Top Stocks to Watch for Feb. 7: Hasbro, Randgold, Ithaca

February 7, 2017

Hasbro is the highlight of the stock market today with a 14 percent jump in market value after its close ties to Disney catapulted its sales to a record-breaking $5 billion for the first time in its history. But, the market is predicting the stock will go down soon. Why? Stick with Sentifi to join the conversation with Sentifi financial crowd and take advantage of the market insights for your trading.

sentifi stocks feb. 7

Hasbro Inc.: Predicted to be bearish

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Despite the positive earnings, many traders deem the toy manufacturer a one-trick pony, referring to its ties with Disney and specialty in making and selling Disney toys. Thus, they believe the company’s shares will soon fade to $90 from its current price of $94.31. That said, this year seems to be another strong year for Hasbro considering a whole new slew of Marvel’s super heroes movies are coming out on top of a Star Wars movie by the end of the year. But it’ll be a while until the releases of said movies, so the stock is predicted to be bearish in the near future, but bullish in the long run.

Optiemus Infracom: The future is bright

Delhi-based Optiemus Infracom has signed a major software licensing agreement with Canadian mobile and software services company BlackBerry. The traders received the news positively, boosting the Indian company’s shares by 4.92 percent. Under the agreement, BlackBerry will license its security software and services suite along with related brand assets to Optiemus. The Indian company will design, manufacture, sell, promote and provide customer support for BlackBerry-branded mobile devices in India, Sri Lanka, Nepal and Bangladesh. The agreement supports the Indian government’s “Make in India” initiative, signaling a bright future for Optiemus and its shares. So, bullish is advised.

Suzuki Motor Corp.: Teams up with rival

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Suzuki has signed a memorandum of agreement with its rival Toyota Motor Corp. to work together in ecological and safety technology, which has seen rapid growth in recent years. The companies will also supply each other with products and components. The market, surprisingly, remains skeptical of the company and the partnership, evident in the decline of 1.85 percent in Suzuki shares. Suzuki has acquired a bad image following its fuel-economy scandal last year, so traders want to see proof that the partnership works before they buy Suzuki shares.

Ryanair Holdings Plc.: Bearish is the call

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The future of the airline seems gloomy. It reported that the Q3 profit fell 8 percent as its average fare price fell 17 percent due to the weaker pound and the shift by charter airlines of capacity away from Turkey, Egypt and north Africa into Spain and Portugal. Even worse, the airline confirmed its fares will continue to fall until the next year, and they will fall up to 15 percent in the current quarter. That was exactly what traders didn’t want to hear, and the company’s shares have been falling 4.65 percent since the earnings report. The stock is expected to continue to fall as more traders sell of their shares.

Randgold Resources Limited: Buy this stock

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If you can only buy one stock, Sentifi traders recommend you should buy Randgold. The gold mining company has proposed a 52 percent dividend payout increase after its full-year 2016 profit rose 38 percent. The company has a good track record of keeping costs under control, and its guidance for next year suggests 2017 will deliver rising output and falling costs. Even though how that translates to profits will depend on the gold price, the company’s high quality, low cost assets should place it in a strong position. Plus, the company has no debt on the balance sheet and the dividend covered more than 4x by free cash, which means it is well placed to weather the downs and the ups.

Ithaca Energy Inc.: Stock rallies on takeover bid

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The shares of the oil and gas operator jumped 11.49 percent after Israel-based Delek Group announced a takeover bid of $1.24 billion. Ithaca is one of the most efficient producers in the North Sea offshore fields, and the bid represents a great opportunity for Ithaca considering that the North Sea is considered a depleting basin where future is uncertain, evident in big companies having to shed their costliest assets. Traders advise buying the shares to make quick profit before the company’s shares potentially go down.

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