Welcome to Seeking Alpha’s Stocks to Watch – a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.
Investors are prepping for another week of volatility as concerns over the China trade deal and the impact of the U.K. Brexit withdrawal bill are sure to linger. Add in the drama of a yield curve that inverted on the short end and it’s small wonder that the Santa Claus rally is having a hard time materializing. With major indexes having now erased their gains for the year, expect to hear some noise from value investors after seeing the one-month drops in names such as Nvidia (NASDAQ:NVDA) -25%, Target (NYSE:TGT) -22%, Tiffany (NYSE:TIF) -22%, Goldman Sachs (NYSE:GS) -19%, Apple (NASDAQ:AAPL) -18%, Halliburton (NYSE:HAL) -15% and Altria (NYSE:MO) -15%. On the economic front this week, new reads on producer prices, consumer prices and retail sales will be closely watched.
Notable earnings reports: It’s a very thin week for earnings reports, but companies due to spill numbers include Ascena Retail (NASDAQ:ASNA) and Stitch Fix (NASDAQ:SFIX) on December 10; American Eagle Outfitters (NYSE:AEO) and Dave & Buster’s Entertainment (NASDAQ:PLAY) on December 11; Phototronics (NASDAQ:PLAB) and Oxford Industries (NYSE:OXM) on December 12; Adobe (NASDAQ:ADBE), Costco (NASDAQ:COST) and Ciena (NASDAQ:CIEN) on December 13.
IPOs expected to price: Tencent Music Entertainment (TME) is pressing ahead with its IPO as the company looks to take advantage of the 90-day pause on tariffs between the U.S. and China. The music streaming service plans to sell 41M ADSs in the offering and selling shareholders will also unload just under 41M ADSs. Tencent Music owns three streaming music platforms in China – QQ Music, Kuguo, and Kuwo – with a count of over 700M monthly active users. Heading into the IPO, Tencent (OTCPK:TCEHY) holds a 58.1% stake in Tencent Music and Spotify (NYSE:SPOT) owned a 9.1% stake.
IPO lockup expirations: Greenpro (OTCQB:GRNQ) on December 10; US Xpress Enterprises (NYSE:USX) and Charah Solutions (NYSE:CHRA) on December 11; Avalara (NYSE:AVLR), Verrica Pharmaceuticals (NASDAQ:VRCA) and Puixin (NYSE:NEW) on December 12.
Projected dividend changes (quarterly): Abbott (NYSE:ABT) to $0.30 from $0.28, AES (NYSE:AES) to $0.14 from $0.13, Amgen (NASDAQ:AMGN) to $1.39 from $1.32, Boeing (NYSE:BA) to $2.08 from $1.71, Franklin Resources (NYSE:BEN) to $0.25 from $0.23, Lilly (NYSE:LLY) to $0.57 from $0.5625, Realty Income (NYSE:O) to $0.221 from $0.2205, AT&T (NYSE:T) to $0.51 from $0.50, Ventas (NYSE:VTR) to $0.81 from $0.79, ABM Industries (NYSE:ABM) to $0.18 from $0.175, Balchem (NASDAQ:BCPC) to $0.46 from $0.42, SEI (NASDAQ:SEIC) to $0.32 from $0.30, Urstadt Biddle (NYSE:UBA) to $0.275 from $0.27, WD-40 (NASDAQ:WDFC) to $0.59 from $0.54.
60 Minutes: Tesla (NASDAQ:TSLA) CEO Elon Musk was interviewed by Leslie Stahl for the weekly news show. In a clip already released, Musk said “I don’t really want to try to adhere to some CEO template.” Musk also stated that the EV automaker would have interest in setting up shop in an old General Motors (NYSE:GM) plant if one is available.
Analyst/investor meetings: Arthur Gallagher (NYSE:AJG), Enbridge (NYSE:ENB), American Water Works (NYSE:AWK), ServiceMaster Global (NASDAQ:SERV), TreeHouse Foods (NYSE:THS) and Crown Holdings (NYSE:CCK) on December 11; Aimmune Therapeutics (NASDAQ:AIMT) and Hess (NYSE:HES) on December 12; ImmunoGen (NASDAQ:IMGN), Health Insurance (NASDAQ:HIIQ) and Danaher (NYSE:DHR) on December 13; Hartford Financial (NYSE:HIG) and Centene (NYSE:CNC) on December 14.
Spotlight on coffee: Starbucks (NASDAQ:SBUX) hosts its biannual investor day event on December 13. The meeting will occur about a month after Starbucks announced a round of corporate-level job cuts. While the company isn’t directly in the line of fire of tariffs, an escalation of the U.S.-China trade battle could end up hurting its business if Beijing slows the regulatory process or a consumer backlash pops up.
Spotlight on Under Armour: Under Armour (UA, UAA) will hold an investor meeting on December 12. CEO Kevin Plank, President, COO Patrik Frisk, CFO David Bergman and other Under Armour execs will provide an overview of the company’s long-term strategy, financial outlook and key initiatives to deliver sustainable, profitable growth and shareholder value.
Capitol Hill watch: Google (GOOG, GOOGL) CEO Sundar Pichai is due to appear before a House panel on December 11 in a hearing rescheduled from last week. Height Capital Markets expects the tough questions to be asked to Pichai by lawmakers to be just the start, not the end. The firm thinks Big Tech companies will be exposed to regulatory headline risk into 2019, even as it predicts final legislation will be tough to pass both houses. The House is also slated to vote next week on a bi-partisan measure that would punish drugmakers trying to game Medicaid’s rebate system to garner bigger profits.
FCC watch: The FCC is due to start its quadrennial review of some media ownership rules, including the issue of owning multiple stations in a single market. Companies watching the developments include Entercom (NYSE:ETM), Emmis Communications (NASDAQ:EMMS), Cumulus (NASDAQ:CMLS), Cox Radio (CXR), Clear Channel, CBS, Disney (NYSE:DIS), Beasley Broadcasting (NASDAQ:BBGI), iHeartMedia (OTCPK:IHRTQ).
Short report: Nasdaq is due to issue a new short interest report on December 11 for positions settled by November 30. Stocks with the highest level of short interest as a percentage of total float at the time of the last Nasdaq report included GNC Holdings (NYSE:GNC), Lannett Company (NYSEMKT:LCI), J.C. Penney (NYSE:JCP), Carbo Ceramics (NYSE:CRR), Carvana (NYSE:CVNA), Buckle (NYSE:BKE), Revlon (NYSE:REV), RH(NYSE:RH), Dillard’s (NYSE:DDS), Camping World (NYSE:CWH), B&G Foods (NYSE:BGS) and Pyxus International (NYSE:PYX).
M&A tidbits: Lumentum’s (NASDAQ:LITE) acquisition of Oclaro (NASDAQ:OCLR) is expected to close on December 10. Shareholders with Akebia Therapeutics (NASDAQ:AKBA) and Keryx Biopharmaceuticals (NASDAQ:KERX) vote on the merger between the two companies on December 11. A special meeting is scheduled on December 11 for shareholders of Dell Technologies (NYSE:DVMT) to vote on the Class V common stock exchange transaction. CVS Health (NYSE:CVS) has a deadline of December 14 to issue a briefing defending the Aetna (NYSE:AET) deal.
Barron’s mentions: The share price drop on Caterpillar (NYSE:CAT) looks overdone, reasons Jack Hough. He notes that a midyear price increase by Caterpillar on machines helped offset higher costs related to steel and other tariffs, while booked orders are strong for 2019. Applied Materials (NASDAQ:AMAT) is also seen as being on the cheap side, with shares trading at only 10X forward earnings. That’s despite the huge upside for Applied Materials in AI chips. There’s also a deep dive on Lam Research (NASDAQ:LRCX) after the company’s bumpy road.
Sources: Nasdaq, EDGAR, Reuters, CNBC, Bloomberg
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.