[ACCESSWIRE]
LOS ANGELES, CA / ACCESSWIRE / May 17, 2016 / Axelrodnews.com, a leading investment newsletter that covers stocks for both long and short opportunities, today updated its research and takes profits on recently initiated short positions in PNPL, GWPH, MSRT, and is initiating coverage on two new long opinions: BANC and MGT.
While Axelrod clients who followed our April 19, "Feature Short" in PNPL generated a nominal 82% ROI (721% annualized) in three weeks, the broad markets have continued to chop in a trading range driven by energy, Forex, speculation on Brexit, volatile high yield and emerging debt markets and political cross currents.
AXELRODNEWS.COM INVESTMENT NEWSLETTER OPINIONS
AXELRODNEWS.COM OPINION: COVER PNPL SHORT FOR 82% ROI
Pineapple Express (OTC: PNPL) $4
Alexrod's published April 19 Bulletin announced PNPL as our Feature Short at $22 (Axelrod Premium Subscribers receive advance notice). It dropped by more than half just a week later to close at $9.15 and, on April 27, the SEC suspended it from trading. It re-opened recently at half its price and continued to decline to its current price of $4.00, where we are closing our short position.
Axelrod's "smart-money" readers will cover their position for an 82% return in 24 days -- for an annualized ROI of over 800%. For each 1,000 shares shorted, readers harvested a $17,000 profit (see: https://finance.yahoo.com/echarts?s=PNPL+Interactive#{"range":"1mo","allowChartStacking":true}). It is our opinion all readers should take at least half their investment profit off the table while the most aggressive traders can remain short, or re-short on a bounce if any, for lower prices ahead. Having hit our profit target, Axelrod is suspending coverage of PNPL at this time as we have much bigger fish to fry.
AXELRODNEWS.COM OPINION:
ACCUMULATE BANC
Banc of
California (NYSE: BANC) $19.27
We are initiating coverage on Banc of California with an "Accumulate" rating. BANC is expanding operationally on a robust base of business while managing its financials far better than its much larger peers. In the past year, it has deleveraged its balance sheet, streamlined operations and is recruiting top talent to manage new and expanded lines of business.
While the stock has been a solid performer this year, for our more conservative investors we believe its best days are still ahead and it offers a highly favorable risk/reward. Its upward momentum was paused this week by closing a cap raise of $100 million priced at $19.05, just six days after announcing the offering and at a modest discount to the market. BANC out-performs its peers in an industry otherwise plagued by bad loans to oil and shale companies, retail depositors weary of predatory fees, business customers fed up with poor service as well as questionably valued mortgage loan portfolios.
We see this as a good entry point to begin building a long position. BANC shines as best in class, in a state with a vibrant and resilient economy spanning aerospace/defense to Silicon Valley. All of BANC's employees are shareholders, highly motivated drivers of its growing success -- an intangible factor whose value is routinely overlooked in an industry typically staffed by human automatons we see ‘just going through the motions.'
Last month, BANC reported
Q1-16 net income available to common shareholders of $15.1 million, an increase of 30% year over year ("YOY"), and:
- Diluted earnings per share of $0.36.
- Pre-tax income was $33.0 million, up 49% YOY.
- Record quarterly non-interest bearing deposit growth of $278 million, or 25%.
- Quarterly commercial banking segment loan and lease originations of $823 million, an increase of 66% from a year ago.
- Consolidated assets totaled $9.6 billion at March 31, 2016 up $1.4 billion, or 17%, sequentially and an increase of $3.5 billion, or 58%, compared to a year ago.
The best news is that this out-sized growth is organic as BANC's last acquisition was in 2014. Last month, Steven Sugarman, BANC Chairman and CEO proudly reported, "Based on total shareholder return since the beginning of 2015, BANC is the #1 performing bank stock amongst Forbes' Magazine's list of America's Top 100 Banks." He added, "In the first quarter of 2016 alone, Banc of California's 21% return outperformed the next closest bank by 7%."
AXELRODNEWS.COM OPINION: ACCUMULATE MGT
MGT CAPITAL INVESTMENTS (NYSE: MGT) $3.02
We are initiating coverage on MGT Capital Investments Inc. (NYSE:MGT) with an "Accumulate" rating. Although MGT's stock has benefited significantly over the past few days from the return of software security pioneer John McAfee as its new CEO, we believe this mark just tip of the iceberg as Mr. McAfee executes on a business plan designed to take substantial market share away from some of the leading anti-virus and security companies. Yesterday's acquisition will mark the beginning of a new era for MGT and its shareholders as well as Mr. McAfee's return to prominence. We believe this could easily be a double-digit stock before the end of Summer based on our due diligence and extensive research into Mr. McAffee's plans for MGT. Be be repared for further gains in the short-term as MGT's story and widespread media exposure will cause a substantial short-squeeze that could deliver immense profits in only a couple of days.
AXELRODNEWS.COM OPINION: TAKE PROFITS IN GWPH
GW Pharma PLC (Nasdaq: GWPH)
$76.66.
In our April 19 news bulletin, we issued a "short" opinion on GWPH at $83.74 stating, "This stock has doubled in the past six weeks since announcing positive Phase III data for its cannabis-derived epilepsy medicine. However, we see its market value of nearly $2 billion as overvalued and ripe for a near-term crash."
With an 8.4% profit in just three weeks, for an annualized ROI of about 80%, conservative Axelrod investors should consider taking profits on half their position to lower their overall cost basis. Our next target price is $70.25.
AXELRODNEWS.COM OPINION: COVER 326% PROFIT IN MSRT
MassRoots, Inc. (OTC: MSRT)
$0.97.
In our April 19 news bulletin, we issued a "short" opinion on MSRT at $1.49 stating, "Chatter is cheap, and its business model is weak. MSRT shareholders should consider exiting on strength and repositioning any profits into undervalued BXNG (www.bangholdings.com) and MYDX
(www.cdxlife.com)."
Long MSRT investors following our Letter dodged a horrific 35% loss in just 24 days, while our short selling subscribers will book a $5,200 profit on every 10,000 shares shorted for a 35% profit or annualized ROI of 326%.
Prudent MSRT short sellers will take all risk capital off the table, and book at least half of profits at this juncture. We may look to re-short if the stock recovers its lofty levels but are going to Neutral based on having met our profit objective. We are continuing to follow MSRT, as a wannabee competitor to our two favored stocks in that sector: BXNG and MYDX.
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SOURCE: Axelrodnews.com
