Valero Energy Corporation : VLO Stock – Buy, Sell or Hold?

Valero Energy Corporation (VLO) — I featured VLO stock as the Sept. 9 , noting it was one of the few energy stocks that had not broken down through its long-term uptrend line. I recommended traders buy shares under $58 for a trade to $67.10, the top of the Aug. 21 gap down.
VLO stock trigged a buy on Sept. 28, hitting a low of $57.64, and then ran to a high above $68 on Monday. Traders who followed my advice made a gain of more than 17% in five weeks and may wish to take profits now.
However, this investment-grade stock is still appropriate for long-term buyers who could benefit from the company’s strong fundamentals.
On Oct. 28, the refiner reported better-than-expected earnings of $2.79 per share. Revenue of $22.6 billion also beat estimates, and management approved a 25% quarterly dividend increase. The company now pays 50 cents per share for a forward annual yield of 2.9%.
Following the earnings announcement, S&P Capital IQ Equity Research raised its 2015 EPS estimate by 41 cents to $8.65 and its 2016 forecast by 34 cents to $7.17.
Since breaking out in 2012 at about $25, VLO stock has been ramping up on a series of step ups. Support now rests slightly below its 200-day moving average, which is near $61.
A breakout occurred last week when VLO stock broke from its resistance line at under $66. As noted, traders may want to nail down a profit, but longer-term investors should either hold or add to their positions. This refiner is likely to break above its recent high at $71.50 and move on to Capital IQ’s target of $75.

Frontier Communications Corp (NASDAQ: FTR)

Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. The company offers residential services, such as fiber-to-the-home and fiber-to-the-node broadband, video, and voice over Internet protocol products, as well as traditional copper-based broadband products; and commercial services, including Ethernet, dedicated Internet, multiprotocol label switching, time division multiplexing, data transport services, and optical transport services.
Take a look at the 1-year chart of Frontier (NASDAQ: FTR) below with my added notations:

FTR went through a major decline from February into July. However, over the past 3 months the stock has created a key price level to watch at $5.50 (red). As you can see, FTR has tested that level multiple times since mid-August. A break above that $5.50 level should mean higher prices for the stock.

The Tale of the Tape: FTR has a key level of resistance at $5.50. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $5.50.

How to Spot Buyout Clues in Today’s Resource Market

by JT Long
The Gold Report

What if you could tell before a press release comes out that a company is poised to be bought out, possibly at a nice premium? Sounds good, right? By watching historic patterns, that might just be possible. The Gold Report reached out to experts who have been around through enough cycles to know and asked for the clues they watch that an acquisition might be imminent. From location and early investment to derisking levels, you just have to know what to look for to position yourself for a liquidity event.

There are certain points in market cycles where buyouts just make more sense than in others. Chen Lin, author of the popular stock newsletter What Is Chen Buying? What Is Chen Selling, sees a recent flurry of mergers and acquisitions (M&A) as an indication that we are, indeed, at the bottom of the gold market and can expect more consolidation—and at a premium. “We saw the start of a new phase of M&A happening when OceanaGold Corp. (OGC:TSX; OGC:ASX) bought Romarco Minerals Inc. (R:TSX), and Romarco shareholders realized a big premium for that,” he says. Add to that First Mining Finance Corp.’s (FF.TSX.V) merger with Gold Canyon Resources Inc. (GCU:TSX.V) and PC Gold Inc. (PKL:TSX). “Investors of those stocks were rewarded handsomely.” He continues, “A lot of companies with good balance sheets will try to take advantage of this downturn to pick up properties at rock bottom prices. This is actually a good time for those companies that can afford to do M&A.”
Continue Reading at TheAuReport.com…

Aerie Pharmaceuticals Inc (NASDAQ: $AERI), Infoblox Inc (NYSE: $BLOX)

Aerie Pharmaceuticals Inc (NASDAQ:AERI) jumped 6.80% today finishing the session near the highs of the day on decent volume, suggesting buyers are stepping in. If the stock breaks today's high, the momentum could move stock to the 27.5 area.

Infoblox Inc (NYSE:BLOX) started the day negative but turned things around to close up nicely on solid volume. The technical indicators are reversing up and are advocating for a technical rebound. The real fireworks should begin if the stock price can close above $17.07. As long as the stock can remain above the 15.9 level, I like the stock. 

American Airlines Group Inc (NASDAQ: AAL)

American Airlines Group Inc., through its subsidiaries, operates in the airline industry. As of December 31, 2014, the company operated 983 mainline jets, as well as 566 regional aircrafts through regional airline subsidiaries and third-party regional carriers. It serves 339 destinations in 54 countries. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013.
Take a look at the 1-year chart of Norfolk (NASDAQ: AAL) below with my added notations:

1-year chart of Norfolk (NASDAQ: AAL)

AAL went into a 5-month decline staring in March. However, during the last 3 months of the decline, and beginning of the rally, AAL created a clear level of resistance at $44 (green), which had also been support prior. A break above that $44 level should mean higher prices for the stock, and last week AAL broke that resistance.

The Tale of the Tape: AAL broke through its key level of resistance at $44. A long trade could be entered on a pull back down to that level. However, a break back below $44 could negate the forecast for a higher move and would be an opportunity to get short the stock.

Seadrill $SDRL: Wall Street Analysts’ Recommendations

Seadrill’s 3Q15 earnings

Seadrill (SDRL) will announce its 3Q15 earnings results on November 26, 2015. Wall Street analysts estimated the company’s 3Q15 EBITDA ( earnings before interest, tax, depreciation, and amortization)  to be $502 million. Analysts have lowered their 3Q15 EBITDA estimates from the three-month prior estimate of $555 million.

Stock performance

From August 27, 2015, when Seadrill (SDRL) announced its 2Q15 results, until October 29, 2015, its stock price dropped by 14%. From October 1 to October 28, the company’s share price appreciated by 8%. The share prices for other major offshore drilling (OIH) (IYE) (XLE) companies appreciated as follows:

• Diamond Offshore (DO): 18%
• Noble (NE): 19%
• Ensco (ESV): 16%
• Transocean (RIG): 22%
• Atwood Oceanics (ATW): 9%
• Rowan Companies (RDC): 20%
• Pacific Drilling (PACD): 23%

New contracts for several companies in October brought positive sentiments in the offshore drilling industry, leading to a jump in share prices. To read more about fleet reports in October, please refer to Offshore Drillers’ October Fleet Reports: Good News, Bad News.
Wall Street analysts’ target price

Wall Street analysts have a 12-month target price of $7.65 for Seadrill (SDRL) against the current price of $6.16 on October 27. Of these analysts, 14% recommend a buy, 30% recommend a hold, and 56% recommend a sell, according to a Bloomberg consensus.

Analyst estimates provide crucial information when looking at target prices. Last year, when Seadrill was trading at $23.80, analysts had a 12-month target price of $28.50, but the stock tumbled in the last year.

In the next few articles, we’ll analyze the analysts’ outlooks and determine whether they are optimistic or pessimistic in assessing Seadrill’s future. We’ll also analyze some key events with respect to Seadrill that took place during and after 2Q15.

Ross Clark – Precious Metals. Ted Dixon – Trudeau Economy. Ellen Brown – Canada US Debt.