Mylan Showing Life; PayPal Calls Looking Good

Ambarella (NSDQ: AMBA) stock price weakened slightly due to rumors that sales of GoPro wearable cameras were weak this holiday season. Ambarella management had already warned that sales of camera chips to GoPro would be light this quarter. The company’s growth is more reliant on sales to drone maker DJI and industrial manufacturers.

Air Transport Services Group, Inc. (NSDQ: ATSG) acquired PEMCO World Air Services (PEMCO), a privately held provider of outsourced heavy maintenance, repair and overhaul (MRO) aircraft services and passenger-to-freighter aircraft conversions based in Tampa, Fla. Air Transport’s strategy of converting old passenger planes to freight aircraft feeds demand from companies like Amazon who have been bombarded with package delivery volume. Management noted the deal will add to 2017 earnings but did not quantify the amount.

Camping World (NSDQ: CWH) acquired the second largest RV dealership in Georgia. Camping World was already the largest RV dealership in the state but solidified its position via this purchase. Terms were not disclosed.

Mylan (NYSE: MYL) It’s been a long wait for Mylan to come around but I’m thrilled it’s finally showing some life. The company announced three new drug approvals in the last few days. The most significant is a generic Concerta. The branded sales for this drug were about $1.6 billion last year. Most importantly it shows the company is not entirely dependent on its EpiPen business for growth. It also launched a generic version of Pfizer’s anti seizure drug, Cerebyx, which had annual branded sales of $36 million last year and a generic version of Zovia tablets, a birth control pill.


PayPal (NSDQ:PYPL) Our February 41 calls may be in the money soon if the stock keeps climbing. An upgrade from neutral to buy by brokerage firm Monness Crespi lifted the stock on Jan. 3. The analyst, who has a $50 target on the stock, noted an improving regulatory environment and the continued trend to a cashless society as reasons for the upgrade.

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