Updates 829

Sell: AdvisorShares Ranger Equity Bear ETF (HDGE) | Daily Alert April 21

Updated from WSBI 814, February 13, 2019

I have decided to sell AdvisorShares Ranger Equity Bear ETF and will be dropping coverage after this issue. That being said, if you have found success incorporating this “short ETF” into your portfolio, I would encourage you to continue doing so, especially if it has helped provide peace of mind when the market has gone haywire on the downside, as the odds suggest that there could still be a retest of recent lows in the market. And whether those lows hold or end up failing, HDGE ought to rally while the market is falling (and thus provide peace of mind). For everyone else, HDGE is now a SELL.

Nate Pile, Nate’s Notes, NotWallStreet.com, 707-433-7903, April 10, 2020

 

*SELL Brookdale Senior Living Inc. (BKD)

Updated from WSBI 810, October 17, 2018

The Covid-19 virus is bringing health and financial hardships to Brookdale Senior Living. We believe there is a 14

considerable risk that occupancy will decline as the elderly and their families find alternatives to its senior housing facilities. Also, higher staffing and supplies expenses will likely add further profit pressures onto Brookdale. These newer problems, when combined with its already- difficult financial picture and reluctance to sell additional properties, leave the company with limited prospects for recovery, so we are moving the shares to a Sell.

George Putnam III, The Turnaround Letter, turnaroundletter.com, 617-573-9550, May 2020

 

*SELL Washington Prime Group Inc. (WPG)

Updated from WSBDS 293, March 8, 2017

Washington Prime Group had a reasonable chance to succeed with its turnaround plan, which required relatively stable rent revenues to help fund the redevelopment of its in-transition malls. However, with its malls now closed, more stores in or approaching bankruptcy, and its access to additional capital likely limited, combined with the pressure of loan covenants, we believe the company’s future is irretrievably lost and are moving WPG shares to a Sell.

George Putnam III, The Turnaround Letter, turnaroundletter.com, 617-573-9550, May 2020

 

*Performance Food Group Company (PFGC)

Updated from WSBI 815, March 13, 2019

Performance Food is being downgraded to Sell because of its murky near-term outlook, deteriorating stock-price action, and mixed operating momentum. Aided by acquisitions, March-quarter earnings per share rose 38% and revenue increased 49%. But the food distributor said total organic case volume declined 7%, largely reflecting restaurant and theater closures. Gross profit margin fell more than one percentage point to 11.5%. Shares have rallied sharply off a March low of $7.41 and should be sold.

Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, May 5, 2020

 

*BMC Stock Holdings, Inc. (BMCH)

Updated from WSBI 821, September 18, 2019

BMC is being dropped from coverage. A leading supplier of building materials, the company has taken steps to bolster its balance sheet and conserve cash flow. But the stock has retreated near a recent low, hurt by a mixed outlook for residential construction and worsening profit picture. Full-year earnings per share are expected to tumble 36% on a 6% sales decline. The stock should be sold.

Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, April 21, 2020

 

*FLEETCOR Technologies, Inc. (FLT)

Updated from WSBI 819, July 10, 2019

FleetCor Technologies is being dropped from the Buy and Long-Term Buy lists. The shares have soared 45% since their March 23 low, but analyst estimates for both 2020 and 2021 are plunging. We anticipate a challenging environment ahead, given FleetCor’s heavy exposure to retail fuel purchases, representing 44% of sales last year. We’re cutting bait.

Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, May 4, 2020

 

*General Electric Company (GE)

Updated from WSBI 812, December 19, 2018

I’m a big believer in Chairman & CEO Larry Culp but he’s been handed a very bad hand by Boeing and COVID-19. The company just announced a 25% reduction in its aviation workforce globally. Since it supplies engines to Boeing and other aircraft manufacturers, the outlook here is not good. The medical side of the business is doing fine, and the company is focused on improving its balance sheet and bringing down its high debt ratios but with aviation going down, the job just got harder.

I believe that Larry Culp will get the job done but it’s certainly going to take longer and in the medium term there are better places to put your money. Sell.

Glenn Rogers in Gordon Pape’s Internet Wealth Builder, buildingwealth.ca, 1-888-287-8229, May 11, 2020

 

*Industrias Bachoco, S.A.B. de C.V. (IBA)

Updated from WSBI 808, August 14, 2018

Just too much disappointment and lack of performance with IBA. Time to sell it and move on. There are plenty of food stocks to own here, so sell this one and get the money to a better place.

Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, May 5, 2020

 

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