Year: 2019

  • Amazon’s Workers or Why I’ll Never Invest in Amazon?

    Amazon’s Workers or Why I’ll Never Invest in Amazon?

    Amazon's Workers or Why I’ll Never Invest in Amazon?
    Amazon’s workers are under pressure, afraid of being punished if take time off, don’t talk to each other during working hours
    Over three months 28 ambulance calls were made from just one of Amazon’s fulfillment centers asking for medical help. Over the years several were made way too late to save people’s lives

    by Gorica Gligorijevic

    Amazon's workers work under pressure

    First of all, I don’t need toxic toys, diet books, self-help books, or clothes that don’t match the picture from the catalog. And moreover, I don’t understand people who are still buying on Amazon after the reports of the inhuman treatment of their employees. For me, as an investor, is extremely important that the company has good vibes with employees. That it takes care of them, and that it is honest. 

    Recently I was reading some articles about Amazon’s PR “headaches” and concerns about work conditions in its fulfillment centers. The stories I found were true horror.  

    The company has installed a stupid advertising campaign featuring employees saying things like: “I bake cakes every Tuesday!” 

    What does it mean, for God’s sake? Should it have to show us how happy they are? What’s wrong with you people? Workers are not robots (yes, I know Amazon prefers robots), workers are human beings, with problems, emotions, ambitions, life outside the workplace.

    Amazon’s invisible army of hundreds of thousands of employees secures millions of packages are delivered every day. The employees’ testimonies, I have been reading, were scary.

    They expressed their long work hours as a “brutal”, labor slavery, compulsory 60-hours work weeks, they are afraid to take time off, report workplace injuries, and the enormous pressure even during regular days not only around the holidays. And moreover, the company doesn’t care.

    For example, Business Insider reported that ambulance callouts increased during the company’s busiest weeks of the year to three Amazon warehouses in the UK.

    Amazon’s $15 minimum wage per hour

    What Amazon’s workers have to do for that amount?
    Amazon stated it is satisfied with its “great working conditions, wages and benefits, and career opportunities.” Really?
    Should we ask Nick Oates from Kansas City?
    Prior to Cyber Monday in 2018, it was ugly weather in Kansas City. The governor at the time, Jeff Colyer, had to declare a state of emergency on November 25, and people had to stay off the roads. But Oates and his colleagues had to work without excuse. For several months he was living in his car and worked in the fulfillment center since he took medical leave from Amazon for depression. Nobody cared!

    Amazon stated at that time: the staff is advised to stay at home if they think it’s not safe to travel and can do so without fear of punishment. But Oates said his experience showed how far employees will go to provide Amazon’s ability to operate. I would like to add: and how afraid they are to take time off or refuse the overtime. 

    Barely these workers had been in the spotlight.

    In September this year, Billy Foister, a 48-year-old warehouse worker in Amazon, died after a heart attack at work. His brother told media that an Amazon human resources representative said to him that Billy had lain on the floor for 20 minutes before getting attention from Amazon’s internal safety responders.

    “How can you not see a 6ft 3in man laying on the ground and not help him within 20 minutes? A couple of days before, he put the wrong product in the wrong bin and within two minutes management saw it on camera and came down to talk to him about it,” Edward Foister said to The Guardian.

    How is possible that the worker is on the floor 20 minutes and nobody notice that? It is unbelievable! If you have co-workers, colleagues, working with you, you are talking from time to time during the shift, you can see each other, even if you are working in some lab, not in bloody Amazon’s warehouse.

    More accidents to Amazon’s workers 

    This case isn’t the first the company has been accused of providing delayed medical attention to a warehouse worker during working hours. In January this year, the widow of Thomas Becker filed a lawsuit against Amazon. She claimed that management hesitated to provide medical attention during a cardiac arrest. Becker worked at Amazon’s warehouse in 2017 in Joliet, Illinois. 

    From January to March 2019, over three months 28 ambulance calls were made from the warehouse in Etna, Ohio. Five employees with suicidal concerns and five on-the-job injuries. About 3,700 workers are employed at this fulfillment center.

    An Amazon spokesperson said: “Safety is a fundamental principle across our company and is inherent in our facility infrastructure, design, and operations.” Really? With reports of temperatures reaching 45 degrees Celsius during summers in some warehouses and workers who work in them for stretches of 4-5 hours without a break, worker safety doesn’t appear to be “fundamental principle”.

    Bottom line

    Horror stories of working conditions in Amazon and Amazon’s workers have overwhelmed the news, walkouts have erupted across Europe, and lawmakers in the US have lobbied for pay raises. Amazon’s founder and CEO, Jeff Bezos, has turned Amazon into a $790 billion worth company. Yes, he is the richest man in the world. But I don’t have to make him richer. Not me. I wish him luck but my money will stay with me. I’ll never invest in such a cruel company. Profit is important but human lives are more so. 

    I don’t want to say that Amazon isn’t worth investing in, these are my personal reasons why I want to stay away from it.

  • Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits
    Crocs have sold more than 300 million pairs of shoes in more than 90 countries.
    Crocs is traded on the NASDAQ stock market under the ticker symbol CROX. Market Cap:  $2.44 B Current Price: $35.51

    Crocs reported Q3 on October, 30. The company reported revenues of $313 million, which represents the new third-quarter record for Crocs or an increase of 20% – 21%. It also reported reducing revenues due to currencies of $3.0 million and reduced revenues of $4.0 million due to closing stores. But the wholesale revenues increased by 25.4%, e-commerce sales rose 28.2%, and retail comparable store sales increased by 12.5%. Gross margin was 52.4%, in the same period last year it was 53.3%. Adjusted gross margin increased 30 basis points compared to last year’s third quarter. 

    Crocs had, according to the Q3 report, adjusted earnings per share of 57 cents. The experts’ estimation was 40 cents. The company’s shares were up more than 10% to nearly $37 after reporting. The current price is $35.51. CEO Andrew Rees said, “Our Americas business delivered exceptional growth, driven in part by another highly successful back-to-school season.”
    The great results produced a tendency for Crocs to boost its full-year guidance to 11%–12% revenue growth over 2018.

     

    “The Crocs brand momentum continues to gain pace, and for 2020 we anticipate revenue growth over 2019 of 12% to 14%,” said Rees.

    Crocs have closed more than 150 stores over the past several years. The competition was very strong. It has also focused its works on its Classic clog, profiting from the shift toward more casual and comfortable footwear. 

    Is Crocs a good investment?

    The investors should be enthusiastic about the Crocs (NASDAQ: CROX).
    Crocs is in the center of a strong increasing trend in the short term. The stock is assumed to increase 54.16% in the next 3 months and, so the price to climb between $52.32 and $62.85, expect experts. Moreover, they are seeing only positive signals for this company and strong buy signals from the short and long-term moving averages.
    A general buy signal is supported by the relationship of those two, the short-term average is above the long-term average.

    Where the problem may arise?

    The support level is between $35.42 and $32.45. If the price falls under these levels it will be a sell signal. For now, it is a strong buy signal and an indication of additional gains. The consideration may occur because the volume fell on November, 12 notwithstanding growing prices. This shows a divergence between volume and price and it may be an unexpected warning. 

    But some experts see a great potential of holding this stock in the long run. Their estimations show a possible fantastic 152% profit in 18 months. The investment analysts think the Crocs stock is good to buy. 

    Important info about Crocs

    Crocs, Inc. is a worldwide recognized as a leading producer of casual footwear with a broad portfolio of all-season colorful pairs of shoes. Crocs were first exposed at the 2002 Fort Lauderdale Boat Show.

    Famous clogs were originally developed as boat shoes produced by a Canadian Company, Foam Creations, Inc. The new shoes were molded into the shape of a human foot. Just a few years later they have become practical footwear in households and professions. The ugly trend overflowed the world. You cannot love Crocs because of its aesthetics. These ugly clogs made a trap for the brand. The producer claimed that only one pair will last a lifetime. The fashion industry surviving thanks to many and frequent shifts and this kind of thinking was so far from the industry. But that has never slowed Crocs down. The slippers wipe-clean and non-slip build sent them straight to kitchens, hospitals, everywhere the workers have to stay on their feet for a long time. 

    It went public in 2006

    The company had already adopted Crocs, Inc. In its presentation to investors, the company announced plans that requested for new footwear models, developed distribution in the US and over the world. 

    As investors’ interest in Crocs expanded, the company was able to increase its asking price and the number of shares on the market. Firstly, the plan was to sell 9.9 million shares at $13 to $15 per share. Crocs managed to add a bit more than a million shares and hit its asking price to the $19 to $20 range. Investors liked the company since the Crocs had extraordinary growth and a product that had a global appeal.

    Today nothing has changed. Crocs is one of the most popular producers of slippers. But that isn’t the only product they have: clogs, boots, other kinds of footwear, but with a common characteristic: comfortable, long-last, colorful and funny.
    The stock should be watched closely, it can produce a great profit.

     

  • Civeo Corporation Could Be Good Turnaround Stock

    Civeo Corporation Could Be Good Turnaround Stock

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

    by Gorica Gligorijevic

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

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

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

    Market Cap $162.547M
    Current price $0.9587

     

    Why invest in Civeo Corporation stock?

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

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

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

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

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

    Civeo Corporation company

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

    Why invest in turnaround stocks?

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

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

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

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

     

  • Nokia Stock – The Tale of the Rise and Fall

    Nokia Stock – The Tale of the Rise and Fall

    Nokia Stock - The Tale of the Rise and Fall

    Nokia’s problems around 5G networks may lead to sustained per share loss and limited margin expansion over the next 12-24 months

    Nokia stock is falling. On Friday, November, 8 shares of Nokia Corporation, (NYSE: NOK) displayed a change of 0. That day session it closed at $3.57. Nokia Corporation, a Finland based company, is the technological and communication equipment business. The shares of Nokia Corporation was among the active stocks on that day.

    What did happen?

    The famous manufacturer of telecom-grade networking equipment posted on October, 24 a Q3 report. And shares of Nokia fell 27.9% in the aftermath. The stock price fell due to disappointing undershooting of the guidance targets. Also, it fell in the Helsinki trade because Credit Suisse downgraded Nokia to neutral from outperform. Credit Suisse lowered Nokia’s target price to 3.85 euros from 5.70 euros. Credit Suisse thinks that Nokia may also lose 5G market share due to product delays and high costs.

    The Q3 report points to the 5G network as the main problem. 

    The company’s revenue rose 4% to $6.31 billion. Adjusted earnings lowered from $0.06 to $0.05 per American depositary receipt. Nokia also cut its earnings guidance by 22%. The reason behind, as the report declares, are the growing costs of keeping the company competitive in 5G business.

    Nokia also redirected its dividend funds into even more 5G investments. But don’t be so happy if Nokia is your favorite one. This move will not make Nokia a titan among others because the company is losing 5G contracts with important network operators, for example with Telecom Italia.

    The sudden drop in price isn’t recognized as a buying solution for Nokia shares. Wall Street issued some downgrades too and critical statements after the Q3 report. J.P. Morgan cut its price target on Nokia by 44% and excluded this stock from the list of top recommended.

    It is hard for Nokia’s stock to survive under these difficult conditions. The dividend cut is a clear sign for many investors to stay away and sell stocks, cheaper and cheaper.

    Nokia is suffering now due to stupid business decisions and strong-minded competition. It looks that 5G is a too big bite for this company. Do you remember what did Nokia with the possibility of develope smartphones? It was almost 10 years ago. Instead to took part, Nokia stepped away and made space for others. Only to enter the market late in the game with the Windows Mobile platform, which was dead on arrival due to illogical design decisions. It looks that market shifts with the speed that Nokia isn’t able to catch.

    This became obvious in late October when Nokia made important cuts in its guidance and suspended its dividend. 

    Are there better times for Nokia stock?

    Well, the company made all these moves with an explanation that Nokia has the goal: huge capital investments into 5G networking. That could be a good hunch. But, on the other hand, Nokia may place a big bet, bigger than the company can afford at this time. Increasing investments in the way Nokia is doing may produce some income in the long term, but it has to survive on that path. Is it able? 

    Investors say no. Nokia stock is currently displaying a down return of -2.46 all last week and we can see the bearish return of -27.73 for the last 30 days.

    Some can ask why decreasing the Nokia stock price is not a good buying opportunity. Well, it looks that Nokia came too late on this battlefield.

    5G technology is in development for some time and the biggest players in tech were preparing for a long time to take advantage. Despite the thinking that a low price is a good chance to buy stock, this stock looks very suspicions. Maybe it is better to stay away for some time and watch in which direction the company will go. 

    Bottom line

    Today is November 12, 2019. It’s Tuesday and the current price of NOK stock is $3.535. Our data shows that the price is in a downtrend during the past 12 months with a sharp drop after the Q3 report. This stock should tend to fall more. Should you add a Nokia stock to your portfolio now? It’s up to you. Our opinion is that NOK may decline further in the next 12 months, even to 35%. But in the long run, NOK may be a good investment if you can wait for several years.

  • Brookfield Renewable Partners – High Yielding Stock

    Brookfield Renewable Partners – High Yielding Stock

    Brookfield Renewable Partners - High Yielding Stock

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

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

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

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

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

    Brookfield Renewable Partners - High Yielding Stock

     

    Sachin Shah, CEO of Brookfield Renewable said:

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

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

    The company’s portfolio is growing

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

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

    Canadian Corporation

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

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

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

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

     

    The success of Brookfield Renewable Partners operations

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

    Bottom line

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

     

  • International Paper Company Could Be Great Stock In 2020

    International Paper Company Could Be Great Stock In 2020

    International Paper (IP) Could Be Great Stock In 2020

    International Paper Company is quite capable of surprise, it is undervalued due to its EPS growth, but dividends are steady
    Market Cap: $17.7 billion
    Yield: 4.5%
    Revenue: $22.8 billion

    International Paper Company (IP) is a producer of packaging, paper, and pulp, based on fiber. You might think how a paper producer can be a good choice for investing in when everything around us is already digitized, who and why would need paper. Well, that is true, but only this part about digitalization. The usage of paper isn’t dead and the paper isn’t going to lose the battle in the digital era. Okay, we are ordering things online but do they come to our doors? Packed in one of International Paper’s products. Or from some other producer, of course, but we are talking about IP now.

    Not to be forgotten, some news appears that IP is about to go ex-dividend on November 14. So, you have to buy their shares before that date to receive the dividend. It will be paid on December 16.

    International paper dividend

    The company’s next dividend payment to shareholders will be $0.5 per share. That is less than the last year when they paid $2.1. If we take a look at payments from the past year, the company has a trailing yield of about 4.4% on the share price of $46.21. 

     

    Some data is very important when you have to decide to buy or not some stock because of its dividend. 

    The International Paper paid out 58% of its profit to shareholders last year. Nothing strange with that payout,  it is a regular level for most companies. But take a look at its cash flow since it is more valuable than profits when estimating a dividend. Well, IP did it well last year, it paid 35% of free cash flow. It’s good to see that the dividend is well covered, so the dividend is sustainable. Of course, it will be until earnings drop sharply.

    Is it a good dividend stock? 

    International Paper shareholders have seen a support expansion from the money managers in the past several months. After the second quarter of this year, about 30 hedge funds held IP in their portfolios. But the surprising thing is that IP stock isn’t amongst the 30 most popular. That has to be noticed.

    This company is paying dividends over 10 years now. For long-term investors, the companies that are paying dividends can be worthwhile.  International Paper Company is yielding 4.8% so for some investors it is a good opportunity if they want to buy the stock because of it.  The company has significant debts, so you will need to check its balance sheet to see if there is any debt risks.
    International Paper has a net debt of 2.61 times its EBITDA. Yes, debts are good to stimulate business growth but can boost the risks. During the last 10 years, the IP dividend has been constant. That is a sign that the company had a consistent earnings dynamic. 

    International Paper Company paid $1,00 per share in 2019, last year it paid $2,00 which is a CAGR of about 7.2% a year. This is very worthy over the long term investors if the rate of growth can be kept or increased. Also, IP would have a better result if earnings per share could grow too. Instead, the company’s EPS are flat over the past 5 years. 

    Bottom line

    When we want to buy a dividend stock, we want to know will the dividend grow, is the company is capable to support it in different economic conditions and is the dividend payout is sustainable. International Paper company’s dividend payments look fully covered. Moreover, International Paper appears like a great chance. It could be a good fit.

  • Qorvo Is Ready to Trade Higher

    Qorvo Is Ready to Trade Higher

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

    By Guy Avtalyon

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

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

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

    What is Qorvo

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

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

    Qorvo stock

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

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

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

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

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

    Does Qorvo’s stock has potential? 

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

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

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

  • Yield Curve Turned Positive

    Yield Curve Turned Positive

    Yield Curve Turned Positive

    The yield curve, an indicator from the bond market a few months ago was inverted and started alerts about the risk of a recession. Yield curve turned positive now, and that brings relief to the markets.

    The inverted yield curve is recognized as a recession warning. And now it isn’t inverted, the yield curve has turned positive now. So, can we speak about recession further? Well, that is not how these things work.

    OK, the stocks are rising, but they have turned into the new high. And what investors have to do now, to wait or hop? It looks like investors are cautious. 

    The market is an all-time high, as a difference from the past two years.

    The statistic is looking good for income investors since the 21 of the 30 Dow Jones Industrial stocks have yields of over 2%.

    But a 10-year US Treasury bond yield is below 2%, that level seems to be too low. Therefore, there seems to be risk without a proper return from holding bonds now. This means, there is a reasonable expectation that investors could turn to stocks. When bond prices are low and yield is low, such as right now, the investors could move out of bonds into stocks because stocks are offering a better return now.

    This is something known as great rotation.

    The positive yield curve should be a sign that rationality has returned and the markets are in regular condition now. Are investors ready for this situation and are able to adjust immediately? We are afraid that changes happened too fast and investors couldn’t be efficient at making instant trades. Only a few months ago, investors were convinced that the recession is coming, since the yield curve was inverted. And now the inverted yield curve turned positive. Earnings reports are great, stocks are growing, consumer confidence is returning, conditions look excellent. How can we mention the recession anymore?

    And this is something we have to make more clear.

    The yield curve inversions virtually ever lead recessions, but it isn’t necessarily happening right now, in the same moment. What experts noticed is that we will need about 20 months or 2-3 months more or less to see the recession triggered by inversion of the yield curve.  

    What can we expect when the yield curve turned positive?

    That should produce a change to the markets, and to forget a recession fears. This positive economic turn should produce stock prices to grow. How this can happen? Only if investors take action and invest. Their actions must have turned direction, they have to leave low yield bonds and jump into the stocks. So simple? Yes.

    The truth is, we are in an atmosphere where even the smallest piece of negative news adds fears in our lives. When the negative yield curve appeared everyone was talking about it. The newspapers were reporting, the experts were screaming from TVs, investors moved to bonds. And what we had is that yield curve was inverted and now shifts very quickly to positive giving us no breath. 

    The stock market is driven by expectations but we all have to turn to reality. The reality is clear when it comes to investing: stay focused on long-term goals and avoid emotional reactions. Don’t pay attention to a daily stock price’s changes. We must have a bigger horizon.

  • Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

    Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

    Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

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

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

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

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

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

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

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

    Should you sell or buy Canadian solar stock

    The CSIQ stock price:

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

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

                                                                                                               Image source https://walletinvestor.com/

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

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

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

  • 5G Network The Next Technology Revolution

    5G Network The Next Technology Revolution

    5G Network Is Not Just The Next Revolution For Your Mobile
    The development of a 5G network will give us the ability to communicate faster. It will provide us the control of large numbers of devices at the same time.
    5G network can support large networks of low-power scanners able to send and receive data and it is a good opportunity for investors

    By Guy Avtalyon

    In the past few years, the development of a 5G network is in focus. For starters, don’t equate 5G with smartphones. 5G is much more than only higher-quality streaming and faster downloads on your mobiles. To quote Robert J. Topol, Intel’s general manager of 5G development: “5G will be the post-smartphone era” pointing that mobiles will be the first place for launching due to their strong presence in our lives. 

    And prevalent understanding of 5G has to be changed since the possibilities are enormous. Much bigger than we can imagine right now. For example, 5G lower latencies and jitter produces almost lack of any lag. 

    But, let’s say a few words about the 5G data network.

    5G could easily open the potential of many other advanced technologies.
    Due to the ability to share information in real-time, 5G will let a surgeon in London operate on a patient in Peru using wireless robotics with almost zero lag.

    Moreover, some technologies and apps unimaginable until now may soon be our reality.

    Speaking about mobiles, who was able to predict 25 years ago that we will have Bluetooth handsets or wi-fi coverage with the gigabit-speed internet? Okay, you are the smartest one! Thank you.

    And what about  AR glasses and VR headsets?

    Tech companies are convinced that these devices will finally replace our smartphones. With 5G, that could really occur with no doubts.

    5G’s extreme speed and functionality could lead to a new age of technological and entrepreneurial development. Forbes wrote that self-driving cars “won’t work until we have 5G”.
    And do you know what is an extremely important part of this?
    Experts are expecting that 22 million jobs could be created for improving existing infrastructure to the 5G standard.

    5Gs speed is up to 20 gigabits per second. That is more than 20 times faster than 4G’s limit.5G networks can support global connectivity for almost any industry.

    5G could make driverless cars effective and practical. We will have cars with 5G connections in a few years, directly interacting with other cars, traffic lights and we will know where open parking places or traffic congestions are.

    5G networks can support global connectivity for almost any industry.

    Can you imagine the future schools when implementing 5G? Can you recognize all the possibilities for the rising quality of learning? There will be no need to rely on textbooks. Instead, the kids will have real life in the classroom, virtual and augmented reality experience.
    Of course, this isn’t going to happen overnight. But you can be sure that the main changes will happen in the next several years.
    The 5G network is created to provide a signal for a far larger number of devices, at the same time, than a conventional cellular network can. 5G network can provide control of various devices, whether it’s a communicator or a refrigerator. 

    Moreover, it is created for managing and controlling the tools and machines needed in businesses. For example, agriculture equipment, ATMs, or some other device like a sensor for compost. In essence, they are low-power scanners that are able to operate on the same battery for almost 10 years and to send and receive data.

    And, sorry but you can’t just pick up 5G with your current smartphone. 5G technology needs a special set of antennas to communicate in specific radio-signal bands. You will need to buy a new one.

    5G is here. More and more countries come online and more 5G devices are available, and not just in the luxury high-end segments. Find one for you.

    We’ll start to recognize the full potential of 5G very soon. And forget about the fear-mongering of alleged health hazards due to high-frequency radio waves. The Wi-Fi uses 5GHz band, and is perfectly safe, so why wouldn’t 5G also be safe while operating on similar frequencies. And it is a good investment too.