Year: 2019

  • Math Guide for Forex Trading

    Math Guide for Forex Trading

    Math Guide for Forex Trading
    Behind Forex trading lies simple mathematical operations easy to learn.

    Okay, math has never been your excellent skill but this math guide for Forex trading will make you clear. The truth is that you are afraid of math and this will help you.

    Anyway, let’s see how simple it can be. There are some mathematical formulas that every trader has to know if he wants to be successful in the Forex market.
    These math concepts are very simple and easy to learn even if you think that math is difficult.

    Change in currency pairs value is estimated in pips. The minimum pip you can see is the fourth digit after the decimal place. The exception to this rule is Yen pairs. The minimum pip there you can see in the second digit after the decimal place.

    Let’s use the hypothetical values in this math guide for Forex trading

    For example, if the EUR/USD currency pair increases from 1.2530 to 1.32560. It is an increase of 30 pips for this currency pair. In Yen pairs, if the USD/JPY pair rises from 85.20 to 85.40, that is an increase of 20 pips for this pair.

    The value of a pip is different for different currency pairs.

    Let’s use the forex math formula to calculate the pip value of a currency pair:

    Value of a pip is calculated

    1 pip/exchange rate  x trade size

    We are going to use the EUR/USD currency pair with imaginary values.

    One Pip = 0.0001
    Base Currency: EUR
    Exchange Rate: 1.3500
    Trade Size:  1 lot meaning 100,000 units of currency
    Pip Value = 0.0001 / 1.3500  x 100,000 = 7,407 EUR

    How it works on the example on the USD/JPY currency pair

    One Pip = 0.01
    Base Currency: USD
    Exchange Rate: 85.50
    Trade Size:  100,000 units of currency which is  1 lot
    Pip Value = 0.01 / 85.50  x 100,000 = 11.468 USD

    Or let’s see this example GBP/CHF

    One Pip = 0.0001
    Base Currency: GBP
    Exchange Rate: 1.3840
    Trade Size:  100,000 ( 1 lot)
    Pip Value = 0.0001 / 1.3840  x 100,000 = 7.22 GBP

    Let’s talk about probability and numbers to see what lies behind the successful forex trading. Let’s find if a math talent necessary for good trading. We are focused on short-term forex strategies.

    So, this math guide for Forex trading led us to the margin and leverage.

    In Forex trading, leverage provides you to control a larger position. You will use a smaller part of your own funds and the rest you will borrow from your broker.
    Margin is the deposit demanded by your broker. He or she will ask you for a margin/deposit to allow you to open a position.
    Leverage is calculated by math formula:

    Trade Size/Account Size = Leverage

    In this math guide for Forex, here is a realistic example to illustrate this.

     

    For example, you want to enter the position with a value of $200,000. But you have $ 4,000 on your trading account. Your goal is to control $200,000 with the $4,000 you actually have. 

    $200,000/$2,000 = 50

    Your leverage in our example is expressed as 50:1.

    What will happen if you instead of $4,000 have $10,000?

    You will control $200,000 with the $10,000.

    $200,000/$10,000 = 20

    Your average will be 20:1.

    Brokers can offer from 50:1 leverage for forex trading up to 500:1. But think twice before you accept any offer. It is true that leverage may increase returns but also increase losses.

    Position Sizing

    This is one of the most serious and frequent estimations that you have to make if you want to be a forex trader. Actually, before you decide to enter any trade, you have to calculate the position size.

    We suggest you use one of the simplest calculations. It is a fixed fractional calculation strategy. The best is to risk 1-2% per trade, 1% is better and here is why. Take it as the rule for the fixed fractional risk.

    So, you have to decide how much you can afford to risk a per-trade. When you make this decision you have to decide where to place the stop-loss. 

    Take a look where the most current swings are. Find support and resistance points. When you settle a level where you want to place stop-loss, you have to measure the distance in pips between this level and the entry you plan. Write down that number.

    Then, discover the value of each pip. And you can calculate your position size.

    Math is in this formula.

    current account size x risk per trade/distance between entry and stop x value of the pip

    Let’s say your current account size is $20,000 and the fixed fractional risk per trade is 2%. The distance between entry and stop is 100 pips

    And the value of each pip is $20

    $ 20,000 x 0,2 / 100 x 20 = 0.80 lots

    This is just an example and you will find different situations but the principle is the same.

     

  • Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Came Out With Q2 Earnings For 2020
    Oracle is one of ten companies with the greatest cash in the US.
    Since its 2016 fiscal year, the company spent more than $75 billion on buyback shares

    Oracle Corp. issued a sales outlook for the current quarter. As we can see, it was exactly what analysts estimate. The company plans to increase its revenue by 1% to 3% in the fiscal third quarter which is in line with Wall Street estimation of a 2.3% rise. This software company outperformed expected earnings for its fiscal second quarter. Oracle reported a revenue rise of 0.4%. That is the 6th quarter in a row that the company had revenue growth under 5% in comparison to last year.
    During the conference call on Thursday, December 12, the company’s  Chief Executive Safra Catz said that revenue is expected to grow from 1% to 3%, but the problem was currency fluctuations.
    The stock price declined 3% in extended trading (after the release of the results) and traded at $56.47.

    Oracle Corp Announced Q2 Earnings For 2020

    The company previously reported sales increased less than 1% to $9.61, which is less than analysts’ projections of $9.65 billion. But the stock has increased by 25% this year while the S&P 500 SPX, has increased by 27%.
    This Oracle’s report was the first after Mark Hurd, the company’s top sales executive, died in October. Safra Catz stayed as sole CEO since Hurd was one of two chief executives.
    Oracle made some progress in cloud computing and storage, but it is still a leader in the field of enterprise database software. Oracle’s trump card is a new Autonomous Database that runs without human administrators. But the strong competition comes from Amazon.com Inc’s enterprise solutions. 

    The truth is that Oracle had unsteady sales growth in the past five years. Earlier, in September this year, Catz promised to investors that revenue would quicken in this fiscal year and next. Also, the earnings per share is supposed to grow by a double-digit percentage. The company announced in the same month a new AI-driven operating system and partnerships with Box Inc. and VMware Inc.
    But, cloud license sales declined 7.5% to $1.13 billion in the period, which means the company is getting fewer new deals. 

    The Oracle (ORCL) stock

    In the current quarter, Oracle Corp. predicted earnings of 95 to 97 cents per share. Analysts estimated 96 cents per share. 

    The analysts’ median target is $57.00 which will be a 0.94% increase from the current price of $56.47. A high estimate is $66.00 and a low estimate of $35.00. This stock has a strong HOLD recommendation.

    Traders Paradise app can help you to define your exit strategy for ORCL. Try and find the best strategy for your trade.

    The company’s ABOUT

    Oracle Corp is headquartered in Redwood City, CA. The company is a hardware and software behemoth, specialized in business software products. Oracle started in 1977 as Software Development Laboratories. 

    This software giant has a lot of borrowing and spending. The company has spent about $75 billion to buy back stock since its 2016 fiscal year. Also, it spent $41 billion in the last five quarters. That’s a lot of money for the company with $19 billion in free cash flow. The buying back shares has pushed the company into a net debt of $35.7 billion in cash.

    According to FactSet Research, Oracle is among ten companies with the greatest cash in the US. But its net cash is negative $17 billion. Since 2016, it is about $32 billion declines and the company took a lot of cheap debt to finance buying back shares. That’s probably the reason why the stock rose by only 35%.

    More problems for Oracle Corp.

    Maybe the biggest problem for Oracle is its hesitation to react to the increase of cloud computing. Oracle’s main rivals Salesforce, Workday, Amazon, and Microsoft, are taking market share from Oracle.

    The dynamic buybacks may arise from the fact that co-founder Larry Ellison himself owns 35% of Oracle’s shares, according to a statement filed in September with the SEC. Also, the reason could be some M&A activity. All companies would like to have more cash and less debt, that’s not in question. Microsoft,  Apple, or Berkshire Hathaway, have over $100 billion of cash, for example.
    Oracle has $35.70B.

  • The Dilemmas About Aramco Investing Are Showing Up

    The Dilemmas About Aramco Investing Are Showing Up

    The Dilemmas About Aramco Investing Are Showing UpInvestors’ demand drove Saudi Aramco market value to $2 trillion on the first 2 days of trade in Riyadh

    But the dilemmas about Aramco investing rose. Yes, Saudi Aramco (SE:2222) reached the $2 trillion target. Saudi leader Crown Prince Mohammed bin Salman had a wish, and it became a truth on Thursday, December 12. Aramco shares have been rising for the second day to make Saudi Prince happy. Finally, this guy has a chance to show how big visionary he is. 

    Aramco’s initial public offering (IPO) is the cornerstone of his vision to provide Saudi’s economy the independence from oil. The money ($25.6 billion) collected by selling the shares of Aramco will be used for developing some other fields of the national economy. That is how the plan was presented in public. So far, so good.
    This is a tremendous opportunity for the Kingdom. Oil has long been the main export product for Saudi Arabia and Aramco is the biggest oil company in the world.

    The end of the fairy tale?

    The bubble around Aramco shares grows. Even before its IPO. It was represented as a great investment, a great opportunity for investors all over the world. But just be careful. If some sharks are buying those shares it doesn’t mean that everyone should do the same. Maybe Saudis have to do that but you don’t. Saudi Aramco is a state-owned company and some Saudis, according to media reports, are taking loans to buy the shares.

    Saudi Aramco’s IPO gives opportunities for Saudi citizens. Now, they can have a part of this Kingdom’s crown jewel. And everyone is excited, full of optimism and enthusiasm. But, where is the limit of it?

    Must be somewhere. 

    The share price is high in December, as we can see and it seems it will rise more. But what if the stock is overvalued? What if it is a bubble? It will explode and the prices will eventually fall.

    Don’t miss: Trading With Success – A FULL guide for beginners

    Why the dilemmas about Aramco investing arise?

    For several reasons.

    Saudi Aramco has become the most valuable listed company in history. This oil producer gained a market value of $1.9tn on its first day of trade.
    Shares were climbing almost $200bn above the $1.7tn valuation established before its market appearance on Riyadh’s stock exchange.
    This the biggest “provider” of the climate crisis had been valued at more than Apple and Facebook together. Also, double more than Amazon and Alphabet. 

    On the second trading day, it hit the $2 trillion target.

    But investors should be worried because of the company’s relationship with a state. And it isn’t SOME state. Saudi Arabia is well known as related to human rights abuses and with some dark things too. Have you ever asked yourselves why the main support for the company comes from the Saudis and the Middle East?
    But the main concern comes from investment index providers such as S&P Dow Jones, MSCI, or FTSE.
    They all said they will include Aramco shares into their indices. What are the consequences? Well, the investors from all around the world, pension funds and other funds will be forced to buy these Aramco shares.
    The dilemmas about Aramco investing came directly from the state of Saudi Arabia. 

    Saudi officials said that the government will sell more shares after the IPO. If the Saudi government does so, it will overwhelm the market with additional shares. And the bubble burst is coming! 

    The sale of more shares by the government could easily cause the price of Aramco shares to decrease notably. 

     

    Bottom line

    We don’t want to say that you should or shouldn’t invest in Saudi Aramco. We just want to say that you should avoid Aramco-mania. Stock investing is risky. In the markets, nothing goes up permanently. So, keep this in mind. And invest smartly and carefully.

  • Get Into Cannabis Investment

    Get Into Cannabis Investment

    Get Into Cannabis InvestmentMore and more countries allow medical and recreational use of marijuana. But the inconsistent set of rules and regulations cause that the companies involved in cannabis have problems.

    Yes, it is time to get into cannabis investment. Despite many problems, volatility or lack of legislation, this industry is still alive.
    It is in better condition now than 10 or 12 months ago. The companies are stronger, they have the market experience, they are developing, new retail stores are opening. Good news is coming from Canada, where in line with the second phase of legalization cannabis derivatives will find their place on the store’s shelves.

    Also, it seems that the US is one step closer to a broader legalization law. 

    For investors, this means it is time to get into cannabis investment. It is always better to invest in the early stage of some company, the stocks are cheaper and speaking about cannabis companies, they are progressing. Their full potential is coming. So, think, maybe right now is time to get into cannabis investment.

    Expect Big Profits

    One more reason why is time to get into cannabis investment is that this industry easy could grow to over 30 billion next year. Try to look at these companies as innovative start-ups but well established. They are covering a broad of sectors: growers, suppliers, pharmaceuticals.

    Their products are for the therapeutic and recreational markets as well. And the appearance in the market is changed. In the early days, these stocks were very cheap (actually they are but it is an advantage) and many companies didn’t survive due to various reasons. But those who did make it are strong and became the publicly traded companies today. 

    Yes, there are notable limitations on how investors can get in the cannabis investment. For example, marijuana is still illegal at the federal level in the US. So, the companies that are dealing with marijuana directly are not traded on the NASDAQ or NYSE. 

    The investors may buy the stocks of companies that are operating in other countries, for example in Canada or giving the service to the business but don’t have any contact with products. You can find that situation in the US.

    Nevertheless, investors’ interest in cannabis stocks is huge. Let the facts to speak. Publicly listed cannabis stocks have large increases in share value, some companies surpassing a billion dollars of market capitalization. 

    Is this the right time to get in the cannabis investment?

     

    Get Into Cannabis Investment

    It’s the typical growth stock puzzle. These companies have grown revenues and earnings. On the other side, they are still developing and expanding which means they are spending a lot on that. Do you have the guts to buy early? 

    Think, is it better to buy now or when the companies receive a new money infusion and the stock price jumps? If you wait for that to happen you will have fewer opportunities for a large profit.

    Just pay attention to how companies define the problems that blocked them to have better results. If they do it with due diligence and clear, without any doubts, it is time to get into cannabis investment. But remember, you have to be patient. Plan your trades correctly and don’t let be influenced by rumors and emotion.

     

    Bottom line

    Despite the fact that it isn’t clear which cannabis stocks will be long-term winners, investors shouldn’t avoid them. Currently, all cannabis stocks are suffering. The whole industry is in problems. And there is one more tricky part. Until the lawmakers and regulators change the attitude toward marijuana there are small possibilities to be different, the industry will have losses and the dark market will grow
    Investing in cannabis needs more regulatory, that’s true.
    Until then, watch the companies, do your homework and examine the stock, buy while they are cheap and wait and take a profit. This is the right time to get into cannabis investment.

     

  • Ollie’s Bargain Outlet Posted the Third Quarter Report

    Ollie’s Bargain Outlet Posted the Third Quarter Report

    Ollie’s Bargain Outlet Posted the Third Quarter Report
    Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) reported its quarterly earnings results on Tuesday, December, 10 and surprise all analysts.

    It was a hard quarter for Ollie’s Bargain Outlet (NASDAQ: OLLI). Its CEO and founder Mark Butler passed away. But despite that tragedy, the management succeeded to give his company a strong third-quarter performance. Here is the transcript.

    Ollie’s Bargain Outlet reported stable growth. They succeeded thanks to opening the 13 new stores and extension of its presence to 25 states. That increased revenue gains in the third quarter. Total sales recorded 15.3% of growth in the last 12 months, or $327 million. Gross margins increased over the year to 40.8%. Ollie’s Bargain Outlet stated the progress came from increased margins on merchandise. At the same time, they managed to hold under control costs in the supply.

    The company reported a 22% increase in operating income and it is $35.7 million.  Also, net income increased by 8.6% to $27 million, and earnings grew by 7.9% to $0.41 per diluted share.

    Ollie’s Bargain Outlet stock

    OLLI stock rallied 12% in the extended session yesterday (Tuesday, December, 10) after reporting third-quarter results that were beyond Wall Street expectations. John Swygert became the company’s president and CEO, also. In a company’s press release, it is stated that the Q3 earnings report surpassed analyst expectations. Ollie’s Bargain Outlet announced it earned $27 million in the quarter. That is more than $24.8 million, which was in the same quarter last year. Sales grew 15% to $327 million, from $284 million a year ago. 

    Analysts’ expectations were the company would report GAAP and adjusted earnings of 38 cents a share on sales of $323 million.

    Today, December, 11 Ollie’s stock price is $60.30 which is the growth of 0.12%. But on pre-market the stock traded at $66.45.

    Ollie’s Bargain Outlet Posted the Third Quarter Report

    The analyst’s forecasts for Ollie’s stock are the median target of $75.50, a high estimate of $94.00 and a low of $65.00. The median estimate represents a +25.21% jump from the last price of $60.30.

    Regarding the earnings reported, Ollie’s might amaze us afresh. Traders Paradise’s opinion is the stock a good buy. 

    The guidance on next quarter’s earnings

    Ollie’s Bargain Outlet updated its earnings guidance yesterday, on December 10. It provided EPS guidance of $1.95-2.00. Ollie’s issued revenue guidance of $1.419-1.430 billion, which almost the same as the consensus revenue estimate of $1.43 billion. 

    Some investors are short selling OLLI and 17.2% of the shares of the stock are short sold currently.

    Company’s ABOUT

    This company is a retailer that offers food products, books, stationery, housewares, bed and bath products, health and beauty products,  electronics, toys, hardware, candy, clothing, pets, garden products. It offers its products essentially under the names: Ollie’s, Ollie’s Bargain Outlet, Ollie’s Army, Good Stuff Cheap, Real Brands! Real Bargains, Real Brands Real Cheap!,  Steelton Tools, Sarasota Breeze, American Way, Commonwealth Classics. From this year, the company is present in 25 states in the eastern part of the US. The company’s previous name was Bargain Holdings, Inc. The name was changed to Ollie’s Bargain Outlet Holdings, Inc in March 2015. The company was founded in 1982 with headquarters in Harrisburg, Pennsylvania.

  • Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News
    Forty Seven Inc. announced preclinical proof-of-concept data for its novel all antibody conditioning regimen. This announcement caused the stock price climbing.

    Until Monday, December 9, Forty Seven Inc. (FTSV) shares were traded at $14,44. Two days ago, its price per share rose at $30.43. On Tuesday, December 10, the stock price increased for an additional 13% or $4.22 and traded at $34.65.

    Forty Seven Inc. Increased On A Good News

    What happened?

    The stock price rose upon the news. It was a response to new data from the Phase 1b clinical trial of magrolimab, in combination with Celgene’s Vidaza, in treating patients with MDS and AML patients to whom induction chemo isn’t suitable. The new results were shown at ASH in Orlando.
    FTSV scored 110.73% gain, meaning the investors found a great opportunity here.

    You might be interested: Why Biotech Stocks Are A Good Investment

    Guggenheim equity researchers improved the status of Forty Seven, shares to a “buy” rating in the report from November 20th, 2019. Mizuho also was rating FTSV as “Buy”. Same as ROTH Capital.
    Since Forty Seven Inc. announced preclinical data for its new all antibody conditioning regimen, the stock price has skyrocketed. 

    Forty Seven Inc. What To Watch

    The current dividend yield for FTSV is zero, this means the investors will get the return investors no matter how the company’s performance will be in the future period. Furthermore, the company increased sales from quarter to the quarter which was the sign of progress. Forty Seven Inc. belongs to the healthcare sector and biotechs industry. Its market capitalization is $1.26B.
    Its EPS was $-2.78 and outstanding shares were 41.40M. The shareholders have to look a bit deeper. The company has recorded a weekly performance of 134.98%. The monthly performance is at 268.85%.

    FTSV is currently showing an average of 217.78K in volumes. The volatility of the stock per month is at 14.09%, and the per week volatility levels are recorded at 28.84% with 134.98% of gain in the last week.

    The analysts’ estimation for Forty Seven Inc is a median target of $37.50, with a high of $45.00 and a low of $20.00. This median estimate shows a +8.21% increase from the current price of 34.66. The price target established for the stock is $19.36, an awesome set of a potential movement for the stock.

    Don’t miss this: Axsome Therapeutics (AXSM) Is A Good Investment

    The company’s ABOUT

    Forty Seven Inc. is a clinical-stage immuno-oncology company. It is developing treatments that target cancer immune evasion pathways. The technology for that is licensed from Stanford University.

    The company’s main program, magrolimab, is a monoclonal antibody against the CD47 receptor. This antibody is being estimated in various clinical studies in patients with myelodysplastic syndrome, ovarian cancer, non-Hodgkin’s lymphoma, acute myeloid leukemia, and colorectal carcinoma.

    The company is dedicated to developing a defense against cancer. They strongly believe that CD47-SIRP-alpha is a novel immune pathway. This approach in anti-cancer therapy means patients can fight cancer with their immune cells. Its new class of immunotherapies gives a new pathway to patients living with cancer and may have no other option. This discovery came from Irv Weissman and his colleagues at Stanford University who identified CD47-SIRP-alpha.

    The company is established in 2015.

  • Fidelity MSCI Health Care Index ETF Investment

    Fidelity MSCI Health Care Index ETF Investment

    Fidelity MSCI Health Care Index ETFFHLC is conducted by Fidelity. The fund tracks the performance of the MSCI USA IMI Health Care Index.
    The index covers U.S. small-, mid- and large-cap stocks that fall into the health care sector.

    By Guy Avtalyon

    Fidelity MSCI Health Care ETF (FHLC, $43.60) with the current price at $48.31 ( December, 9). It is a cheap fund that covers almost the complete health care range. The investors will like this broad-based health care fund.  This cheap index fund covers the complete healthcare waterfront. Fidelity MSCI Health Care ETF holds 28% of assets in pharmaceutical companies, approximately a quarter in health care facilities, and 19% in biotechs.

     

    The other assets in its portfolio are spread on health insurance companies, health care services, supplies, and equipment.
    It is one of the industry’s giants, the other is the Vanguard Health Care ETF. It holds shares of Johnson & Johnson, UnitedHealth, Pfizer (PFE), Abbott Laboratories, etc.
    Many investors will like more of these large-spread funds than some small but aggressive biotech stocks. Yes, you will never reach the large gains but this kind of investment is safer during the market downturns. Everyone will need health care no matter what is the condition of the market or economy.

    Fidelity MSCI Health Care ETF and Vanguard Health Care ETF provides:

    Dividend yield: 2.1%
    Expenses: 0.08%
    3-year return: 9.9%
    5-year return: 9.2% 

    Fidelity MSCI Health Care Index ETF trades on the New York Stock Exchange (NYSE)Arca under the ticker name FHLC.

    Should you invest in the Fidelity Msci Health Care fund?

    According to analysts, the Fidelity Msci Health Care fund be a profitable investment option for investors with a long horizon. 

    Based on analyst’s estimates, investors can expect a long-term increase.

    For example, with a 5-year investment, the revenue could be around +10%. If you invest, let’s say $10.000 ( Traders Paradise likes this amount obviously) after 5 years your investment is possible to increase up to $11.000 which means you will have a $1.000 in profit.

    Who sold who bought Fidelity MSCI 

    During the last 3 months, some institutional investors purchased FHLC stock. For example Karp Capital Management Corp, Virtu Financial LLC, FormulaFolio Investments LLC, Mackey Komara & Dankovich LLC, Full Sail Capital LLC, CWM LLC, Tower Research Capital LLC TRC, Eldridge Investment Advisors Inc. Maybe it isn’t bad to follow their example.
    But some have sold Fidelity MSCI Health Care Index ETF stocks. For example Global Retirement Partners LLC, Boston Private Wealth LLC, BB&T Securities LLC, Commonwealth Equity Services LLC, Stifel Financial Corp, Traynor Capital Management Inc., Fisher Asset Management LLC or Sigma Planning Corp.
    We mentioned them just in case you follow some of them.

    Anyway, Fidelity MSCI Health Care Index ETF is a good long-term investment.
    You can buy FHLC shares through online brokerages that have access to the US stock market. For instance, you can do that over TD Ameritrade, E*TRADE, Charles Schwab, and some others.
    If you do that today, you will need to pay $48.31 per share of FHLC stock. Its market capitalization is $1.61 billion.
    There are some risks when investing in funds. They can also lose money during market downturns. If the fund has a narrow focus it can be sensitive to particular industry risks. For example, changing the regulatory situation. Further, if some of the bigger shareholders experience sharp price decline it may influence the whole fund. 

    But, honestly, the risk involved in healthcare funds is lower than with other funds. At the same time, the returns are a lot above average,

    The fund’s risk compared with that of other funds in the health peer group for the trailing three years is considered below average by Morningstar. The level of return of Fidelity MSCI Health Care Index ETF is rated as above average for the past three years.

     

  • Tiffany Forever Shining Diamonds

    Tiffany Forever Shining Diamonds

    Tiffany Eternally Shining DiamondsIn the Q3 earnings report, Tiffany posted net income decreased by 17%
    The earnings report comes a week after the French LVMH made a deal to acquire Tiffany for $16.2 billion.

    By Guy Avtalyon

    For more than 180 years,  the first thoughts about Tiffany are luxury jewelry but the one that takes your breath away. Tiffany, elegant, great and original design, one-word perfection.
    In on1886,  it created the eponymous diamond ring as a permanent symbol of promise showing that Tiffany vote for love. Tiffany diamonds are keeping by many generations and showing to the world on extraordinary occasions as refine feeling for luxury.

    Recently, Tiffany and Moët Hennessy – Louis Vuitton SE and simply is known as LVMH, announced that LVMH acquires Tiffany. The official announcement state it is: “for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.”
    This deal could help the famous jeweler to launch more affordable jewelry. But what happened?

    Just a week after, the company posted worse-than-expected Q3 results for this year and Tiffany’s stock price fell.
    The analysts expected that Tiffany could earn 85 cents per share. It was the opposite, Tiffany & Co. had reduced net income by 17%. During the previous period, the price per share was 77 cents and after the Q3 report, it fell to 65 cents per share.

    How did Tiffany work in 2019?

    The company’s revenue was the same, $1.015 billion as last year but lower than the foreseen $1.037 billion. The analysts expected a 1.4% growth but it didn’t happen.

    Company’s CEO Alessandro Bogliolo said in an official statement: “Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas.” 

    On December, 9 TIF was traded at $133.48.

    Tiffany Eternally Shining Diamonds

    Tiffany’s market cap was $16 billion at Monday’s close.

    Exit strategy for TIffany’s stock

    We checked it out by using our app how TIF stock will perform and we set a stop-loss level at -4.75% from the current price and take-profit level at 5.25% form the same price. Our tool showed a return of $186.94 in the next 10 days with the position of $10.000. Since the position isn’t closed, the possibility that our exit strategy is good is shown from the historical performances. According to the historical data for 3 months this strategy was good at 74% trades and for one year in 55%.

    Of course, you might have some other exit strategy and it is best if you check it by yourself.

     

    Should you invest in TIF stock?

    Today is December 10, Tuesday. The current price of TIF stock is $133.50 and our historical data shows that the stock price has an overall rising tendency for the past 12 months.
    Traders Paradise uses its own app to determine if TIF is a good portfolio addition. And we saw that this stock has a chance to rise for around 23% after 12 months and could easily hit the price around $165 at the end of that period. According to our given position at $10.000, this means that after one year our potential profit will grow and we will have $12.300 in total with a profit of $2.300.
    So, we think Tiffany (TIF) is a good addition to any portfolio. Hold this stock, it is a good long-term investment.

  • O2Micro International Limited – Penny Stock To Buy

    O2Micro International Limited – Penny Stock To Buy

    O2Micro International Limited - Penny Stock To BuyO2Micro International Limited increased the Q4 2019 revenue forecast to be at a $17 million range.
    This stock is a good short-term opportunity

    By Guy Avtalyon

    O2Micro International Limited is a penny stock and recently the company announced great revenue for the third quarter. The revenue was up by about 12%. Moreover, several days ago the company raised revenue forecast for Q4. And investors noticed it. Yes, the price of shares dropped on Friday, December 6 for 1.36% and the current price is at a bit more than $1.73. 

     

    But what makes us think it is a good stock to be watched in December?

    According to Reuters, O2Micro International Limited develops, produces and sells components for power management. They are supplying producers of computers, the communication industry, automotive. O2Micro International Limited produces integrated circuits for LCDs and for LED, desktop and notebook monitors, digital cameras, electric bikes, LEVs (low emission vehicles) apps, smartphones, GPS, etc.

    O2Micro International Limited financial highlights for the third quarter 

    O2Micro International Limited reported Q3 revenue of $16.0 million. It was up 12.3% but lower 4.7% from the same quarter last year. The gross margin in the last reported quarter was 51.4%. It is higher from 50.1% in the second quarter and by 50.5% higher than in the third quarter of last year. The company kept the gross margin in the targeted range. 

    O2Micro International Limited reported that over the third quarter it recorded total GAAP operating expenses of $9.4 million. For the second quarter, it was $9.7 million. In its Q3 report, we could see the GAAP loss of $200,000, while in the Q2 it was $2.8 million.

    GAAP net loss per fully diluted ADS was $0.01 in Q3 this year, in Q2 it was $0.11 and for the third quarter last year, it was $0.13.

    The future of OIIM stock price

    In our opinion, O2Micro International Limited stock isn’t a good long-term investment. It is still a high-risk long-term investment. But if you prefer short-term investing, not longer than 3 months, this could be a good choice. Traders Paradise sees this stock at the lowest price at $1.90 in the next 14 days. But be prepared for several jumps and falls during that time. Our data shows that this stock was in the uptrend in the past 12 months and this will continue over the next 3 months since the stock is in rising tendency. 

    Actually, the stock is in the middle of a strong and wide uptrend. In the short term, it isn’t bad since it could rise around 29% in the next 3 months and hit the price between $1.90 and $2.40 at the end of that period.

    Bottom line

    On December, 2 O2Micro International Limited (NASDAQ: OIIM) increased the Q4 2019 revenue forecast to be in the mid to high $17 million range. That is for one million more than the company reported in its Q3. 

    Does it mean that the management has some trump card to show in the coming months? We believe the answer is yes. 

    Don’t miss this: Investing In Penny Stocks Can Be A Highly Profitable Strategy

    There is a buy signal coming from the relation between short and long moving average. If the stock price breaks down somewhere between $1.70 and $1.50, which are the support levels, the sell signal will be issued. Well, some negative signal is already issued. On December, 4 a sales signal came from a pivot top point. That means further falls until a new bottom pivot has been found. Traders should know that the volume of this stock fell by 4 590 with the dropping stock price. Technically speaking, it is good. But the risk may come from the low liquidity.

    The stock has several short-term signals and a good trend. That’s why we think that there is a buying opportunity for the short-term.

     

  • Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF
    Healthcare ETF is good for investors with less risk tolerance
    Vanguard Health Care Index Fund ETF is one of the largest in the stock market

    Vanguard Health Care Index Fund ETF is focused on stocks in the U.S. health care sector. It is managed by Vanguard and is covering health care stocks in the U.S. stock market. It is a big fund that holds shares of 388 companies. The Fund owns shares of Pfizer Inc, Merck & Co, AbbVie Inc., Johnson & Johnson, UnitedHealth Group Inc., and Abbott Labs. Its 10 top holdings account for almost 45% of the portfolio. But the fund has an extremely good diversified portfolio. It has holdings in pharmaceuticals, biotechnology, health care equipment, health care, supplies, facilities, services, technology, distributors, and life sciences tools and services.

    Healthcare stocks are hot

    Everyone needs health care and everywhere. But the main source comes from boomers. We have nothing against them, but the truth is that as people are aging, they need more health care. Correlated with this is the increased demand for medical products. But this isn’t the whole truth. 

    Also, there is great progress in new technologies that are likely to create great growth for companies in this industry. 

    For example, pharmaceuticals. You can see drugmakers that are developing new procedures, new methods, and drugs. Today we have personalized therapy, based on personal genetic data for each patient individually. This is especially important for cancer treatment, for example.

    Today, biotechs and pharmaceutical companies are practicing gene editing as the treatment for rare genetic diseases.

    The healthcare field is huge and connected. For instance, for early diagnosis of cancer, the liquid biopsy is very popular today and accurate. But someone had to develop it. The same is with AIs and robotics, medical device companies are developing new types of high-tech equipment. So many companies are involved to improve healthcare services. Look at the telehealth, it is adopted broadly. We have robots as surgeons. Monitoring patients with chronic diseases out of hospitals is easier than ever.  

    These products are not aimed at older populations only. Also, we have great progress in aesthetics, skincare, body care, hygiene, etc. 

    Can you see now why healthcare is a hot zone of interest for investors?

    Vanguard Health Care Index Fund ETF Shares 

    Vanguard discovered the ETFs. 

    It tracks the performance of the MSCI U.S. Investable Market Index (IMI)/Health Care 25/50.  

    This ETF has delivered an average annual return of 9.47% since it started in 2004. It has generated average annual returns of 9.78% over the last three years and 9.2% over the last five years.

    The Fund’s dividend yield is of 2,1%, the expense ratio 0.10% which is one of the lowest among ETFs.

    Vanguard Health Care Index Fund ETF

    Vanguard Health Care gives wide exposure. VHT stock is cheap to hold. Its liquidity is strong. The problem is the same as with other Vanguard funds. It is restricted transparency since the holdings are published monthly with 2 weeks delay.

    Still, for the long- term investors a reduction of transparency shouldn’t so much important. VHT fell by -0.13% on Thursday, December 5, but rose for 0,69% on Friday, December 6. The current price is $187.93, $1.29 more than the previous one. Daily fluctuation of stock was 0.79%, a day high was $188.50, a day low was $187.02.

    During the last 2 weeks, the stock price was shifting up and down but still, the 2-weeks gain was 2.78%.
    Since the volume has increased by 47 673 shares on falling prices, you should take this as an early sign of increasing risk in the next several days. Anyway, the price is dropping so it is time to buy it.

    According to analysts, the stock is in the upper line of a rising trend in the short term. This can be a very good selling chance for the short-term traders because the move towards the lower band of the trend can be expected.
    If the price breaks up the top trend line at $188.45 it is expected to increase by 11.09% in the next 3 months with a price between $195 and $210 at the end of this period.

    Bottom line

    Investing in a healthcare ETF decreases the risks for investors thanks to a diversified portfolio across various stocks.
    Moreover, ETFs can modify their holdings when it is necessary. Also, healthcare ETFs can resist during economic downturns because we will all need medical care no matter if it a crisis or not. But keep in mind, ETFs can drop during the crisis or recession too. They are not immune. But as the lesson from 2008, when some ETFs dropped by two-digit percentages, they had been rising again and did it fast.
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