the new accounts in Webull, which has grown during the pandemic, grew 16 times the 7-day average. According to SensorTower, which collects data through mobile apps, the app was ranked the second most popular free iPhone app in the US on Thursday, up from 60th the day before. (Robinhood was still # 1) Denier didn’t want to comment on the reason for the jump. On the previous Thursday, Webull had also restricted trading in stocks like GameStop and AMC, but reversed its decision. Robinhood is expected to have been going public for months this year. Late Thursday, people with knowledge of these preparations said the plan was, despite the controversy and line drawdowns at some point in it move forward in the first half of 2021. However, it remains to be seen what the lasting impact of working with Robinhood will be on the retail revolt – and now all of the strains on the company’s relationship with the rebels behind it. « Today’s trade restrictions have only made things worse, » said Douglas Boneparth, who competes for clients with Robinhood as president of wealth management firm Bona Fide Wealth, said Thursday. « Many will ignore the fact that Robinhood has faced increased costs that have created an unsustainable business environment. » For more articles like this, visit bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg L.P.
Silver is the latest market to be hit by Reddit day trader Frenzy
(Bloomberg) – The first signs that the silver market was about to be hit came on Wednesday. Comments appeared on the Reddit chat room r / wallstreetbets – the investor board now known for putting an amazing short print on Gamestop Corp. Market value increases by 788% in one week. Posters began to encourage each other to pile up in IShares Silver Trust, the largest exchange-traded silver fund in the world. The banks manipulated silver prices, kept them artificially low and masked a lack of physical supplies. In one post it was described as « THE LARGEST SHORT SQUEEZE IN THE WORLD ». If this sounds all too familiar, it’s because it’s been the rallying cry of conspiracy theorists in precious metals circles for decades, if not centuries. It was only a matter of time before she and retail investors raging against the financial machine teamed up to say there is a strategy out there that overstates things, but the effects were palpable on small silver miners starting Thursday morning in New York first with First Majestic Silver Corp., named as a short squeeze target on Reddit and rising up to 39%. Then retail investors poured into the IShares Silver Trust and rose up to 7.2%. Spot silver rose 6.8% at one point, its biggest jump since August. « There’s a quick press on silver. The ‘hoodies all roll in silver and the party is on, » said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago, on a phone call. « All other stocks like GameStop and AMC are dumping because they have been curtailed and they have to take advantage of other short opportunities and silver is an easily identifiable target. « The economic data released Thursday morning, including a better-than-expected drop in jobless claims is for H Trader, Bob Habe, has become a « point of contention, » rkorn, senior market strategist at RJO Futures, said over the phone. « This is not based on global events, it’s just people on a message board, all pointing their arms at the precious metals markets. » The options markets were spinning up in a frenzy, and traders and brokers saw wide bid / ask spreads on the IShares and Comex contracts. A record 3.1 million IShares Silver Trust options contracts traded. « The implied volatility currently quoted in the options market is greater than ever. » James Gavilan, principal and advisor at Gavilan Commodities LLC, said in a telephone interview. “The market accommodates large swings in the price of silver, and an already illiquid market has extremely wide quotes on options, which means traders are concerned about the difficulty of hedging their positions.” Given such large volatility spreads, “mind baffling, breathtaking, it is really shocking, ”said Gavilan. The purchase of silver and gold was carried over to the base metal complex on the London Metal Exchange, with copper erasing early losses while “buying Chinese bedside tables” also helped the metal. According to Tai Wong, head of metal derivatives trading at BMO Capital Markets. Copper for a three month supply rose 0.6% in London to $ 7,873 per ton. (Updates with record options in paragraph eight) For more articles like this, visit bloomberg.com. Subscribe to us now for the most trusted business news source. © 2021 Bloomberg LP
Those 2 penny stocks could rally as much as $ 11, analysts say
At its FOMC meeting in January, the Federal Reserve held rates stable – they are currently near their lows, and unsurprisingly, the Fed is holding them there. Fed chairman Jerome Powell may have fed some market pessimism when speaking after the meeting, pointing out that unemployment has risen in recent months. For market watchers seeking support, there is consolation in the Fed’s monetary policy. The central bank has pledged to buy $ 80 billion a month in treasury bills and is expected to put a rate hike on hold until 2023. At least one top strategist sees the current market environment in terms of opportunities. JPMorgan strategist Marko Kolanovic takes an optimistic stance and writes: “We assume that the global COVID pandemic will decrease rapidly in the coming weeks. In fact, the pace of decline in new cases in the past two weeks is the fastest ever in the US and worldwide. Central banks should remain accommodative amid rising unemployment and over a decade of low inflation that is below their targets – term turmoil like this week provides an opportunity to switch from bonds to stocks. “With that outlook in mind, we set out to find exciting opportunities that won’t break the bank, namely penny stocks. Priced at $ 5 or less, these stocks offer investors the highest growth potential available in the market. Again, there is a risk as the “pennies” are often cheap for a reason. Careful examination is therefore essential. Using TipRanks’ database, we identified two penny stocks that received a consensus rating of “Strong Buy” from the analyst community. Completely closed say nothing of the huge upside potential of any company as some analysts see it spike to $ 11. BioLineRx, Ltd. (BLRX) We’re starting BioLineRx, a clinical-stage biopharmaceutical company focused on developing new cancer treatments. Oncology is an important area for state-of-the-art biopharmaceuticals. Cancer is often fatal and often resistant, consistent with current treatments – and these treatments themselves often cause serious side effects in patients. BioLineRx has an active pipeline of drug candidates. The most advanced, however, is motixafortid, a synthetic peptide that has completed patient enrollment in a phase 3 study to mobilize stem cells for autologous bone marrow transplantation. The drug is being studied for effectiveness in promoting bone marrow harvesting prior to cancer treatment. The results of a pre-planned interim analysis showed « statistically significant evidence for motixafortid treatment at the primary endpoint » so significant that enrollment was completed early with 122 patients instead of 177. Mobilizing stem cells using Motixafortid is believed to be the company’s most efficient route to registering the new medicine for regulatory approval. Given the potential of Motixafortide and its share price of $ 2.40, some analysts believe now is the time to pull the trigger. Mark Breidenbach, 5-star analyst at BLRX for Oppenheimer, commented, “Our thesis continues to focus on motixafortid in stem cell mobilization, and we see a disconnect between the company’s market cap and Motixafortid’s market opportunity as a stem cell mobilizer. The main GENESIS secondary endpoints are expected by mid-2021, including nd we see little risk to this data… « The analyst added, » We believe the results of the Phase 3 GENESIS trial could lead the majority of transplant doctors to choose BL-8040 instead of Mozobil with G – Combine CSF if the drug is approved. In addition to our work, BL-8040 contains for use in other auto-HSCTs, allo-HSCTs, AML, and solid tumors. The company has a catalyst-rich, deep oncology pipeline that has attracted collaborations with Novartis, Merck and Genentech. “Given all of these points, Breidenbach rates BLRX as a buy, and its price target of USD 11 points to a whopping 358% up for the coming year. (To see Breidenbach’s track record, click here) The rest of the street appears to reflect Breidenbach’s bullish sentiment. With 3 buys and no holds or sells, the consensus is unanimous: BLRX is a strong buy. On top of the good news, the upside is ~ 428% based on the average price target of $ 12.67. (See BLRX stock analysis on TipRanks) Kindred Biosciences (KIN) While most biotech companies focus on human drugs, we’re not the only market. Kindred Biosciences is a biopharmaceutical company in the veterinary market that develops biological medicines to improve the lives of our pets and work animals. The company describes its mission as « bringing to pets the same types of safe and effective medicines that human family members enjoy ». Parvovirus (CPV) is a highly infectious and deadly viral disease that affects dogs. While vaccines are available, untreated cases can have a mortality rate of over 91%. KIND-030, Kindred’s lead drug in the pipeline, is currently being developed for the treatment of this disease . The drug candidate is currently pursuing two paths in the development process – one for the treatment of established infections and one for the prophylactic preventive treatment of CPV. The prophylactic study showed positive results, with all treated dogs avoiding infection while all dogs in the placebo group developed parvovirus disease. KIND-030 also showed a mortality benefit when given to treat infections. The drug candidate is in the crucial study phase of development, the last before possible approval. Last month, Kindred announced that it had entered into an agreement with Elanco Animal Health – a major manufacturer of veterinary medicines – to manufacture KIND-030. Cantor analyst Brandon Folkes sees a lot of potential in Kindred, particularly in the company’s agreement with Elanco. “A partnership with a leading animal health company, in this case Elanco, is exactly what the company needed from our point of view. From our point of view, this confirms KINs n A new strategic approach as a drug developer in the search for larger trading partners. We believe today’s deal should show investors that Kindred’s pipeline continues to have significant value that could be realized in the next 12 to 18 months, ”said Folkes. Kindred is also conducting studies with tirnovetmab or KIND-016, an antibody directed against IL31, for the treatment of atopic dermatitis in dogs. The pivotal efficacy study of this drug began in the final quarter of 2020. There is a potentially huge market for successful dermatitis treatment in dogs. Over the past six years, there has been a 47% increase in veterinary visits to dogs with severely itchy skin and the market is valued at $ 900 million or more. « During 2020 for the KIN stock was a tough year, the company continued to score multiple shots on goal from its diversified pipeline that could reward investors at the current level. With multiple readings in 2021 and once again focusing solely on developing its pipeline, we anticipate that 2021 could be a banner year for KIN should it be able to deliver on the promise of its pipeline and, in particular, its atopic dermatitis portfolio, » so the analyst summarized. To that end, Folkes gives KIN a target price of $ 11, which means 139% upside potential for 2021 and being overweight (i.e., buy). (To see Folkes’ success story, click here.) Kindred is another company with a unanimous consensus from Strong Buy analysts based on 5 recent Buy ratings. The stock has an average price target of $ 10.25, indicating ~ 124% growth from the current trading price of $ 4.59. (See KIN Stock Analysis on TipRanks.) To find great ideas for trading penny stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is important that you do your own research before making an investment.
Webull, M1 and Public lift restrictions on meme stocks after citing the trade processing company as the cause
Three of the popular exchange retail apps that hosted much of the activity related to Wall Street Bets’s subreddit-spurred run for stocks like GameStop (GME) and AMC have removed all restrictions on exchanges by their users . M1, Webull, and Public, along with Robinhood, had restricted transactions for the affected stocks earlier in the day. M1, Webull, and Public did not attribute the restrictions on these volatile stocks to efforts to contain their buying or selling, but rather cited the costs associated with their clearing company, Apex, in running the deals.
Hedge fund titans are losing billions to Reddit traders running amok
(Bloomberg) – For once, Main Street beats Wall Street. Within weeks, two hedge fund legends – Steve Cohen and Dan Sundheim – suffered bruises when amateur traders teamed up to take on some of the world’s most discerning investors. In Cohen’s case, he and Ken Griffin rushed to the aid of a third party, Gabe Plotkin, whose company was crushed. Driven by the frenzied trade with GameStop Corp. and other stocks that hedge funds have wagered against have suffered losses. This has been one of the worst careers for these money managers in recent days. Cohen’s Point72 Asset Management is down 10% to 15% so far this month, while Sundheim’s D1 Capital Partners, one of the top performing funds of the past year, is down about 20%. Melvin Capital, Plotkin’s firm, had lost 30% by Friday. This is a humble turnaround for the hedge fund titans, who made a comeback in 2020 by plunging into the wild markets caused by the Covid-19 pandemic. But that crisis has helped push thousands, if not millions, of retailers into the U.S. stock market, creating a new force against which the professionals now seem powerless. And it’s not just the big names: Jack Woodruff’s $ 2.8 billion candlestick capital is down 10 15% on its short stakes in January, while Maplelane’s $ 3.5 billion capital is up by investors, according to investors Tuesday lost about 33%, partly due to a short position on GameStop. On Wednesday Maplelane was down 45%. The company, which was previously closed to new money, is in talks with current and potential investors to raise additional capital. Since its inception in 2010, Maplelane has had a 30% annual profit and has never had a bad year. The attacks r of hedge funds are a collection of traders who use Reddit’s Wallstreetbets thread to coordinate their attacks, which appear to focus on stocks known to be kept short by hedge funds. The most prom inent is GameStop, the beleaguered brick and mortar retailer, which is up more than 1,700% this month. Other destinations include AMC Entertainment Holdings Inc. and Bed Bath & amp; Beyond Inc., the pain is likely spreading across the hedge fund industry, and rumors of heavy losses at several companies are buzzing among traders. The Goldman Sachs Hedge Industry VIP ETF, which tracks the most popular stocks in hedge funds, fell 4.3% on Wednesday on its worst day since September. Fund managers covered their money-losing short sales and reduced bullish bets for a fourth straight session on Tuesday. During this period, their total outflows from the market reached their highest level since October 2014, according to data compiled by Goldman’s prime brokerage unit show.D1, which was founded in 2018 and had approximately $ 20 billion in assets at the beginning of the year -Dollar had been affected by the attacks to some extent as private companies account for around a third of their holdings and the company has reduced its exposure according to people familiar with the matter. The fund is closed to new investment and has no plans to raise additional capital, said one respondent, asking not to be named as such decisions are confidential. The loss of D1 described by people who were briefed on the situation contrasts with 60% Sundheim, 43, won during last year’s pandemic. Melvin received an outrageous cash injection from his colleagues Monday, earning $ 2 billion lar from Griffin, his partners, and the hedge funds he runs at Citadel, and $ 750 million from his former boss Cohen. « The social media posts about the bankruptcy of Melvin Capital are categorically wrong, » said a representative. « Melvin Capital is focused on providing high quality, risk-adjusted returns for our investors and we are grateful for their support. » By this year, 42-year-old Plotkin had one of the best track records among hedge fund stock pickers . He had worked for Cohen for eight years and had been one of its biggest breadwinners before going to form Melvin. According to one investor, it has had an annualized return of 30% since it opened, up more than 50% over the past year. The representatives from Point72, D1, Maplelane and Candlestick declined to comment. Fighting at some of the largest hedge funds may have contributed to the S&P 500 falling 2.6% on Wednesday, its worst drop since October. One theory behind the decline is that funds are selling long bets to get the money they need to cover their shorts. Cohen, 64, is perhaps the most famous victim of this year’s turmoil. The new owner of the New York Mets, whose fund grew 16% in 2020, became a national figure after beating competition from Jennifer Lopez and Alex Rodriguez for the ball club purchase. Late Tuesday, Cohen broke his usual habit of just tweeting about the Mets. « Hey stock jockeys make it happen, » he wrote on the social media platform. Read More: How « Flows Before Pros » Disrupts The Stock Markets: QuickTake (Updates Maplelane’s Returns in Paragraph 5.) For more articles like this, please contact us at bloomberg.com. Sign up now to stay connected to the most trusted business news source on the L to stay open. © 2021 Bloomberg LP
Apple had a huge neighborhood. Why the stock fell anyway.
(AAPL) posted impressive results last quarter, exceeding Wall Street’s expectations for all major product lines, particularly the iPhone. The company posted double-digit growth in every product category with record sales in all geographic markets. It saw a tremendous sales rebound in China and achieved gross margins that were more than a full percentage point higher than expected.
It’s time to get these two oil stocks bullish, says Raymond James
We are entering a new paradigm for the oil and gas industry that is a far cry from the pro-drilling policies of the Trump presidency. The Biden administrator is likely to cut oil and gas production in the US to promote renewable energy sources and reduce carbon emissions. In the short term, his policies are likely to drive oil and gas prices higher – and this could help the hydrocarbon sector at least on balance in the coming year. For the oil companies, however, the 2020 lessons appear on the balance sheets. The massive drop in prices last May, followed by a rapid rebound to end the year at roughly the same price as it started – all of which has prompted producers to cut their spending, consolidate or reduce debt, and stay free of cash in circulation . In the words of Raymond James’ oil industry analyst John Freeman, « [We] start WTI trading into 4Q20 and the 2021 capital budget season, ironically in essentially the same low $ 50 range as last year around this Time. While crude oil is largely in the same spot, the industry has definitely undergone a strategic shift with balance sheet health and returning capital to shareholders by far the top priorities. “Not only did Freeman catch the general trend in the industry after a difficult year, he updated his stance on individual oil and gas stocks. Two in particular caught Freeman’s attention. He sees an upside potential of at least 50% for each of them. We went through the two on TipRanks’ database to see what other Wall Street analysts had to say about them. Apache Corporation (APA) Headquartered in Houston, Texas, Apache is a major operator in the North American oil industry. The exploration and production The company’s US hydrocarbon operations are located in the Permian Basin, the Gulf Coast and the Gulf of Mexico. Apache also operates in the UK (in the North Sea), Egypt (in the western desert) and Suriname (off the coast). The com The company’s Perm holdings include 665.8 million barrels of oil equivalent, 66% of its proven reserves. The company surpassed quarterly revenue expectations in the third quarter with $ 1.12 billion at the top. Since reporting third-quarter sales, Apache stock has gained 71%. The company reported 445,000 barrels of oil equivalent per day in the third quarter. Commenting on Raymond James’ stock, analyst John Freeman said: “We continue to like Apache’s diversified portfolio of US onshore and international assets (Egypt, North Sea and Suriname) and given Apache’s significant commodity exposure (only Waha hedged base per year 2021)) the company is ideally located to benefit from our forecast recovery in commodity prices in the period 2021/2022. In addition, the operator has a very robust FCF profile [and] a proven commitment to capital discipline … ”Consistent with these comments, the analyst gives APA a strong buy rating and a target price of $ 24, which is upside at 60% over the Previous year implies 12 months. (To see Freeman’s track record, click here.) Freeman leads the cops on Apache. The stock has a modest buy from analyst consensus based on 12 ratings, including 6 buys, 5 holds, and 1 sell. The shares sell for $ 14.94, and their average price target of $ 19.30 suggests 29% growth this year. (See APA stock analysis on TipRanks) Diamondback Energy (FANG) Diamondback Energy, based in Te xas is another player in the Permian Basin energy boom. The company has a market capitalization of $ 8.9 billion and had revenue of $ 720 million in the third quarter of 2020. Average production for the quarter was 287.8 thousand barrels of oil equivalent per day. Diamondback’s reserves are in excess of 1.12 billion barrels of oil equivalent, of which 63% is oil and 37% is natural gas and related liquids. Diamondback is expanding its activities through M&A activities. In December last year, the company announced that it would acquire Q EP Resources, a natural gas drill in the Midland Basin of the Permian Formation, along with operations in the Williston Formation in North Dakota. The acquisition is an all-stock deal valued at an estimated $ 2.2 billion. QEP brings 49,000 acres to the Central Plateau for potential development, an average production of 48,300,000 BOE per day and 48 holes drilled but incomplete. These assets contribute to Diamondback’s portfolio. In similar news, Diamondback announced it would take over Guidon, another rival Texas oil producer. Guidon is bringing additional Permian assets to Diamondback, and the acquisition is significant and is valued at $ 862 million in cash and stock. Taking a look at Diamondback, Freeman sees the company in a strong position to meet the challenges of both the energy environment and the regulatory guidelines of the Biden Administration. “With the addition of QEP and Guidon acreage, we expect Midland to account for ~ 75% of the pro forma activity. Note that even after the QEP / Guidon acquisitions, FANG does not yet have any federal acreage risk. Given the regulatory uncertainty, it is likely after the 60 day The current leasing moratorium continues to pose a significant positive risk. We believe that FANG has significant upside potential over the long term and are confident that the company can address short term raw material uncertainties, ”said Freeman. Unsurprisingly, Freeman rates FANG as a strong buy along with a target price of $ 91. This number shows confidence in ~ 51% growth over the next 12 months. (To see Freeman’s track record, click here.) On Wall Street, there is broad alignment with Freeman’s position here. FANG shares have a strong buy rating from the analyst consensus based on 13 recent buy ratings against just 3 holds. The average target price is $ 67.37, which is an upward movement of ~ 12% from the current trading price of $ 67.37. (See FANG stock analysis on TipRanks) To find good ideas for trading oil stocks, if you have attractive reviews, visit TipRanks’ Best Stocks to Buy, a newly introduced tool that brings together all insights into TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the presented analyst. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
Electric vehicle company Faraday Future goes public through a $ 3.4 billion SPAC deal
With the global EV business dominated by Tesla Inc and growing at an explosive pace, numerous EV manufacturers are rushing to tap the brand new initial public offering (IPO). Other prominent players in the industry such as Fisker Inc and Nikola Corp also went public last year through mergers with so-called Special Purpose Acquisition Companies (SPACs). Faraday and Property Solutions announced Thursday that the deal, backed by a private investment of $ 775 million, is expected to generate gross proceeds of $ 1 billion for Faraday Future.
GameStop’s main shareholder sells entire stake
FEATURE (GME) announced in a report to regulators on Thursday that MUST Asset Management, a major shareholder in the company, has sold its entire stake in the company. The South Korean wealth manager’s sale comes after the stock rose 788% through Wednesday, driven by swarms of individual investors targeting the video game retailer’s sharply shortened shares.
Highlight the Cuban Council for Day Traders Who “Get Long and Loud”.
(Bloomberg) – Mark Cuban has one important piece of advice for day traders: do your homework. For the billionaire, there’s more to the financial markets – including the risks associated with derivatives and forex – than a horde of aspiring stock pickers pounce on names like GameStop Corp. after reading about them on a Reddit forum. Although losing money sometimes is risky, it’s part of the game, he said: « At the end of the day, the tale of moving stocks for generations was getting long and loud, » Cuban said in an email -Interview. « Now this tool is available and can empower small traders. » Cuban, a serial entrepreneur and owner of the Dallas Mavericks basketball team, has owned and trimmed stocks over the years. He says he won’t buy any of the stocks that are part of the current frenzy – « just not my thing » – and advises newbies to do their homework. « It’s part of the learning experience, » the Cuban said of the risk. « It’s a lot less dangerous than forex trading, which is advertised all day every day. » The rally in GameStop and other stocks has taken them to levels that many professional investors find unimaginable, and it is now attracting regulatory attention. The US Stock Exchange and the Commission stated that they « actively monitor » volatility in options and stock markets. Senator Elizabeth Warren called on the SEC to take a look at the market and criticized hedge funds for using stock trading as their personal casino. Kuban said regulators should monitor whether the rally of certain stocks is a pump-and-dump system. “How does that differ from an investment bank that calls customers with a price target and speaks of a strong buy? “For more kind For articles like this please visit us at bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg L.P.
How WallStreetBets is fueling a rally in silver stocks
Silver stocks like First Majestic Silver Corp (NYSE: AG) shine amid speculation that the Reddit madness will spread to the precious metal and its affiliates. What Happened: First Majestic stock closed 21.56% higher at $ 16.86, up 12.69% in Thursday’s after-hour session. The iShares Silver Trust (NYSE: SLV), an ETF that tracks silver, closed 5.55% higher at $ 24.72. Spot silver traded 0.71% lower at $ 26.227 while silver futures rose 1.38% to $ 26.28 at press time. On Thursday, a WallStreetBets post claimed that banks were « manipulating gold and silver to meet real inflation ». The Post went on to say that the price of silver, adjusted for inflation, should and should not be $ 1,000. « The $ AG is essentially $ GME for silver, the highest short float in the industry, good leverage on silver and has just broken resistance for over 10 years, » said another post on the Reddit investor forum. Other silver stocks that rose were Hecla Mining Company (NYSE: HL), which closed 16.84% higher and rose 3.2% in the after-hour session, and Fortuna Silver Mines Inc (NYSE: FSM), which closed 13.73% higher at $ 7.62 and rose 7.09% to $ 8.16 in after-hours trading. Why It Matters: Investor Chris Camillo said on Benzinga’s Short Squeeze videocast that he owns a $ 500,000 position in First Majestic and also the iShare Silver Trust. Reddit investors are calling for revenge on the likes of JPMorgan Chase & amp; Co (NYSE: JPM) who they claim manipulated the silver market. If investors on the forum manage to move silver prices, ETFs associated with silver-like ProShares Ultra Silver (NYSE: AGQ) and Aberdeen Standard Silver Shares ETF (NYSE: SIVR) could see gains. The AGQ closed at 11.42% h on Thursday higher, while the SIVR rose 5.46%. For more information from Benzinga, click here for option trades from BenzingaElon Musk. The Tesla rating is justified when the benefits of robotic taxis are considered. Melvin Backer Point72 Takes 15% Loss Via GameStop Short Squeeze: NYT © 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.