Buy Suryaamba Spinning Mills: Equity99

Sumit Bilgaiyan

Suryaamba Spinning Mills is a leading manufacturer of specialty synthetic spun yarns. The core competitive strength of the company is its innovative product range, specifically tailor-made for the customers.

The company has current capacity of 45,000 spindles with the state of the art ultra-modern manufacturing machinery. It has installed value addition equipment, aims to fulfill the demand of export market and enhance profitability, with a capital expenditure of Rs 10 crore. It plans to fund this capex by using a mix of promoter's equity, retained�earnings and debt to ensure sustainable growth for the company in the future.

The company expects good demand for its products in domestic as well as international markets. The domestic market is on the path of healthy growth because of the demonetization and GST.

We believe Suryaamba is well placed to capture this structural shift aided by solid management pedigree. Hence we are recommending a�buy.

Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Buy Indiabulls Housing Finance: Equity99

Sumit Bilgaiyan

Indiabulls Housing Finance has reported robust core operating performance. Its AUM grew strongly by 34 percent YoY. Disbursements for the quarter were up 30 percent YoY due to 50 percent+ YoY growth in core home loans which drove 34 percent AUM growth.

Management has cited for strong traction in affordable housing finance. Loan mix and borrowing mix both were steady. Management targets to gradually increase the share of securitisation in its loan book from 10 percent currently to 20 percent over the medium-to-long term.

Indiabulls Housing��s transformation from a diversified lender to a focused mortgage player has yielded returns, with healthy RoE and RoA. The ability to manage spreads will be key to watch out. We have a buy call on Indiabulls Housing Finance.

Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Cantor Fitzgerald Reiterates “$20.00” Price Target for Dermira (DERM)

Dermira (NASDAQ:DERM) has been given a $20.00 price target by Cantor Fitzgerald in a research note issued to investors on Thursday. The brokerage presently has a “buy” rating on the biopharmaceutical company’s stock. Cantor Fitzgerald’s price objective indicates a potential upside of 146.61% from the company’s previous close. Cantor Fitzgerald also issued estimates for Dermira’s FY2018 earnings at ($4.63) EPS.

DERM has been the topic of a number of other reports. Needham & Company LLC lowered their price objective on shares of Dermira from $43.00 to $19.00 and set a “buy” rating on the stock in a research report on Tuesday, March 6th. Cowen set a $25.00 price objective on shares of Dermira and gave the company a “buy” rating in a research report on Monday, March 5th. Mizuho reaffirmed a “buy” rating on shares of Dermira in a research report on Friday, February 23rd. BidaskClub raised shares of Dermira from a “strong sell” rating to a “sell” rating in a research report on Tuesday, April 17th. Finally, Zacks Investment Research raised shares of Dermira from a “hold” rating to a “buy” rating and set a $11.00 price objective on the stock in a research report on Tuesday. Three research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $30.00.

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Dermira stock opened at $8.11 on Thursday. The company has a market capitalization of $438.57 million, a PE ratio of -1.85 and a beta of 1.50. The company has a current ratio of 5.17, a quick ratio of 5.17 and a debt-to-equity ratio of 2.19. Dermira has a fifty-two week low of $6.98 and a fifty-two week high of $31.59.

Dermira (NASDAQ:DERM) last released its earnings results on Thursday, May 3rd. The biopharmaceutical company reported ($1.39) earnings per share for the quarter, missing the consensus estimate of ($1.30) by ($0.09). The firm had revenue of $0.30 million during the quarter. Dermira had a negative return on equity of 95.84% and a negative net margin of 8,823.69%. equities research analysts predict that Dermira will post -4.72 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the stock. venBio Select Advisor LLC lifted its stake in Dermira by 125.5% in the first quarter. venBio Select Advisor LLC now owns 3,427,378 shares of the biopharmaceutical company’s stock valued at $27,385,000 after acquiring an additional 1,907,378 shares during the last quarter. Millennium Management LLC acquired a new stake in Dermira in the fourth quarter valued at approximately $25,084,000. Franklin Resources Inc. acquired a new stake in Dermira in the fourth quarter valued at approximately $24,820,000. Emerald Advisers Inc. PA acquired a new stake in Dermira in the fourth quarter valued at approximately $14,918,000. Finally, Eventide Asset Management LLC lifted its stake in Dermira by 169.4% in the first quarter. Eventide Asset Management LLC now owns 334,000 shares of the biopharmaceutical company’s stock valued at $2,669,000 after acquiring an additional 210,000 shares during the last quarter. 84.50% of the stock is currently owned by hedge funds and other institutional investors.

About Dermira

Dermira, Inc, a biopharmaceutical company, identifies, develops, and commercializes therapies to treat dermatologic diseases. The company's product candidates include Glycopyrronium tosylate, a novel form of an anticholinergic agent that has completed Phase III clinical trial for the treatment of primary axillary hyperhidrosis; Olumacostat glasaretil, a novel small molecule designed to target sebum production, which is in Phase III clinical trial for the treatment of acne vulgaris; and lebrikizumab, a novel humanized monoclonal antibody targeting interleukin 13 that is in Phase 2b development for the treatment of moderate-to-severe atopic dermatitis.

New program can help inmates fighting opioid…

CINCINNATI �� The main idea of a program, introduced here last week,�to provide medication for inmates who experience opioid withdrawal is to keep�them from dying.

Hamilton County jail in Cincinnati became first in Ohio to launch a program with its health-care provider that manages inmates in opioid withdrawal with buprenorphine, Hamilton County Sheriff Jim Neal said Wednesday.

Symptoms from heroin, fentanyl and prescription-painkiller�withdrawal can include severe diarrhea and vomiting, which could lead to dehydration, electrolyte imbalance�and, ultimately, death.�And during a nationwide opioid epidemic, jails are used to seeing hundreds of people coming in with these symptoms.

"It's an indirect path, (but) people are at risk of dying," said Chief Executive Brad McLane�of NaphCare, an private health-care company based in Birmingham, Ala., that serves about 30,000 patients in 27 jails and prisons nationwide.�Buprenorphine helps quell the symptoms and provide a safer withdrawal.

�� May 16: Sessions adds 300 to fight opioids, crime, immigration offenses
�� May 15: 6 states sue maker of OxyContin as they battle of opioid crisis
�� May 8: Pill dispenser could stop opioid addiction before it starts

The jail in Cincinnati is the 10th for which NaphCare provides a buprenorphine-aided withdrawal program, McLane said.�NaphCare introduced its program through a pilot a little more than a year ago at the Washington County jail in Hillsboro, Oregon.

Since then, the health-care provider for correctional institutions has established the program in�Kings County and Santa Ana jails in California; Hillsborough County jail in Tampa, Florida; Middlesex County jail in New Jersey; Washoe County jail�in Reno, Nevada; Pierce County and Skagit County jails in Washington; and the South�Correctional�Entity misdemeanor jail in Des Moines, Washington.

NaphCare isn't the only jail health-care provider�offering treatments to block opioid withdrawal symptoms or help inmates get off opioids for good, but the therapy is not widely available:

�� Rhode Island began a state Department of Corrections program in mid-2016 that made three medications available to treat opioid addiction and almost immediately found that fewer deaths were occurring after an inmate was released, according to the April issue of JAMA Psychiatry.

�� Snohomish County Jail in Everett, Washington, started a pilot program in January using suboxone, KING-TV, Seattle reported.

�� Jefferson County Jail in Golden, Colorado, began in April to use naltrexone,�a drug that works in the brain to keep opiates from working and�helps stop cravings, for its addicted inmates, KUSA-TV, Denver reported.

About a week ago, NaphCare workers introduced the treatment in the Hamilton County jail, providing it in an�under-the-tongue dissolving film to experiencing opioid�withdrawal. The patients must be closely watched to ensure the medication is taken properly, McLane said.

"You need to have a nurse or corrections officer watch the patient, or there's a risk that they will cheek it and divert it," he said

That's because buprenorphine is also an opioid.

�� May 8: Distributor apologizes for shipping volumes of painkillers to W. Virginia
�� May 7: Walmart won't give more than 7 days of opioids for some prescriptions

If used as medical practitioners direct, it does not cause euphoria�and helps quell cravings for opioids. But it can be used improperly to get the effects of other opioids.

The use of the medication�is�also compassionate, McLane said.

“There's no need for people to suffer through (withdrawal) symptoms. It's unnecessary.”

Brad McLane, NaphCare

"There's no need for people to suffer through (withdrawal) symptoms," he said. "It's unnecessary."

The�NaphCare CEO�hopes to get similar programs established throughout the jails his company serves, he said.

In Ohio, Hamilton County inmates are the only ones getting the treatment in jail so far, and NaphCare had to go through the Ohio Medical and Pharmacy boards to do so, McLane said.

The use of the medication to treat withdrawal�isn't new in other settings.

"Buprenorphine has been used to treat opioid withdrawal for more than 20 years, using the gradual taper," said Dr. Adam Bisaga,�an addiction research scientist who is a professor of psychiatry�at Columbia University Medical Center.

In Middlesex County Jail in North Brunswick Township, N.J.,�NaphCare is providing some inmates with maintenance doses of buprenorphine as part of an addiction treatment program, McLane said.

That maintenance medication is considered one of the best options for addicts to be weaned from opioids, according to a paper published in the October 2012 edition of Journal of Addictive Diseases.

�� May 3: Jeff Sessions blames corrupt doctors for opioid crisis
�� April 28: She's hiking the Appalachian Trail to fight addiction, honor late fiance

But offering that service takes additional certification of medical staff, and prescribers have limits on how many patients they can care for with buprenorphine, McLane said.

"It's challenging�to do that (treatment) in the jail setting" with a quickly changing inmate population, he said. And�current regulations do not allow opioid addicts to receive long-term buprenorphine treatment inside Ohio jails.

Buprenorphine patients at Hamilton County jail will be tapered from the drug, McLane said. The intent is to guide them�into community-based addiction treatment when they're released.

�� April 26: VA nominee withdraws amid allegations he dished out opioids
�� April 9: Rampant opioid injection 'ticking time bomb' that puts Americans at risk

Connecting released inmates to evidence-based treatment programs is essential, Bisaga at Columbia University said. Buprenorphine withdrawal treatment should be undertaken only if a plan is in place for giving inmates naltrexone�or keeping them on buprenorphine.

"There is a significant risk for overdose upon release from incarceration," said�Lindsey Vuolo, associate director of health law and policy at the New York nonprofit Center on Addiction. "Initiating and maintaining an individual on a medication such as buprenorphine can significantly decrease the risk for a fatal overdose."

Follow Terry DeMio on Twitter:�@tdemio

�

Take Advantage of Higher Interest Rates With These 2 Stocks

Interest rates have risen significantly over the past year or so, and most experts agree that we'll see several more rate hikes over the next few years.

Rising rates affect different types of stocks in different ways. Some stocks can benefit from rising rates, some can be under pressure as rates rise, and some don't tend to react much to interest rate moves at all. With that in mind, here are two rather different stocks that can let you take advantage of the current interest rate environment.

Image source: Getty Images.

Company (Symbol)

Recent Stock Price

Dividend Yield

Bank of America (NYSE:BAC)	$30.65	1.6%
Welltower (NYSE:WELL)	$54.50	6.4%

Data source: TD Ameritrade. Prices and yields current as of 5/21/18.

Higher rates could mean big profits for Bank of America

There are plenty of reasons to like bank stocks, and Bank of America in particular. The bank has done a great job of transforming itself in the decade or so since the financial crisis ended. Its asset quality is much improved, its business has grown significantly (and responsibly), and it has aggressively returned capital to shareholders in recent years.

In addition, the bank's efficiency has improved tremendously in recent years thanks to the strategic closure of underperforming branches, investment in cost-saving technologies, and�general emphasis on expense reduction. Since the end of 2015, Bank of America's efficiency ratio is down (lower is better) by an impressive 900 basis points to 60% -- on par with the leading big banks. This, combined with the benefits of tax reform, has pushed Bank of America's profitability above the industry's 1% return on assets and 10% return on equity benchmarks for the first time in years.

And finally, Bank of America has a big potential catalyst as interest rates rise over the next couple of years. With an above-average concentration of noninterest-bearing deposits, Bank of America should be a big beneficiary as interest rates rise. According to the bank's management, a 100-basis-point parallel shift in the yield curve would translate to an additional $3 billion in net interest income per year.

With the latest Federal Reserve forecasts calling for further hikes to the federal funds rate of 175-200 basis points by the end of 2020, we could see Bank of America's profitability grow significantly.

Rising rates have pummeled the real estate sector

Real estate investment trusts, or REITs, have been one of the worst-performing parts of the stock market recently. While the S&P 500 is up by nearly 15% over the past year, the Dow Jones Equity REIT Index has actually dropped by 4%. Healthcare REIT Welltower has done even worse, with a troubling 25% fall.

The main cause for the broad drop in REITs is interest rates. Simply put, when rates rise, income-oriented investments like REITs tend to face downward pressure. Higher rates mean investors expect higher yields from "riskier" investments like stocks, and lower stock prices equal higher yields.

In Welltower's case, oversupply worries have caused even worse performance. Welltower's primary property type is senior housing, which makes up nearly three-fourths of the company's portfolio.

Senior housing is a big long-term growth industry (more on that in a bit), but there are signs that the market may have built too much. We're seeing this in a few different types of commercial real estate -- with the extremely low costs of capital in recent years and elevated real estate values, it has simply been cheaper in many cases to build new properties rather than acquire existing ones. In addition, many leading senior housing operators are currently on shaky financial ground.

However, it's important to realize that this isn't a long-term problem. The senior citizen population in the U.S. is expected to grow rapidly in the coming decades, with the 85-and-older age group (the primary demographic of senior housing) expected to double over the next 20 years.

It may take some time before the industry headwinds cool off, but in the meantime, you're getting a top-notch REIT for just 13.6 times the company's 2018 FFO guidance (the REIT version of earnings), and you'll be getting paid a 6.4% dividend yield while you wait. To be clear, Welltower could remain under pressure as rates keep rising -- especially if it happens faster than expected. However, now could be an excellent time for long-term investors to think about adding Welltower to their portfolios while the stock is down.

Two very different plays on rising rates

These are two very different plays on the current state of interest rates: one that could profit as rates continue to rise, and one that has been under pressure because rates have risen. However, both could be excellent additions for investors who have long time horizons to work with.

Jason N. Gorevic Sells 25,000 Shares of Teladoc (TDOC) Stock

Teladoc (NYSE:TDOC) CEO Jason N. Gorevic sold 25,000 shares of the business’s stock in a transaction dated Tuesday, May 15th. The shares were sold at an average price of $48.93, for a total transaction of $1,223,250.00. Following the transaction, the chief executive officer now directly owns 636,184 shares in the company, valued at approximately $31,128,483.12. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Shares of TDOC opened at $49.35 on Friday. The stock has a market capitalization of $3.08 billion, a P/E ratio of -29.91 and a beta of 0.35. Teladoc has a 12-month low of $27.30 and a 12-month high of $49.85. The company has a debt-to-equity ratio of 0.38, a quick ratio of 4.15 and a current ratio of 4.15.

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Teladoc (NYSE:TDOC) last issued its quarterly earnings data on Tuesday, May 1st. The health services provider reported ($0.39) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.43) by $0.04. The firm had revenue of $89.64 million for the quarter, compared to analyst estimates of $86.77 million. Teladoc had a negative net margin of 41.06% and a negative return on equity of 20.40%. Teladoc’s revenue was up 109.0% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.30) EPS. analysts expect that Teladoc will post -1.37 earnings per share for the current year.

Several research analysts have recently weighed in on TDOC shares. ValuEngine raised shares of Teladoc from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, May 2nd. Cantor Fitzgerald reissued a “hold” rating and set a $35.00 price target (up previously from $31.00) on shares of Teladoc in a research report on Tuesday, February 27th. Deutsche Bank boosted their price target on shares of Teladoc to $45.00 and gave the company a “buy” rating in a research report on Friday, March 2nd. Canaccord Genuity boosted their price target on shares of Teladoc from $42.00 to $43.00 and gave the company a “buy” rating in a research report on Wednesday, January 31st. Finally, SunTrust Banks boosted their price target on shares of Teladoc to $48.00 and gave the company a “positive” rating in a research report on Wednesday, May 2nd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $42.67.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Levin Capital Strategies L.P. purchased a new stake in Teladoc in the 1st quarter valued at about $403,000. Xact Kapitalforvaltning AB raised its holdings in Teladoc by 46.3% in the 1st quarter. Xact Kapitalforvaltning AB now owns 8,530 shares of the health services provider’s stock valued at $344,000 after buying an additional 2,700 shares during the period. Royal Bank of Canada raised its holdings in Teladoc by 1,351.5% in the 1st quarter. Royal Bank of Canada now owns 64,271 shares of the health services provider’s stock valued at $2,592,000 after buying an additional 59,843 shares during the period. Millennium Management LLC purchased a new stake in Teladoc in the 1st quarter valued at about $10,906,000. Finally, Zevenbergen Capital Investments LLC raised its holdings in Teladoc by 1.8% in the 1st quarter. Zevenbergen Capital Investments LLC now owns 1,567,845 shares of the health services provider’s stock valued at $63,184,000 after buying an additional 28,205 shares during the period.

About Teladoc

Teladoc, Inc provides telehealth services worldwide. It offers a portfolio of services and solutions covering 450 medical subspecialties, such as flu and upper respiratory infections, cancer, and congestive heart failure. The company provides its services through mobile devices, the Internet, video, and phone.