Here’s Why Traders Are Talking about These Stocks on Monday

Barrick Invests in Venezuela

Although many multi-nationals are leaving Venezuela due to the country’s poor finances, Barrick Gold Corporation (USA) (NYSE:ABX) is boldly going the opposite way. According to a Bloomberg article, Barrick Gold has agreed to create a joint venture with the Venezuelan government to potentially develop various mining resources in the country. Although the specifics of the joint venture are hard to come by, President Nicolas Maduro said Venezuela will have a 55% stake in the JV. Given the low oil prices, Venezuela needs other sources of income to prop up its economy. The number of funds tracked by us with holdings in Barrick Gold Corporation (USA) (NYSE:ABX) rose by four quarter-over-quarter to 53 at the end of June.

Mylan Not Favored by Barron’s

According to a recent report, financial magazine Barron’s isn’t a big fan of Mylan NV (NASDAQ:MYL) despite the stock’s cheap valuation. Although Mylan could potentially earn $4.97 this year, giving it a cheap P/E of 8.6, author Jack Hough believes the company’s handling of EpiPen went too far and the controversy could be indicative of future squandered opportunities. Even though the climate for drug price hikes was already poisonous, Mylan decided to increase the price of EpiPen by 15% in May, in a move that likely triggered more media attention around the drug. The increased attention led Mylan to eventually introduce a generic version of the EpiPen, which will be 50% cheaper. The fall-out will hurt Mylan’s EpiPen profits, which account for perhaps one-fifth of the company’s profits. A total of 44 top funds from our database had a bullish position in Mylan NV (NASDAQ:MYL) at the end of the second quarter, down by seven from the previous quarter.

Evercore Maintain Sell Rating for Seadrill 

Analysts at Evercore remain bearish on offshore driller Seadrill Ltd (NYSE:SDRL). Although Brent prices have rallied since the beginning of the month, the analysts maintain their ‘Sell rating’ and $2 price target, citing Seadrill’s substantial maturing debt over the next 12 months. With not enough cash flow to cover the $2.388 billion of debt due in the next 12 months, the analysts expect Seadrill to likely issue more equity or do more debt-for-equity swaps. The potential for more dilution could potentially create an overhang for the stock. The number of funds tracked by us bullish on Seadrill Ltd (NYSE:SDRL) went up by five to 17 during the April-June period.

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