Welcome to the Weekend Blitz, where we provide both our best investment ideas of the week and share important information with BNL members. This week, in a New Year’s edition, we are looking at important stories related to Fitbit Inc (NYSE:FIT), Twitter Inc (NYSE:TWTR), ACADIA Pharmaceuticals (NASDAQ:ACAD), and Fannie Mae (OTCMKTS:FNMA) or FNMA stock.
Before getting to those stories, let’s rundown a couple “must knows” for BNL Members.
Must know BNL news!
A couple things to note: David’s Dividend Portfolio has a new layout that everyone should see, and we are also launching Eddy’s Options. Both Eddy and David have had incredible years, and BNL Members will now get text, email, and app notifications whenever Eddy trades an option or when David trades in his portfolio. It will be much easier to follow.
Finally, there are a few minor changes to the BNL Portfolio layout and BNL Research Platform.
Speaking of our BNL Research Platform, 2017 will be all about data for BNL Finance. Members will notice more data in the coming weeks and months as we focus on visualization for all data that pertains to the 60 companies we cover. I’m referring to charts that track Nuplazid sales and scripts each quarter and other things alike. Yes, we will have the same old income statement and stock metrics you can get anywhere, but we will focus more so on data that pertains to stocks under coverage. This is something I will discuss more in the coming weeks, developments we are very excited about.
BNL’s best ideas of the week
Acquisition targets: Fitbit, Twitter, ACAD
We did not publish a lot of content this week, but one article was our M&A outlook for 2017, including Fitbit Inc (NYSE:FIT), Twitter Inc (NYSE:TWTR), and ACADIA Pharmaceuticals (NASDAQ:ACAD).
In Part 1 of a 2-part series, we looked at five acquisitions we expect in 2017. Fitbit is very quietly showcasing its strength in the wearables space, even though Fitbit stock does not reflect the fact. We conclude it won’t be long until Apple comes calling for Fitbit.
Twitter Inc (NYSE:TWTR) was at the epicenter of M&A for a solid 6-weeks in 2016. Twitter stock jumped. The news leaked. And then very quickly Twitter suitors backed off. As discussed in previous articles, we believe that interest is still there, very much alive. With Twitter stock now trading at a discount, we expect Alibaba to make a run for Twitter.
ACAD stock has tons of promise headed into 2017. Nuplazid just had a successful Phase 2 trial and scripts during the last quarter were better than analysts expected. The problem is that ACAD management has never marketed a drug like Nuplazid, or any drug for that matter. We think Gilead Sciences (NASDAQ:GILD), who desperately needs to acquire, shows interest in ACAD during 2017 and is ultimately sold on the fact that ACAD has no current partner and has a breakthrough drug in a big market. Gilead tends to do well in those scenarios.
Check out all of our acquisition expectations for 2017 (read here)
Fitbit climbs 60 spots
In adding to our newfound bullishness for Fitbit, it is worth knowing just how far the company’s mobile application climbed in both Google Play and the App Store after Christmas.
This adds more fuel to our fire that Fitbit is in fact a comeback stock for 2017. (read here)
Top calls: FNMA stock
We are quite proud to say that BNL Finance has had some truly amazing calls over the last year. While readers can sometimes grab a call or two from our daily content, these are calls exclusive to BNL Members.
David and Eddy both discussed their top calls of the year, neither of which focused on gains but rather lessons learned. FNMA stock was one of mine.
FNMA stock has doubled since I added it to the BNL Portfolio. Over the last couple weeks, many have asked why not take profits, or reduce ownership in a stock that has run so much higher with apparent risks still ahead? These are valid questions, but as I like to point out, FNMA stock is less than 3% of my total portfolio. However, if 2017 and 2018 goes as I expect, FNMA stock could very well be 5-10% of my portfolio.
If no private market solution for GSEs are found, and Fannie Mae remains government owned, the downside is equal to my cost basis. In this instance, for a security like FNMA stock that moves so fast, and is so small relative to my portfolio, it’s better to wait it out and see what happens. (read here)