Conclusión Macroeconómica

 

 

(Bloomberg) — U.S. stocks turned down from session highs as geopolitical tensions continue to weigh into the weekend; the main indexes are flirting with multiple DMAs.

Mexico’s peso faded after Pompeo reinforced Trump’s comments, saying the U.S. is fast approaching a “moment of crisis” due to the migrant situation.

The 10-year Treasury yield pushed above 3.20%.

The dollar fell while cable gained after Prime Minister Theresa May was said to ditch one of her key Brexit demands in order to resolve the Irish border.

The EUR rallied to a new high for the day after EU commissioner Moscovici commented the bloc won’t interfere in Italian economic policies; the comments drove BTP/Bund spreads to around 300 bps from 340.

Elsewhere, WTI rose back above $69 a barrel and Brent above $80.


Credit Markets 

High-grade supply fell short of estimates this week as corporate borrowers worked through earnings blackouts and volatility in rates and equities.

  • The market tone weakened somewhat
    • Credit spreads widened throughout the week as Lipper reported weekly outflows in IG bond funds. While modest, it marked just the fifth week of outflows seen this year
    • Issuers that did come forward paid heightened concessions. Book over-subscription rates were muted aside from Conagra’s M&A-related transaction and deals tightened modestly through the pricing process *T Week YTD NIC 6.4bps 4.3bps Books Covered 3.4x 2.9x IPT -> Launch (Delta) 13.5bps 15.4bps *T

 

  • Conagra priced just over $7b on Monday, the week’s largest deal, to fund its acquisition of Pinnacle Foods. The issuer ended calls last Wednesday, but likely held off until this week given last week’s equities rout
    • The deal saw the most demand of any this week, with a total book size north of $30b and 4.4x subscription rate, however the issuer paid elevated concessions

 

  • Big banks’ no-show contributed to the light supply this week. Issuance was expected as several of them reported earnings beginning last Friday, yet only JPM and Wells Fargo priced relatively small deals post-earnings
    • Their absence from the primary market may be a result of new rules on total loss- absorbing capacity eligible bonds that go into effect next year
    • Banks may have pre-funded to come into compliance

 

  • Self- imposed corporate earnings blackout periods may have also contributed to the light primary volume this week. Third quarter earnings are running through and companies may come forward in the next few weeks as the season winds down
    • Supply this week was $17.825b, short of projections of $25b-$30b

 

  • Foreign USD issuers, however, came forward in large numbers. Yankee issuance accounted for $4.45b, or 25%, of the week’s issuance while EM and SSA issuers put forward a whopping $10.97b of supply. All together, non-domestic USD supply was $15.42b
    • While many factors could explain the uptick in EM and SSA issuance, it is possible that many of these issuers were sitting on the sidelines last week as equity markets tumbled and macro markets were volatile, choosing to take advantage of this week’s slightly more stable tone
    • Not all foreign issuers executed their deals with ease. On Thursday, Empresa Electrica Cochrane decided to not proceed with their bond sale
    • Across the pond, issuers pulled several EU and GBP deals, citing market conditions

 

WEEK AHEAD

  • Estimates call for $15-$20b next week
  • This week regional banks could issue new bonds as they begin to exit earnings blackouts
  • More on the IG Pipeline
  • October projections ~$110b

ISSUANCE STATS

  • Weekly volume $17.825b vs $7.400b last week
  • MTD volume $69.700b
  • September volume $122.900b
  • YTD volume $965.584b

DAILY BREAKDOWN *T Day Volume Monday $9.975b Tuesday $5.250b Wednesday $2.050b Thursday $550m Friday None *T THIS WEEK’S IG ANALYSES

  • Concessions Elevated as Issuers Return to Market
  • Domestic Supply Slows Despite Market Rally
  • Primary Volume Slows, Deal Outcomes Mixed
  • EM and SSA Issuers Outpace Domestic Supply

 


Key Headlines:

  • U.K. banks can deal with Brexit, trade war at the same time: Carney
  • Mexico dealing with challenge of migrants, Videgaray says
  • U.S. existing-home sales at 5.15m, vs est. of 5.29m

 


Key Economic Data: 

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Canada Watch Inflation still points to hikes


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China Economic Watch GDP growth weakened in 3Q with mixed activity data in September


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Japan Economic Watch Weakness in external demand to continue


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UK Macro Viewpoint Brexit – deal, no deal, referendum or election?


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BofAML_ Global Economic Weekly Currency – a new front in the trade war

 


-R.W.N II, yours in 322.

4035120566_dca59ce94b_n

Banyan Capital Management, LLC (“BCM”) is a publisher, not a registered investment advisor, and nothing in BCM’s newsletter is intended, and it should not be construed, to be investment advice. BCM’s newsletter is for informational use only. Any mention in BCM’s newsletter of a particular security, index, derivative, or other instrument is neither a recommendation by BCM to buy, sell, or hold that security, index, derivative, or other instrument, nor does it constitute an opinion of BCM (or of any of its officers, employees, agents or representatives) as to the suitability of that security, index, derivative or other instrument for any particular purpose. BCM is not in the business of giving investment advice or advice regarding the suitability for any purpose of any security, index, derivative, other instrument or trading strategy and nothing in BCM’s newsletter should be so used or relied upon. BCM is not acting as your financial advisor nor in a fiduciary capacity, with regard to any securities, index, derivative or other instrument referred to in BCM’s newsletter. Also, no representation is made concerning the tax implications in any applicable jurisdiction regarding any securities, index, derivative or other instrument and BCM is not advising you in respect of the tax implications. All opinions and estimates in the newsletters are given as of the date of their publication on the BCM’s website and are subject to change and BCM does not assume any obligation to update the newsletters or to reference any such changes. BCM hereby expressly disclaims any and all representations and warranties that: (a) the content of its newsletters is correct, accurate, complete, reliable or a guaranty of future performance; (b) any of its newsletters will be available at any particular time or place, or in any particular medium; and (c) that any omission or error in any of its newsletters will be corrected. BCM shall not be liable for any errors or omissions made in its newsletters or for any inaccuracies in its assumptions. BCM specifically disclaims liability for any losses or damages (incidental, consequential or otherwise) that may arise from the newsletters and that are either used or relied upon by anyone for any reason, including without limitation, the use of the newsletters in the preparation of any financial books and records. Although from time to time BCM’s newsletter may link to or promote others’ websites or services, BCM is not responsible for and does not control those websites or services. BCM’s newsletter is published and distributed in accordance with applicable United States and foreign copyright and other laws. Without the prior written consent of BCM, no person or entity, directly or indirectly, may copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to create derivative works from, transmit, or in any way exploit all or any part of BCM’s website, its newsletter, or any other material belonging to BCM.Without the prior written consent of BCM, no person or entity, directly or indirectly, may offer all or any part of BCM’s website, its newsletter, or any other material belonging to BCM for sale, nor may any person or entity, directly or indirectly, distribute all or any part of BCM’s website, its newsletter, or any other material belonging to BCM over or by means of any medium.Without the prior written consent of BCM, no person or entity, directly or indirectly, may make all or any part of BCM’s website, its newsletter, or any other material belonging to BCM, available as part of or in connection with another website, whether by hyperlink, framing on the Internet or otherwise. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein.

Mi casa es tu casa por un precio

 

Exisiting Home Sales Tumble in September 

Existing home sales declined 3.4% in September, marking the sixth consecutive month that sales have fallen. Existing home sales track closings, which tend to reflect contracts signed one to two months earlier, so the most recent drop is not likely related to disruptions from Hurricane Florence.

Unfortunately, the slide in housing is the real deal. Virtually every leading indicator of housing demand has been trending lower for several months (mean-reversion lookout), including pending home sales mortgage purchase applications and the proportion of consumers stating that now is a good time to buy a home.

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The slide in home buying has coincided with rising mortgage rates and follow years of rapid price increases, which have collectively taken a toll on affordability. Most of the drop in affordability this year, however, has come from rising mortgage rates. The latest housing affordability data do not reflect the most recent run-up in rates, which has sent a further chill through mortgage purchase applications.

Earlier in the cycle, sales were primarily held back by the lack of for-sale inventory. The lack of homes for sale is less of an issue today. Inventories have been trending higher, as homes are not selling as quickly as they were a few months ago. Unsold inventory is currently at a 4.4-month supply, up from 4.3 months in August and 4.2 months a year ago.

The National Association of Realtors (NAR) notes that homes sold in September typically stayed on the market for 32 days, up from 29 days in August but down from 34 days a year ago. Demand varies considerably by market and price point. Midland and Odessa, both in booming West Texas (“Drill Baby Drill”), are two of the strongest markets, as are Boston and Columbus, Ohio. Some of the hottest markets out West, however, have cooled considerably(Who wants to buy a home if they think it will be burned down next summer?), particularly in higher-priced markets such as the San Francisco area.

Home price appreciation has also cooled off. The latest data show the median price of existing home sold in September was just 4.2% higher than it was one year ago. The year-over-year change in the median price has been trending lower for the past six months, and the moderation in the NAR series is evident in other prices rather than above them, which reflects a more normal market.

I suspect the housing market to level off and begin trending higher in the coming months. I see a cap on interest rates as the Fed continues to raise interest rates into a domestic slowdown. I foresee the “deflation domino effect” taking hold Q4 ’18 – 2Q ’19.

As the Fed raises interest rates, the short-end of the treasury curve (2-year) will rise and the 10-year will fall because the assumption is that the economy is bullish, therefore, leading some to believe the underlying domestic economy is bullish as well. I believe this is a wrong assumption.

Furthermore, as the Fed is raising the short-end of the treasury curve the US dollar will appreciate, oil prices will fall from their recent highs. In other words, “Deflation’s Dominoes.”

Image result for dominoes gif

Looping back to housing, and with regards to the mean reversion of the sales data I am expecting to moderate in the winter months(seasonality), the seasonally-adjusted data might pop higher. Such a rise would not signal any fundamental improvement to the overall economy, but instead as a rate-sensitive play.

Risks to this assumption include the withdrawal of international buyers from the market, and recent tax law changes that have added an additional hurdle for potential new buyers to enter the housing space.

 


-R.W.N II, yours in 322.

Goodbye+Children

Banyan Capital Management, LLC (“BCM”) is a publisher, not a registered investment advisor, and nothing in BCM’s newsletter is intended, and it should not be construed, to be investment advice. BCM’s newsletter is for informational use only. Any mention in BCM’s newsletter of a particular security, index, derivative, or other instrument is neither a recommendation by BCM to buy, sell, or hold that security, index, derivative, or other instrument, nor does it constitute an opinion of BCM (or of any of its officers, employees, agents or representatives) as to the suitability of that security, index, derivative or other instrument for any particular purpose. BCM is not in the business of giving investment advice or advice regarding the suitability for any purpose of any security, index, derivative, other instrument or trading strategy and nothing in BCM’s newsletter should be so used or relied upon. BCM is not acting as your financial advisor nor in a fiduciary capacity, with regard to any securities, index, derivative or other instrument referred to in BCM’s newsletter. Also, no representation is made concerning the tax implications in any applicable jurisdiction regarding any securities, index, derivative or other instrument and BCM is not advising you in respect of the tax implications. All opinions and estimates in the newsletters are given as of the date of their publication on the BCM’s website and are subject to change and BCM does not assume any obligation to update the newsletters or to reference any such changes. BCM hereby expressly disclaims any and all representations and warranties that: (a) the content of its newsletters is correct, accurate, complete, reliable or a guaranty of future performance; (b) any of its newsletters will be available at any particular time or place, or in any particular medium; and (c) that any omission or error in any of its newsletters will be corrected. BCM shall not be liable for any errors or omissions made in its newsletters or for any inaccuracies in its assumptions. BCM specifically disclaims liability for any losses or damages (incidental, consequential or otherwise) that may arise from the newsletters and that are either used or relied upon by anyone for any reason, including without limitation, the use of the newsletters in the preparation of any financial books and records. Although from time to time BCM’s newsletter may link to or promote others’ websites or services, BCM is not responsible for and does not control those websites or services. BCM’s newsletter is published and distributed in accordance with applicable United States and foreign copyright and other laws. Without the prior written consent of BCM, no person or entity, directly or indirectly, may copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to create derivative works from, transmit, or in any way exploit all or any part of BCM’s website, its newsletter, or any other material belonging to BCM.Without the prior written consent of BCM, no person or entity, directly or indirectly, may offer all or any part of BCM’s website, its newsletter, or any other material belonging to BCM for sale, nor may any person or entity, directly or indirectly, distribute all or any part of BCM’s website, its newsletter, or any other material belonging to BCM over or by means of any medium.Without the prior written consent of BCM, no person or entity, directly or indirectly, may make all or any part of BCM’s website, its newsletter, or any other material belonging to BCM, available as part of or in connection with another website, whether by hyperlink, framing on the Internet or otherwise. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein.

No vamos a pagar por el muro, señor presidente

 

(Bloomberg) — Global stock selloff weighed on U.S. equities, with all three major indexes testing support from various daily moving averages.

Most notably, the S&P 500 cash-challenged the 200-DMA of ~2,768.

Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled equity investor worries.

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Treasuries rose and peripheral European bonds fell amid heavy supply, with the Italian curve steepening.

The spread between 10-year BTPs and Bunds touched the highest since 2013 as the European Commission said Italy’s spending plans are excessive.

The dollar and the yen gained as risk-off sentiment spread, with all emerging-market currencies tracked by Bloomberg in the red.

Mexico’s peso was down ~1.3% after U.S. President Donald Trump threatened to shut the border over migration.

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Elsewhere, crude fell while gold traded near three-month highs.


Key Headlines:

  • TIPS auction tails, bidding metrics fade
  • EU says Italy’s Draft Budgetary Plan for 2019 constitutes “an obvious significant deviation” from EU rules
  • Mexican government’s announcement to abolish oil exports is credit negative: Moody’s
  • U.S. weekly jobless claims fell to 210k

Key Economic Data: 

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Euro Area Economic Watch Germany- It’s not only the football


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Korea Economic Watch BoK unexpectedly unchanged

 


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Housing Watch Who says you can’t go home?


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Word from Main Street The elusive search for affordable housing

 


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Strategy Snippet An equity guide to the mid-term election

 


-R.W.N II, yours in 322.

4035120566_dca59ce94b_n

Banyan Capital Management, LLC (“BCM”) is a publisher, not a registered investment advisor, and nothing in BCM’s newsletter is intended, and it should not be construed, to be investment advice. BCM’s newsletter is for informational use only. Any mention in BCM’s newsletter of a particular security, index, derivative, or other instrument is neither a recommendation by BCM to buy, sell, or hold that security, index, derivative, or other instrument, nor does it constitute an opinion of BCM (or of any of its officers, employees, agents or representatives) as to the suitability of that security, index, derivative or other instrument for any particular purpose. BCM is not in the business of giving investment advice or advice regarding the suitability for any purpose of any security, index, derivative, other instrument or trading strategy and nothing in BCM’s newsletter should be so used or relied upon. BCM is not acting as your financial advisor nor in a fiduciary capacity, with regard to any securities, index, derivative or other instrument referred to in BCM’s newsletter. Also, no representation is made concerning the tax implications in any applicable jurisdiction regarding any securities, index, derivative or other instrument and BCM is not advising you in respect of the tax implications. All opinions and estimates in the newsletters are given as of the date of their publication on the BCM’s website and are subject to change and BCM does not assume any obligation to update the newsletters or to reference any such changes. BCM hereby expressly disclaims any and all representations and warranties that: (a) the content of its newsletters is correct, accurate, complete, reliable or a guaranty of future performance; (b) any of its newsletters will be available at any particular time or place, or in any particular medium; and (c) that any omission or error in any of its newsletters will be corrected. BCM shall not be liable for any errors or omissions made in its newsletters or for any inaccuracies in its assumptions. BCM specifically disclaims liability for any losses or damages (incidental, consequential or otherwise) that may arise from the newsletters and that are either used or relied upon by anyone for any reason, including without limitation, the use of the newsletters in the preparation of any financial books and records. Although from time to time BCM’s newsletter may link to or promote others’ websites or services, BCM is not responsible for and does not control those websites or services. BCM’s newsletter is published and distributed in accordance with applicable United States and foreign copyright and other laws. Without the prior written consent of BCM, no person or entity, directly or indirectly, may copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to create derivative works from, transmit, or in any way exploit all or any part of BCM’s website, its newsletter, or any other material belonging to BCM.Without the prior written consent of BCM, no person or entity, directly or indirectly, may offer all or any part of BCM’s website, its newsletter, or any other material belonging to BCM for sale, nor may any person or entity, directly or indirectly, distribute all or any part of BCM’s website, its newsletter, or any other material belonging to BCM over or by means of any medium.Without the prior written consent of BCM, no person or entity, directly or indirectly, may make all or any part of BCM’s website, its newsletter, or any other material belonging to BCM, available as part of or in connection with another website, whether by hyperlink, framing on the Internet or otherwise. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein.

Macro Thematic Monitor

 

The Shanghai Composite Index closed down -2.9% overnight to fresh 2018 lows and taking its crash to -31% January. 

 

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Chinese Reflation = still moving in the wrong direction

China’s Headline CPI (⇧+20bps to 2.5% YoY in SEP) and Headline PPI (⇩-50bps 3.6% YoY in SEP) was more of the same in that the former remained steadfast in the middle of its 5 year range of 2% +/- 100bps, while the latter remains well below the 1H17 peak in China’s reflationary impulse upon the global economy.


The disinflationary impulse continues to ripple through the global economy en masse:

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  • Indonesian Exports (⇩-282bps to 1.7% YoY in SEP; trending lower)

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  • Indian Exports (⇩-2130bps to -2.1% YoY in SEP; trending lower)

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  • Japanese Industrial Production (⇩ -200bps to 0.2% YoY in AUG; trending lower)

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  • Russian Industrial Production (⇩-60bps to 2.1% in SEP; trending lower), and

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  • Turkish Industrial Production (⇩-388bps to 1.72% YoY in AUG; trending lower).

 


BEIJING REMAINS HANDCUFFED (10/18/2018)

With respect to Chinese monetary policy, we obviously track a deluge daily/weekly/monthly data – e.g. OMO, MTLF, RRR, BPR, 7DRR, SHIBOR, etc. – but for those of you who want to boil it all down to what it actually means for economic growth on the mainland, there’s one number you need to track on a monthly basis – i.e. the annual growth rate of bank loans.

Why?

Because that’s the best way to track incremental liquidity in the Chinese economy, which remains structurally challenged from an existing-supply-of-likely-unserviceable-but-technically-not-nonperforming-credit perspective. Yesterday’s monthly monetary figures were telling in that bank loan growth actually slowed -4bps in SEP to 13.17% YoY, with the TRENDING momentum essentially flat as well. These numbers are well shy of the 15-16% average annual growth rates seen throughout Beijing’s prior liquidity wave, which persisted from late-2015 through 1H16.

Recall that said wave of liquidity helped catalyze the SOE fixed asset investment boom that rescued the “Old China” economy from the brink of collapse and ultimately catalyzed the “Globally Synchronized Recovery”, as well as Xi’s “coronation”. The latest numbers – including the sharp deceleration in M0 Money Supply growth (↓  -110bps to 2.2% YoY in SEP; TRENDING lower) continue to suggest Beijing remains handcuffed by international monetary pressures (read: #StrongDollar) from providing the degree of monetary stimulus it would need to comp cycle-peak comparative base effects over the next two quarters.

The A-Shares (↓ -2.9% overnight and ↓ -31% from its 1/29 YTD high) tells you all that you need to know about the likelihood for China coming to the rescue of global cyclical exposures in the near term.

Ask Japanese Exports, which just slowed to -780bps to -1.2% YoY in SEP – the slowest growth rate since OCT ‘16.

Hedgeye, Darius Dale 

 

 


-R.W.N II, yours in 322.

fullsizeoutput_5c1e

Banyan Capital Management, LLC (“BCM”) is a publisher, not a registered investment advisor, and nothing in BCM’s newsletter is intended, and it should not be construed, to be investment advice. BCM’s newsletter is for informational use only. Any mention in BCM’s newsletter of a particular security, index, derivative, or other instrument is neither a recommendation by BCM to buy, sell, or hold that security, index, derivative, or other instrument, nor does it constitute an opinion of BCM (or of any of its officers, employees, agents or representatives) as to the suitability of that security, index, derivative or other instrument for any particular purpose. BCM is not in the business of giving investment advice or advice regarding the suitability for any purpose of any security, index, derivative, other instrument or trading strategy and nothing in BCM’s newsletter should be so used or relied upon. BCM is not acting as your financial advisor nor in a fiduciary capacity, with regard to any securities, index, derivative or other instrument referred to in BCM’s newsletter. Also, no representation is made concerning the tax implications in any applicable jurisdiction regarding any securities, index, derivative or other instrument and BCM is not advising you in respect of the tax implications. All opinions and estimates in the newsletters are given as of the date of their publication on the BCM’s website and are subject to change and BCM does not assume any obligation to update the newsletters or to reference any such changes. BCM hereby expressly disclaims any and all representations and warranties that: (a) the content of its newsletters is correct, accurate, complete, reliable or a guaranty of future performance; (b) any of its newsletters will be available at any particular time or place, or in any particular medium; and (c) that any omission or error in any of its newsletters will be corrected. BCM shall not be liable for any errors or omissions made in its newsletters or for any inaccuracies in its assumptions. BCM specifically disclaims liability for any losses or damages (incidental, consequential or otherwise) that may arise from the newsletters and that are either used or relied upon by anyone for any reason, including without limitation, the use of the newsletters in the preparation of any financial books and records. Although from time to time BCM’s newsletter may link to or promote others’ websites or services, BCM is not responsible for and does not control those websites or services. BCM’s newsletter is published and distributed in accordance with applicable United States and foreign copyright and other laws. Without the prior written consent of BCM, no person or entity, directly or indirectly, may copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to create derivative works from, transmit, or in any way exploit all or any part of BCM’s website, its newsletter, or any other material belonging to BCM.Without the prior written consent of BCM, no person or entity, directly or indirectly, may offer all or any part of BCM’s website, its newsletter, or any other material belonging to BCM for sale, nor may any person or entity, directly or indirectly, distribute all or any part of BCM’s website, its newsletter, or any other material belonging to BCM over or by means of any medium.Without the prior written consent of BCM, no person or entity, directly or indirectly, may make all or any part of BCM’s website, its newsletter, or any other material belonging to BCM, available as part of or in connection with another website, whether by hyperlink, framing on the Internet or otherwise. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein.

Key Calls (Thursday): Upgrades, Downgrades & Initiations

 

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Upgraded

UPGRADES:

  • Centerra Gold (CG CN) upgraded to buy at Canaccord; PT C$6.50
  • Diamond Offshore (DO) upgraded to accumulate at Fearnley; PT $20
  • Fairfax Financial Holdings (FFH CN) raised to outperform at CIBC
  • Fluor (FLR) upgraded to buy at Goldman; Price Target $59
  • G-III Apparel (GIII) upgraded to buy at B Riley FBR; Price Target $47
  • Generac (GNRC) upgraded to neutral at Goldman
  • Golar LNG (GLNG) upgraded to buy at BofAML; PT Set to $32
  • Nike (NKE) upgraded to outperform at Oppenheimer; PT Set to $90
  • Noble Corp (NE) upgraded to reduce at Fearnley; PT $6
  • Northern Trust (NTRS) upgraded to buy at Deutsche Bank; PT $112
  • Proteostasis Therapeutics (PTI) upgraded to outperform at RBC
  • Safe Bulkers (SB) upgraded to outperform at Evercore ISI; PT $4.50
  • Suncor Energy (SU CN) upgraded to outperform at Alta Corp; PT C$63
  • Transocean (RIG) upgraded to buy at Fearnley; PT $17
  • U.S. Bancorp (USB) raised to outperform at Oppenheimer; PT Set to $62
  • Union Bankshares (UBSH) upgraded to buy at Brean; PT Set to $42
  • United Continental (UAL) upgraded to overweight at Stephens; PT $112

 

Image result for downgrades baby after me

DOWNGRADES:

  • Calfrac Well Services (CFW CN) downgraded to underweight at JPMorgan
  • Canadian National (CNR CN) downgraded to neutral at BofAML; PT $93
  • Cemig (CMIG4 BZ) downgraded to neutral at UBS
  • Dana Inc (DAN) downgraded to neutral at BofAML; PT $21
  • EnLink Midstream Partners (ENLK) downgraded to neutral at Citi; PT $19
  • Gap (GPS) downgraded to underweight at JPMorgan; PT $24
  • NVR (NVR) downgraded to neutral at BofAML; PT $2,850
  • Norfolk Southern (NSC) downgraded to neutral at BofAML; PT $182
  • PulteGroup (PHM) downgraded to neutral at BofAML; PT $28
  • Sealed Air (SEE) downgraded to neutral at BofAML; PT $40
  • Toll Brothers (TOL) downgraded to neutral at BofAML; PT $38
  • Trican Well Service (TCW CN) downgraded to underweight at JPMorgan
  • Union Pacific (UNP) downgraded to neutral at BofAML; PT $164
  • Wingstop (WING) downgraded to equal-weight at Morgan Stanley; PT $69
  • Yum (YUM) downgraded to in line at Evercore ISI

Image result for homer initiation

INITIATIONS:

  • BJ’s Wholesale (BJ) rated new market perform at Oppenheimer
  • Bluestone Resources (BSR CN) rated new speculative buy at Canaccord
  • C.H. Robinson (CHRW) rated new buy at Loop Capital; PT $107
  • Cummins (CMI) rated new buy at Loop Capital; PT $170
  • Echo Global (ECHO) rated new hold at Loop Capital; PT $30
  • Eldorado Gold (ELD CN) rated new outperform at National Bank; PT C$1.50
  • FireEye (FEYE) rated new outperform at Baird; PT $22
  • ForeScout Technologies (FSCT) rated new outperform at Baird; PT $42
  • Healthcare Realty (HR) rated new underperform at Raymond James
  • Mimecast (MIME) rated new outperform at Baird; PT $45
  • Okta (OKTA) rated new neutral at Baird; PT $65
  • Paccar (PCAR) rated new hold at Loop Capital; PT $68
  • Quintana Energy Services (QES) reinstated neutral at BofAML; PT $8.50
  • Telaria (TLRA) rated new buy at B Riley FBR; PT $4
  • USA Truck (USAK) rated new buy at Loop Capital; PT $34
  • Universal Logistics (ULH) rated new hold at Loop Capital; PT $35
  • Varonis Systems (VRNS) rated new outperform at Baird; PT $75
  • Wesdome Gold Mines (WDO CN) rated new buy at Canaccord; PT C$5

 


-R.W.N II, yours in 322.

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