Year: 2019

  • The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week
    Bitcoin rose above $7.402 and market cap moved upward by +0.89% to $137.68 billion

    The Bitcoin price may rise further since it has continued being above the level of $7,000. That is important not from psychological only. Over the weekend, it traded between the $7.100 and $7.200 and by now has grown to reach a bit over $7.402 according to the Coindesk and at the moment of writing,

    The weekend began with cryptocurrencies retracing, but it ended with a rally. Bitcoin (+4.5%), Bitcoin Cash (+4.14%), Ethereum (3.7%), and Litecoin(+4.73%) were the best among the top ten cryptos.

    That caused crypto analysts to be hopeful about the short-term price action of Bitcoin. One of them suggests a price range to which Bitcoin may rise this week.

    @CryptoMichNL wrote:

    “Currently at potential local resistance. Wouldn’t be surprised with the continuation of ranging for the coming days, before we make another push to $7,800-8,000 resistances later next week.”

    Today ( December 23) followed by another tweet:

    Last week, the famous investor and BTC bull Tim Draper had stood by his previous forecast about Bitcoin popping $250,000 by the end of 2022 or by early 2023.

    And CNBC’s crypto expert Brian Kelly said that technically this price action is possible and described how it could befall.

    Brian Kelly said:

    “It sounds bizarre but it wouldn’t be out of the realm of what Bitcoin has done in the past.”

    Kelly showed a chart of Bitcoin price movements since 2013 and pointed out that since then Bitcoin price has been moving within a rising channel. The top of that channel, Kelly says, is right about $200,000 – $250,000.

    As for the fundamentals that could lead to this price leap, Brian Kelly calculated that by late 2022 or early 2023, Bitcoin could take half of the market share from all the world’s gold and by that time the market cap of Bitcoin should be almost $4,5 trillion.

     

    If that arises, Kelly said, Tim Draper’s prediction “isn’t too far out of whack.”

    The Bitcoin market cap moved upward by +0.89% to $137.68 billion and trading volume is at $27.23 billion.

    Bitcoin dominance increased lightly and is now 68.65%.

    Bitcoin has broken the sideways movement after the bullish impulse that made last December 18. The price moved up from $7,150 to exceed the $7,650 value but fall again to $7.402.

    This $500 movement was the confirmation of the trend reversal that was expecting. Will the move proceed until it touches the upper descending trendline at $7,800? We’ll see.

  • Pharmaceutical stocks – Risk and Reward Of Investing In

    Pharmaceutical stocks – Risk and Reward Of Investing In

    Pharmaceutical stocks - Risk and Reward Of Investing In
    The pharmaceutical stocks belong to the larger healthcare sector.
    With faster drug approvals and increasing customers, investing in pharmaceutical stocks could be a good choice.

    Pharmaceutical stocks increased in 2019. The best pharmaceutical stocks have strong Composite Ratings and Relative Strength Ratings. That recommends buying them.
    As we can see the healthcare industry will only intensify. The new technologies are developed or in the phase of developing with good predictions to get approvals for use. This industry will continue with modernization, it is obvious.
    The increasing development of tech in healthcare also will give new chances for the industry. Prescript medicine sales CAGR from 2019 to 2024 is set to be three times that in the period from 2010 to 2018.|
    The forecast annual CAGR of +6.9% for the next 5 years is $1.18trn in the US.

    Pharmaceutical stocks to diversify the investment portfolio 

    Investors who want to diversify their investment portfolios would do well to look at the pharmaceutical stocks.

    Pharmaceutical stocks are high-risk investments, but companies from the industry can be very good for investors seeking long-term investing. The changes in this field, almost on a daily basis, approval of new treatments, new drugs and therapies, great returns, make this industry favorable for investors. It shows profitable opportunities.

    If you want to invest in publicly traded pharmaceutical companies, just keep a close eye on them when they enter clinical trials. The results of clinical trials are extremely important for investing in pharmaceutical stocks. Why? Well, those trials can be ended with the make-it-further option or break it.
    The auspicious results can reach big gains in the stock market, but failures or loss of progress can have a reverse impact. 

    Approvals before market

    Before selling their products, drug companies are required to first test them. Results from pharmaceutical products are sent to the relevant government organizations or agencies to examine the safety, proposed use, and efficacy.

    The approval means that they have analyzed the medication’s consequences and that there are more positive than negative effects. There are various approval stages: analyzing the disease the drug is targeting, treatment options, analyzing effects from clinical trials and how to handle any risks linked with the drug or method.

    Since there is a lot of examinations, the approval can take years.

    Well, drug approvals are possibly the most attractive in pharmaceutical stocks investment opportunities. They are always on the radar. New drugs are innovation on the market, especially when it gets to rare diseases. 

    For example, during 2018, the US FDA’s CDER approved 59 new pharmaceuticals. Among approved medications were the first to treat smallpox and the first treatment for hypophosphatemia. Over the first 6 months of 2019, the approvals got 16.

    All this taken together, represent the excellent market conditions for pharmaceutical companies.

    Pharmaceutical stocks: the trends

    In the pharmaceutical market currently exist 10 main therapeutic sectors, which shows data from Statista.
    The global sales for medicines generated a total revenue of US$36 billion. The top sales go to pain therapy, anti-diabetic drugs, and oncology.
    In terms of revenue, pain therapy generates sales of $79 billion, anti-diabetic drugs $40 billion, and oncologic $100 billion.
    Treatments and drugs for depressive disorder and anxiety also generate greater revenue. For example, Eli Lilly Company (NYSE:LLY) reached $36 billion in revenue this year.
    The main fields of developing new therapies or drugs, so far this year, were treatments for non-small cell lung cancer and breast cancer.

    Pharmaceutical stocks: market growth

    The global pharmaceutical market is ready for outstanding growth. Big and famous brands are always interesting but small and micro-cap stocks are good too.

    According to many reports, the industry reached $1.2 trillion in 2018, up to $100 billion from 2017. In the next 4 years, the market is predicted to grow at a compound annual growth rate between 4% and 5% and to reach $1.3 trillion. But this rate is less than between 2014 and 2018.

    Nevertheless, investing in pharmaceutical stocks could be a good addition to everyone’s portfolio. You don’t have to invest in leading pharmaceutical stocks, some are not as big as leaders but have great growth potential. And, they are cheaper, also.

    In the next 5 years, the sales volume in the pharmaceutical market is possible to reach $1.18 trillion. It looks like a great opportunity.

    Here are some Traders Paradise’s picks:

    Merck & Co., Inc. (MRK)

    The last price $91.58 (December, 20)
    Market Cap $233B

    Merck is rapidly growing, the CAGR is 10.9%.

    Merck & Co., Inc. offers therapeutic and preventive agents to treat a huge range of diseases such as cardiovascular, type 2 diabetes, chronic hepatitis C virus, HIV-1 infection, insomnia, neuromuscular blocking agents, cholesterol, anti-bacterial and vaginal contraceptive products. Also, the company is focused on products to prevent chemotherapy-induced and postoperative vomiting, treat non-small-cell lung, breasts, thyroid, cervical, and brain cancers, vaccines for measles, mumps, rubella, varicella, rotavirus gastroenteritis, and pneumococcal diseases. Additionally, the company produces antibiotics and anti-inflammatory drugs to treat fertility disorders, and pneumonia in cattle, bovine, and swine, and antibiotics and vaccines for fish, dog, cat, and horse vaccines, and many others. It has collaborations with many bio-pharmaceuticals companies. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.

    Roche Holding AG (RHHBY) (SIX:ROG)

    The last price $39.88 (December, 20)
    Market Cap $271B

    Roche Holding AG is the leading trend in biotechnology, with a forecasted $38.7bn of sales in 2024

    On December, 23 Roche announced that it entered a $1.15 billion worth licensing agreement with Sarepta Therapeutics to get the right to start and commercialize Sarepta’s investigational gene therapy for Duchenne muscular dystrophy outside the US.
    Roche will make a payment of $750 million in cash and $400 million worth in equity. Sarepta’s micro-dystrophin gene therapy SRP-9001 is in clinical development.
    Roche said the agreement is supposed to close in the first quarter of 2020.

    Eli Lilly & Co. (LLY)

    Last price $132.43 (December, 20)
    Market Cap $127B

    Lilly published a better-than-expected financial outlook for 2020 while confirming the previously announced 2019 sales and earnings plans. Lilly awaits adjusted earnings from $6.70 to $6.80 per share in a year ahead. Revenues are expected from $23.6bn to $24.1bn. If the company reaches this planned sales range, it will exceed its 7% revenue CAGR target. Lilly is expecting important results for several key pipeline drugs. Also, it awaits approvals for two new drugs and three new launches in the next year.

    Eli Lilly’s stock price has a rising tendency and it looks like a good long-term investment.

    Bottom line

    These stocks are just a suggestion. Of course, you may choose some other pharmaceutical stocks. For example, Pfizer Inc. (PFE) with Market Cap: $227.87 billion that generates an 18.7% annual return. Or Johnson & Johnson (JNJ) with a Market Cap of $375.67 billion. Zoetis Inc. (ZTS) can be a good investment choice with 17,7% of the annual return.

    If you are looking for long-term investment for your portfolio, investing in the pharmaceutical industry could be one of the best places to invest in.

    But be conscious, the overall performance for the industry was worse in 2018. The leading pharmaceutical sector market index (S&P Pharmaceuticals Select Industry Index) made negative returns of -16.87% last year. The index started at a closing value of 5,082 and ended at a value of 4,225 at the end of the year.

  • Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission's Approval For Kadcyla
    Kadcyla is medicine for the adjuvant treatment of people with HER2-positive early breast cancer with the residual invasive disease after neoadjuvant treatment.
    Roche stock price rose for more than 21% over the past 12 months

    Roche on December 19 has announced that the European Commission has approved Kadcyla for the after-surgical treatment of patients with HER2-positive early phase breast cancer. Kadcyla is a single agent for treatment HER2-positive patients metastatic breast or lymph nodes cancer. 

    According to Levi Garraway, Roche’s Chief Medical Officer and Head of Global Product Development, this approval of Kadcyla from the European Commission “will allow many more women with HER2-positive early breast cancer to be given a transformative treatment that may cut the risk of their disease returning or progressing.”

    The purpose of neoadjuvant treatment is to make tumors smaller thus enhances surgical results. Adjuvant treatment helps to eliminate any residual cancer cells and reduce the risk of cancer returning. Patients who have the remaining disease after neoadjuvant treatment have a worse prognosis and this drug should help them to improve the chances of longer and normal life.

    The good results of treatment with Kadcyla are well-known in the US where women are already been treated with this drug. The US Food and Drug Administration approved this treatment on May 4 this year. Kadcyla is approved in 27 countries for the treatment of early breast cancer phase. It is recommended by the St. Gallen International Breast Cancer Conference, the NCCN and the AGO.

    Learn more about breast cancer

    Roche stock

    Roche stock price (SIX: RO, ROG; OTCQX: RHHBY) has risen more than 21% over the past 12 months. During that time, Roche Holding AG got two approvals of new treatments for breast cancer. Kadcyla and Perjeta, both came from the large oncology drugs portfolio at Roche’s Genentech group.

    Roche stock price chart

    So, Roche Holding AG’s stock price is higher than it was 12 months ago, with a return of about 6.4% in the same period. Moreover, it looks like it can hold up for the long-term. For investors, it may seem like very good news. But, the long-term returns were 17% over the three years. It wasn’t too much.

    And Roche Holding had a Total Shareholder Return (TSR) of 25% for the last year. That beat its share price return. This is mainly a result of its dividend payments! 

    Roche Holding has paid shareholders with a TSR of 25% in the past twelve months. The dividend is included. As we can see the TSR for one year is better than for 3 years, which means that the Roche stock is running better in the more recent period.

    The share price momentum continues strong, and it might be worth paying attention to this stock. At the time of writing (December 20), the price of Roche (RHHB) stock is $39.38 and data shows that the asset price is in an uptrend for the past 12 months with a further rising trend. That may drive the price up to $46 or $47 in the next 12 months. 

    The current consensus among analysts is to buy stock in Roche Holding AG.

    About the company

    Roche is a pharmaceutical and diagnostics company, the largest biotech company in the world. This combination under the roof of one company made it the leader in personalized healthcare.
    Its products are aimed at oncology, infectious diseases, immunology, ophthalmology and diseases of the CNS. Roche is famous for in-vitro diagnostics and tissue-based cancer diagnostics. Also, it is a leader in diabetes treatments.

    The company is founded in 1896. Since then, more than thirty drugs developed by Roche are in the World Health Organization Model Lists of Essential Medicines.
    By the Dow Jones Sustainability Indices (DJSI), Roche is for 11 years one of the most sustainable companies in the pharmaceutical industry.

    Its headquarters is in Basel, Switzerland. Last year, Roche invested around $11.2 billion in R&D and posted sales of almost $58 billion. In the US, Genentech is a wholly-owned member of the Roche Group. Also, Roche is the majority shareholder in Chugai Pharmaceutical, Japan.

  • Shopify The Fast-Growing Large-Cap Stock

    Shopify The Fast-Growing Large-Cap Stock

    Shopify Is The Fast-Growing Stock
    Shopify Inc shares have more than tripled in the past year. On Wednesday, Shopify shares were up by an extra 3.4% above $400.

    Shopify (NYSE:SHOP) is the fast-growing tech stock.
    If you are looking for growth stocks this particular stock is outstanding. Five years ago Shopify went public and provided to many investors a real wealth. But it is not the end. This stock is likely to give more. 

    Shopify’s rise has been truly beautiful to investors. This commerce platform went public in May 2015 and today its shares are up unbelievable 1,400%.
    Its annual GMV rose from $3.8 billion in 2014 to more than $41 billion in 2018, and grew 50%, to $225.0 million this year, driven by the growth of Gross Merchandise Volume. Its revenue rose from $105 million to above $1 billion.
    The great thing with Shopify is that the number of merchants that use Shopify’s tool will continue to grow. The reason is clear, e-commerce is growing and will more and more.

    Shopify is a leading global commerce company that offers easy for entrepreneurs to begin a business at just $9 per month.

    Why Shopify is better than Amazon?

    As a difference to Amazon, Shopify gives retailers to have own brands on the packaging, so their customers can recognize them. This is a great advantage for merchants and provides Shopify with a fast increase share in the industry. You have to admit that it is better than “powerful” Amazon. Shopify may easily become a master of the game. Don’t underestimate this feature  – a new fulfillment network.

    Shopify prepares and sends its retailers’ products over the U.S. It uses ML technology to optimize its catalog and minimize transportation costs. It is extremely helpful to small businesses but the benefit is on Shopify’s side too. Its management values that small businesses represent a $70 billion opportunity. And Shopify just started to enter that field. 

    By helping smaller retailers to grow their businesses, Shopify could become a more large company.

     

    Third-quarter financial report

    On October 29, Shopify Inc issued Q3 2019 Financial Results.

    – Total revenue in the third quarter was $390.6 million, a 45% increase from the equal quarter in 2018.
    – Subscription Solutions revenue grew 37% to $165.6 million. This increase was made by growth in Monthly Recurring Revenue1 (“MRR”) and to an increase in the number of merchants joining the platform.
    – Merchant Solution’s revenue grew 50%, to $225.0 million
    – MRR as of September 30, 2019, was $50.7 million, up 34%. Shopify Plus gave $13.5 million, or 27%, of MRR compared with 24% of September 30, 2018.

    – GMV for the third quarter was $14.8 billion, which is an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 rose to $6.2 billion
    – Gross profit dollars grew 45%, to $216.7 million
    – Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue
    – Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018.
    – Adjusted net loss for the third quarter of 2019 was $33.6 million, or $0.29 per share.
    – Shopify had $2.67 billion in cash, cash equivalents, and marketable securities. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

     

    Shopify’s stock price

    Shopify’s stock isn’t cheap, currently, it is $396.94. But it is the essence of growth stocks, they are expensive. But profit comes from mighty global trends that are driving its growth.

    Shopify Is The Fast-Growing Stock

    Shopify’s current market capitalization is $45 billion. If you invest today in this company you will have fairly big gains in the future.
    Shopify has had a great year. It surpassed the number of 1,000,000 customers, launched a new fulfillment network, and increased its outlook for annual revenue. Yes, the stock is up 165% this year.

     

    The bright future for Shopify

    Shopify is forecasted to grow revenue at 44% in 2019 to $1.55 billion. That is 7.5 times its revenue in a period of 4 – 5 years. Its extraordinary growth put the company in a third-place (measuring a share of e-commerce sales over the last year) just after Amazon and eBay. Traders Paradise thinks that it will be the second place very soon, and will be ranked in front of eBay.

    The company is spending its profits very smart to improve the platform and on acquisitions which provides new growth. Shopify invested $1 billion to implement a fulfillment network that is more merchants-friendly than Amazon’s. The company is investing in its operations and don’t expect to be profitable soon. This e-commerce platform holds $2.7 billion in cash and securities, so it has enough space to fund its businesses.

    We can see that even when some company becomes giant, it has a lot of space to grow more.

    If you already bought this stock, hold it since the new increase is very possible. If you still didn’t invest, it’s time.

  • Forex signals – How Do They Work?

    Forex signals – How Do They Work?

    Forex signals - How Do They Work?Are you going to use Forex signals or not, depends on your personality and trading plan. In case you are an individual with little time, Forex signals offer an alternative to manual trading.

    Forex signals behave like a trade alert for the currency market. In Forex, trading signals are used by traders all over the world. They help them to make crucial decisions about trades.

    Trading signals in Forex are one of the most valuable tools you can have. Almost all traders prefer to use them because they can profit from proper signals. A trading signal is completely a suggestion of when and how to trade. The information is based on special price analysis. The trading signal is commonly formed by an expert or it is formed by the program which uses multiple technical indicators.

    By using trading you will be methodical. All you have to do is to find a trustworthy source that is compatible with your trading strategy.

    Find a signal provider able to provide the individual support, and a ‘strike rate’ of previous signals.

    The Forex signal has to show you the entry point.

    Your entry point shows you the price level at which to open a trade on the forex pair. The signal must show the level which will trigger market activity and it will be your entry point.

    Some signal providers will automatically create the order to open a new forex position if the price hits the settled level. That is a great advantage because you don’t need to be in front of your device when the entry point is breached. The other choice is to set a price alert at the entry point level. Then you can manually open a trade when the alert is triggered.

     

    The Forex signal has to show you the exit point.

    A good trading signal must provide you with two exit points. It must indicate where to close every position formed as a response to the signal. This means it must show the stop level and the limit level. The limit level is where you could make a profit.

    The stop level is important information because it is the point where you have to close the position if your trade is moving unfavorably. That will protect you from taking a loss. 

    The limit level will show you the point where to close the position if the trade is moving in your benefit. That will secure your profit. 

    For example, the signal could indicate a short-term price rise will result in a reversal. Well,  you would like to pick a profit at the peak of the rise, just before your earnings go reversal.

    Stop and limit levels are an essential component of your trading plan. That’s why the good trading forex signal must have the exact information about them.

     

    Forex Signals can be placed into three groups:

    News trading signals
    Technical signals
    Real-time trading ideas – Webinars

    The first one in the list is the fundamental approach to Forex signals. This signal aims to get the news release as quickly as possible and provide a trader to gain the maximum level of profit in a short time.

    Forex signals often come with daily or weekly commentary and analysis.

    Technical trading signals are simply trading tips on the basis of technical analysis.

    That means you trust the experience and follow the record of the signal provider. You are sure it is the best Forex signals service. You may prefer to trade on this data rather than to open trade on your senses.

    Technicals are usually given along with various risk management strategies. The purpose is to guarantee minimum losses if the plan does not act as it was originally supposed.

    Most online Forex signals have this feature. So, searching for the best Forex trading signal provider can be a much harder and longer task.

    General knowledge of Forex signals may help you in finding the best Forex trading signals provider.

     

    Forex signals can be received from many firms that have this service. 

    Also, you can get them from top Forex brokers. They provide them with other traders. Forex signal is an impulse for entering a trade on a currency pair, typically at a specific price and time.

    The signal is produced either by a human expert or an automatic Forex robot.

    They must be timely. So you will need some very fast communication. You will receive the signals via email, website, SMS, RSS, tweet or other comparably quick methods. And you can find a lot of them for free. 

    To find the best for you, try to search: best free forex trading signals, free forex signals live, live forex signals no registration, free forex signals providers, free forex signals online in real-time, free forex signals software, etc.

    Services that you get by signing up usually vary from provider to provider.

    You can receive almost anything from performance trackers, email, or SMS alerts, customer support via email or phone and, of course, advanced analysis.

    Forex signal providers must protect their strategies. That’s why trading with them always means full trust, to some degree. More about this you can find HERE

  • Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Preview
    During Q2 reporting everyone will look at Nike’s direct-to-consumer business. The company’s revenue is expected to be $10.08 billion and EPS $0.58 

    Nike is prepared to report Q2 earnings on Thursday, December 19. It will be interesting to see will the famous sportswear producer sustain success which made over this year and what is the new plan. Nike (NYSE:NKE) shares have risen 34.2% this year, exceeding the S&P 500’s 27.5% rise. 

    Nike stock chart

    So, a lot depends on its Q2 2020. Will the gains continue? It looks like a lot of things depend on the company’s digital and direct-to-consumer efforts.

    Nike continued to fund its Direct strategy, the rollout of its apps to other countries and its partnerships with e-commerce platforms. For example, Tmall and WeChat Chain’s services. Nike dealt more acquisitions, such as NFL star Russell Wilson’s TraceMe startup. This startup has one important feature, a built-in sports-prediction service.

    Nike revenue

    The revenue is expected to be $10.08 billion and EPS $0.58.
    Nike shares have risen in 2019, despite the overall trade and economic slowdown. The company’s performance this year indicates the management is doing right. The stock rally will have a great test tomorrow after Nike issues its fiscal 2020 Q2 earnings.
    During this year there was no reason to believe that the company is doing something wrong. 

     

    Nike’s growth strategy showed good results

    The leading Nike’s efforts is “Triple Double Strategy.” The goal is to double its resources on its digital features; more and faster innovation and product creation, and increasing one-to-one connections.

    Nike has established a powerful track record of delivering on its strategy. Nike has beaten quarterly earnings estimations more than 90% for the past 11 years. And the company made it at the same time when Amazon got a major portion of customer spending. Moreover, this famous brand became more powerful, by spreading sportswear out of gyms to the street. 

    The result was that Nike grabbed a larger market share from its main EU rival, Adidas. Also, its presence on the home market is larger too and with increasing sales. The same result comes from the markets of Asia.

    For example, in Nike’s Q1 earnings report, the company released that sales in China rose by 27%. It is an impressive result because this success came during the trade war, and having such a good result in this communist country means that Nike, as an American brand, was doing well.

     

    The break out with Amazon 

    Recently, Nike ended the relationship with Amazon that lasted the past two years. This break appeared as part of a continuing effort to improve digital selling. 

    The first change at a stock price after the announcement showed how right they were. The stock increased by more than 7%. 

    Nike’s idea of digital selling is more idea of creating a personalized experience for customers. Some media reported that Nike spent about $1 billion on this strategy. The company’s digital loyalty program, NikePlus has more than 170 million subscribers and it is still growing. Thanks to app customers can find the perfect shoes for their feet because this app has a fantastic feature – it scans the foot in a few seconds. Of course, the app has other features too, from reserving some products to the mentioned one.

     

    Nike and Michael Jordan

    Nike is the official uniform supplier of the NFL and the NBA. Its Micheal Jordan brand is still going strong, fans all over the world like the latest Jordan shoe model. That’s why it made more than $3 billion in revenue for fiscal 2019, which is more than 7%  in comparison to last year.

    Bottom line

    Nike’s stock price might seem as expensive. Its gain for this year and  P/E ratio at 37, may cause such thinking.

    The current share price of $99.65 and the stock is traded at $100.10 at the pre-market. The point is that the stock price is very close to the analysts’ estimation of $103.60 so some investors may think there is a small space for the rise. But, it is expected Nike to report great data on digital and direct-to-consumer sales. The natural movement in shares will be to bounce higher.

    Nike’s stock could easily hit $150.00 or even $160 in the next 12 months. So, NKE is considered to be a good long-term investment.

     

  • Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday
    Investors are expecting that a draft bill for an updated EVs tax credit could become law.

    UPDATE 18/12: Tesla stock closed up 3.74% yesterday and was priced $393.15. It was a new all-time high. Over the past 6 months, TSLA rose by almost 74%, making it up 11% in the last five days alone and up 60% over the last 3 months.
    TSLA is on pace for its best quarter.
    Last time, the stock was near these levels last year after the “funding secured” failure of last year.

    What’s behind this bullishness?

    Bloomberg reported Wednesday that the company is planing cutting the price of Tesla’s China-built Model 3 sedans by 20% or even more. The next few weeks will be interesting.
    Take a look at the new chart.

    Shares of Tesla (NASDAQ: TSLA) hopped on Monday, approaching their all-time high and were up 6.45%.
    The stock jumped on the investors’ belief that House Democrats are going to vote on a bill that would renew the federal tax credit for purchasers of EVs. The news triggered the stock price.

    Shares of Tesla Hopped On Monday

     

    General Motors Company (GM) shares marked the rise in price after a sharp decline in November. The stock price rose by 1.29% Monday.

    The new draft energy tax package supported by Congressman Mike Thompson would increase the limits on the federal tax credit for EVs.

    The current tax credit is not available to buyers when a producer has sold 200,000 EVs in the U.S. That number was reached by both Tesla and General Motors. 

    The updated credit would begin to phase out after the producers reach 600,000 EV in sales. Moreover, the tax credit deductible would be decreased from $7,500 to $7,000. This would provide this benefit to more EV buyers.

    The bill is called the Growing Renewable Energy and Efficiency Now (GREEN) Act. It is expected to increase demand for Tesla and General Motors EVs. But nothing is officially finished yet. The investors should wait for it. But it looks that they are pretty much assured that the renewed tax bill will become the reality.

    A tax-credit extension was asked by Tesla

    Many of the companies and groups that had earlier lobbied on similar acts of extending the credit, all settled on the “Driving America Forward Act” as their prime goal.

    The current tax credit, first passed in 2008 and revised in 2009, increased buyers’ interest in EVs and also urge the production.

    But it looks like the industry demands a new portion of the support.

    Tesla hit the 200,000 in sales, and without a new tax-credit bill, it is hard for the electric vehicle maker to grow further. Earlier this year Tesla’s sales have dropped since its per-vehicle credit decreased to $3,750. The tax credit was lowered to $1,875 in July again.

    Shares of Tesla are rising

    Tesla stock is rising, up more than $23, or 6.5%, in Monday trading. That’s a new 52-week high. But why shares are rising nobody knows for sure.

    The new U.S. federal EV tax credits law seems to be the only reason for investors’ optimism.

    Tesla is a heavily-shorted stock. The investors borrow shares and trade them, speculating on price drops. That could create more stock volatility. 

    Closing at Monday’s prices was the highest close since August 7, 2018. On that date, shares were closed at $379.57. Moreover, shares are increased by more than 110% from their 52-week lows of $178.97 on June 3, 2019. It has been an extraordinary run.

    Shares of Tesla are up about 14% per year but Tesla stock is up nearly 57% over the last three months.

  • Three Best Stocks to Buy In 2020

    Three Best Stocks to Buy In 2020

    Three Best Stocks to Buy In 2020
    2019 is almost done, so it is time to think about where to invest next. These three stocks could be the top stock picks to buy in 2020.

    By Guy Avtalyon

    It is always hard to point three best stocks to buy or pay attention to, but the next year could be really challenging. Firstly, this year that is almost ending, was extremely exciting in the stock market. While some economists and analysts predicted market crashes and economic downturns, crisis, and inflation, the others claimed totally opposite. 

    The facts are, over this year the stocks boosted prices to the levels we could see only several times in history. 

    Our opinion, at Traders Paradise, is the next year could be even more volatile than this one. So, we paid a lot of our attention to pick three best stocks to buy in the next year.

    First of all, we had to examine which stocks will have a possibility to grow but also, stability too. Thousands of stocks are trading on the stock markets but we wanted to find the very best stocks able to generate massive gains. Matching these two criteria wasn’t so easy but we pick them. Here are the three best stocks to buy in 2020. Our opinion is based on news available about these companies and their stocks.

    Trading stocks based on news

    Walt Disney (NYSE:DIS)

     

    The market cap $268 billion
    Current price $148.46

    Three Best Stocks to Buy In 2020

    No, we didn’t pick Walt Disney company among three of the best stocks to buy in 2020 from sentimental reasons. Instead, we did it based on the fact that this company generated almost $70 billion of revenue over the last fiscal year. 

    It’s marvelous to imagine how this all empire is founded by Walt Disney, started from a small studio in 1922 and a secondhand movie camera. With his brother, Roy,  Walt created Oswald the Lucky Rabbit. After that, the new character was born. A lively, dynamic, and a naughty mouse called Mickey. It was planned to create only two movies with Mickey Mouse but Disney created at least 25 but Mickey appeared in at least 130.

    Today, Walt Disney (NYSE: DIS) has a valuable group of entertainment franchises. The great revenue for the company comes from TV networks, movies, Hulu, merchandise, and theme parks. Disney’s ideas have delivered shareholders a bunch of money. 

    Disney’s studios’ solely generated an awesome $11 billion in revenue in fiscal 2019, which is an 11% increase from the last year. The company’s Board of Directors announced this summer a semi-annual cash dividend of $0.88 per share.

    The most interesting part with DIS, the stock is more popular with time. So, the stock will likely continue to hit new highs and generate satisfying returns. Traders Paradise thinks that DIS is a good mid and long-term investment. 

     

    Fortinet, Inc. (FTNT)

     

    The market cap of $18.1 billion
    Current price $107.24

    Fortinet, Inc. (FTNT)

    Fortinet, Inc. is a provider of network security devices and Unified Threat Management network security solutions covering enterprises, service providers, and government entities.  Its shares attempted to break out on December 13 but closed just below the entry.

    The estimated earnings growth rate is 31% for this year.

    For the current quarter, Fortinet estimates revenue from $595 million to $610 million. The analysts’ estimated $584.7 million in sales. It’s easy to explain why this stock takes place among the three best to buy in the next year.

    Fortinet FTNT also announced the acquisition of SOAR provider CyberSponse but for an unrevealed amount.

    CyberSponse is Fortinet Security Fabric’s partner for some time and this acquisition will support Fortinet sin its security operations especially in incident response capabilities. This covers Fortinet’s offerings FortiAnalyzer, FortiSIEM, and FortiGate.

     

    AstraZeneca PLC (AZN)

     

    The market cap of $130 billion
    Current price $49.31

    Three Best Stocks to Buy In 2020

    AstraZeneca (AZN, $49.32) is a biopharmaceutical company based in the UK.

    It is focused on treatments in oncology, cardiovascular, renal, respiratory, and others. It has a lot of approved drugs. But the main advantage comes from a 155 trial-stage treatments, and nine new molecular testings in late-stage.

    Among its leading products are several cancer drugs. For example, Tagrisso is approved in 87 countries, and it is AstraZeneca’s best-selling drug. This particular product generated $2.3 billion in sales over the first 9 months of this year. It is 82% growth in the past 12 months in sales and represents 13% of the company’s annual revenue. 

    AZN stands out among the three best stocks to buy in 2020.

    The company recorded strong growth in China. Over the first 9 months this year, the company had $3.7 billion in revenues. That was 30% more than in the same period last year. AstraZeneca should work well in the next year.

    Trading stocks right now

    Here are the three best stocks to buy in 2020, that Traders Paradise thinks will shine. Some of them are typical defensive stocks able to resist possible recession. Some have characteristics that could shield them from trade turbulence. But all of them deserve a place in stock portfolios in the next year.

    For the stock market, 2019 was a fantastic year. The S&P 500 rose by almost 25%. The tech sector has done especially well.  But it’s not the time for complacency. Soon, 2019 will be over and all eyes will be on the year ahead. 

    So, it’s time to start watching some of the best stocks to buy in 2020.  With that in mind, we are suggesting you three best stocks that may be top stock picks to buy in 2020.
    Just follow the trading stocks rules.

     

  • Tellurian Inc – Large Reward But With High Risk

    Tellurian Inc – Large Reward But With High Risk

    Tellurian Inc - Large Reward But With High RiskEven without a product and with big risk, this stock could generate a large reward.

    By Guy Avtalyon

    Tellurian Inc trades on the NASDAQ under the ticker symbol TELL.
    The large rewards always come with risks. So, if you want to make a big profit be prepared to take a big risk. But a smart investor can assume where the potential traps may occur.

    Tellurian stock is such potential. 

    This is the natural gas company but without the product yet. Instead, it has plans to make the Driftwood export terminal and Driftwood pipelines. Tellurian, a natural gas company based in Texas, owns and manages the LNG processing and export facility through its wholly-owned subsidiary Driftwood Holdings.

    The U.S. Federal Energy Regulatory Commission issued the final environmental impact statement for the LNG project in January and granted authorization to build and operate the LNG facility along with the pipeline in April this year. Tellurian Inc. is building the terminal that will be able to export up to 27 million, 600.000 tonnes of LNG per year to customers.

    This project is still in the early stages of development, but it’s where investors see the final achievement of Tellurian’s potential. For example, India’s Petronet signed a memorandum of understanding with the LNG and took a stake in the project. Its expectation is to get five million metric tons of LNG per year.

    On December 13, the stock traded at $6.57.

    Tellurian Inc - Large Reward But With High Risk

    The analysts’ forecasts range from $6.00 to $20.00 with average expectations for Tellurian’s share price to reach $12.33 in the next twelve months. This implies the potential for the stock price to increase by 87.7% from the current price which is $6.56 today, December 16. 

    Tellurian Inc stock is likely a very good long-term investment. 

    Based on analysts’ estimates investors may expect an increase up to $11 over the next 5 years and also, the revenue to be about 70%. If you invest $10.000 today, your investment will be over $17.000 worth at that time.

    Where is the risk with Tellurian Inc stock?

    Investing in the company without the product is a big risk. Tellurian isn’t an exception. There is a risk but this company can easily be one of the few where the risk pays off.

    Tellurian Inc (NASDAQ: TELL) published its quarterly earnings results on Wednesday, November, 6th. The company reported $0.18 earnings per share for the quarter, while analysts’ consensus estimates were $0.13 by $0.05. Tellurian Inc reported revenue of $9.34 million, while analysts expected $13.60 million. Also, the company had a negative return on equity of 57.16% and a negative net margin of 677.62%.

    Why buy this stock? 

    The 50-day moving average for the TELL stock price trend is bearish. Currently, the stock price is decreasing from 50 SMA. 

    The company showed a return of 10.50% from the beginning of this year. The stock dropped for the last three days after a significant increase. 

    As we said, there is a lot of drawbacks with this stock but at the same time a lot of possibilities. Risk provides a profit. Maybe you just have to leave the comfort zone. But be careful and trade smart.

     

    You can test as long as you want. The app is easy to use and all data is accurate. You just have to enter your exit strategy (stop-loss and take-profit levels) and the app will show you how it was executed in the last 7 days, 3 months, and one year. The ability to check your exit strategy will help you to significantly decrease the risk and make a profit.

    That’s the end of every good trade!

     

  • Dividend Stock Investing – A Source Of Passive Income

    Dividend Stock Investing – A Source Of Passive Income

    Dividend Stock Investing - A Source Of Passive Income
    If you are looking for an investment that offers steady income, dividend stocks are a good option.
    Start with dividend ETFs because they are the easiest entry point.

    By Guy Avtalyon

    Dividend stock investing may be a good source of passive income. It will not generate a great profit since the average dividend yield is about 3%, but the income will be stable. But even if you don’t have a million dollars to generate significant income, dividend stock investing still can be a good choice.

    So, the first reason to invest in dividend stocks is dividends. You’ll receive a steady and expected income and, also, growing capital over time is the other reason for investing in dividend stocks. Your capital will grow and you’ll have dividends. You can reinvest those dividends in some other stocks or spend as you wish.

    How dividend stock investing is a good choice?

    To put it simply, by investing in dividend-paying stocks you’ll receive the continuous income as long as you are a shareholder.
    Dividend investing has a dual benefit in its nature. Firstly, recurring dividend payments and, secondly, the asset appreciation. 

    For example, you purchased 100 shares of a company ABC for, let’s say $20 each. And you will receive, let’s say, 3% annual dividend. Your capital invested would be $2.000, and your dividend payment $60. And you will receive your payments no matter if the stock price is growing or dropping. As long as the company is able to maintain it, you will receive your dividend payments. 

    Pay attention to high yields

    If you want to invest in dividend-paying stocks you have to be focused on dividend yields.

    If there is a high dividend yield you’ll receive large cash income. That often comes from companies that are not growing fast but have a solid cash flow to support dividend payments.

    Also, pay attention to the dividend growth rate. For example, you found a company that is fast-growing but paying dividends less than average. Since such a company is fast-growing you may expect to gain more from dividends in, let’s say, 5 years than you might get from the company with high dividend yield.

    The companies in the development or start-up stage, usually have a high price-to-earnings ratio and dividend yield can’t be big. But, when such a company expands, for example, opens new stores or similar, the per-share dividends may increase quickly because the profit rises higher.
    That could be great for buy and hold investors.

    Investing through ETFs

    Dividend ETFs give an easy option to start investing in stocks that pay a dividend.

    Since dividend ETF holds hundreds of dividend stocks that provide good diversification of your investment portfolio. As a consequence, you will have safer payouts. In case that some of the companies lower their dividends, you will still have enough, likely you will not even notice that in your total income. ETFs are a really good option for newbies because you will want safe payouts in the beginning.

    Individual dividend stock investing

    You will need time for this because it is more complex than investing through a dividend ETF. But the good thing is that when you buy dividend stocks it is possible to pick those with higher dividends than those you can find them in an ETF.

    What you have to do is to research the company, estimate the safety of the dividend, and finally, decide how much to buy.
    You can find dividend-paying stocks on different financial sites, including the online broker’s site.

    When you analyze the company, pay attention to how healthy it is, meaning, is it able to maintain the dividend payments for a long time, for example, 5 or 10 years. It requires time but you have to do that.

    You have to figure out the payout ratio. Remember, the low payout ratio means the dividend is safer and can grow faster over time. If the payout ratio is over 50%, simply don’t buy that stock.

    Also, you will need to diversify your dividend stock investment portfolio. You have to define how many stocks you want to buy. If the stock is riskier you should hold a smaller part of your portfolio on it.

    The first concern must be the safety of the stock’s dividend. Don’t focus simply on the greatest dividend yields. There is one thing you have to know, if the yield is high that means the investors have some doubts about the company’s ability to pay high dividends regularly. As a consequence, the stock price may go down and you can lose your invested capital. And the dividend will also fall.

    You can buy individual dividend stocks if you like the challenge of picking out the winning stocks. But you must be really good to be able to develop a portfolio of dividend stocks that gives a higher yield. Higher than you could find in a dividend ETF.

    Is dividend stock investing an opportunity?

    For a long-term investor, dividend stock investing is a great way for passive income. The dividends you get can be reinvested and you will have more income.  

    When you notice that dividend yield is more than 4% you have to examine it very carefully. If the yield is over 10% the stock is risky.

    When dividend yield is too high it indicates the payout is not sustainable, or maybe the investors are selling the stock. The share price will be lower in that case and the dividend yield will increase. In the short term, it may be good but for a long-term investment, it is bad for sure.

    Also, if you notice that the company is giving a large percentage of its income as dividends payments, for example, more than 80%, stay away. This isn’t good because it is a sign that the company doesn’t know where to reinvest and assure its future growth. Also, when the payout ratio is too high you can be certain the dividend is unstable and the company has problems sustaining it.