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Why Morgan Stanley Can Gain 30%

Nomura’s Steven Chubak and Sharon Leung argue that Morgan Stanley (MS), E*Trade Financial (ETFC) and Lazard (LAZ) can gain 30% or more after their recent tumbles. They explain why: Mark Lennihan/Associated Press While many investors are still reluctant to “catch the falling knife”, some have indicated greater willingness to selectively add financials exposure post the […]

Oil Services: Extreme Pain

JPMorgan’s Sean Meakim argues that there won’t be a recovery for oil-services companies until 2018. They explain: Agence France-Presse/Getty Images In our initiation in May, our scenario analysis included a bearish scenario in which persistent U.S. shale oil production, continued OPEC strength, and incremental barrels from Iraq and Iran, coupled with demand undershooting expectations, could […]

50 Beaten-Down Stocks For Your Buying Pleasure

Strategas Research Partners’ Jason Trennert and Nicholas Bohnsack note that “while the sell-off seems to have taken on a life of its own we may be approaching the point where investors will see real value.” They explain why and offer 53 stocks–including Merck (MRK), Electronic Arts (EA), Ford Motor (F), Halliburton (HAL) and JetBlue Airways […]

Airlines: Three is Not a Crowd

Raymond James analyst Savanthi Syth contends there’s room for Spirit Airlines (SAVE) Allegiant Travel (ALGT) and Frontier Airlines in the ultra-low-cost space. She explains: Nathan W. Armes for The Wall Street Journal A Wall Street Journal (WSJ) article on Tuesday highlighted the success of Frontier’s transformation from a low cost carrier, which was not very […]

Nike: Use Recent Weakness to Buy?

Susquehanna’s Christopher Svezia and Jonathan Elias argue that the recent plunge in Nike (NKE) makes it “attractive given sustainable global growth and improving operating leverage.” They explain why: Reuters We use recent macro volatility as our entry point. Global investments are leveraging and should set the stage for top- and bottom-line outperformance in the next […]

FedEx: Three Reasons It’s Still a Buy

Citigroup’s Christian Wetherbee offers three reasons to buy FedEx (FDX) despite the fact that it has plunged 15% during the past three months: Bloomberg News As FedEx is on Citi’s Focus List and the stock remains our top Transport pick, we thought it prudent to revisit our investment thesis follow a 12% sell-off since we […]

Transocean: Thank Heavens That’s Over

Last night, Transocean (RIG) said it would propose eliminating its dividend, finally doing what Seadrill (SDRL) did months ago. Raymond James analysts Praveen Narra and J. Marshall Adkins call Transocean’s decision “prudent.” They explain: Reuters In light of the difficult offshore market, Transocean is proposing to cancel the final 2 dividend payments at an October […]

Schlumberger: And Then There Were Two

Doing what Halliburton (HAL) did nine months ago when it agreed to buy Baker Hughes (BHI), Schlumberger (SLB) has reached an agreement to buy Cameron (CAM). Citigroup’s Scott Gruber and team consider the implications: Getty Images This morning Schlumberger announced an agreement to purchase Cameron in a $14.8 b transaction. The deal price of $66.36/share […]