Apr 21, 2016|
Stock Talk - Jack Mohr (TheStreet, UA, VA, BIIB) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
I. Time for stock talked to were joined by Jack Moore from thestreet.com should have scheduled this out interviewed for an hour ago because under armour is up seven point 8% are you doing Jack. I'm doing well. So I'm yourself he is still like it is that now that it's up 8% and in twenty ministers in yeah. You know I never loved. He buying into that had the momentum. That certainly its stock bed. Is partially driven you know it it's pride it's part cold stock part underlying fundamentals are incredibly strong so it's not. And it it it there is kind of a justification to its valuation but I do you think that. The becoming name brands associated with dead and in Canada they do the way they're modeling a lot of that analysts remodeling out. Potential her prince complex stepped very she's sales says. They're really in beard modeling and five years out at 28 point 82021. And so it's really tough to anticipate. What the bill would be an incredibly bite from the Bay Area huge orders and die hard. On that hole I mean they are getting you to let actually from step Kurds in mind they're called. Who voted who's who stepped curry. You hit it yeah he's that guy matter yeah just dropped four under orders that reporters this season but he also dropped a new life issues and the and Michael Jordan obviously if you kind of try to do up here even modestly. To Michael Jordan's chief sales and how that contributed. On tonight than I mean you can you can even if you can get to happen that. It it can really propelled it big as some analysts valued stepped Curry's worth that fourteen billion dollars to oops com under armour it's. How much they just. It's got it's been a lot of it instead of days though it's not like fully disclose that I have you ever. I've heard this story that that Nike. Pitched it basically had stepped Terri and their you know their dirty minded and they tried to pitch and order that she is beneath accidentally used Kevin Durant instead of that name to pronounce the name rock that they lost. Thank you ought to have occurred under armor and that is a fourteen billion dollar mistake. Why. That's a problem that the thing I worry about in in this particular space though is over the years if you bought any company not named Nike. You probably regret it if you made the long term decisions or something that you kind of have to have an exit plan on. Absolutely I am and I think that actually act on point I think that's what. Even where it is it with the growth under armour is that it still is only scratching. You know the service to the market Nike dominates the sports apparel market thank you dominate. Everything and I mean they have skill they have the brand they have. It just incredible staying power now that they can they be counterargument is that under armor and it's still. They'll only scratched the surface I mean that that's potential write in beacon and it is a growing market overall I think both can co exist but they are. Massively competitive but I do you think that there is some concentration risk quit like Seth Curry on the basketball side even though they have several other. On their names and step the occurrence speed on the cost side and I think that. Trading something based on the associated Brandon in its step Korea as an injury and without any and we know you know he's having injuries and the pastor turned speed continue to. As they are in the stocks sold off when he claps for the masters and I think is that type of Stockton makes me a little bit nervous to trade around. Why not look white when he like Verizon. I don't a lot of. It did I just thought it was an interest staying. Any kind of historian and what can happen win. I'd actually say that I've been relatively negative about it but. I think this quarter was even worse than expected deep wage strikes are real and the company admitted that. Kirk knowledge that it's going to have a major impact on earnings and and you also look at there. And their table their cable TV. As subscribers in subscriptions are down 60% year over year. Even their shift to Internet in and video subscribers. Is down to I think 25%. Your year so no I mean obviously to have the wireless business but. There is there's some real competition from T-Mobile on all obviously AT&T attire and buy it. Both Bryant didn't is that a tough spot right now I'd say like stay away from Verizon. I don't think they yielded support. Okay very well what about their efforts to try to get more it's the content business and one thing Comcast has going for itself is a more diversified stream in terms of content. Are you impressed by their efforts to perhaps get more involved in content. I mean you have to do I get I mean I I think that. And content that is the only way to distinguish yourself about the original and it happens to be. You have to have a magic can't beat something that can be accessed on other platforms are essentially monetize a lot of content has been commodity has been. I think that you know that's what it Netflix instances struggling with says that it is it developing original content that comes at a major cost and so. Contact acquisition is hey you you really have to be strategic about it. And and so I think that there can be incredibly valuable content but. That there's also a high price tag for that they would not an easy market to break into an and I have a higher return on the investment. What are your thoughts on Biogen. Look at interest and we don't it I I've been a little bit torn about it if you mean Biogen everyone. As it has been multiple sclerosis the leader and dignity that they presented its revenues and that's becoming a crowded market it would make these early state that's been. Alzheimer's dale last alzheimer's is the big on I mean it right now there's only symptomatic. They're deeper alzheimer's that they believe that their drug can actually. Opt that the decline and that in and and optional and talkative. You know sentence in the early states join me and that is that 102830. Billion dollar opportunity it didn't actually work sport rocket find out. If it's going to work purged several led attitude at two to three years blunt and data points in between so I think they tried to push themselves on the conference call. About all there you know blockbuster potential I think they wanna be acquired or days need. Acquire a company because there's. There's there's a big gap between their current earnings stream and their long term. That's so they need to bridge about. Anything on the horizon besides the alzheimer's drug that could get him back to 400. Yeah I mean they have so it dated they're developing novel they're the they're the prevail last. They're really and in multiple chorus that there'll the developing. New oral therapy that aspect to be revolutionary if it is. Approved so I mean those are three areas I mean they're really looking at the neurology died. And and and I think neurology is kind of the next leg of growth and innovation because right now they're there really is deployed in the Biotech community. Strong neurological lesions that can have a lot of different. Applications. Right right Jack thank you very much for your time we appreciate it. Picture Jack Moore of thestreet.com joining us three stocks were talking about under armour he liked Verizon was crazy about. Biogen. Seeming to like it but. Here's my concern about farm in general right now I'd this year political risk fear about pharmaceutical everytime Hillary Clinton opens her mouth. The sector cells softer matter. So the prospect of a Clinton administration is something that's working against them. Whether whether this is right worker not the fact is she is perceived as being the most anti farming industry candidate. And right now the oddsmakers say she's the overwhelming favorite to become the next president's that's the negative however that could work. A in favor of these stocks if she's perceived as being weaker candidate lesser chance of winning.