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March 21, 2014
10:23 EDTDLPH, NOW, NDAQ, BKE, ECYTHigh option volume stocks: BKE NOW ECYT NDAQ DLPH
News For BKE;NOW;ECYT;NDAQ;DLPH From The Last 14 Days
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October 6, 2015
07:24 EDTNDAQbloomberg to hold a summit
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October 1, 2015
08:00 EDTNDAQSecurity Traders Association to hold a conference
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September 30, 2015
18:36 EDTNDAQBATS to pay companies to list exchange-traded funds, WSJ says
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September 28, 2015
07:11 EDTDLPHAuto parts makers defend diesel amid Volkswagen scandal, WSJ reports
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September 27, 2015
12:33 EDTDLPHAuto suppliers look like bargains after Volkswagen scandal, Barron's says
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September 25, 2015
09:17 EDTDLPHAuto suppliers decline on Volkswagen fears overdone, says Wells Fargo
Wells Fargo says that a 10% decline in diesel's market share in Europe would only reduce the annual EPS of Tenneco (TEN0, BorgWarner (BWA) and Delphi (DLPH) by 1%-5%, while the stocks have fallen by a median of 10.2% since September 17. The firm does not expect Volkswagen (VLKAY) sales to drop tremendously. It views fears about BorgWarner and Tenneco as "way overdone," and says that Delphi's weakness is also unjustified.
September 24, 2015
11:12 EDTDLPHAnalyst says Delphi pushed to 'attractive' level by Volkswagen scandal
The shares of auto equipment maker Delphi (DLPH) are falling nearly 4% this morning and have tumbled over 8% week-to-date in the wake of the Volkswagen (VLKAY) emissions scandal. In a note to investors today, RBC Capital recommended that investors buy Delphi shares at current levels, saying that the impact of the Volkswagen news on Delphi "appears limited." WHAT'S NEW: After meeting with Delphi's CEO and treasurer, RBC Capital analyst Joseph Spak says that Delphi parts are not incorporated into any light vehicles with diesel engines in the U.S., while Volkswagen accounts for only about 1% of Delphi's overall powertrain business. Delphi could be hurt if European consumers stop buying diesel powered vehicles, according to Spak, who noted that Delphi generates double the revenue from diesel vehicles than it gets from gasoline vehicles. Such a scenario, however, is unlikely to play out and the company would see higher revenue from gasoline engines if it does occur, according to Spak. Addressing the company's outlook in China, Spak lowered his third quarter and full-year operating income estimates for the auto maker "towards the low end" of its guidance. However, he noted that Delphi "does seem to be confident" that it can meet its earnings per share guidance even if its production in China is flat in the second half of this year, the analyst stated. Moreover, Delphi suggested that its China business appears to be stabilizing, while some automakers are increasing their fourth quarter orders from previous levels, he wrote. Spak cut his price target on the stock to $91 from $93 but kept an Outperform rating on the shares. WHAT'S NOTABLE: Yesterday, Spak wrote that the decline of auto suppliers with exposure to Volkswagen's powertrain could be overdone. In addition to Delphi, he identified Magna (MGA) as having exposure to Volkswagen's powertrains. BorgWarner (BWA) would only lose 7c of EPS if all sales of cars with 1.5M Volkswagen engines disappear, the analyst added. PRICE ACTION: In morning trading, Delphi dropped 3.7% to $71.36, while Magna fell 5.7% to $43.64 and BorgWarner declined 3.7% to $37.54.
08:03 EDTDLPHDelphi should be bought at current levels, says RBC Capital
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September 23, 2015
14:14 EDTDLPHVolkswagen shares jump as CEO Winterkorn departs
Shares of Volkswagen (VLKAY) trading in New York have jumped following the resignation of Chief Executive Officer Martin Winterkorn, with the company's supervisory board subsequently praising the decision and saying it will consider his replacement at a meeting Friday. Prior to the news, several analysts made their own arguments regarding the stock, appearing quite bearish but saying long-term value still remains for Volkswagen even as it grapples with what could be years of fallout from its recent emissions failure. ANALYST OPINION: Several research firms weighed in on Volkswagen's ongoing emissions scandal this morning prior to Winterkorn announcing his resignation as CEO. Credit Suisse analyst Dan Galves commented more broadly that the events surrounding the emissions violations "will likely impact all OEM's that sell vehicles in Europe," explaining that European air pollution tests are "very misleading" and feature notable loopholes. The Volkswagen scandal could accelerate stricter testing standards, resulting in higher compliance costs for automakers as well as weakened appeal for diesel engines, according to Galves. Autoparts suppliers with exposure to diesel vehicles like BorgWarner (BWA) and Delphi (DLPH) may see a "modest drag" if consumer sentiment shifts, though Magna (MGA) could benefit from increased compliance spending, added the analyst. Meanwhile, JPMorgan's Jose Asumendi downgraded Volkswagen to Neutral from Overweight. The analyst noted that the North American engine recall is not his primary worry, but rather the company's European exposure, especially given the potential for additional investigations and the lack of clarity on the company's total liability. Separately, Deutsche Bank analyst Tim Rokossa downgraded the stock to Hold and cut his price target to EUR130 from EUR260. Though the stock's recent slip may look like a buying opportunity, the complete impact of the scandal will likely take "much longer" to unfold, stressed Rokossa. Beyond "very painful" legal fees, the scandal's impact on Volkswagen operations is the more key concern as damage to the Volkswagen and Audi brands pressures pricing, argued Rokossa. Volkswagen was also downgraded to Neutral from Buy at Nataxis this morning. In addition to the downgrades, Fitch Ratings placed Volkswagen's ratings, including its 'A' Long-term Issuer Default Rating, on Rating Watch Negative, reflecting "the reputational damage" on the group's brands the emission test scandal and the expected multi-billion euros financial impact from potential fines, recall costs, lawsuits and legal claims. CEO EXIT: Martin Winterkorn stepped down as CEO of Volkswagen on Wednesday as the company's emissions scandal continued to unfold. The former Chief Executive stated, "I am stunned that misconduct on such a scale was possible in the Volkswagen Group. As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the supervisory board to agree on terminating my function as CEO... I am doing this in the interests of the company even though I am not aware of any wrong doing on my part...The process of clarification and transparency must continue. This is the only way to win back trust." Winterkorn's announcement was quickly followed by a statement from the supervisory board itself, saying its executive committee "recognizes not only the economic damage caused, but also the loss of trust among many customers worldwide." The executive committee explained that recommendations for new personnel will be presented at an upcoming board meeting this Friday, but cautioned that it is expecting "further personnel consequences in the next days" as its internal investigations continue "at a high tempo." Importantly, the board also stated that it will voluntarily submit a complaint to the State Prosecutors' office in Brunswick, remarking that "criminal proceedings may be relevant." Possible replacements for Winterkorn include Matthias Mueller, head of the Porsche brand who has the support of the family that controls a majority stake of VW, and Herbert Diess, who recently joined from BMW (BAMXY), said Bloomberg, citing a person familiar with the matter. PRICE ACTION: Shares of Volkswagen trading in New York have advanced 8.3% to $27.55 in afternoon trading following Winterkorn's departure, though the company's American Depository Receipts have crashed nearly 28% since the emissions failure became public. Fellow German automakers BMW and Daimler (DDAIF) have also suffered double digit percentage declines in their New York listed shares since news of the scandal.
10:44 EDTNDAQChinese Internet stock pullback a buying opportunity, CLSA says
Shares of multiple Chinese Internet companies are down again in morning trading amid more weak economic data from the Asian nation. However, research firm CLSA released a note making favorable comments and evaluations of several of the country's largest Internet players amid the economic slowdown. LITTLE IMPACT FROM SLOWDOWN: After 25 Chinese Internet and telecom companies attended CLSA's Investors' Forum, analyst Elinor Leung stated that Internet companies in China reported that they have been little affected by growing weakness in the nation's economy. Leung said that such companies have attributed their successful performance to a high savings rate, which increases consumer spending power, as well as gains in offline market share. Additionally, companies already listed may benefit from a weak A-share market in China, since smaller companies do not have access to financing and the slow market speeds up consolidation, Leung noted. RATINGS CHANGES: CLSA upgraded online travel service provider Ctrip (CTRP) to Buy from Outperform and maintained an $85 price target on its shares, while also raising its rating on Baidu (BIDU) two notches, to Buy from Underperform. Leung, who lowered Baidu's price target to $180 from $225, said the firm's top sector picks in the country are (JD), Alibaba (BABA), Tencent (TCEHY), and Ctrip. The analyst added that Tencent and Ctrip shares are the "most defensive" stocks, while JD and Alibaba could rebound even more after sentiment improves. WHAT'S NOTABLE: Last Thursday, TechInAsia reported that Baidu chief executive officer Robin Li said that the company was weighing the idea of delisting from the Nasdaq (NDAQ) and re-listing on the A-shares market in China. TechInAsia later added that a spokesperson from the Chinese internet giant "downplayed" the potential move, saying that Li's comments referred to an "unlikely hypothetical situation" in which U.S. investors don't recognize the importance of the online-to-offline market. PRICE ACTION: In morning trading, Baidu shares fell 1.4% to $134.21, Ctrip shares were flat near $66.64, shares slid 2% to $25.04 and Alibaba shares declined 2% to $60.69.
08:50 EDTDLPHWeakness in auto suppliers could create opportunities, says RBC Capital
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September 22, 2015
07:30 EDTNDAQNASDAQ management to meet with Deutsche Bank
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