Author Archives: Scalper1

Perrigo Misses Q1 Views, Cuts Guidance As Valeant Poaches Its CEO

As had been widely rumored, drugmaker Perrigo ( PRGO ) lost its CEO to Valeant Pharmaceuticals ( VRX ) Monday and also reported preliminary Q1 earnings and guidance that missed expectations. Perrigo stock plummeted in early trading, while Valeant stock rose modestly. Valeant said Perrigo CEO Joseph Papa will take the helm as both chairman and chief executive in early May, replacing Robert Ingram in the former role and J. Michael Pearson in the latter. Anonymous sources had leaked Papa’s appointment to the press late last week, although it was still unclear at the time whether Perrigo would let him out of his contract. “(Papa) has a strong shareholder orientation, a background in science and an unmatched track record of accomplishments, highlighted by his ability to lead companies through times of transition and drive excellence across commercial, manufacturing and R&D platforms,” Ingram said in a statement. “In addition, fostering an ethical culture and creating opportunities for professional development have always been high priorities for Joe, and we look forward to Joe’s arrival at Valeant.” Valeant rose 1.4% to 36.45 in afternoon trading on the stock market today . Perrigo tumbled 15.2% to 102.93, hitting a three-year low. Just how much is Perrigo hurting, as Valeant takes its CEO? Get an idea on IBD Stock Checkup. Perrigo, meanwhile, named its president John Hendrickson as its new CEO, “aligned with our succession planning process,” according to Chairman Laurie Brlas. The company also said that Q1 sales were around $1.33 billion to $1.35 billion, missing analysts’ consensus of $1.4 billion, according to Thomson Reuters. Earnings were $1.71 to $1.77 a share, while Wall Street had expected $1.89. Perrigo also cut more than a dollar off its full-year EPS guidance, now $8.20 to $8.60. “The majority of this change in guidance provided on Feb. 18 is the result of a reduction in pricing expectations in our Rx segment due to industry and competitive pressures in the sector,” Perrigo said in a statement. “The remainder of the reduction is primarily due to weaker-than-expected performance within the BCH (branded consumer health care) segment for the next three quarters and lower expectations for consolidated new product launches.” Perrigo also said that it was assessing a possible impairment charge associated with the BCH business, which was formed when Perrigo acquired Omega Pharma last year. It said it will be prepared to report the extent of the charge when it issues its official Q1 report on May 12.

Forget Apple — Here Are 4 Tech Stocks Near Buy Points Pre-Earnings

More earnings reports from big-name companies are due out this week, and positive results could fuel their shares higher. A lot of attention will be on Apple ’s ( AAPL ) earnings late Tuesday, but its stock is in a downtrend. Let’s take a look at four tech stocks with earnings on tap that are trading in or near buy range: Facebook ( FB ), Amazon ( AMZN ), PayPal ( PYPL ) and Baidu ( BIDU ). Facebook reports after the close on Wednesday. Both earnings and revenue are projected to jump 48%. The social media leader is trading 6% below a cup-with-handle buy point at 117.09, and shares are looking to find support at the 50-day moving average again on the stock market today as they dip 0.8% intraday. PayPal also reports late Wednesday, with analysts expecting earnings growth of 20% on a revenue rise of 19%. PayPal is trading just below buy range from an alternate entry at 40.03, and the stock was off 1.3% Monday. It’s also trading 6% below its all-time high as it works on a larger consolidation pattern. Amazon reports after the close on Thursday. Revenue is expected to climb 23%, while the bottom line is projected to swing to a profit of 58 cents a share vs. a 12-cent loss last year. Amazon is still trading in buy range from a cup-with-handle base buy point of 603.34, which it initially broke out of two weeks ago. Shares are currently 11% below their high reached in late December, and they dipped 0.2% Monday. China Internet giant Baidu reports after the close on Thursday as well, with the bottom line projected to fall 10%. Baidu is trading 15% below its 52-week high. Shares have drifted back below a cup-with-handle buy point, but positive results could send shares back within buy range. Baidu was down 1.6% in intraday trade. Meanwhile, Apple is trading 22% below its all-time high reached a year ago and is nearing its downward-sloping 50-day line.

Feds Drop Second Big iPhone Encryption Case Against Apple

For the second time in recent weeks, the Department of Justice has dropped a legal bid to force Apple ( AAPL ) to unlock an iPhone in a criminal investigation. The DOJ said late Friday that it no longer needs Apple’s assistance to unlock an iPhone used by a New York drug dealer, because the phone’s owner provided the passcode. Just last week, Apple asked a U.S. district court judge to dismiss the case, saying the government had failed to demonstrate that it had exhausted all other options before demanding the company’s help, the Wall Street Journal reported . On March 28, the DOJ withdrew its demand that Apple help it hack an iPhone belonging to one of the shooters in the San Bernardino, Calif., massacre. The FBI reportedly paid an unidentified third party more than $1 million to unlock the iPhone. Apple has fought government attempts to get it to weaken its smartphone security, saying that would create vulnerabilities that could be exploited by criminals and hackers. The company says it is increasing security on its devices to protect users’ personal data, including financial and health information. The FBI and law enforcement officials are worried that criminals will use the built-in security on smartphones like the iPhone and software apps to “go dark.” They have found sympathetic members of Congress, including Sens. Richard Burr, R-N.C., and Dianne Feinstein, D-Calif. Burr and Feinstein have proposed legislation called the “Compliance With Court Orders Act of 2016.” As drafted, the legislation would require any individual or company to comply with any U.S. court order and hand over data to authorities, including data that is encrypted. The bill has been roundly criticized by civil liberties and digital privacy groups.