Stocks To Watch: China Redux, 13F Season And Blockchain Blockbuster

By May 11, 2019 Bitcoin Business
Click here to view original web page at

Welcome to Seeking Alpha's Stocks to Watch - a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.

Investors still have trade handicapping on the agenda next week as talks between the U.S. and China are expected to continue. While we know trade risk is baked into the share price of a large number of U.S. multinationals, the question remains to what degree are companies with over 50% of their revenue tied to China like Wynn Resorts (NASDAQ:WYNN), Qualcomm (NASDAQ:QCOM), Micron (NASDAQ:MU), Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL) being held back? As for next week: Expect tweets and expect volatility. On the macro front, a blistering day of economic reports arrives midweek when reports on retail sales, Empire State manufacturing, industrial production, business inventories and a key housing market index all arrive on May 15. The week ahead also sees the biggest blockchain event of the year taking place in New York City, media upfronts, 13F filings from hedge funds and a ramping up of investor conferences.

Notable earnings reports: Take-Two Interactive (NASDAQ:TTWO) on May 13; Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY) and Ralph Lauren (NYSE:RL) on May 14; Cisco (NASDAQ:CSCO), Alibaba (NYSE:BABA), Macy's (NYSE:M) and Jack in the Box (NASDAQ:JACK) on May 15, Walmart (NYSE:WMT), Nvidia (NASDAQ:NVDA), Baidu (NASDAQ:BIDU), Applied Materials (NASDAQ:AMAT) and Pinterest (NYSE:PINS) on May 16; Deere (NYSE:DE) on May 17. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.

Expected IPO pricings: Chinese coffee upstart Luckin Coffee (LK) is the headliner of next week's expected IPO pricings. The listing will be one of the biggest by a mainland company in the U.S. this year. Luckin aims to raise up to $587M at a price range between $15 and $17 by selling 30M American depositary shares, with each ADS representing eight ordinary shares. Luckin plans to have more than 4.5K pickup stores open by the end of the year, while competitor Starbucks (NASDAQ:SBUX) is targeting 6K of its larger-format stores by the end of 2022. Other IPO pricing upcoming include ConversionPoint (CPTI) on May 13, Bricktown Restaurant Group (BEER) on May 14, Pimco Mortgage Income Trust (PMTG) on May 15 as well as Avantor (AVTR) and Fastly (FSLY) on May 15.

IPO lockup expirations: Vapotherm (NYSE:VAPO) on May 13; Bain Capital Specialty Finance (NYSE:BCSF) and Weidai (NYSE:WEI) on May 14.

IPO quiet period expirations: Pinterest (PINS) and Zoom Video Communications (NASDAQ:ZM) on May 13.

Projected dividend changes (quarterly): Chubb (NYSE:CB) to $0.76 from $0.73, Clorox (NYSE:CLX) to $0.99 from $0.96, Southwest Airlines (NYSE:LUV) to $0.20 from $0.16, Marsh & McLennan (NYSE:MMC) to $0.45 from $0.415, Mosaic (NYSE:MOS) to $0.05 from $0.025, Northrop Grumman (NYSE:NOC) to $1.30 from $1.20, Ashland Global (NYSE:ASH) to $0.275 from $0.25, CNO Financial (NYSE:CNO) to $0.11 from $0.10, FactSet (NYSE:FDS) to $0.72 from $0.64, Kilroy (NYSE:KRC) to $0.475 from $0.455, Lennox (NYSE:LII) to $0.75 from $0.64, Legg Mason (NYSE:LM) to $0.36 from $0.34, Werner Enterprises (NASDAQ:WERN) to $0.11 from $0.09.

M&A tidbits: The pricing period ends on Tesla's (NASDAQ:TSLA) acquisition of Maxwell Technologies (NASDAQ:MXWL) on May 13. Shareholders at Multi-Color (NASDAQ:LABL) are due to vote on the acquisition by an affiliate of Platinum Equity LLC on May 16. Omega Healthcare Advisors' (NYSE:OHI) $600M acquisition of MedEquities Realty Trust (NYSE:MRT) is expected to close on May 17.

Upfronts: Media buying begins taking place next week at the upfronts. The usual suspects NBC (NASDAQ:CMCSA), Fox (NASDAQ:FOXA), ABC, CBS (NYSE:CBS), Univision (UVN), WarnerMedia (NYSE:T), Disney (NYSE:DIS) and The CW will all present on their upcoming shows. Of note, Disney's presentation will include ESPN for the first time. Looking to shoulder in even further into the advertising industry are Hulu and YouTube (NASDAQ:GOOG), with both aiming to reduce their reliance on interruptive forms of advertising to introduce new ad formats to reach binge-watching audiences.

Spotlight on Nvidia: Analysts expect Nvidia (NVDA) to report revenue of $2.20B for Q1 and EPS of $0.81, although they may be watching the conference call even closer for color on data center spending, the gaming business and headwinds from China. Ahead of the report, Oppenheimer previewed that March checks revealed Nvidia's GPU channel inventory was back to a normal 2.5-week level, setting the stage for Q2 growth in NVDA's core gaming segment.

Spotlight on Chinese tech: Investors will be watching the Chinese tech sector closely, with Alibaba (BABA) and Tencent due to announce Q1 results on May 15 and Baidu (BIDU) set to follow with its own report on May 17. The heavy investments in new growth channels by the Chinese e-commerce heavyweights are expected to lead to significantly higher operating expenses during Q1 and weigh on profit guidance. It's a little bit of a different playbook than the big five in the U.S. (Apple, Facebook, Alphabet, Amazon and Microsoft), which reported a steadier 13% rise in operating costs on average for Q1 and didn't sound any alarms bells off with guidance.

Analyst/investor meetings: General Motors (NYSE:GM) host an "Office Hours" conference with CFO Dhivya Suryadevara on May 13. Altra Industrial (NASDAQ:AIMC) says it will highlight the company's value-creating vision, business strategy, technology portfolio and growth prospects at an event on May 14. Valvoline (NYSE:VVV) says its senior leadership team will discuss the business and present the company's long-term strategic vision on May 16. Other meetings on the calendar include Fortive (NYSE:FTV) and Berry Petroleum (NASDAQ:BRY) on May 16.

FDA watch: The agency's Oncologic Drugs Advisory Committee will review Daiichi Sankyo's (OTCPK:DSKYF) pexidartinib NDA. Pdufa dates are also on the calendar for Regeneron Pharmaceuticals (NASDAQ:REGN)-Bayer's (OTCPK:BAYZF) Eylea sBLA in non-proliferative diabetic retinopathy and GlaxoSmithKline's (NYSE:GSK) Nucala sBLA for severe eosinophilic asthma in young children.

Wells Fargo Gaming Hospitality & Leisure Conference: A high mix of execs from private organizations will be mingling in Las Vegas from May 14-15 with publicly-traded casino and leisure players. Companies making an appearance include Boyd Gaming Corporation (NYSE:BYD), Boyne Resorts (Private), Caesars Entertainment Corporation (NASDAQ:CZR), Carrols RestaurantGroup Inc (NASDAQ:TAST), Diamond Resorts Corporation (Private), Eldorado Resorts (NASDAQ:ERI), Enterprise Rancheria (Private), Everi Holdings (NYSE:EVRI), Flynn Restaurant Group (Private), Fogo de Chao (Private), Full House Resorts (NASDAQ:FLL), GameCo (Private), Gaming and Leisure Properties (NASDAQ:GLPI), GGH Morowitz Gaming Advisors (Private), Golden Entertainment (NASDAQ:GDEN) Property Tour, Golden Nugget (Private), Hilton Grand Vacations (NYSE:HGV), Jacobs Entertainment (Private), MGM Resorts International (NYSE:MGM), Mohegan Gaming & Entertainment (Private), Monarch Casino & Resort (NASDAQ:MCRI), MotorCity Casino Hotel (Private), Penn National Gaming Inc (NASDAQ:PENN), PlayAGS, Inc. (NYSE:AGS), Pyxus International (NYSE:PYX), Rush Street Gaming (Private), Scientific Games (NASDAQ:SGMS), Seminole Hard Rock Hotel & Casino (Private), SEVENROOMS (Private), STR (Private) and Twin River Management Group (NYSE:TRWH).

Bank of America Merrill Lynch 2019 Transportation & IndustrialsConference: The event scheduled for Boston on May 14 includes appearances by Union Pacific (NYSE:UNP), Norfolk Southern (NYSE:NSC), Flowserve (NYSE:FLS), Genesee & Wyoming (NYSE:GWR), Alta Industrial (AIMC), Mesa Air (NASDAQ:MESA), Canadian Pacific (NYSE:CP), J.B. Hunt Transport Services (NASDAQ:JBHT), Schneider National (NYSE:SNDR) and Kansas City Southern (NYSE:KSU).

JPMorgan Technology, Media and Communications Conference The TMT confab takes place in Boston from May 14-16. Companies due to give talks include Dolby Laboratories (NYSE:DLB), FireEye (NASDAQ:FEYE), Booking Holdings (NASDAQ:BKNG), CommScope (NASDAQ:COMM), Discover (NASDAQ:DISCA), Wayfair (NYSE:W), Fortinet (NASDAQ:FTNT), MaxLinear (NYSE:MXL), Sinclair Broadcast Group (NASDAQ:SBGI), Western Digital (NASDAQ:WDC), Juniper Networks (NYSE:JNPR), Zynga (NASDAQ:ZNGA), Cypress Semiconductor (NASDAQ:CY) and Twitter (NYSE:TWTR).

Canaccord Cannabis Conference: After recently forecasting that sales from marijuana-infused beverages could hit $600M in the U.S. by 2022, the investment firm is hosting a conference on May 15-16 for the broad cannabis industry. Cannabis players due to appear include CV Sciences (OTCQB:CVSI), Village Farms International (NASDAQ:VFF), Nabis Holdings (OTCPK:INNPF), iAnthus (OTCQX:ITHUF), KushCo Holdings (OTCQB:KSHB), Green Thumb Industries (OTCQX:GTBIF), Supreme Cannabis (OTCQX:SPRWF), Aphria (NYSE:APHA), Stem Holdings (OTCQB:STMH), Cansortium (OTCPK:CNTMF) and CV Sciences (OTCQB:CVSI).

Data watch: Whirlpool (NYSE:WHR) could see some volatility when the Association of Home Appliance Manufacturers reports shipments data for April sometime around May 15. Data on containerboard and boxboard pricing is due out on May 17 from Pulp Paper Week. The pricing read could swing Westrock (NYSE:WRK), Cascades (OTCPK:CADNF), International Paper (NYSE:IP), Packaging Corp of America (NYSE:PKG), Graphic Packaging (NYSE:GPK) and Domtar (NYSE:UFS) up or down.

Internet of Things World: IoT innovation will be on display in Santa Clara on May 13-16. The speaker lineup includes Ford's (NYSE:F) Aniela Kuzon, Avis Budget CEO (NASDAQ:CAR) Larry De Shon, AT&T's (T) Lisa Riachi, CVS Health CTO (NYSE:CVS) Claus Jensen, Siemens USA (OTCPK:SIEGY) CEO Barbara Humpton, Procter & Gamble (NYSE:PG) Chief Technology and IT Innovation Officer Alan Boehme and JetBlue's (NASDAQ:JBLU) Bonny Simi.

Blockchain Week: Dozens of execs from leading crypto firms will be at the de facto annual industry summit in New York City, as well as notable politicians and academic types. There will also be talks by reps from established companies like Humana (NYSE:HUM), Credit Suisse (NYSE:CS), Fidelity Investments, BNY Mellon (NYSE:BK), Microsoft (NASDAQ:MSFT), JPMorgan (NYSE:JPM) [Will we hear anything about JPM Coin?], Oracle (NYSE:ORCL) and Amazon (NASDAQ:AMZN). Bitcoin (BTC-USD) prices shot up after three of the last four Block Chain Week periods giving traders something to watch. Bitcoin is still easily holding on to its +6K handle, swapping hands at $6,765.74 at the time of publication.

Notable annual meetings: A highly-contested board vote is set for May 16 when Gannett (NYSE:GCI) holds its annual meeting. Shareholders will vote on board nominees from MNG Enterprises and the hostile takeover attempt. Other less volatile meetings are set for Interface (NASDAQ:TILE) on May 13; Dine Brands (NYSE:DIN), Loews (NYSE:L) on May 14; Akamai Technologies (NASDAQ:AKAM) and AMD (NASDAQ:AMD) on May 15; Yum Brands (NYSE:YUM), Hasbro (NASDAQ:HAS) and L Brands (NYSE:LB) on May 16 and Intercontinental Exchange (NYSE:ICE) on May 17.

Box office: Would you believe Disney's (DIS) Avengers is expected to bring in another $75M this weekend in the U.S.? Warner's (T) Pokémon Detective Pikachu is forecast to debut with a very respectable $55M. No other film is seen topping $15M for the weekend.

Barron's mentions: 1-800-Flowers (OTC:FLSW) is singled out a day ahead of Mother's Day as a small cap trading below its historic valuation with a solid balance sheet. The asset-light approach at Cronos (NASDAQ:CRON) of relying on third-party marijuana grower is questioned after a tough quarter for the Canadian cannabis company. In the transportation sector, UPS (NYSE:UPS) is said to be poised to deliver and J.B. Hunt (JBHT) is called a bargain play in intermodal shipping. The sputtering debut of Uber (NYSE:UBER) is given the Saturday Morning Quarterback routine. "Uber is generating $1Bo f quarterly losses with profitability nowhere in sight," reminds Andrew Bary. He notes that UPS has a market value that isn’t much more than Uber’s and yet is on track to earn $6.5B this year after taxes. Baillie Gifford's James Anderson talked Tesla (TSLA) during an interview with the publication, "We were also puzzled by the company’s change of tone on raising capital.," noted the portfolio manager. "Although we have reservations about some things at Tesla, we are upbeat about the company’s leadership in its industry. Tesla is six to seven years ahead of the competition in the product and battery technology," he added.

Sources: CNBC, Nasdaq, EDGAR, Reuters, Bloomberg, Box Office Mojo

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Leave a Reply