Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Hensarling Gives Financials a Boost
Originally published Feb. 9 at 3:20 p.m. EST
The market is maintaining and adding to its nice gains since our last update.
Financials are very strong after Rep. Jeb Hensarling, chairman of the House Financial Services Committee, called the Consumer Financial Protection Bureau a rogue agency in a WSJ opinion piece today. I read the article this morning, and it's a well-written piece. It won't make Sen. Elizabeth Warren, D-Mass., happy, but the over-reaching by an unaccountable regulatory body looks headed for a dismantling, which would be good for the financial sector and the economy in my opinion.
Not surprisingly, given their earnings report, Morgan Stanley (MS) - Get Morgan Stanley (MS) Report has reduced its price target on Twitter (TWTR) - Get Twitter, Inc. Report to just $10 a share from $13.50 a share.
There's an interesting tidbit in the earnings report of Occidental Petroleum (OXY) - Get Occidental Petroleum Corporation Report , a holding in the Action Alerts PLUSportfolio. Operational costs per barrel of oil equivalent dropped 25%. E&P companies have really gotten more efficient using new technology.
Biotech Heating Up on M&A Speculation
Originally published Feb. 9 at 1:49 p.m. EST
The market is pretty close to where it was during our last update at noon EST. So far it has been a nicely green day across the board.
This would be the fourth major acquisition (over $5 billion market cap) in biotech in 2017 as M&A activity is definitely on the upswing in this space with oncology particularly hot.
If Tesaro gets purchased, will it ignite "feeding frenzy" in the space.
Fellow oncology concerns and much speculated buyout targets Clovis Oncology (CLVS) - Get Clovis Oncology, Inc. Report and Exelixis (EXEL) - Get Exelixis, Inc. Report added to their rallies of yesterday in empathy, as well.
Position: Long EXEL.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.