JD.com Inc (NASDAQ: JD) is poised to benefit from positive industry trends, with recent data on e-commerce and express couriers suggesting a recovery, according to BofA Securities.The JD.com Analyst: Eddie Leung maintained a Buy rating for JD.com, while raising the price target from $60 to $70.The JD.com Thesis: While China's online retail sales of physical products grew 20% year-on-year in April and May, the parcel volume of couriers, most of which comprises of e-commerce, surged 37%, Leung said in the note.He added that this growth was driven by pending demand for categories like appliances, it was also led by "continuous strong momentum" in categories like groceries, food & beverages, and fresh produce.The analyst expects JD.com's growth to match this trend and believes the performance can be even better due to the company's: * Low exposure to apparel, a category that is under pressure * User growth in non-major cities, driven by...
On Monday, Hertz Global Holdings Inc (NYSE: HTZ) announced it would be selling up to $500 million in common stock. In the same filing, the bankrupt company said those shares of stock are unlikely to ultimately hold any value unless higher priority debtholders are fully paid, and short sellers seem to see that news as a slam-dunk trade.On Tuesday, S3 Partners analyst Ihor Dusaniwsky said Hertz short sellers have covered $46 million of their positions over the past month. However, in recent days Hertz's short interest has once again risen by 5.7 million shares worth about $9 million.Hertz's short interest now stands at $148 million, roughly 36.9% of the stock's float. Dusaniwsky said Hertz's borrow fee has jumped to 112%, and short sellers are currently paying more than $461,000 per day to maintain their positions.Short Squeeze Potential: Year to date, Hertz has been an extremely profitable trade for short sellers, which...
To no one’s surprise, the cruise line industry has been pummeled by the coronavirus pandemic. From the viral outbreak on the liner Diamond Princess, to ongoing headlines along the lines of ’40,000 Cruise Ship Workers Trapped at Sea,’ to the heavy share price declines among the industry stocks, the news has been unrelentingly bad.But nothing lasts forever, not even bad news, and what goes down must eventually come back up. Even cruise line stocks. The industry is down about 60% year-to-date, drastically underperforming the travel segment generally, but in recent weeks cruise line shares have surged 75%. At the macro level, JPMorgan analyst Brandt Montour makes a case for both near-term risk and longer-term recovering among the cruise lines. The risks are obvious: the potential for coronavirus outbreaks on the ships, mitigated by the companies reopening at partial capacity. On the positive side, Montour credits “…the pent-up demand for vacationing seen...
After dropping as a result of the COVID-19 shutdowns, national average diesel fuel prices have stabilized in recent weeks. As of June 15, national average diesel fuel prices are sitting at $2.40 per gallon, down $0.67 from the same time last year and up barely 1 cent over last week. ...
(Bloomberg) -- Unemployment is high. Credit is tight. And scientists are warning that a dangerous second wave of the coronavirus is coming. But somehow, U.S. mortgage companies are having one of their best years in history.Just ask Keith VandenAkker. He’s forgoing weekends to keep up with the work.In 22 years as a Massachusetts mortgage appraiser, he’s never been this busy. The jump in refinancing was to be expected, with rates near record lows. The surprise, he said, is that the spring property sales season, delayed for a couple months by the health crisis, is demanding most of his time.“June is kicking my butt,” VandenAkker said, rushing in his silver Subaru, mask in hand, to the next appraisal. “I got 8 or 9 orders yesterday and I’m just a one-man show.”Lenders are getting bombarded with calls from homeowners looking for cheaper loans. They’re also hearing from potential buyers who are tired of...
