For Immediate Release
Chicago, IL – June 14, 2017 –Zacks Equity Research Delek US Holdings (NYSE: DK – Free Report ) as the Bull of the Day,Yintech Investment Holdings Limited (NASDAQ: YIN – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Twitter (NYSE: TWTR – Free Report ), Facebook (NASDAQ:FB) (NASDAQ: FB – Free Report ) and Snapchat (NYSE: SNAP – Free Report ).
Here is a synopsis of all five stocks:
As U.S. oil production continues to boom, more and more rigs are coming online. According to the Baker Hughes active U.S. rig count, total rigs have increased from 414 on June 9, 2016 to 927 on June 9, 2017. A large portion of these rigs are coming from one area, the Permian Basin where the rig count has jumped up from 142 to 368 over the same time period. With all of this increased production, someone needs to refine this oil, and that is where our Zacks Bull of the Day Delek US Holdings (NYSE: DK – Free Report ) comes into the picture.
This Zacks Ranked #1 (Strong Buy) company is a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise.
Acquisition Update
In the early part of 2017, Delek announced that they were going to acquire Alon USA in an all-stock transaction. The deal remains on track to close on July 1, 2017. With the addition of Alon the new enterprise value of DK is expected to reach $3 billion, have a total refining capacity of about 300 million barrels per day, and have increased exposure to the Permian Basin. Further, management is expecting between $85 and $105 million in synergies by 2018.
Management’s Take
According to Uzi Yemin, Chairman, President, CEO, " Late in the first quarter, we experienced improving market conditions as the Gulf Coast 5-3-2 crack spread increased and Midland sourced crude moved to a discount to Cushing as we entered the second quarter. The improving drilling activity and crude oil production in the Permian Basin has several positive effects on our operations. There is the potential for our refining operations to benefit from a widening discount of Permian sourced crude to Cushing and improved economics for crude gathering as crude oil production rises. Our logistics segment has the potential to benefit through its west Texas wholesale business and the Paline Pipeline where volume should improve as wider crude discounts support shipping economics on that pipeline ."
Commodities trading in China is a bit different than here in the States due to several issues ranging from the complex (the structure of the Government) to the simple (day to day trading), but when two of the three exchanges a company trades on, the company’s future will be difficult no matter any other issues. This is what is facing our Zacks Bear of the Day,Yintech Investment Holdings Limited (NASDAQ: YIN – Free Report ).
This Zacks ranked #5 (Strong Sell) is an online provider of spot commodity trading services primarily in China. The Company provides services which includes account opening, investor education, market information, research, live discussion boards and real-time customer support. It facilitates the trading by individual customers of silver, gold and other precious metals and commodities on exchanges, Shanghai Gold Exchange, Tianjin Precious Metals Exchange and Guangdong Precious Metals Exchange. Yintech Investment Holdings Limited is headquartered in Shanghai, China.
Recent News
In early May Yintech was informed that the Guangdong Precious Metals Exchange would terminate all trading of current products. The exchange accounted for 41% of Yintech’s commissions and fees last year.
Then on June 2, the Tianjin Precious Metals Exchange announced that they will adjust their spot commodity trading business in attempts to reduce trading risks. According to the press release, “[the exchange] will suspend the opening of new trading positions for all spot commodities traded on the exchange starting on June 12, 2017. The closing of existing trading positions will not be affected. As a result, Yintech will no longer be able to generate significant revenue from its business carried out on the Tianjin Precious Metals Exchange after June 12, 2017. It is expected that the Company's results of operation will be significantly impacted by this development.”
Management’s Take
According to Mr. Wenbin Chen, Chairman and CEO, “ We fully support the Chinese Government's ongoing efforts to clean up the spot commodities trading market. While our business will be affected in the short-term, we believe the industry will come out leaner, cleaner and better regulated and we expect to come out in a stronger competitive position. We have a leading market position in the Shanghai Gold Exchange, which is regulated by the People's Bank of China and is the only national-level spot commodity exchange in China. We have always been committed to maintaining the highest operational standards within the industry and I believe our business on the Shanghai Gold Exchange still has huge potential to grow.
“Looking forward, our strategy is to become a provider of diversified investment and trading services to individual investors in China. Our core strength lies in our deep understanding of, and extensive experience in serving, Chinese individual investors, which can be easily leveraged for other investment and trading products. We have identified a few promising areas and are in advanced stages of preparation for launching new products in the coming quarters ."
Additional content:
Uber CEO Kalanick Takes Leave, Return Date Unknown
On Tuesday, Travis Kalanick, the chief executive officer of ride-hailing giant Uber Technologies Inc., announced that he will be taking a leave of absence. He did not reveal a date in which he would return to the controversy-ridden company.
This announcement comes a day after Uber’s senior vice president of business Emil Michael left the company. According to the Los Angeles Times , Michael sent an email to his employees detailing his decision to leave Uber, though it is unclear if he was fired or resigned. Michael’s departure was part of a series of recommendations voted on by Uber’s board of directors on Sunday; these suggestions were drafted by former U.S. Attorney General Eric H. Holder as part of an investigation into complaints of rampant harassment, notes the Times.
One of the other recommendations was ordering Kalanick to take a leave of absence. And when the CEO returns to Uber, the company will take away some of his management duties and give them to other executives.
"The ultimate responsibility, for where we’ve gotten and how we’ve gotten here rests on my shoulders," Kalanick wrote in an e-mail to employees. "There is of course much to be proud of but there is much to improve. For Uber 2.0 to succeed there is nothing more important than dedicating my time to building out the leadership team. But if we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve."
More suggestions from the meeting include mandatory leadership training for senior managers; Uber’s current Head of Diversity will be renamed as the Chief Diversity and Inclusion Officer, and will report directly to the CEO or COO; and at least one woman and one minority candidate must be interviewed during the hiring process for a key job.
Kalanick’s and Michael’s departure aren’t the only shakeups to Uber’s corporate structure recently, in addition to the decision to fire 20 employees as part of the ongoing internal harrassment investigation. Uber, however, has been trying to build up its executive team. Last week, the company hired Harvard Business School’s Frances Frei as senior vice president of leadership and strategy, and on Monday, they added Nestle executive Wan Ling Martello to its board.
"During this interim period, the leadership team, my directs, will be running the company," Kalanick continued. "I will be available as needed for the most strategic decisions, but I will be empowering them to be bold and decisive in order to move the company forward swiftly."
When Did the Tide Turn?
One can look back to Kalanick’s decision to join an advisory board for President Trump that the public perception of Uber really began to change. And when the ride-hailing company appeared to undermine a New York taxi strike during the president’s first controversial travel ban effort, the #DeleteUber hashtag moved quickly and furiously across Twitter (NYSE: TWTR – Free Report ), Facebook (NASDAQ:FB – Free Report ) and Snapchat (NYSE: SNAP – Free Report ).
To add fuel to the fire—and why Kalanick and many of Uber’s executives are gone or taking a leave from the company—came the blog post of the century . Former Uber software engineer Susan Fowler alleged that her former manager had propositioned her for sex, and that Uber’s HR department told her it wouldn’t punish him because he was a top performer. She also described the many adversities female employees faced on a day-to-day basis at the company.
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Delek US Holdings, Inc. (DK): Free Stock Analysis Report
Yintech Investment Holdings Limited (YIN): Free Stock Analysis Report
Twitter, Inc. (TWTR): Free Stock Analysis Report
Snap Inc. (NYSE:SNAP): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
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