Author Archives: Scalper1

Skyworks Growth Threatened By ‘Unfavorable’ Apple iPhone Comparison

Skyworks Solutions ( SWKS ) is “rebuilding” after Apple ‘s ( AAPL ) iPhone flop last quarter but is still looking at double-digit growth in the second half of 2016, MKM analyst Ian Ing wrote in a research note after Apple-supplier stocks broadly toppled last week, when the iPhone maker reported its first-ever year-over-year decline in smartphone sales. In early trading Monday, Skyworks stock was down a fraction, as were shares of radio-frequency chip rivals Broadcom ( AVGO ) and Qorvo ( QRVO ). In early trading on the stock market today , Apple stock was also down a fraction, near 93, and down 10.5% since reporting its March-quarter earnings after the close Tuesday. That day, Apple reported  not only its first-ever year-over-year drop in iPhone sales, but also its first quarterly revenue decrease in 13 years. Skyworks’ Q2 guidance , released late Thursday, slugged that stock when its sales view missed by $50 million. But after just 2% sales growth last quarter, Skyworks expects double-digit growth in September, though strength in China and with Samsung might not be enough to outweigh an “unfavorable” year-over-year iPhone comparison. Last September, Apple sold 13 million iPhone 6S units in three days following the release. Chinese smartphone-makers are facing a largely saturated market, Ing noted. About 45% of China’s mobile phones are on 4G now. Wall Street largely expects a pause as the industry transitions to 5G — but that refresh is still more than a year away. Ing retained his buy rating on Skyworks stock, but he cut the price target to 93 from 98. At least two other analysts rated Skyworks a buy over the weekend.

China’s Web Regulator To Probe Baidu On Medical Claim

China’s Internet regulator said it will probe Baidu ( BIDU ) over the death of a university student who had used the search engine to look for treatment for his cancer. The 21-year-old university student, Wei Zexi, died last month of a rare form of cancer, Reuters reported . Wei had posted criticism online accusing Baidu of promoting false medical information, as well as the hospital for misleading advertising in claiming a high success rate for the experimental treatment, state radio said. The company said it would fully cooperate. In 2010, China’s state-run television accused Baidu of promoting counterfeit drugs through its search engine. U.S. shares of Baidu were down 7.5% in early trading in the stock market today , near 179. Baidu stock broke out of a cup-with-handle base at 189.90 on March 29, but is now down nearly 6% from its breakout. On Friday, however, Baidu stock had touched a four-month intraday high of 201.

Regeneron Arthritis Pain Drug Scores In Mid-Stage Trial

Regeneron Pharmaceuticals ( REGN ) said Monday that its experimental antibody for arthritis pain succeeded in a mid-stage trial, but shares were flat in early trading as the results were expected. The study enrolled 421 sufferers of moderate-to-severe hip and knee pain who’d been unsuccessful with standard painkillers. After 16 weeks of treatment, the group taking Regeneron’s fasinumab had improved by more than 3 points on a 10-point pain scale, significantly better than the placebo group. About 17% of the group taking fasinumab experienced adverse events, Regeneron said, including non-inflammatory joint pain, prickling and burning sensations in the skin, numbness and swelling. The investigators also did extensive imaging of the subjects, because the class of medicines to which fasinumab belongs — nerve growth factor (NGF) antibodies — has been associated with joint damage. They wound up excluding 2% of subjects due to imaging results, and five patients among the remainder suffered subchondral insufficiency fractures, or stress fractures on abnormal bones. Regeneron stock was near 377 in early trading on the stock market today . Shares touched an 18-month below 349 in late March, and Regeneron stock has a weak IBD Composite Rating of 47, putting it among the lower half of all stocks on the basis of key metrics such as earnings and sales growth. Regeneron had already signaled that the trial was going well earlier this year by starting a large phase-three trial of the drug, so the results weren’t especially surprising to analysts. It also lost a potential competitor in late March, when Johnson & Johnson ( JNJ ) stopped development of its own NGF antibody fulranumab, which was in late-stage trials for arthritis pain. RBC Capital Markets analyst Adnan Butt wrote at the time that J&J’s decision was based on pipeline prioritization, not on any problems with the drug itself. On Monday, Butt praised the effectiveness of fasinumab in the trial but wrote that the safety “bears watching.” “Overall, should this program succeed, it could be another blockbuster candidate, which unlike others could be an upside driver since it comes with regulatory and mechanistic safety concerns, hence is not a major focus for investors at this time, aside from a development cost and timeline standpoint,” Butt wrote in his research note.