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March 2017

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Even though the drug maker is considering multiple paths to recovery under new CEO Joseph Papa, its return could still take some time

Valeant Pharmaceuticals Intl. Inc. (NYSE:VRX) is in hot waters after it lowered its earnings guidance twice this year. According to Morgan Stanley, the drug maker is expected to again lower it in the upcoming second quarter earnings call.

Morgan Stanley analyst David Risinger pointed out that the company generated only $558 million in operating cash in 1QFY16. This figure is negligible compared to the drug maker’s $32 billion debt.  Veritas Investment Research analyst Dmitry Khmelnitsky said: “Valeant particularly risks violating lender-friendly covenants including interest-coverage requirements if the company’s earnings before interest, tax, depreciation and amortization guidance for the year falls short of its current $4.8 billion level by $200 million to $300 million.”

Analysts across the Street hold different opinions for Valeant. Some say that the company will have to sell off its core assets to make a comeback to the pharmaceutical space. Others believe the drug maker should sell non-core assets and orphan drugs to reduce its debt.

Keeping in view the plan proposed by CEO Joseph Papa, the company is showing signs of recovery, albeit a bit slow. The approval of the new molecules from the Food and Drug Administration (FDA) will also aid Valeant in debt reduction, but it will take some time. The interest rates are expected to be on the lower side for some time. 

The drug maker has seen shares tank 90% after the presidential candidate Hilary Clinton tweeted regarding drug price hikes. On the other hand, Valeant now has a massive debt pile due to its acquisitions of cheaper assets, which are not generating enough revenue to patch up the decline. The company’s dermatology segment is also showing stagnant growth due to its distribution agreement with Philidor RX Services.

Despite having $5 billion in Cash and FCF generation of $2 billion, Nvidia’s shelf filing has raised merger alarms

NVIDIA Corporation (NASDAQ:NVDA) is among the few stocks that have kept themselves at a quite a distance from merger and acquisitions. However, the latest analysis by Nomura Securities Analyst Romit Shah reveals a somewhat contrasting picture.

The analyst believes that Nvidia currently has a healthy level of liquidity and filings for a mixed shelf of indeterminate amount at such a time are quite interesting. There has not been any official announcement regarding strategical changes at Nvidia, but CEO Mr. JenHsun Huang has previously shown interest in transformative acquisitions.

According to Mr. Shah, most of Nvidia investors believe that it is not headed towards a merger anytime soon but the analysis of the company’s financials reveal otherwise. The growth is now slowly declining from the peak value of 29% and cash reserves of $5 billion along with recent shelf registration with SEC make merger and acquisition a very likely possibility.

Furthermore, quite a few big names this year have opted for the very same strategy as they observed declining growth numbers. The analyst suspects that Nvidia is most likely hunting for a perfect acquisition candidate, which will improve its overall presence in more diversified areas such as data center, client computing, software and other related computing disciplines.

An Artificial Intelligence and machine learning based acquisition is also within the realms of possibility, as it might boost the company’s recent advances in autonomous driving. The opportunities for Nvidia remain plentiful and given the current balance sheet and financial position, an acquisition makes a lot of sense, especially following the recent decline in growth.

The analyst reaffirmed the stock at buy with a price target of $62.50. The analyst opinion for the stock has six buy, 10 outperform, 10 hold and three underperform ratings. Nvidia currently trades at a price of $61.28 and has lost about 2.18% in the market since the opening of the session.

The “Best of 2016” has now been picked by Apple, read on to find out who got the awards for each category

Like every year, this year too, Apple Inc. (NASDAQ:AAPL) announced the “Best of 2016” offering on App Store. The Country Caller has covered up all the genres from apps, to games, to movies, iBooks, and more. First being Apple Music, Drake took the top spot for both the top song and top album category with One Dance from the album Views. In addition to this, the company also published Top 100 songs in a distinct Apple Music playlist. The list featured songs from Twenty One Pilots, Justin Bieber, The Chainsmokers, and more.

In iTunes Movies Store, the “Best of” section was narrowed with genre selection. Home awards were awarded to movies such as American Honey, DeadpoolKubo and the Two StringsLa La LandMoonlight, Sing StreetSausage Party, and Weiner. However, selection of TV shows included AtlantaFull Frontal with Samantha BeeO.J.: Made in AmericaRuPaul’s Drag Race: All StarsSteven UniverseThis is Us, The Americans and The People v. O.J. Simpson.

The widely successful multiplayer strategy game from Supercell, Clash Royale, and Prisma, the photo-editing app, famously known for converting painterly versions of iPhone photos took the top spot as Game of the Year, and Best iPhone App respectively. Photo filters and face-shifting apps such as Reigns, and MSQRD took the second spot. Although, Niantic’s Pokémon GO was not able to grab the top two positions, it received special recognition as App Store’s “Breakout Hit” for 2016. Apple top iPad app’s spot was awarded to SketchBook Motion, whereas Severed, the award-winning game, was honored as the Best iPad Game of 2016.

Finally, for iBooks Store, editors from Apple selected a multitude of amazing books including Dark MoneyEvicted, HomegoingIf I was Your GirlMoonglow, and Sweetbitter among others. You can find the complete list of winners for all genres on iTunes, iBook Store, and App Store.

The lead designers for incursions reveal more details about the upcoming Incursions

Ubisoft Entertainment SA’s The Division is slated to receive a major update next week that looks to add new activities and tweak the existing content. The game will finally be receiving the very first Incursion, brutal raids that are going to bring out the best in each player. 

Recently in a podcast, the game’s senior designer was asked about the potential difficulty level that players would face in the Incursion and it looks like it is going to be super tough. Lead Designer Matthias Karlson and Lead Economic Designer Andrada Gregiuc exclaimed that even they themselves have been unable to complete the Incursion so far due to the high difficulty tier.

On the topic of difficulty scaling, the designers replied that the hard mode for the Incursion is going to be more difficult than the current challenge mode available on regular missions. That being said, successful completion of Incursions is going to reward players with the highest level loot that cannot be attained through the regular missions or challenge modes. That’s one incentive of surviving Incursions.

We suggest that you get yourself battle-ready for the incoming new end-game raids. From what we know, Incursions are going to include new types of enemies where players must take down mini bosses like a “bullet proof armored personnel.” If what the designers are saying is indeed true, Incursions are going to be really, really hard and be something completely different than what we have seen in the game in the past month.