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Benzinga's Bulls And Bears Of The Week: Comcast, Disney, Nike, Starbucks, Tesla And More

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Nelson Hem
·3 min read
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  • Benzinga has examined the prospects for many investor favorite stocks over the past week.

  • The past week's bullish calls included coffee, media and cybersecurity leaders.

  • Electric vehicle, footwear and cable TV giants were among the bearish calls that were seen.

It was another volatile week for the markets, which began near record highs but ended with the Dow Jones industrials, S&P 500 and Nasdaq all about 1% lower for the week.

The Federal Reserve has taken a bullish stance, suggesting rates could remain unchanged until 2023. Yet, the wall of worry remained. Not only did Treasury yields concerns linger, but oil prices were falling, retail sales were disappointing, the specter of tax increases was on the table, and COVID-19 appeared to be flaring up again in Europe.

In corporate news, the feud between two tech giants may be over, and another is making a huge investment in itself.

The shift to electric vehicles continues, even as questions about their safety remain. Chip shortages are increasingly a problem for carmakers as well.

Concerns have arisen over an approved COVID-19 vaccine. Meanwhile, an e-commerce giant announced that it will expand its health care footprint.

Note that several states are suing the Biden administration over a canceled pipeline. And pent-up travel demand is beginning to show itself.

Through it all, Benzinga continued to examine the prospects for many of the stocks most popular with investors. Here are a few of this past week's most bullish and bearish posts that are worth another look.

Bulls

Walt Disney Co (NYSE: DIS) is poised to benefit from strong growth in video streaming and a recovery in travel. So says Priya Nigam's "A Bullish Disney Analyst On What COVID-19 Vaccines Mean For The House Of Mouse."

In Jayson Derrick's "Why This Starbucks Analyst Says Coffee Giant's 2021 Guidance Is Conservative," see why Starbucks Corporation (NASDAQ: SBUX) may be positioned to outperform this year and beyond.

In "2 Plug Power Analysts On Financial Restatements, Why They're Constructive On The Hydrogen Fuel Cell Stock," Shanthi Rexaline focuses on why the pullback in Plug Power Inc (NASDAQ: PLUG) shares is a buying opportunity.

Rachit Vats' "Lyft 'On The Precipice Of A Demand Snapback:' Why Wedbush Sees Further Upside In 2021" discusses why increased profitability is in the cards for Lyft Inc (NASDAQ: LYFT).

"Why CrowdStrike Is A Top Growth Stock Pick" by Wayne Duggan examines what impressive subscriber growth and multiple secular tailwinds mean for shares of cybersecurity firm Crowdstrike Holdings Inc (NASDAQ: CRWD).

For additional bullish calls of the past week, have a look at the following:

Bears

In Shanthi Rexaline's "Chinese Military Restrictions Show Tesla Caught In Middle Of US, China Relations: Wedbush" find out how Tesla Inc (NASDAQ: TSLA) is between the proverbial rock and hard place.

From a technical perspective, Nike Inc (NYSE: NKE) stock has struggled lately, according to "PreMarket Prep Stock Of The Day: Nike" by Joel Elconin. Can shares of the footwear giant shake off a mixed earnings report, mount a rally and clear the all-time high?

In "Sundial Analyst: Cannabis Stock In A 'Transition Phase' Due To M&A Potential, Cost-Cutting Efforts," Anthony Noto looks at why better than expected sales did not boost Sundial Growers Inc (NASDAQ: SNDL) stock.

"Comcast Needs To Unlock Value, Should Consider Separating Cable Business: Analyst" by Jayson Derrick points out why Comcast Corporation (NASDAQ: CMCSA) being a "collection of good businesses" is not enough.

Wayne Duggan's "Why Tax Refunds And Stimulus Payments Are Bad News For Credit Card Stocks" shows why American Express Company (NYSE: AXP) and others may not benefit as much from the reopening trade as expected.

For additional bearish takes, be sure to check out these posts:

At the time of this writing, the author had no position in the mentioned equities.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Musk Says Tesla Would Be 'Shut Down' If Its Cars Were Used To Spy In China

    Tesla CEO Elon Musk has responded to news reports that its vehicles have been banned from locations in China considered sensitive by the government. What Happened: Tesla Inc (NASDAQ: TSLA) CEO Elon Musk said Saturday that his company would be "shut down" if its car were involved in spying, Reuters has reported. “There’s a very strong incentive for us to be very confidential with any information. ... If Tesla used cars to spy in China or anywhere, we will get shut down," he said by video link at the China Development Forum. See also: How to Invest in Tesla Stock This comes after Reuters and the Wall Street Journal separately reported on Friday, citing unnamed sources, that Chinese officials have banned Tesla vehicles at military locations and sensitive state-owned companies, and possibly also at housing compunds where workers at sensitive locations live. This over concerns that cameras and data gathered in the vehicle could be used to leak national security information, including to the U.S. "Whether it's Chinese or U.S., the negative effects if a commercial company did engage in spying — the negative effects for that company would be extremely bad," the Wall Street Journal quoted Musk as saying. "Even if there was spying, what would the other country learn, and would it actually matter? If it doesn't matter, it's not worth thinking about that much." Why It Matters: In February, Chinese officials raised concerns about safety issues with Tesla related to rapid acceleration and battery fires after it investigated two Tesla subsidiaries. Along with that, officials sought information from Tesla over how user data is taken out of the country. Nikkei Asia reported. The move comes amid newly increased tension between China and the U.S. Top Chinese and U.S. diplomats had a heated exchange on Thursday in Anchorage, Alaska, to kick off their first meeting since Joe Biden became U.S. president. China is the largest electric vehicle market in the world. Tesla sold almost 147,445 vehicles in China in 2020 — 30% of its total. Last year was the company's first profitable year in China. Price Action: Tesla's share price did not appear to suffer from news of the supposed Chinese ban, which came out early in the day on Friday in the U.S. Prices rose by 1.71, or 0.26%, to $654.87. Photo courtesy Steve Jurvetson on Flickr. See more from BenzingaClick here for options trades from BenzingaWells Fargo, JPMorgan Customers Push Banks To Release Stimulus Payments EarlyCountries Piling In To Suspend AstraZeneca Vaccine Over Blood-Clotting Concerns© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Blackstone Bids $6.2 Billion for Crisis-Hit Crown Resorts

    (Bloomberg) -- Blackstone Group Inc. offered to buy Crown Resorts Ltd. in a cash bid valuing the troubled Australian casino operator at A$8.02 billion ($6.2 billion).The New York-based private equity firm, which owns 10% of Crown, offered to buy the rest for A$11.85 a share, Crown said Monday. That’s 20% higher than Friday’s close. Crown stock soared to A$11.71 at the open in Sydney.Crown, whose biggest shareholder is billionaire James Packer, “will now commence a process to assess the proposal,” it said in a statement. There’s no certainty an agreement can be reached, Crown said.Read more: Blackstone Seeks to Buy Crown Resorts at 20% PremiumBlackstone is pouncing as Crown tries to navigate a crisis threatening its entire Australian gaming business. The company was last month found unfit to operate its new Sydney casino after years of money laundering at its other properties, and faces inquiries into its suitability to run its casinos in Melbourne and Perth.Crown shares have almost halved from a high of A$18 in early 2014. Since then, they’ve been pummeled by a series of dramas, including a 2016 legal crackdown in mainland China, an aborted takeover and the Covid-19 pandemic.The risk for Blackstone is that it’s left owning a company hamstrung by fresh regulation. Last month’s New South Wales inquiry said Crown needed to overhaul its management, governance and culture before gaming operations could start in Sydney. Chief Executive Officer Ken Barton and five other directors have since quit.A similar probe starts Wednesday into Crown’s suitability to run its Melbourne casino. A separate investigation into Crown Perth will also take place this year. That means Blackstone could be the new owner of a company that’s barred -- temporarily, at least -- from operating its three Australian casinos.“That’s a material risk to consider,” said Xinning Xiao, a senior lecturer in accounting at Monash Business School in Melbourne who specializes in corporate governance. “The restructuring may take years.”But for Packer, Blackstone’s approach is a chance to exit Crown after at least two failed attempts to find a suitor in recent years.Wynn Resorts Ltd. in early 2019 abruptly ended talks to buy Crown for about A$10 billion, just a few hours after the discussions leaked to the media. Last year, Melco Resorts & Entertainment Ltd. scrapped a deal to buy 20% of Crown from Packer.A representative for Packer’s private investment company didn’t immediately reply to an email seeking comment on Blackstone’s approach.Read more: Packer’s Casino Dream Dashed as Crown Seen Unfit for LicenseBlackstone wants unanimous approval from Crown’s board before the deal can go ahead, as well as permission from regulators to own and operate Crown’s casinos, according to the statement.Blackstone bought its current stake in Crown from Melco last year for A$8.15 a share.(Updates throughout with Crown’s troubles.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Turkey’s Lira Plunges as Traders Absorb Central Bank Upheaval

    (Bloomberg) -- The Turkish lira plunged as much as 15% following President Recep Tayyip Erdogan’s shock decision to replace the country’s central-bank chief.It was quoted at 8.1012 at 10:53 a.m. Sydney time after earlier weakening to 8.4707 per dollar. That erased more than four months of gains since the now ex-governor Naci Agbal was appointed in November and putting the lira within a few percentage points of a record low reached earlier that month.Erdogan’s decision to fire Agbal, who had sought to restore the central bank’s credibility, is a blow to investor confidence and raises concern the country will once again embark on a path of rock-bottom rates. The initial backlash exceeded some analysts’ estimates, and marks a swift reversal of investor enthusiasm toward Turkish markets. That now seemingly sated appetite had helped make the lira the best carry-trade currency this year, with money managers cheering Agbal’s move to raise interest rates and efforts to bring inflation under control.“Bulls’ optimism was based on CBRT being allowed to keep rates high for some time, and after last Thursday that looked very promising,” said Henrik Gullberg of Coex Partners Ltd., who previously saw the lira appreciating beyond 6.90 per dollar. “That’s ruined now; it will be hard to find lira bulls,” he said, adding that the currency could now head back to levels when Agbal was appointed.New PledgeAgbal’s replacement, Sahap Kavcioglu, pledged on Sunday to use monetary-policy tools effectively to deliver permanent price stability. He also said the bank’s rate-setting meetings will take place according to schedule.A rush to sell the currency in thin liquidity as trading got underway in Asia overwhelmed support for the lira from state banks, according to an FX trader familiar with the transactions, who asked not to be identified because the person isn’t authorized to speak publicly.“I expect massive state bank intervention in the short term to hold a line on the lira,” said Timothy Ash, a strategist at BlueBay Asset Management in London, adding that he’s not yet sure where the line will be drawn. “The new governor will be dependent on utilizing the reserve bounty that the former governor left him to smooth his entry into the job.”Erdogan Ousts Central-Bank Head, Installs Interest-Rate AllyAny weakness in the lira could add to inflationary pressures building in the economy and erode Turkey’s real rate, currently the highest in emerging markets after Egypt’s.“The shock firing of central bank chief Agbal over the weekend may deal a fatal blow to investor confidence in Turkey,” Win Thin, head of global currency strategy at Brown Brothers Harriman & Co., wrote in a note. “At this point, it doesn’t matter who Agbal’s replacement is or what they say, as it’s clear that Erdogan is running the show. USD/TRY is likely to test the all-time high near 8.58.”The lira had strengthened under Agbal’s watch as he ended a complicated funding structure and pledged to ensure price stability. His abrupt removal comes on the heels of a 200 basis-point interest-rate hike on Thursday, double what was expected in a Bloomberg survey, amid accelerating inflation.What Bloomberg Economics Says“The hit to the central bank’s credibility and independence can’t be overstated. Erdogan has battered the institution with interventions that have repeatedly backfired. Financial markets were willing to give Agbal a chance, his successor will find it hard to build that trust again.”--Ziad Daoud, chief emerging markets economist. For full REACT, click hereWhile Turkey’s high nominal rates are a lure for yield hunters, its mercurial inflation and the perception that central-bank policy has been too loose for the prevailing economic conditions has made the lira one of the most volatile currencies in the world.“We must conclude, for now, that Kavcioglu will be mandated with reducing and keeping rates as low as possible,” said Cristian Maggio, head of emerging markets at TD Securities in London. “If this hypothesis proves true, not only will we see a looser policy setting in Turkey in the coming months, but we will also likely experience a return to managing policy through unorthodox measures.”Last year, Turkish banks spent more than $100 billion of the nation’s foreign reserves to support the sinking currency, according to a report by Goldman Sachs Group Inc. That prompted calls by Turkish opposition for a judicial probe into the nation’s official reserves.In comparison, foreign investors purchased a net $4.7 billion worth of Turkish stocks and bonds in the months following Agbal’s appointment. Overseas inflows to Turkey through swaps were about $14 billion during that period, Istanbul-based economist Haluk Burumcekci said.Among those who may find themselves on the wrong side of the trade are Japanese retail investors. Long positions by individuals in lira-yen stood at 263,585 contracts as of Friday, according to Tokyo Financial Exchange data. They’ve climbed about 9% since the start of the year.“We will never know how successful Agbal’s approach could have been, but initial signs were positive,” said Emre Akcakmak, a portfolio adviser at East Capital in Dubai, who anticipated challenges to intensify in the near future and a reversal on some of the recent and large hot money inflows in the face of the unexpected decision.“Even when the market stabilizes after a while, investors will have little tolerance, if any, in case the new governor prematurely cuts the rates again,” Akcakmak said.(Updates with quote from Brown Brothers and latest prices)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Asia cautious as Turkish lira takes a dive

    Asian markets faced a fresh stress test on Monday as a plunge in the Turkish lira lifted the safe-haven yen and blunted risk appetite, although the fallout so far looked to be relatively contained. The dollar was trading almost 15% higher on the lira at 8.3000 after President Tayyip Erdogan shocked markets by replacing Turkey's hawkish central bank governor with a like-minded critic of high interest rates. "Erdogan’s decision to fire Governor Agbal, who had sought to instil some price stability and perception of Bank independence, now raises question as to whether the new Governor will look to lower rates while still aim to fight higher inflation," said Rodrigo Catril, a senior FX strategist at NAB.

  • Canadian Pacific to buy Kansas City Southern in $25 billion railway bet on trade

    Canadian Pacific Railway Ltd agreed on Sunday to acquire Kansas City Southern in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada, standing to benefit from a pick-up in trade. It would be the largest ever combination of North American railways by transaction value. It comes amid a recovery in supply chains that were disrupted by the COVID-19 pandemic, and follows the ratification of the US-Mexico-Canada Agreement (USMCA) last year that removed the threat of trade tensions that had escalated under former U.S. President Donald Trump.

  • GameStop earnings, inflation data: What to know in the week ahead

    Investors this week will be closely watching the Federal Open Market Committee's (FOMC) Wednesday monetary policy decision, as well as a key report on the state of the consumer.

  • Stocks Eye Steady Open; Dollar Up in Haven Trade: Markets Wrap

    (Bloomberg) -- Asian stocks are poised for a cautious start to the week with investors fretting over rising bond yields and inflation as economic activity picks up. Turkey’s lira tumbled after the central-bank head was replaced.U.S. equity futures fluctuated, while contracts fell in Japan. Australian shares edged higher at the open. The Turkish lira slumped as much as 15% in early Asian trading after President Recep Tayyip Erdogan removed the central-bank governor following a bigger-than-expected increase in interest rates. The dollar advanced against most Group-of-10 currencies.The S&P 500 Index weakened slightly on Friday. The financial sector underperformed after the Federal Reserve let a capital break for big banks expire. The tech-heavy Nasdaq 100 recovered from Thursday’s slump. Oil slipped after its worst week since October.A heavy slate of Treasury auctions in maturities that have taken a beating recently will keep the bond market on edge this week. Ten-year yields ended last week above 1.7%, at the highest levels in about 14 months.Investor concerns about the possibility of higher interest rates are dominating equity and bond markets. Selling in bonds has propelled yields higher and fueled a rotation out of growth into value shares, on the view that rebounding inflation may force the Fed to tighten monetary policy sooner than its current guidance suggests.Fed Chairman Jerome Powell reiterated in a Wall Street Journal editorial that the central bank will provide aid to the economy “for as long as it takes.” Richmond Fed President Thomas Barkin said in a Bloomberg TV interview Sunday that there is no sign yet of unwanted inflation pressures.“Clearly, the market is skeptical that the Fed will be able to keep interest rates at current levels for the next three years,” Diana Mousina, senior economist in the multi-asset group at AMP Capital Investors Ltd., said in a note. “We think that nominal bond yields can still shoot higher in the short-term towards 2% and above on inflation concerns. Markets are likely to worry that this move is permanent, rather than temporary.”A central-bank exemption that allowed lenders load up on Treasuries and deposits without setting aside extra capital to cushion losses will lapse March 31. The regulator also said plans further changes to this supplementary leverage ratio, or SLR.Meanwhile, the European Union is set to block exports of the AstraZeneca Plc vaccine to the U.K. until the drugmaker fulfills its delivery obligations to the bloc. The pound was weaker.These are some key events to watch this week:Fed Chair Powell is first up Monday at the BIS Innovation Summit, a virtual gathering of major central bankers. He speaks alongside Bundesbank’s Jens Weidmann on progressing with the digital age. The ECB’s Christine Lagarde, BOE’s Andrew Bailey and chiefs of Sweden, Canada, Mexico and Brazil all follow.Powell and Treasury Secretary Janet Yellen are expected to make their first joint appearance before the U.S. House Financial Services committee to testify on Fed and Treasury pandemic policies Tuesday.The U.S. Treasury holds auctions of two-, five- and seven-year debt.EIA crude oil inventory report on Wednesday.Friday, February U.S. personal income and spending data comes in the wake of $600 stimulus checks but before the latest round of $1,400 payments began hitting Americans’ bank accounts.These are some of the main moves in financial markets:StocksS&P 500 futures fell 0.1% as of 8:35 a.m. in Tokyo. Nasdaq 100 futures rose 0.1%.Nikkei 225 futures in Singapore fell 0.8%.Australia’s S&P/ASX 200 Index gained 0.2%.Hang Seng Index futures rose 0.4% earlier.CurrenciesThe yen was little-changed at 108.91 per dollar.The Bloomberg Dollar Spot Index advanced 0.2%.The euro fell 0.1% to $1.1887.The Australian dollar dropped 0.2% to 77.27 U.S. cents.BondsThe yield on 10-year Treasuries climbed one basis point to 1.72%, the highest in about 14 months.Australia’s 10-year bond yield fell about one basis point to 1.79%.CommoditiesWest Texas Intermediate crude fell 0.5% to $61.11 a barrel.Gold fell 0.3% to $1,739.37 an ounce.(A previous version corrected the extent of the Turkish lira’s decline.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Mortgage rates below 3% are still around, but they're disappearing fast

    Surveys show rates are climbing rapidly, and they're expected to keep going up.

  • Cathie Wood’s Ark Has a New Price Target for Tesla: $3,000

    (Bloomberg) -- Cathie Wood’s Ark Invest Management expects Tesla Inc. stock to hit $3,000 by 2025, up from its current price of $655. At that price, the company would be worth almost $3 trillion, based on the number of shares outstanding.Ark expects there’s a 50% chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly, according to a Friday note on Ark’s website.It also added Tesla’s insurance business into its model, believing the offering could be rolled out to more states in the next few years with better-than-average margins, thanks to “highly detailed driving data” the company collects.Wood has been among Tesla’s most ardent supporters, holding large stakes of the company in her flagship fund. When Tesla shares saw a pullback in February, she bought more.According to Ark’s new model, in the best case scenario, Tesla could reach $4,000 per share in 2025, and in the bear case, $1,500. The company forecasts Tesla’s unit sales to be between 5 million and 10 million vehicles in 2025, assuming increased capital efficiency.The $3,000 target is far higher than any analyst who covers the company, the highest being $1,200 among estimates compiled by Bloomberg. Fueled by zealous supporters, Tesla shares rose more than 740% last year, the best performance on the S&P 500. Elon Musk, its chief executive officer, became the richest person in the world in January, before Jeff Bezos reclaimed the title.Not CloseAnalysts have speculated about the prospect that Tesla will launch a robotaxi service since at least 2015, but there’s little indication its technology is close to making this possible anytime soon. Tesla recently told California authorities that human drivers will still need to constantly supervise a new city streets function within its “full self-driving” suite of features sold as part of its Autopilot package.As for the company’s insurance product, that began in August 2019 and is currently available only in California. The company includes vehicle insurance revenue within its “services and other” category, along with after-sales service, sales of used vehicles and retail merchandise. Last year, all of that business combined was about 7% of total revenue.Ark’s model didn’t incorporate Tesla’s utility energy storage or solar business, nor did it consider future price fluctuations for Tesla’s Bitcoin holdings.Barron’s reported the price target earlier.(Updates with background throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Price of Gold Fundamental Daily Forecast – Strengthens as Buyers Ignore Potentially Bearish Fed News

    Gold was pressured early as the U.S. Dollar advanced against major currencies on Friday, hitting a more than one-week high.

  • Farmworker Clash Pits Union Access, Property Rights at Top Court

    (Bloomberg) -- For almost a half century, labor organizers in California have had a unusual right: Under a state regulation, they can walk onto the premises of an agricultural business and recruit workers to join a union.The regulation is now before the U.S. Supreme Court in a case that critics are looking to turn into a blockbuster decision strengthening property rights and curbing regulatory power. The court will hear arguments Monday on a constitutional challenge to a 1975 rule that grew out of the efforts of Cesar Chavez to give farm workers collective bargaining rights.Conservative legal groups and the U.S. Chamber of Commerce are opposing the access regulation, and trying to leverage a court that in recent years has bolstered the rights of landowners and curbed the clout of unions. It will be the first case on those topics for Justice Amy Coney Barrett, whose confirmation in October gave the court an even stronger conservative majority.The case was filed by two businesses that have tangled with union organizers: Cedar Point Nursery, which grows strawberry plants in the northern California town of Dorris, and Fowler Packing Co., a Fresno grower of grapes and other fruits. They say the regulation strips agricultural companies of their right to control who comes onto their property and forces them to allow disruptive protests. The growers are represented by the Pacific Legal Foundation, an advocacy group that fights what it views as government overreach.“The aim of the access regulation isn’t to set up a table and inform,” said Joshua Thompson, a foundation lawyer who will argue against the rule on Monday. “It’s to intimidate, and that’s exactly what they tried to do to both of our clients.”Farm WorkersThe regulation implements California’s Agriculture Labor Relations Act, a 1975 law that gave farm workers in that state the type of collective bargaining rights other laborers already had under federal law.The access regulation, however, goes beyond federal law, saying a specified number of union organizers can be on farm property during non-work hours for three hours a day, as much as 120 days a year.The provision is “absolutely critical” for ensuring that workers understand their rights, said Victoria Hassid, chair of the California Agricultural Labor Relations Board, which issued the regulation.“A key component of the act is ensuring that workers are able to, if they choose, advocate to work together to fight for better working conditions,” Hassid said in an interview. “This really fundamentally is about being able to know that those rights exist.”The question at the Supreme Court is whether the access regulation violates the constitutional provision that requires “just compensation” when the government takes private property for public purposes. A San Francisco-based federal appeals court upheld the regulation.Bright LineThe growers say the constitutional clause automatically kicks in whenever a regulation takes an “easement” -- that is, when the government gives someone else the right to use private property. That bright-line approach “protects the fundamental right of property owners to exclude trespassers from their property,” the companies said in a court filing.The growers compare their case to a 1982 Supreme Court ruling that said New York was taking private property by requiring landlords to allow the installation of cable-television equipment in their buildings.But 17 states and the District of Columbia said the categorical approach would mean a “sea change,” and raise questions about a “staggering array” of laws that rely on government inspections of private property for health and safety reasons.The growers and their allies say those inspection laws wouldn’t be affected. The Chamber of Commerce said the government would still be able to require health and safety inspections as a condition for getting a needed license.Biden ChangeThe Biden administration is backing the California regulation but won’t be arguing Monday. In a two-page letter in February, acting U.S. Solicitor General Elizabeth Prelogar said the government’s longstanding view is that “physical entry on property short of a permanent occupation does not warrant the application of a categorical rule and is instead appropriately analyzed under a case-specific framework.”Prelogar’s letter was a change of position for the government after the Trump administration filed a brief opposing the regulation.Worker advocates say the California access regulation is even more important than it was in 1975 for informing vulnerable farm laborers of their rights. Those workers as a group are less educated, less likely to speak English, and more likely to be immigrants now than when the regulation was enacted, said Mario Martinez, who filed a brief defending the regulation for the United Farm Workers of America.“Outside of employers where there’s a collective bargaining agreement, you have routine violations of basic minimum wage laws, overtime laws, health and safety laws,” Martinez said. “You have rampant wage theft. You have a crisis of sexual harassment. In some cases, we uncovered forced labor, slavery where workers are being held against their will.”But Mike Fahner, whose Cedar Point Nursery is at the center of the case, says the regulation no longer makes sense in the age of social media. Fahner sued after organizers came to his nursery in 2015.“You can communicate with people around the world effectively without having to have access to a person’s private property and place of business,” he said.The case is Cedar Point Nursery v. Hassid, 20-107.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.