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Civeo Corporation Could Be Good Turnaround Stock

Civeo Corporation Could Be Good Turnaround Stock

Civeo Corporation Could Be Good Turnaround Stock

Civeo Corporation is a spin-off the Oil States International.
It is a US accommodation service and multinational corporation. It is a spin-off of Oil States International and a public company listed on the NYSE

Civeo Corporation is publicly traded under the symbol CVEO on NYSE under the ticker name CVEO. According to the current price, it may never be so cheap. What we think is that this stock could easily be a great opportunity for investing. How does it come? Well, when the stock is cheap as this one is just a small sign of good news is able to send them flying.

What we are talking about is the Civeo Corporation stock is turnaround stock. It had happened before, this particular stock made 115% profit in 1 month. This stock is ready to give some of the highest returns. How do we know that? Well, as we said just a small sign appeared recently. Investor Carl Icahn bought a 9.9% stake. That is a sign of a turnaround. The most interesting thing with this stock is that you will receive the 4.7% dividend while waiting for a turnaround.

If you buy this stock now it is possible to double its value very soon. This stock can perform very good in 2020 as being an incredible buy. 

Market Cap $162.547M
Current price $0.9587

Civeo Corporation

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Why invest in this turnaround stock?

Turnaround stock investing is a real source for investors. Hence, when you notice that some stock has a great probability of return within a year.

Civeo ( CVEO) reported third-quarter revenues of $148.2 million, a net income of $4.5 million and an operating cash flow of $23.6 million.

Civeo Corporation delivered a third-quarter adjusted EBITDA of $36.2 million. It is up 62% compared to the previous year, and also, there is free cash flow of $20.3 million Also, the reduced leverage ratio from 4.26x to 3.52x on September 30, this year.

The company completed the acquisition of Action Industrial Catering which provides the company’s presence in the Integrated Services and Western Australian markets. Moreover, for the fourth quarter of 2019, Civeo awaits adjusted EBITDA $19.5 million to $23.5 million. For the full of this year, Civeo Corporation is expanding adjusted EBITDA guidance in the range of $98.0 million to $102.0 million. Civeo is reducing its 2019 capital expenditure guidance to a span of $33 million to $37 million.

“We are encouraged by the Company’s achievements this quarter and we will continue to focus on operational execution, revenue diversification, free cash flow generation, deleveraging our balance sheet and winning new work as opportunities present themselves,” said Bradley J. Dodson, Civeo’s President, and Chief Executive Officer.

About the Civeo Corporation company

Civeo Corporation is the foremost provider of hospitality services.  But also has notable market positions in the oil operations in Canadian and the Australian. Civeo gives full solutions for accommodations of workers with long term and temporary lodging and gives food services, full housekeeping, power generation, communications systems, and logistics services. Currently, Civeo Corporation operates a total of 30 lodges in Canada, Australia, and the U.S., with approximately 31,000 rooms.

Why invest in turnaround stocks at all?

First of all, they may never be cheap again. By investing in turnaround stocks you may score double or triple-digit gains. How? The beaten-down stocks with real value will survive and provide a profit despite the overall market because they are driven by key developments in the company. And, the most important, turnaround stocks have an ability to run independently of the markets.

The turnaround stocks may be hidden for the majority of investors. Hence, you must have a focus on several key criteria. The company must have a stable focus on businesses and be able to recognize and drop all profitless ventures. Such a company makes changes in management with successful turnarounds. 

In the past, such a company completed a turnaround plan that gave clear, real direction to employees. Also very important to be noticed, the company must have several great shareholders who will support the turnaround attempt. The company has to be a trustworthy brand. All of these are guarantees that stock will have a great turnaround. It’s up to us to recognize the potential and buy on a bargain.

Bottom line

When you notice all these indicators, it means you have got the opportunity to buy a great turnaround stock. It is time to put some of your money into stocks that give excellent value and powerful management. Yes, they are still beaten down but is it fair? This particular stock is ready for a big return.

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Brookfield Renewable Partners – High Yielding Stock

Brookfield Renewable Partners - High Yielding Stock

Brookfield Renewable Partners trades on the Toronto Stock Exchange under the ticker symbol BEP.UN and on the New York Stock Exchange under the ticker symbol BEP.

On November, 11. Brookfield Renewable Partners, a Canadian company, reported financial results for the three and nine months ended September 30, 2019. 

The company has been doing great work last year to sustain its renewable energy portfolio and its balance sheet. The work showed great results over the third quarter. Brookfield Renewable Partners presented important cash flow growth. Moreover, the company plans to keep that success and to continue growing its 4.6%-yielding dividend.

The company proceeded to execute on strategic priorities in the third quarter. There were many new investments, operations, and creating liquidity to reinforce its strong balance sheet.

The stock is strongly bullish.
Market Cap): $13.42 B
Current price: $43.485

Brookfield Renewable Partners - High Yielding Stock

 

Sachin Shah, CEO of Brookfield Renewable said:

“We are also pleased to announce our intention to create a Canadian corporation with publicly-traded shares that we expect will be economically-equivalent to the units of the partnership. This should position us well to continue attracting new investors to our globally-diversified renewable power portfolio.”

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Brookfield Renewable summarized Funds from operations (FFO) growth of 27% which is in currency $133 million or $0.43 per unit. It is for the last three months, until September 30, 2019.
The net loss for the same period was $53 million or $0.17 per unit. These results were backed by recent acquisitions and the execution of its operating initiatives.

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The company’s portfolio is growing

This Canadian company invested $100 million BEP equity into TerraForm Power and there was the acquisition of a 200-megawatt wind farm in China. Also, it sold two mature European wind portfolios for $74 million net to BEP,  from selling five of its six assets in South Africa, BEP gains $42 million of net profit. That selling of, returned nearly two times its capital invested.

Brookfield Renewable Partners completed a C$600 million green bond issuance. That is the largest corporate level green bond ever issued in Canada. This transaction provides the company to increase the average duration of the corporate debt by 5 years to 10 years and to maintain a strong total available liquidity of $2.5 billion.

Canadian Corporation

The company announced an intention to form a Canadian corporation “in order to provide investors with greater flexibility in how they invest in Brookfield Renewable’s globally diversified, multi-technology renewable power portfolio” as they said in a statement. 

The new entity will be publicly listed on the same exchanges as BEP. The quite interesting idea will give investors the possibility to invest in Brookfield Renewable Partners through a partnership or Canadian corporation. That could increase demand and improved liquidity for the company.

Moreover, Brookfield Renewable Partners plans to distribute on a tax-free basis to the majority of unitholders, class A shares of the new corporation, Brookfield Renewable Corporation (BEPC). This will be an adjustment for the number of shares outstanding, without changing the aggregate cash flows or net asset value 

The class A shares will be convertible for one BEP share. 

 

The success of Brookfield Renewable Partners operations

Its hydroelectric operations increased its cash flow by 20%. Although the company produced less electricity in the U.S. Northeast and Canada due to climate issues, BEP balanced that problem by making better results in its operations in South American and boosted the profitability of its businesses in Brazil and Colombia.
Its wind business grew its cash flow by 24%. The benefits came from the acquisition of 210 megawatts of wind capacity in India and a 51 MW wind farm in Ireland. At the same time, its investment in TerraForm Power proceeded to pay dividends.
Brookfield’s solar, storage, and other sections were flat for many years. But this year its solar business grew 16% thanks to growth at TerraForm.
On the other side, earnings from storage were down 45.5%. That is the result of a 33% drop in actual production over the period.

Bottom line

Brookfield Renewable Partners’ third-quarter results reveal that its strategic plan manages to pay dividends. Hence, it is reasonable to expect that the company will be successful in the future.
Its aim is to increase its cash flow at a more than 10% annual rate in the next 4 years. So, it will be easy for them to increase their high-yielding payout to 9% per year. So, what do you think, is this a good choice for investors willing to invest in renewable energy? For us, it looks like a good pick.

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Qorvo Is Ready to Trade Higher

Qorvo Is Ready to Trade Higher

Qorvo shares rose 20% last week.
Its current-year earnings increasing almost 10% over the last two months

Qorvo (QRVO) shares had been trading higher last week. Have you ever been thinking about owning a tech company’s stock? No? Well, it’s time to think about it. Avoid some regrets later. The people that didn’t recognize the potential of holding stocks of Apple or Microsoft are regretting now. 5G profit is unquestionable now. 

5G stocks are in focus now. The technology has great potential and tech companies are always a good choice. 5G networks easily can be a sign of the opening of a new golden era for this technology.

Investors who are able to recognize the potential in early-stage could profit a great. One of them could be QRVO.

The company’s overview

Qorvo Inc. develops, produces, and sells scalable and dynamic radio-frequency modules for mobile, infrastructure, and defense applications. It is a wireless semiconductor industry and high tech. Qorvo designs amplifiers, integrated modules, optical components, oscillators, filters, duplexers, frequency converters, switches and other facilities for apps that run wireless and broadband communications.

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Qorvo, Inc. is a provider of technologies and RF solutions and markets its products to the United States and international original equipment manufacturers and original design manufacturers. Its sections cover Mobile Products and Infrastructure and Defense Products. It works design, sales and manufacturing departments located in Asia, Europe, and North America.

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Qorvo stock

The company trades on NASDAQ and its headquarters are in Greensboro, North Carolina. Its products end up on other products almost everywhere. The wireless industry is still expanding and it will be part of our lives for a long time.

The 5G stocks are better than ever and last week’s earnings from Qorvo showed it is a great beginning. Its current-year earnings growing almost 10% over the last two months.

GAAP earnings weren’t quite great but they are still notable strong. In the Q2 earnings report, the company reported GAAP earnings of $0.70 per share. That is almost three times the $0.25 Qorvo earned last year. But, also, the company reported sales to drop 9%.

The news looks like it’s going to get better as the year advances. In its financial guidance for Q3, the company’s management stated the expectation that sales should rise regularly from $840 million to $860 million. It will be much over the almost flat revenues of $758 million, which is the Wall Street prediction.

Earnings should be about $1.67 per share which is a great discrepancy with Wall Street is looking for $1.35.

Where we can see the potential for Qorvo’s stock?

Mobile demand is healthy and increasing that is good news for this company. Investors who are buying this stock are truly right. If we have info about the developments of 5G in our mind and how Qorvo plans its role among other companies, it sounds like a good choice. As we had the opportunity to see, Qorvo shares climbed 20% last week and it was aligned with its progress over the past two months.

In the third quarter of fiscal 2020, the company expects a non-GAAP gross margin of nearly 48% and non-GAAP diluted earnings per share of $1.67 is stated in its guidance for the third quarter. 

For mobile, the company expects December quarter sales to grow as 5G handsets launch with its integrated solutions. There are also other contracts, for example, sales will increase on higher-defense business volumes. Also, increasing 5G infrastructure customer demand promises good days for Qorvo.

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Canadian Solar

Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

Canadian Solar (CSIQ) is a producer of silicon ingots, cells, wafers,  solar panels, and custom-designed solar energy applications. It has a 3-5 year EPS growth rate of 32%.
Market cap – 1.015B
Current price – $17.12
Volume – 819,112

 Canadian Solar Inc CSIQ will report Q3 for the 2019 result on Nov 12, before the market open.

The last reported quarter was surprising in a positive meaning. The company released huge earnings of 234.78% with an average of 115.66%.

Since the company is a producer of solar panels it is expected that the biggest growth in Q3 results will come from the sales of solar modules. We didn’t notice any change in the company’s fundamental business. It is still strong due to the stable average selling prices and stable demand. So, what we expect is the company will declare a rising in sales.

There were some interesting sales in the last quarter. Canadian Solar Inc finished the sale to Duke Energy Renewables. It was a big project, a 266 megawatt-peak solar. Also, it looks that the company finished the sales of its projects in Brazil. That is the reason to believe that the company’s main growth is coming from that operations.

Some experts estimated the company’s Q3 revenue at almost $800 million. That would be an increase of around 4% in comparison to the previous quartal.

But, the company had an important rise in operating expenses in the past several quarters and the income tax expenses have risen in the same period. Speaking about a year over year earnings, it might be a decrease of around 8% in comparison to the same quartal last year.

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Should you sell or buy Canadian solar stock

The CSIQ stock price:

30 day high was $19.04 and low was $16.72.
90 day high was $24.82 and low was $16.72.
52 week high for Canadian Solar Inc.  $25.89 and low $13.24

A buy signal was issued from a pivot bottom point on Wednesday, November 06, 2019. That shows further profits until a new highest pivot has been found. But some negative signals were issued too. So there are some possibilities of impact on short-term growth.

                                                                                                           Image source https://walletinvestor.com/

Hence, there is a general sales signal (the long-term average is above the short-term average) but also sales signals from the short-term and long-term average moving averages.

The resistance level could be somewhere between $17.18 and $18.52 when corrections up. The buy signals will be issued with break-up above these levels. Since the volume fell possible “turning point” is noticed.

Canadian Solar Inc. is in the middle of a very wide and falling trend in the short term. There are signals of further fall within the trend. The experts expect the price to drop almost 27% in the next 3 months and that there is a 90% possibility hold price in the range from $10 to almost $14 after these 3 months. The experts estimate that CSIQ stock is a strong sell candidate. Anyway, we will wait for its Q3 report and see the plans for the future.

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Alibaba stock is attractive for the long term investment

Alibaba Doesn’t Need China’s Singles for Retail Business to Climb

Alibaba stock is attractive for the long term investment

Analysts have called e-tailer Alibaba Group Holding Ltd “Amazon of China” and for good reason.
Alibaba is one of the few e-commerce companies in the world that can come close to Amazon’s size and growth potential.

Update 08/11/2019: Alibaba stock (NYSE:BABA) broke out the  $185 level and scored the high. Yesterday it was traded at $186.66.

Alibaba stock was traded on Tuesday, November 5 at $182,00 which means that it needs to rally less than 2% to reach $185, the new maximum this year. The best Chinese stocks need to clear one crucial level to be able for a breakout. It is $185 level, a very important level that might give it the strength to move up and hit the $210 the highest price ever got in 2018.

Over the last almost a year and a half we can notice a range of higher lows, so we can easily say it is positive. Yes, but we can also see a set of lower highs. If Alibaba move over $185 that will be a new high and good level for increasing to the $210, historically highest high. 

It will be interesting to watch this stock over this month. Is Alibaba able to do so?

Alibaba reported Q3 earnings on November 1. All expectations are beating because the company reported an incredible increase in sales. The online-retail business rose an awesome 40% year over year in the September quarter. 

But that’s not all. The real rise will come on China’s Singles Day on November 11. That is a shopping storm. The original aim of this holiday was dedicated to single people to celebrate not being in relationships. But it turned into something like Black Friday but more huge, more intensive, a real shopping storm. Today it is an indicator of buyers’ sentiment and sales growth. Can you guess who played the big? Maybe the biggest role in turning this holiday to insane shopping of everything has Alibaba.

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Singles Day began as a weird celebration for single people in China back in the 1990s. Just write November 11as numbers only. It is 11. 11, right? Singles Day started as a kind of anti-Valentine’s Day when students at Nanjing University began celebrating the fact they are single.

After 10 years Alibaba literally adopted that day and turned it in a day when everyone, no matter single or not, orders themselves a gift.
Online shoppers in China made $30.8 billion in sales last year on that day. This spending orgy has surpassed Cyber Monday in the US for online shopping made on a single day.
Since last year’s score was 27% higher than a year ago, what can we expect this year? We are afraid that any forecasts will be beaten. Have in mind that Alibaba made a billion dollars in sales in the first 2 minutes shopping (actually, it needed only 90 secs). A real retail phenomenon! And Alibaba is a recorder.

Alibaba.com (NYSE:BABA) is the biggest e-commerce and cloud player in China.

In its Q2 earnings report, we can see its revenue increased by 40% annually to $16.65 billion v.s. estimated $180 million.

Company’s generally accepted accounting principles or GAAP net income, include a big profit from its stake in the fintech company Ant Financial, which rose 288% to R$9.9 billion, which is $3.85 per share. If we exclude that profit and some others, the net income increased 40% $4.58 billion, or $1.83 per share. Estimations were beaten again.

After the Q2 earnings report the stock price jumped but for a short probably because of investors’ worries toward the U.S.-China trade war. Also, the economic slowdown in China had an influence.

Should you start a position in Alibaba?

Alibaba’s focus commerce revenue grew 40% annually, its operating profit rose 32%, preserving its position as Alibaba’s entirely profitable venture.
There are some concerns about the Chinese economy’s slowdown.

Should you invest in Alibaba stock?

Revenue growth of 40% is an amazing amount for a company of virtually any volume. But keep in mind that Alibaba is the world’s seventh-most valuable public company. So, that percentage is a miracle. 

The number of their active consumers increased by 19 million last quarter and now they have 693 million users. They have 785 million mobile monthly active users, which is 30 million more over three months. Alibaba aims to have more than 1 billion buyers by 2024, and it looks like it will reach that goal.

The best way to invest in Alibaba wisely is by having a long horizon. The company has a fantastic position, its strength in e-commerce is supported by its huge data insights on Chinese buyers, also its increase in market share in the cloud computing industry.

Also, there’s the Chinese growing middle class with increased buying power. The extra income has proven to be important to Alibaba’s continued high growth. Also, there is the Chinese government as a safety net. China supports its favorite companies on the international stage, that’s a fact. Protectionism from the Chinese government works fully in favor of BABA stock, backing it to enter the “buy” choice.

The drawbacks of Alibaba stock

The founder, Jack Ma,  stepped down as chairman of the board in September this year. That is a signal the risk is here. What lies behind the company’s founder and former CEO leaving?  The other problem is an extremely high bar the Alibaba set for itself.
The risk is that this growth will decelerate. But at what speed? The analysts predicted speed or it will be due to a quick sale by growth investors?

Bottom line

Alibaba’s success will continue. The company has one of the most advantageous competitive aspects.

Alibaba’s large market share in plenty of high-growth, scalable, tech-based fields makes it dominate in the coming years. But something must be taken into consideration. China has a great impact on the company, honestly too great. China’s government’s influence is a risk by itself. The additional risks may come due to the trade war. Just compare Alibaba”s valuation to results they have in the last few quarters and you will conclude that investors are paying attention to the trade war.

Alibaba stock trades at 32 times earnings. Is it in line with revenue growth of 40% and earnings per share increased by 36 %? It’s low multiple. Maybe that’s not a wonder, with shares trading lower than they did 18 months ago. Buying Alibaba stock is a calculated risk and one that could pay very soon if the trade war ends.

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Is Facebook Stock Good to Buy Now?

Is Facebook Stock Good to Buy

If you are able to put the policy aside, the answer to the question from the subtitle is NO.
Facebook gained 1.03% on Friday, 1st Nov 2019 and rose from $191.65 to $193.62. 

Facebook stock has won 3 days in a row. FB is FANG stock and had a strong third-quarter earnings report. Over more than one decade Facebook stock rose almost 600%. There were bad and good times for this social network giant. The question is will FB continue to gain or it will pause.

Is Facebook Stock Good to Buy

Zuckerberg’s company’s market cap is $525 billion, the company has a huge assortment of platforms Facebook, WhatsApp, Messenger, Instagram and every day attracts more and more users. In recent years its advantage for marketers and advertisers persists extremely valuable. Maybe today more than ever.  More than 2.2 billion people use its services every single day.  

Is Facebook Stock Good to Buy Right Now?

Do you know what is interesting? This giant is still growing. All of these make it favorable to the investor who knows to respect the low price of the stock. Currently, it is $193.62, at that price the stock was traded on Friday, 1st Nov 2019.

The company’s earnings potential showed in its Q3 earnings report that earnings per share surged 20% to $2.12, and was estimated by experts at $1.91 earlier. Facebook had to pay penalties and everyone knows why but the company earned $8.38 per share. Investors don’t lose faith so easy. The company’s P/E ratio is 23. 

That follows two quarters of decreasing Facebook earnings but as we mentioned the company had important legal expenses. But if you exclude those expenses Facebook had 5 quarters in a row with a wide margin.

Revenue grew a faster 29% to $17.65 billion. 

Facebook management warned again of a notable revenue deceleration in the fourth quarter, with a more reasonable deceleration that will continue during the next year.

You should view the FB stock as a long-term investment because it looks like a fantastic opportunity. The current price isn’t high, which is great for investors with a large horizon. If you are seeking strong returns, Facebook is the right choice for you. But even with great performances, history has shown that it is hard to beat the market with brands, with popular companies. So, think about that.

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The summary of Facebook stock:

for the past 30 days, the high stock price was $198.09 and low was $173.09.
during the past 3 months high was $198.09 and low was $173.09.
52 week FB highs were $208.66 and low $123.02.

During the last trading day, the stock changed 2.21% from a day low at $189.91 to a day high of $194.11. Volume dropped in the last trading day on Friday by -20.39 million shares. As a result, 21.31 million shares purchased and sold for about $4 125.76 million. Facebook Inc is a strong buy candidate with a potential gain of 1.03%.

FB stock is undervalued

Why do we are sure? To have a clear sense of stock value just make a comparison with similar companies. For example, let’s compare FB stock with McDonald’s. McDonald’s reported adjusted revenue growth of almost 6% last quarter and Facebook grew revenues 27%. So, yes FB stock is undervalued. McDonald’s stock was traded at $193.94 on Friday

Having all this in mind, we can say that FB stock is undervalued, it cannot be traded at the same valuation as McDonald’s. There is no sense.

Yes, Facebook had security problems and still has to improve them. But after they finish it the focus will be on increasing profits. Facebook could clearly turn back into 40%-plus revenue growth and a 20%-plus profit growth company.

The price of $205 and more is real. This at $193 isn’t.

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Square Stock - Buy Before It Grows

Square Stock – Buy Before It Grows

Square Stock - Buy Before It Grows

Square, the fintech company has the same chief executive as Twitter, Jack Dorsey. Does SQ stock have another big run in store for investors? Analysts are divided. 

The stock had a big drop back in August and it isn’t recovered yet. And as always it happened, traders who panicked started to sell, that caused individual investors to sell too. Since the drop in August and also, after the Q2 announcement the Square stock price held steady.

This was a rocky year for Square stock. At the beginning of this year, the price grew, but the last quarter was disappointing for investors. The Square stock fell 25% during the past 3 months. But as far as we know, it could be a great opportunity to buy them.
That decision depends on personal estimation on whether the stock is a chance today or it is at the risk of further dropping.

The quarterly result expected to be released in November could be very important. The expectations among investors are lower this time but Square is still under pressure to reach its corrected estimates. If the company show increasing earnings that would be helpful for stock to rise. Analysts are expecting $597.5 million in Q3 revenue. Could they be wrong?

Square’s revenue in the second quarter was higher by 46%. The company was generating $1.17 billion in revenue. So, we can say that this company is making money. 

Surprisingly low guidance is what pulled the Square stock price down in the last quarter. So, the Q3 report could be a nice surprise in a positive meaning. Well, you have to know that sometimes the companies depress expectations to provide a space for recovery.

Square stock is not cheap

Square shares are currently traded at $58.36 (the closing price on Wednesday, October, 23) which is a depressed price. The coming earnings announcement easily could put the stock price higher. 

So, what we know from the past is – buy low, sell high. Having this in mind, this is the right time to buy Square stocks.

The field in which Square could happen future extension is in the cannabis industry. Square’s service is open for companies selling hemp-derived CBD products legalized under the Farm Bill. As we know the cannabis industry will grow more and more. So, that is a great potential for the company and investors too. 

Only the U.S. market is worth as much as $6 billion by 2025.

Also, there is the company’s Cash App. Over the past 3 months, they had a great increase in users and activities. So big that the company had sales growth of 44%. This phone Cash App is a great potential for getting more customers and gain more profit. 

Bottom line

Someone may say that the stock is too expensive. Yes, $58.36 isn’t cheap but it is lower than previous. But this is a fast-growing high-tech company. Keep in mind that Square’s extension isn’t done. There is still a lot of potential for developing. For long-term investors, it is a good choice. At least, it is always better to buy now before its recovery and watch how it is growing in the future. Square stock ranks among the top 10 fintech companies. It’s not unusual for big winners like SQ stock to improve more than 50% after scoring a huge run.

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AT&T - This Stock Can Beat Any Recession

AT&T – This Stock Can Beat Any Recession

AT&T - This Stock Can Beat Any Recession

by Traders-Paradise Team

The high dividend yield of more than 6% is awesome
35 years of continuously increasing
More than 100 million customers in the US and Latin America 

AT&T Ticker symbol T (NYSE)
Market Cap $276.278B

AT&T - This Stock Can Beat Any Recession

AT&T Inc. has a great history, actually, it is the history of modern civilization. When 1874 Alexander Graham Bell invented the telephone. Two financial backers found the company that became AT&T. One year later the Bell Telephone Company, the first forerunner company to AT&T, is set up and issues stock to the seven principal shareowners. In 1946 AT&T started offering pre-cellular mobile telephone service. With only three channels available for operation, it was able to provide12 to 20 simultaneous calls in a whole area. But still…

Next year AT&T develops the theory of cellular telephony. At that time, the technology to realize the theory did not yet exist. Actually, AT&T pioneered almost everything in telephony and communications. 

A century and a half long history, visions, development, continuously ups, beating the crisis and becoming greater and greater. 

Todays AT&T

Today, AT&T Inc. is one of the best investments you can imagine. The company offers various services like cable, wireless, satellite TV, and broadband telecommunications. This means the company has an extremely good diversified portfolio. Revenue at more than $170 billion was up by 18% in the most recent quarter. In the same period earnings per share expanding 1.2%. 

The company’s important $85 billion investment in Time Warner will provide AT&T access to mass-media brands such as HBO, CNN, TBS,  and TNT. Additional competitive edge comes from programming from the NBA, the NFL, MLB. Also, its acquisition of DirecTV in 2015, constituted it among the world’s biggest media companies. The management’s expectations are that this will produce earnings per share of $3.60 by the end of the fiscal year.

AT&T dividends

The annual ongoing dividend makes it a top pick for income investors.

Those businesses give AT&T a wide moat, but it still has gaps. The company’s long term debt is about $158 billion, reported last quarter. The company is maybe too large scope and its wireless growth is a bit slow, the news about the number of its pay-TV customers is not good. 

Moreover, the activists are forcing AT&T to consider some new opportunities for streamlining its stretched out business. First on the list is a spin-off of DirecTV. 

Several weeks ago Elliott Management revealed its stake in AT&T and pushed the company to lower costs and make management reforms. One of them is to boost the stock price. Elliott stated its programs, which incorporate an important study of assets that could be traded or spun off, could raise the stock by at least 60% by the end of 2021.

AT&T is in discussions with Elliott Management.

On Thursday, 17/10/19,  AT&T shares rose 0.74% in premarket trading to $38.09. The stock has increased 32.48% year to date and 16.34% during the past 52 weeks.
The agreement could be reached very soon, maybe by the end of this month. But there are possibilities for agreement to fall apart, also. We will see.

Nevertheless, analysts anticipate AT&T’s revenue to stay approximately the same next year and that earnings could rise just 2%. Those increase rates look weak, but the stock pays a yield of 5.5%. It’s also boosted its dividend annually for over 35 years.
The company spent just 50% of its free cash flow on its dividend over the past 12 months. It expects to produce over $28 billion in free cash flow this year. That will be up from $22.4 billion in 2018. 

Also, the company is working on 5G. 

That could have an important influence on the company’s outlook and earnings next year. AT&T already started deploying 5G in 2018. In April this year, 19 cities had access to the company’s 5G network.  AT&T says the network will be more broadly available across the country next year.

Investing in AT&T is a great opportunity to grow and there is an extraordinary dividend too. Having its history in mind and its penchant for developing new technologies, AT&T is the obvious winner. Moreover, it is a company that can beat any recession.

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European Undervalued Stocks to Buy and Hold

European Undervalued Stocks

European stocks pulled back on Wednesday. Headlines on Britain’s last efforts to progress a deal with the EU left investors attached to the outcome.

The pan-European STOXX 600 index closed down 0.1% with London’s exporter-laden FTSE 100. FTSE index, which tends to fall when the pound increases, closed with 0.6% of the decline. It looks that the expectations of a no-deal Brexit weakened.

Germany’s GDAXI. DAX gained 0.3%, and France’s CAC 40.FCHI was flat.

The interesting thing is that investors’ focus turns to Europe’s earnings season. Analysts assume an earnings recession to expand. Several reasons are behind this expectation. The companies fight with uncertainties about Brexit, a U.S.-China trade and Germany’s recession.

Experts are expecting for STOXX 600 companies to report a fall of 3.7% in third-quarter earnings. Just a week ago they were forecasting a decline of  3%, so the result will be worse.

We said this before but investing in European undervalued stocks can be very profitable despite the media reports. After Traders-Paradise gave you and short view on Asian undervalued stocks, there are some European undervalued stocks worth buying.  

Henkel 

Ticker symbol HENKY
Market cap $42.215B
Current price $23.49

European Undervalued Stocks

 

Here is the last half-year report for 2019 from Henkel. The company was founded in 1876 in Aachen. They marketed his first product a universal detergent with silicate used as a base.

Today it is a big company, the German glue, and detergent maker with headquarter in Düsseldorf, Germany.

At the beginning of this year, Henkel has warned profitability will fall in 2019. The company redirected investment to encourage growth in “a challenging market”. The performance last year wasn’t good and shares in Henkel dropped more than 10% after the announcement in January. Despite the company’s announcement that planned a more generous dividend policy from this year. The producer of Persil and Loctite had to informed investors that adjusted earnings per share growth would be lower than in 2018.

Henkel still has organic growth. In the first six months of this year, sales rise by 2.8% to 4,969 million euros, organic growth +0.7%. The free cash flow in the first quarter of this year was considerably higher than in the previous year when it was 22 million euros. The company is investing in growth and improving competitiveness.

Compared to Procter & Gamble Henkel is quite cheap. Its stocks are a very good long-term investment.

Roche Holding AG

Ticker symbol RHHBY
Market Cap $245.384B
Current price $35.74

 

Roche Holding was founded in 1896 by Fritz Hoffmann-La Roche. In the beginning, the company was known as the producer of various vitamin preparations. Later, in 1934, the company was the first to mass-produce synthetic vitamin C, known as Redoxon. In 1957 it started production of benzodiazepines, for example, Valium and Rohypnol are the best-known. Roche has produced different HIV tests and antiretroviral drugs. Today it is the leader in manufacturing and selling various cancer drugs.

It is a research-based healthcare company. The company operates businesses organized into two parts: Pharmaceuticals and Diagnostics. Roche develops medicines for oncology, immunology, infectious diseases, ophthalmology, and neuroscience. Its best known pharmaceutical products are Avastin, Bactrim, Bondronat, Cotellic, Dilatrend, Dormicum, Invirase, Kadcyla, Lariam,  Madopar, Neupogen, Pulmozyme, Rocaltrol, Roferon-A, among others. 

The suggestion is to buy stock in Roche Holding AG. The company has a steady rating since September.

BASF

Ticker symbol BASFY
Market Cap $67.285B
Current price $18.27

Its headquarters is in Ludwigshafen, Germany. The company was founded in 1865, as Badische Anilin-und Soda-Fabrik AG. There are some facts connected to its operations, actually not the bright one.  BASF was extremely influenced company from 1924 to 1947, also BASF was helping to secretly rearm Germany, at that time being a part of IG Farben. Near the end of WWII, the BASF production facilities at Ludwigshafen were bombed. 

Today BASF SE is a chemical company and one of the largest chemical producers in the world. The BASF Group operates in more than 80 countries and contains almost 390 production sites in Europe, Asia, Australia, America, and Africa. The company has customers in more than 190 countries. 

At the end of 2017, the company hired around 115,500 workers. The company developed its international enterprises in Asia, for example in places near Nanjing and Shanghai, China and Mangalore, India.

The investment analysts suggest buying or holding stock in BASF SE. 

Bottom line

These European undervalued stocks are the companies with good competitive power, with stable balance sheets, low debts, and good cash flows. They are the cheapest in the same industry but the range of their increase can be huge and hence the profit along with it. Anyway, they are undervalued now for different reasons. That can be re-structuring, investing in researching, or something else. Everything influences the stock price as investors already know.

Traders-Paradise chooses these three European undervalued stocks based on their market potential.

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Asian Undervalued Stocks To Buy

Asian Undervalued Stocks To Buy

Asian Undervalued Stocks To Buy

These Asian undervalued stocks are the companies with good competitive power, with stable balance sheets, low debts, and good cash flows.

An undervalued stock is a stock that is selling at a price below what is expected to be its intrinsic value. For example, if a stock is selling for $20, but it is deserving $50 based on future cash flows, we can say it is an undervalued stock.

Finding an undervalued stock isn’t easy. Such stock usually isn’t in the public eye. Even if they are, the media reports are too negative.

But don’t be scared to buy undervalued stock. Yes, the risk can be a bit higher but rarely. Such companies are maybe faced with temporary problems and will recover soon. Most of them are working to solve the business problem and it will grow their prospects in the future.

With this in mind, here are three Asian undervalued stocks to buy. By holding them your portfolio may gain a big boost when these stocks come into investors’ courtesy again. 

Japan Tobacco

Ticker symbol JAPAF
Market Cap $38.457B
Current price $21.74

The first of Asian undervalued stocks is Japan Tobacco, Inc. It was founded in 1898 and is headquartered in Tokyo, Japan.

Its interests are in the manufacture and sale of tobacco, pharmaceutical, and frozen and ambient temperature processed food. 

The company spreads its operations through four business segments. Domestic Tobacco is engaged in the production and sale of tobacco products. International Tobacco is involved in the production and sale of tobacco products through JT International S.A. The Medical segment is focused on the development, research, production, and sale of medical drugs. The Food Processing section is involved in the manufacture and sale of frozen and ambient temperature processed foods, bakery, seasoning, etc. The Company is engaged in the leasing of real estate.

Sinopharm

Ticker symbol SHTDY
Market Cap $9.684B
Current price $16.41

Sinopharm Group Co. Ltd. was founded in 2003 and is headquartered in Shanghai, China.

It is focused on the wholesale and retail of pharmaceutical and healthcare products in China. Its Pharmaceutical Distribution section distributes medicines, medical devices, and pharmaceutical products to hospitals, retail drug stores, clinics, other distributors. The company’s Retail Pharmacy section manages and franchises a network of retail drug stores. They have over 5,100 retail pharmacies. Medical Device section distributes medical devices. Also, Sinopharm is engaged in the production, sale, and financial leasing of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products. Also, it offers information technology development and medical consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, etc.

CK Infrastructure Holding

Ticker symbol CKISY
Market cap $18.2B
Current price 34.41

CK Infrastructure Holdings Limited was founded as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. Its headquarters are in Central, Hong Kong.

It is an infrastructure company. It develops, invests, and operates infrastructure businesses in Hong Kong, Mainland China, but it spreads its operations in the United Kingdom, Continental Europe, Australia, New Zealand, and Canada. The main investing focus is on energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure-related businesses. It is engaged in the production and laying of asphalt. It also distributes, and sale of cement. Property investment and financing businesses are in their focus. Also, waste management services, including waste collection, resource recovery, and disposal services.  In fact, the company is a branch of Hutchison Infrastructure Holdings Limited. Due to its international operations, this can be one of the best Asian undervalued stocks to buy right now.

Bottom line

The advantage of investing in undervalued stocks is that investors get a high rate of return expansion. This comes because you are buying undervalued stocks while their P/E ratio is low. That will generate great future returns because the P/E ratio will move back into alignment with fair value. The other advantage is that when the stock price is low you can buy more of them and you will receive more dividends. Also, the yield from investing in undervalued dividend stocks is the highest when the cost is low. Hence, the value of cumulative total dividends will be greater over time.

And here is a lower risk involved. This may sound contradictory and here is the explanation. Let’s say you purchased an overvalued stock and its price drops. It will cause big losses. But if your stock drops from fair to undervalue, the recovery will be more prompt. This is the opposite of traditional thinking that only big risks produce big returns.

Traders-Paradise selects these three Asian undervalued stocks based on several criteria mentioned above but you can choose on some others. But remember, ratios under 1 will show you that some stock is undervalued.

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