Year: 2019

  • Tesla Cybertruck: It is not ball proof, but maybe it is bulletproof

    Tesla Cybertruck: It is not ball proof, but maybe it is bulletproof

    Tesla Cybertruck

    Tesla Cybertruck didn’t pass the metal ball test proof
    The company has always tried to meet auto-industry standards, which Elon Musk called “production hell.

    UPDATE 2019/11/25: Was it an embarrassing public presentation last week or just good marketing? Everything is possible. But one of three investors is sure that Tesla’s Cybertruck has a chance to be successful.
    After Elon Musk tweeted that the company received over 200,000 orders for the futuristic truck the stock price jumped for 0,99% on Monday and it is currently $336.34. The rumors increased the stock price. Take a look at the chart.

    Tesla Cybertruck didn’t pass the iron ball test. Are the broken windows the cause of dropping TSLA stock price? During the presentation of the new Cybertruck, something went wrong or the producer didn’t test the model enough before it showed it to the public? Anyway, it was hilarious. Okay! Musk tweeted after the reveal of the new model:

    “We threw the same steel ball at the same window several times right before the event and didn’t even scratch the glass.”

    The demo on late Thursday included hits with a sledgehammer and bullets that the truck could resist. But something went wrong as the windows broke into a thousand pieces when faced with a metal ball. It didn’t pass, though.

    And on that very day, the stock price dropped by 6% to $333.04 and Musk’s net worth plunged $768m after glass failure went viral. The launch of the Cybertruck experienced a delay since its “armored glass” windows shattered. And Wall Street was worried on Friday.

    Tesla Cybertruck

    The idea of Tesla Cybertruck is good? 

    It is constructed from stainless steel, a triangular structure and the base-model truck price is under $40,000. That should point out that Tesla is lowering battery costs. If we put aside the math (can be complicated) we will have a simple conclusion: someone is making EVs under $40.000. 

    There will be three models, the cheapest of which, at $39.900, mid-range model,  is priced at $49.900, and the most expensive at $69,900 that will start production in 2022.
    Electric vehicles are more costly than classic cars powered by internal combustion engines due to the battery pack. 

    However, refueling an EV by plugging it in is cheaper than with gas. And here we come to the pricing. The cost under $40.000 is a powerful promise. It looks the high battery costs are dropping. 

    But Tesla stock didn’t drop just because it had been higher. Over the past 3 months, the stock price has risen by almost 50% because the third-quarter results were better than expected. However, the drop on Friday looks to be related to the presentation of the Cybertruck and broken windows.

    The Robert W. Baird & Co.’s senior analyst, Ben Kallo is positive about Tesla stock, he rated it as Buy and set a target price at $355. 

    “While some may consider the Cybertruck too futuristic of a design,” he wrote in a Friday research report, “we do think strong functionality will eventually win over Tesla loyalists and enable the company to take share from traditional auto OEMs.” 

    Competition is big

    Ford is working on all-electric F-150, General Motors will enter the market in two years. Moreover, Ford and Amazon supported EV startup Rivian that also will bring something in 2020.

    The analyst Jed Dorsheimer from Canaccord Genuity kept a buy rating on Tesla stock and a price target of $375.

    But Oppenheimer analyst Colin Rusch wrote he expected Tesla stock to fall because the investors might be skeptical of adoption of the Cybertruck.

    Yes, this vehicle is very different from current standards. So, what? Is that a problem?

    We think it isn’t. The main Tesla problem is that it isn’t a carmaker in, it is an innovator. They really should engage some constructors and workers with experience in the auto industry to build them a producing line. The industry veterans know that. Last year, Tesla’s factory in California couldn’t assemble the Model 3 sedan. 

    Maybe it is time for Tesla to follow the auto-industry practices and engage the experts in that field. At least, it will give fewer downturns and mistakes in the construction of their cars.

    Bottom line

    Recently Musk said the goal of Tesla is to create a system that provides “the most amount of fun you can have in a car.
    And Tesla added a “Caraoke” library of songs and lyrics, there are more games in Tesla Arcade. A partnership with gaming company StudioMDHR for its game Cuphead is signed. So, full entertainment is here. Where is the car?

    Tesla’s Cybertruck obviously didn’t pass the metal ball test. Will the stock survive that hilarious experiment? This EV maker is spending a lot of time on something the other car makers have almost led to perfection.

    That can make larger trouble in its business. Anyway, after the fiasco, Musk tweeted: “Guess we have some improvements to make before production haha.” Yes, you have, indeed.

  • NIO One Of The Most Volatile Stocks

    NIO One Of The Most Volatile Stocks

    NIO One Of The Most Volatile Stocks

    NIO is one of the most volatile stocks on the market and analysts’ consensus is to hold it
    With 33.4 million shares NIO has one of the highest average daily trading volumes

    NIO is one of the most popular and very liquid stocks in the market. However, the volume of stocks like Nio may give an impression of the market’s raised interest. The volume is measured in shares but stocks like Nio have current prices under $2.

    This is a Chinese automobile maker from Shanghai. It is specialized in designing and developing electric autonomous vehicles. And it is NYSE listed under the ticker symbol NIO. This electrical carmaker’s stock has dropped over 70% from the beginning of this year.

    The reasons are numerous, from a vulnerable macroeconomic climate to the geopolitical tensity.

    These worries could be ended since the EV market is rated as recovered. Something like that said Li Bin, the founder and CEO of Nio, according to the National Business Daily. But let’s take a deeper look at the NIO stock.

    Where is the spring for NIO?

    NIO’s CEO Li said “spring for electric vehicles is near” after the sale of Nio’s car a bit rose in September and October.

    Nio is always compared with Tesla Inc and called China’s Tesla. Nice wishes, but not realistic. Tesla (NSYE:TSLA) is a stock worth $354.83 (Nov 22).

    The company had a very bad start this year. The company delivered to the market 1,805 vehicles in January and 811 in February. March was a bit better with 1.373 delivered vehicles, in April the company reported of 1,124, in May 1,089. 

    In June Nio introduced the new model ES6 and increased its sales to 1,340 cars in that month which was almost 70% higher than the previous.

    With new model ES6, sales deliveries were raised in August to 1,943 vehicles, it was sold 146 ES8s and 1,797 ES6s.

    But even with this, the achievements for the beginning of this year were weak. Hence, the company reported a loss for the second quarter and the management announced restructuring with possible job cuts.

    Spring in September

    Nio’s luck reversed in September. The company reported an increase in deliveries, they managed to deliver 2,019 vehicles. And that increase was followed by good results in October when deliveries jumped for 25.1% or 2,526 units.

    At the same time, the management of the company has been very active in solving the gaps, it announced a deal with Intel Corporation’s Mobileye for driverless consumer cars in China. 

    NIO shares were trading at $1.98 at the time of writing this article.

    Bottom line

    The analysts’ forecast for NIO has a medial target of $14.36. The high estimate is at about $88 and a low estimate of $6.41. The median estimate signifies a 625% rise from the current price of $1.98. The analysts’ consensus is to hold NIO stock.

     

  • Levi Strauss On The Market Again

    Levi Strauss On The Market Again

    Levi Strauss On The Market Again
    Levi Strauss & Co. trades on the NYSE under the ticker symbol LEVI.
    This famous brand promises to be a good investment

    By Guy Avtalyon

    Levi Strauss is riding again.
    We are sure you have several of Levi’s products. When say Levi’s you mean eternity. Levi’s jeans is always IN. This denim cloth producer went public in March this year. The jeans on the trading floor. Sounds good even if it didn’t change the dress-code there. Actually, that decision was the second appearance of Levi’s on the stock market. 

    Firstly, the company was listed in the 1970s. But 15 years later, the company was taken private. Descendants of Strauss, well-known the Haas family bought it out. In March this year, that decision was changed and Levi’s is listed again on the NYSE under the ticker symbol LEVI. Levi’s started trading publicly for the second time in its 165-year history.

    At that time, the shares were priced at $17 and grew 32% in the first trading day. On the closing bell, the price was $22.41 and the valuation was over $8.5 billion.

    The LEVI price history

    The LEVI price history isn’t long but we can see that it had a few good trading weeks after went public. The price dropped in August and was traded at about $16. In October, the price increased to almost $20 but dropped again at $17 and stabilized in that area.

     

    On November 21 the LEVY was traded at $16.57 which was an increase of 0,20% from the previous day.

     

    The experts’ forecast for Levi Strauss & Co.’s median target at $23.50, with the highest price at $28.00 and the lowest at $18.00. That would be a 41.82% rise from the current price of $16.57. Their estimation shows a buy signal for Levi Strauss & Co. stock.

    The forward P/E ratio is 15.49 and P/E growth is 3.79, the dividend yield is 3.62%.

    Levi Strauss & Co. posted its quarterly earnings report on October 8th. The company reported $0.31EPS for the quarter, beating analysts’ estimates of $0.27. Levi Strauss & Co. earned $1.45 million during the quarter.  The company had a return on equity of 37.44% and a net margin of 6.85%. The revenue was up 4.3% related to the same quarter in the previous year. Levi Strauss & Co. issued its revenue guidance of $5.882-5.909 billion.

    Selling of Levi Strauss & Co. stock

    The company’s main shareholder Walter J. Haas sold 73,845 shares on Wednesday, November 20th at an average price of $16.53, for $1,220,657.85.
    Previously, on November 13th, Walter J. Haas sold 37,290 shares of the company at an average price of $16.96, for  $632,438.40.
    Two days earlier, on November 11th, Walter J. Haas sold 22,321 shares of stock at an average price of $17.06, for $380,796.26.
    On November 8th, Walter J. Haas sold 50,749 shares at an average price of $17.10, for $867,807.90.

    Hedge funds have new holding positions in the Levi’s

    Commerzbank Aktiengesellschaft FI got a new position in Levi Strauss & Co. at approximately $253,000.
    Acadian Asset Management LLC took a new position at around $174,000.
    Parallel Advisors LLC took a new position at approximately $96,000.
    Aperio Group LLC took a new position at around $62,000.
    NumerixS Investment Technologies Inc got a new position at about $58,000.
    Institutional investors hold 9.21% of the Levi Strauss & Co. stock.

    Experts’ ratings on LEVI

    Bank of America boosted its price target on LEVI from $20.00 to $22.00 and marked the stock as a “buy” in October.
    Guggenheim repeated a “buy” rating in September.
    ValuEngine upgraded Levi Strauss & Co. from a “sell” rating to a “hold” in October.
    Levi Strauss & Co. currently has a consensus rating of “Buy” and a  price target of $24.43.

     

    About Levi Strauss

    The company is founded by Levi Strauss, an immigrant from Bavaria who came to San Francisco in 1850 during the Gold Rush. He brought dry goods for selling to the miners. he recognized the miners’ need for durable pants and hired a tailor to sew clothes out of tent canvas. Denim came later.
    A partnership of three Strauss brothers was built in 1853.
    After Strauss died the leadership of the company passed to the Haas family. By the 1960s, Levi’s jeans became popular globally. In 1971, when the company went public it was operating in 50 countries.

    Levi Strauss & Co designs, and markets jeans, casual dress, pants, skirts, jackets, footwear, and accessories for women, men, and children under the brands: Levi’s, Dockers, Signature by Levi Strauss & Co, and Denizen. The company also authorizes Levi’s and Dockers’ trademarks for many product categories, like footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery.

    Levi’s is a famous brand but the stock needs a price accumulation before it keeps the advance. Anyway, this is the stock to be watched. Its trends in Europe are strong, rising at 20% a year for the past two years and 14% in 2019. Levi proceeds to diversify its distribution in Europe and it is now 50% direct-to-consumer sales. But the U.S. sales are down and now it represents 30% of Levi’s overall sales.

  • Builders FirstSource Inc. Is Good Long-Term Investment

    Builders FirstSource Inc. Is Good Long-Term Investment

    Builders FirstSource Inc. Is Good Long-Term Investment
    Builders FirstSource Inc is a good long-term investment with the possibility to produce almost 30% of revenue

    By Guy Avtalyon

    Builders FirstSource Inc BLDR stock is, according to analysts, rated as a buy. In November it was upgraded from a hold rating.

    This third-quarter earnings season, many companies reported better earnings per share and beat the experts’ estimations and expectations. There were a lot of outperformed stocks and investors are interested to add them in their portfolios because they want strong returns. But which one or few to choose? The market noise is enormous and it so hard for individual investors to make such a decision.

    Builders FirstSource Inc.

    Builders FirstSource (BLDR) is currently recommended as a buy. This stock is trading with a P/E ratio of 12.74. Meaning, at current prices, you have to pay $12.74 for every $1 in trailing yearly profits. Over the past 52 weeks, BLDR’s P/E ratio has been as high 25.65 and low 10.15. But value investors use the P/S ratio as a metric also. You can find the P/S ratio when divide the stock price by sales.

    On the last day of October Builders FirstSource issued its Q3 earnings report.

    Builders FirstSource’s quarterly earnings were $0.72 per share, meaning it beat experts’ expectations. The earnings per share were $0,67 for the same quarter last year.

    So, we can easily see earnings of 20%. Surprised? For the previous quarter,  it was supposed that this company would report earnings of $0.48 per share. But it delivered earnings of $0.63, showing an increase of 31.25%. For the last 12 months or 4 quarters, Builders FirstSource has exceeded consensus EPS estimates 4 times.

    The company posted revenues of $1.98 billion for the third quarter. This compares to year-ago revenues of $2.12 billion. The company has beaten consensus revenue estimates two times for the last four quarters.

    “Our strong third-quarter growth in sales volume and margins combined with our focus on working capital management generated another quarter of strong cash flow.  We were also pleased to deploy capital on an accretive acquisition, while at the same time, further improving our ratio of net financial debt to Adjusted EBITDA to 2.5 times,” said CFO Peter Jackson.

    BLDR stock is currently trading at $25,36.

    What’s next for the Builders FirstSource stock?

    The tricky question indeed. The price made a slight decline of 0,02% yesterday. You can use one simple measure: the company’s earnings outlook. You have to examine the current earnings expectations given by the experts but most importantly you have to check how their predictions have changed.

    The stock is bullish and Traders-Paradise opinion is the price can go up from $25.50 to $27 over the next 12 months. So, we can say it is profitable to invest in Builders FirstSource stock since the long-term earning potential is about 7.00% in the same period.

    The company’s ABOUT

    The company is a supplier and manufacturer of building materials, components, and construction services. 

    Builders FirstSource provides an integrated solution to its customers offering manufacturing, supply, and installation of building products such as windows, doors, and millwork lines.

    Its products are the factory-built roof and floor trusses, wall panels and stairs, vinyl windows, millwork and trim, and engineered wood designed, cut, and constructed. It constructs interior and exterior doors. 

    The company is headquartered in Dallas, Texas.

    Should you buy the Builders FirstSource stock?

    Traders-Paradise predicts a future increase in values of Builders FirstSource, Inc (BLDR) stock. If you want to hold stock with good return, Builders FirstSource, Inc might be a good option for you. Builders FirstSource, Inc quote is $25.36 at 2019/11/20. Based on previous performances this stock may be worth up to $32 with revenue of almost 28% after a five years period. If you invest $10.000 today in this company, after 5 years, it is possible to have about $12.800.

     

  • T Stock Has Dropped On Scepticism

    T Stock Has Dropped On Scepticism

    T Stock Has Dropped On Scepticism

    T stock has dropped more than 4% on Tuesday. The current price is under $38.00.

    UPDATE 2019/11/22: Telefonica (Spain) has signed a contract to use the last-mile network of its U.S. competitor, AT&T, in Mexico. Spanish Telefonica has signed a deal to use some of AT&T’s infrastructure in Mexico.
    AT&T stock price was up and traded at $37.60 on Thursday, November 21 which is a 0,42% increase in comparison with the previous day.

    T stock has dropped more than 4% on Tuesday. It happened after MoffettNathanson’s Craig Moffett lowered the stock to sell. Behind this stands the understanding thatAT&T has bigger problems than the other participants in the wireless scene could be. 

    The truth is that the wireless industry is growing and there are more and more competitors out there but Craig Moffett wrote to investors that “the real problem is everything else” pointing the 60% revenues: “Everything else is 60% of revenues. Wireless will have to do an awful lot of heavy lifting.”

    T Stock Has Dropped On Scepticism

    T stock is downgraded from sell to neutral

    Moffet wrote: “Despite a target price well below AT&T’s recent trading range, we’ve remained Neutral since our upgrade from Sell last November, based largely on the view that global yield starvation would attract capital to AT&T irrespective of its fundamentals.”

    T stock has dropped on analyst’s skepticism that the company is able to score its 2020 revenue target. This recommendation on the shares is very unusual and even more, he repeated his estimation at $25 per share price target on AT&T. Moffet’s opinion is based on decreasing growth, a declining number of users and dropping video revenue at the company’s entertainment segment, especially at Warner Media.

    As Moffett sees the last chance for AT&T is the wireless business, but that job, according to Moffett, is questionable due to the intense rivalry in the area.

    Moreover, HSBC, Investment banking company, also published an announcement, in which they are predicting that difficult times are ahead for the telecom companies. AT&T is on the list.
    “AT&T’s new offerings are “a bit aggressive,” wrote HSBC analyst Sunil Rajgopal.

    Shares of AT&T is up

    Moffett said this is in spite of declining fundamentals and he is suspicious of what is the future company’s outlook. Moffitt admitted that AT&T has de-lever its balance sheet, as they promised and maintain stable EBITDA, but also he stated: “But even as the company has delivered on its promises for 2019, the picture for 2020 and beyond has gotten cloudier.”

    AT&T’s dividend yield is 5.15%. AT&T shares have increased by 39% this year. Yes, the competition is bigger than ever and AT&T will have a lot of pressure on its wireless business to produce great results.

    Bottom line

    AT&T stock price has been showing a rising tendency. 

    What we think is the future price of this stock could surpass $43 after a year. As we can see, this current decline in price is temporary and the stock could recover in the next two weeks and reach $40 to the end of the year. So, try not to sell in panic and hold your AT&T stock. If we are right about price growth of 13% and you have invested $1000 in AT&T stock, your investment might be worth $1130 at this time next year.

    Yes, AT&T Inc holds sales signals. Current resistance is at $39.11 and $39.24. If break-up occurs above any of those two levels the price will go up and it will be a buy signal. Our opinion is that this stock’s price may slightly decline further until finding a new bottom pivot. The price will fall because the volume increased on falling prices on Monday, November 18, 2019. But as we said, it could be just temporary.

     

  • Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

    Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

    Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

    Trulieve Cannabis Corp reported higher-than-expected revenue in the Q3 earnings report. The company started trading in the U.S. on the OTCQX markets under the ticker symbol TCNNF and trades on the CSE as TRUL.

    Trulieve Cannabis Corp. reported higher third-quarter revenue at $70.7 million which is a surge of 150% and a net income of $60.3 million. Trulieve Cannabis (CSE: TRUL) (OTCQX: TCNNF) published earnings for the third quarter of 2019 yesterday (November 18) after the closing bell. The company reported its revenue increased 22% quarter over quarter and 150% over Q3 2018. That was quite a surprise in comparison to the analysts’ expectations since they projected revenue of $64.6 million The company reported revenue of $57.9 million in the prior quarter.

    Trulieve Cannabis Corp. stock was traded at $11.30 yesterday.

    Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report
    Market Cap  $972.79 M
    Last price $11.500

    The excellent part, Trulieve posted a net income of $60.2 million. This was the second strong quarter for Trulieve.

    What did the Trulieve report?

    First of all, an increase of 19% of Florida patients. The company opened six new dispensaries there and now it has 35 in total with almost 215,000 patients or users of the smokable flowers.

    Further, the company completed its second public debt deal and received $61 million in gross.  The company had available cash of $100.8 million. Trulieve reported cultivation capacitance of approximately 1.6 million sq ft after made deals in Quincy, Florida, and Massachusetts, Holyoke.

    “Trulieve’s strong brand, wide-ranging access to stores, and authentic customer experience have resonated with our customers and patients. The third quarter was also successful in further strengthening our position in our existing markets as well as preparing for new market entry. We continue to build operational efficiencies and financial discipline to ensure a solid foundation, cash reserves, and the right tools at our disposal to expand our footprint. Looking ahead, this is an exciting time as we execute on our strategic vision to be one of the top-performing cannabis companies in North America,” said Trulieve CEO Kim Rivers.

    Also, Trulieve stock has increased by 40% this year as the S&P 500 index grew by 25%.

     

    Trulieve Cannabis Corp. increased adjusted EBITDA of $36.9 million

    Why is this important?

    EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is important because EBITDA is the primary source of all reinvestment in the operations and for returns to shareholders.

    EBITDA is the highest level of cash flow that provides businesses to grow. If the company wants to grow it is necessary to reinvest. EBITA is a measure of cash flow.

    Investors and analysts are focused on EBITDA because it shows the company’s capacity to produce cash flow enough to meet all of the demands of the business. Also, to provide fair returns to shareholders.

    So, we can say, the higher the company’s EBITDA, the better the value of the company. That’s why Trulieve Cannabis Corp.’s increase in adjusted EBITDA of $36.9 million so important.

     

    Trulieve Cannabis Corp. ABOUT

    Among multistate operators, Trulieve is the most profitable. It is largely present in Florida.

    Trulieve Cannabis Corp. operates as a holding company in the United States and Canada. The company operates in the cultivation, possession, sale, and distribution of medical cannabis through its subsidiaries. It is the leading medical cannabis company in Florida. 

    Trulieve went public in Canada via a reverse takeover with a past mining company.

    “There are some complications with being a cannabis company in the United States and having primary operations in the United States. So an RTO was the way that we needed to go,” said  Kim Rivers, the CEO of Trulieve.

    Trulieve managed to avoid the traps of acquisitions because it can be exceptionally costly. This kind of careful fiscal management, and not usual for cannabis businesses, is a big help to Trulieve’s successful operations.

    35 Ways to make money online

    Bottom line

    Trulieve Cannabis Corp stock is not for long-term investing. TCNNF stock can be a bad, high-risk long-term investment option. The current price is $11.500, date 2019/11/19, but your investment may be decreased in the future. These kinds of stocks are very risky but may produce high returns.

     

  • AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals.Stock

    Measured over the past 5 years, AVEO shows strong growth in revenue: 10.25% on average per year.
    AVEO is stock with a buy signal right now.

    By Guy Avtalyon

    AVEO Oncology (NASDAQ: AVEO) today announced the presentation of updated data from the Phase 3 TIVO-3 trial. Previously, the data were displayed on Saturday, November 16, 2019. It was at the 18th International Kidney Cancer Symposium in Miami. In verbal presentation named “TIVO-3: A Phase 3 Study to Compare Tivozanib to Sorafenib in Subjects with Refractory Advanced Renal Cell Carcinoma (RCC) Overall Survival 2-Year Update” by Sumanta Kumar Pal, M.D., Associate Clinical Professor, Department of Medical Oncology and Therapeutics Research, and Co-director, Kidney Cancer Program at City of Hope Comprehensive Cancer Center. 

    And the market reacted immediately. Traders-Paradise got the info that stock price is rising and here is the confirmation. Take a look at the chart below with updated data.

     

     

    About AVEO Pharmaceuticals, Inc.

    AVEO Pharmaceuticals, Inc. is a biopharmaceutical company with a focus on the development of treatments targeting cancer.

    In August 2017, AVEO and its partner, EUSA Pharma, got approval from the EU Commission for its VEGF tyrosine kinase inhibitor, Fotivda (tivozanib) for the first-line treatment of advanced renal cell carcinoma RCC. The drug is available in Germany, Spain, Norway, Iceland, New Zealand, Austria, and the United Kingdom. AVEO got the exclusive rights to develop and commercialize tivozanib across all countries outside Asia and the Middle East under a license from Kyowa Hakko Kirin in 2006.

    AVEO Pharmaceuticals, Inc. reported earnings of 10 cents per share in the third quarter of 2019 and bounced from the loss of 18 cents from last year.

    Several days ago, on November 12, the company reported revenues of $25.7 million which is an increase of $2.5 million year-to-year. This new revenue beat all experts’ expectations. That influenced the stock price and it jumped a short after report for 8,8%. But that increase came after the stock dropped almost 65% this year while the whole industry marked an increase of 1,2%.

    Why invest in AVEO?

    This increase in stock price didn’t last for a long, 3 days later. November 15, the price dropped from $0.64 to $0.63 and decreased over 3 days in a row. The stock price varied 4.56% from a day low at $0.63 to a day high of $0.66. The good news is that the trading volume fell also because the volume has to follow the stock price. On the last trading day, the volume lowered by 2.34 million shares.
    And the price is rising at a high speed, more and more. At the moment of writing this post, it rose to almost 5%. Watch this stock. It is possible to see $10 next year.

     

  • LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market
    LCI Industries (LCII) supplies a large number of highly engineered components for the leading original equipment manufacturers.
    Recently, LCI announced the Q3 earnings report and the stock looks like a good option for value investors.

    By Gorica Gligorijevic

    LCI Industries (LCII), announced a few days ago that the Board of Directors authorized a quarterly dividend of $0.65/share of common stock on December 20, 2019. The dividend is payable to the stockholders that record at the close of business on December 6, 2019. Almost at the same time the company LCI Industries appointed Johnny Sirpilla to Board of Directors. Johnny Sirpilla is the founder of Encourage LLC. It is a small equity firm investing in population health management, employee health, medical device development, cancer prevention testing, fashion, interior design, senior living communities, residential and commercial development projects, etc.

    This stock could easily provide a 204% profit in just over 5 years. Insider information claims that there is a strong buying activity of this stock. 

    It is currently traded at $104.71.

     

    On November 5 the company issued a Q3 earnings report and had an earnings call presentation. 

    LCI Industries revenue

    The company reported third-quarter revenues of $586 million which is down 3% from the same quarter last year. Its wholesale shipments declined double-digits. Also, LCI reported a content increase in towable RVs, innovations that provide them to perform better than the other similar companies in the market.

    LCI’s international markets now exceed 41% of the total net sales. The operating margins are improved, according to the report.

    Despite the increase in the content of towable RV increasing 2.2%, there was a drop in content for the motorhome. That decreased 2.9% over the past 12 months due to a shift to smaller motorhomes this year. The bright side of this report is the increase in sales RVs among younger buyers. 

    LCI Industries reported $1.42 EPS for the quarter, beating the consensus estimate of $1.40 by $0.02. As we said, the company had revenue of $586.20 million for the quarter. The consensus estimation was of $578.87 million. LCI Industries has made $5.86 earnings per share over the last year. The current price-to-earnings ratio is 17.9. LCI Industries’ next earnings publication date is Thursday, February 6th, 2020 based on last year’s report dates.

    Investors interested in stocks from this industry estimate the LCI value opportunity in the future.

    Why LCII stock has a buy signal?

    LCII’s earnings have an improving outlook. Value investors examine figures to determine whether a company is undervalued.

    LCII forward P/E ratio is 18.88 and a PEG ratio of 1.18, which is a very important figure for a company’s expected earnings growth rate.

    The P/B ratio is 3.41. For value investors, the P/B ratio is important to compare a stock’s market value to its book value. 

    LCII stands above others due to its stable earnings outlook. 

    So Traders-Paradise opinion is that LCII is an excellent value option with more possibilities in the future.

    LCI Industries has increased its EPS by an average of 2.2% per year, during the last 3 years. In the last year, but its revenue is down by 5.7%. To be honest, it is always better to see revenue growth, but never forget how EPS growth is important. For LCI Industries, these two metrics are running in diverse directions, so despite the fact that it is difficult to be sure of future performance, we think this stock deserves to be watched. Moreover, this stock looks undervalued in comparison to its fair value. LCII  is trading at $104.71 which is below some experts estimations of the stock’s fair value at $150.64.

    About LCI Industries

    LCI Industries manufactures recreational vehicles, popular RVs, and accessories. The company sells toolboxes, truck caps, running boards, side-outs, mattresses, alignment systems, shock absorber, power stabilizer jacks, baggage doors, and sliders. LCI Industries sells its products globally.

    Customers are extremely satisfied with this company claiming the workers and support service at this company are great. Investors could be satisfied since the estimations show that the company has offices in Elkhart, Bradenton, Chesaning, Denver, and in 32 other locations. LCI has over 10.000 employees across 55 locations. The company’s headquarters is in White Plains, New York, United States.

     

  • Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch
    Designer Brands Inc. is a US-based company, belongs to the Services sector and Apparel Stores industry. It has a market capitalization of $1.28B. 

    By Guy Avtalyon

    Designer Brands became the new name for DSW Inc.from May this year. At that time they announced they will add more other designers’ shoes and accessories. The company began trading under a new ticker, DBI, on the New York Stock Exchange on April 2.

    Let’s take a look at its potential as an investment. Actually, we’ll analyze its Return On Capital Employed (ROCE), because that will give us a sense of the quality of the business.

    ROCE will show the ‘return’ a company generates from its capital. When you see a company with higher ROCE it is a sign that you are dealing with a business with better quality.

    Here is the formula:

    Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

    For Designer Brands based on data for the first eight months this year, it is calculated

    0.084 = $160m ÷ ($2.6b – US$649m) or 8,4%

    Is it good or bad for Designers Brands?

    ROCE is helpful to see relations between related companies in the same industry. If we compare its ROCE, for example, with returns on bonds, we can see that this result wasn’t excellent. Designer Brands’s ROCE was average. And investors may find better opportunities in some other investment, right?

    ROCE of 8,4% is almost double less than what the company had 3 years ago when it was 15%. What does it mean? Well, several reasons can be in the play but it is obvious that the company has some problems.

    When you employ ROCE as a metric one thing you have to keep in your mind. It is a helpful tool, but it is not without disadvantages. You have to be cautious when examining the ROCE of different companies because there is no two or more companies that are precisely similar.

    ROCE isn’t necessarily a good metric due to the nature of the business. This kind of business usually has several sales peeks over the year but also the lower sales-rate periods. After the announcement of changing the name, Designer Brands’ revenue is constantly increasing.

    But what we can see is the Designer Brands has total liabilities of $649m and total assets of US$2.6b. So, its liabilities are approximately 25% of its assets which is a reasonable level and has a modest effect on ROCE.

    Designer Brands (DBI) is possible a good long-term investment. 

    The current price might go up to $20 in the next three months with a possible profit of up to 70% in 2 years.

    This stock has a strong buy signal since the short-term moving average is above the long-term moving average. It looks that further gains are very possible. But this stock is a risky one. It can move 3.40% between the high and low prices over one day as the historical data shows but last week’s average daily volatility was 3,37% which is medium. 

    If you are trading this stock maybe you should consider setting the stop-loss limit at -5,60%. It looks that this stock is currently well priced, it isn’t oversold and not overbought but the stock may be undervalued. That gives the space to raise more.

    Designer Brands (DBI) is a stock many investors are following right now. The stock forward P/E ratio is 7.76. Its industry’s average forward P/E is 10.72. Over the past 12 months, the highest forward P/E ratio was15.30 and the lowest was 6.84, which lead us to a median of 11.14.

    The price has been changed in four past weeks for 5.13% and for the last three months 18.80%. Considering the possibilities of its earnings, DBI stands out as one of the market’s hottest value stocks right now.

    What is Designer Brands?

    Designer Brands is one of the largest designers, producers, and retailers of footwear and accessories in the USA.

    Under the name, DSW (Designer Shoe Warehouse) the first store opened in 1991 in Dublin, Ohio. Today, DSW holds more than 500 stores in 44 states. Also, there is the Affiliated Business Group with almost 290 leased units for retailers, such as Stein Mart.

    The company also operates in Canada, in collaboration with The Shoe Company and Shoe Warehouse trough 150 locations. 

    In 2018, Designer Brands acquired Camuto Group, best known for the Vince Camuto® brand and the Jessica Simpson® and Lucky Brand®. This partnership provides Designer Brands to be one of the largest footwear companies in North America. It opened global capabilities in product design, development, and production. The company seems to be moving to a long-term strategy for growth and relevance with customers.

    Since 2005, the company is traded on the NYSE under the ticker symbol DBI.

     

  • Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

    Canopy Growth lost more than it was estimated. The reasons are numerous.
    Its stock is in big troubles after Q2 earnings report on 

    Canopy Growth (NYSE: CGC),  announced the second-quarter earning a result on Thursday, Nov. 14. Canopy Growth, the largest marijuana stock in the world by market cap, reported it lost $20.3 million over the second fiscal quarter. The loss came from returned cannabis oil products. Simply,  it looks people would like to smoke marijuana but don’t like its oil products and the retailers in Canada returned it to the producer. It looks the rocky quarter is behind the company. The sales dropped, and the price resulted in a loss of $1.08 a share during the quarter.

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    Its shares fell by around 11% in pre-market trading. That was the response to the report. If this trend continues, its price could easily drop by up to 20% this week. Yesterday, November 14, the price was $15.84 which is a decline of over 14%. Bad days for this company with a market cap of $5.285B.

    Canopy Growth Lost $20.3 million

    Net revenue for the second fiscal quarter was $57.8 million, dropping from the Q1 score of $68.3 million. The company’s net loss increased. It is $282.7 million.
    The performance was worse than the experts expected, they were expecting net revenue of $68.4 million and a net loss of $0.31 per share.
    The expanding market for medical cannabis outside improved 72% over Q1 to $14 million. The same came from recreational cannabis sales – an increase of 24% to $10 million.

    What tends to go wrong, will go wrong

    Canopy Growth’s Q2 report exposed two modest but positive improvements: the gross cannabis revenues grew by 2% and the company closed this period with $2.04 billion in cash, its equivalents, and securities. But that’s all.
    Canada’s legal marijuana market has problems that influence all authorized cultivators. Company’s CEO Mark Zekulin stated: 

    “The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market”

    The thing that went wrong is that Canopy took a huge $24 million restructuring debit. To add more pain, the company posted an inventory charge of $12 million. And its Q2 net revenue is $57.8. Much under Wall Street expectations.
    Zekulin said that the management believes this situation is short-term and “Canopy continues to be best positioned with cash-on-hand, a world-class infrastructure, and a portfolio of intellectual property”. 

     

    Canopy Growth lost, what will happen to the shares?

    Canopy’s shares will apparently continue to fall for several reasons. The company’s valuation continues separated from the rest of the legal marijuana industry. For example, its shares are trading eight times more than the next year’s projected sales despite the fact that the company will end up dropping under those optimistic revenue predictions.
    The various problems of the Canadian cannabis market could need years to be solved. 

    Investors’ expectations that the marijuana legalization will be done in a short time all over the world, firstly in the US, were unrealistic. And it looks like it won’t be soon. This subject has barely been touched on by any of the contenders in the next year’s presidential run. 

    The Canopy Growth stock is at its weakest level since 2017. It has lost over 40% of its value this year. Canopy’s shares are deeply unlikely to bounce anytime soon.