Year: 2019

This Week is Full of Q3 Earnings Reports – Stay, Watch and Monitor

This week will start with Q3 earnings reports on Monday with Halliburton and TD Ameritrade.

The question arises, will economic instability and trade worries continue to frighten investors? Let’s see what we can expect from the Q3 earnings reports.

Tuesday is a day D for Procter & Gamble, McDonald’s, Kimberly-Clark, United Technologies, Chipotle Mexican Grill.

Procter & Gamble (NYSE: PG)

It will be on the schedule before the morning bell. Wall Street wants a profit of $1.24 per share and revenue of $17.4 billion to start off the company’s 2020 fiscal year.

Procter & Gamble’s stock has grown from $81.91 in September 2018 to $117.47 now. In Septembre this year, it was $123.

This company managed to grow earnings at a rate of 7% per year, but revenue has risen by a slight more 1% per year over the past 3 years. It is expected that the company will report earnings per share at $1,24. For the first quarter, it was $1.12. Also, the analysts’ consensus estimates revenue at $17.43 billion. That is 4.4% bigger than the $16.7 billion gained last year.

In the last quarter of 2019, earnings rose by 17% and revenue rose by 4%. Analysts foresee earnings to increase by 7% in fiscal 2020, and revenue to increase by 3.5%. The return on equity was 23.9% and a profit margin of 21.9% which is solid for the management’s effectiveness.

Yes, someone may say it isn’t so good if compare with some high-tech stock, but Procter & Gamble is giant, one of the oldest in the US and the consumer packaged goods company.

McDonald’s (MCD)

It looks like Mickey D’s hits an increase in third-quarter profits and sales. Investors will like to know how McDonald’s will capitalize on two new trends such as the chicken sandwich craze and the demand for meat-alternative burgers. In September, McDonald’s began testing a Beyond Meat plant-based burger in Canada.

McDonald’s is scheduled to report earnings on Tuesday, Oct. 22, before the market bell. According to analysts’ consensus estimate, the company is expected to report $2.21 a share profit on sales of $5.49 billion.

McDonald’s shares are displaying peaking and finished the week at $208.50.

It looks that new products such as all-day breakfast or doughnut sticks attracted new consumers and Mickey D’s global sales gain a great increase. Investments in new technologies continue to pay off and are increasing traffic. Good news for investors because share momentum again revives.

On Wednesday Ford is scheduled for Q3 Earnings Reports

Ford Motor Company (NYSE:F)

It will release Q3 earnings on October 23, after the market close. The fears among investor is great. The largest automakers is challenging difficulties in improving demand for its cars. Analysts forecast that the company will report $0.26 a share profit on sales of $36.86 billion.

Ford has several very hard years behind. After so many successful years, this carmaker giant is forced to restructure because the demand for its sedan cars is decreased.

This restructuring will result in cutting salaried jobs, some oversea factories may be closed and also the car dealer. Ford has to build the capacity to manufacture electric and driverless cars if wants to stay in the focus of buyers. And yes, the management already took some steps toward this. But the company’s shares are still under pressure and currently are traded at $9,29. At the end of the last trading week, the stock rose by 2%.

Thursday is for Intel’s Q3 Earnings Reports.

Intel (NASDAQ:INTC)

The globe’s largest chipmaker will also come under intense analysis when it reports earnings on Thursday, Oct. 24. It is scheduled after the close. According to analyst consensus, it is expected to report $1.23 a share profit on revenue of $18.02 billion.

Its last report showed that the company is able to outdo everyone’s expectations. Over that period Intel Intel profited from growing demand for personal computers, and sales of higher-priced server chips. Investors will check is this semiconductor giant was able to maintain that demand surge in Q3. Also, they would like to know what are the company’s plans for the end of the year.

Intel shares were closed at $51.36 on Friday. But have underperformed the benchmark S&P 500 Index this year. The main reason is concerns due to the trade war. If it escalates and China raises tariffs it can be tricky for this company because China is a major semiconductor market.

Coming Q3 earnings reports could help exclude some of those questions.

Bottom line

This week is overflowing with questions about whether economic instability and trade worries will continue to scare investors. It will be a very hard week for many companies. What investors can do is to watch and monitor to be able to react if it is necessary.

21st October 2019
Shefa Gems Mining Company Stock

Shefa Gems is an Israeli company, a miner concentrated on precious stones.

By Guy Avtalyon

Shefa Gems projects are taken in Northern Israel. It is the explorer of globally recognized Carmeltazite. It is from Israel and listed on the London Stock Exchange.

Market Cap £8.6mln
Price: 5 GBX

Updated: October 29, 2019

Shefa Gems Ltd (LON:SEFA) Death of Director Abraham Ben Leah (Avi)
Shefa Gems announced that Avi Taub, Chief Executive Officer of the Company, has passed away following a short illness.
Vered Toledo, Chief Operating Officer said: “We all stayed with Avi vision and we have a mission to fulfill now – open the first alluvial gems mine in the Kishon Mid Reach northern Israel – I’m sure that with the help of God we will do it all for Abraham Ben Leah blessed memory.”
Our condolences to his family and the Shafa team.

Is Shefa Gems publicly listed

Shefa Gems is listed on the London Stock Exchange (LSE) under the ticker: SEFA

In the USA trading in the Shefa Gems Shares is available via brokers such as Fidelity or Charles Schwab

Shefa Gems Ltd (LON: SEFA) is an Israel-based exploration mining company with its operations orientated to the north of the country.

About Shefa Gems Ltd.

Shefa Gems, formerly known as Shefa Yamim, is essentially a precious stone miner. It discovered rubies, sapphires, Carmel sapphires, and diamonds.
Shefa Gems’ focus is on exploration targets that it believes to have the highest upside and can be taken into production at an almost low cost. The company offers its services in Israel where founded in 1999.

Shefa Gems is a pioneer in precious stones exploration in Israel.

We found on its official website: “The first and only company in Israel focusing exclusively in mining exploration of precious stones in the North of the holy land.”
Shefa Gems Ltd (LON: SEFA) has delivered the highest grade results to date from Zone 2 of its Kishon Mid-Reach project in Northern Israel.
Shefa Gems (LSE: SEFA) is currently moving towards trial mining and revenue generation at its Kishon Mid-Reach project in the Mount Carmel region of Northern Israel. Besides regulatory and operational works to reach the result, the company is developing an intelligent marketing strategy. They are creating a jewelry collection in cooperation with the internationally acclaimed designers.

The company is a multi-commodity explorer and the Kishon Mid-Reach is its primary asset. It a 4.5km-long and 150m-wide ground. The company has separated this field into three zones. Every zone is at different stages of exploration and development. Currently, most of the work is in Zone 1

Shefa Gems finished an independent technical-economic evaluation on Zone 1 in February 2019 and found that the first mine should be able to process 1.5Mts of gravel over 11 years. This capacity can probably be doubled, showed the result of the evaluation, by halving unit operating costs to $10.15/t.

The Possibilities

The company owns two prospectings and one exploration permit in northern Israel, covering a total area of 614 square kilometers. The main exploration spots are the primary volcanic sources on Mount Carmel and the secondary sources of valley-filled sediment deposits everywhere the Kishon River.

At Mount Carmel, the company has permission for 4 sources: Rakefet Magmatic Complex, Muhraka, Har Alon, and Beit Oren.

To date, most of the exploration work has been carried out on the Rakefet Magmatic Complex. The geological mapping and rock and soil sampling are completed. The gems and industrial minerals are found.

At Kishon, the main exploration target is the Kishon Mid-Reach. There is the company’s most high-level exploration project and open-ended exploration activities are being initiated to determine a SAMREC compliant Mineral Resource.

In October this year, the company performed its highest degree results to date from Zone 2 of its Kishon Mid-Reach project in Northern Israel. A sample yielding resulted in a mineral collection grade of 467 carats per 100 tonnes.

The company renewed its license for Zone 1 in August this year for added 12 months.

Shefa Yamim, today Shefa Gems Ltd. is listed on the London Stock Exchange in December 2017 after a placing and subscription at 110p per ordinary share. The company’s initial market capitalization was approximately £15.3mln. The company was 75% in the ownership of the subsidiary of Shefa Yamim Ltd, listed on the Tel Aviv Stock Exchange. After the London entry, the shareholding of Shefa Yamim Ltd has reduced to 48.9%. Traders-Paradise’s opinion is that investing this stock can have potential in the future.

20th October 2019
AT&T – This Stock Can Beat Any Recession

Why this stock is a good choice

By Guy Avtalyon

Could AT&T really beat a recession? According to historical data, it is a company with very good performances, a true winner. But let’s go a bit deeper.

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

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

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

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

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

AT&T stock today

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

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

AT&T dividends

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

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

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

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

Relationship with Elliott Management

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

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

AT&T and 5G

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

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

18th October 2019
Invest in Saudi Arabia

The Saudi Arabian economy, one of the strongest and most stable in the region, and has started a phase of transition. That is a great opportunity for investors.

By Guy Avtalyon

Invest in Saudi Arabia can be profitable but it is connected with some drawbacks. Saudi Arabia is the biggest economy in the Middle East. Its economy is growing, but at a more moderate rate than earlier, for example, during the oil growth at the beginning of this decade. Saudi Arabia’s government is spending about 7% to US$295 billion this year to encourage economic growth.

The economy is still supported by rich oil reserves, but oil prices are at the lowest in the past decade.

The Saudi government has endorsed a national plan called ‘Vision 2030’. This plan aims to modernize and diversify the economy. They have entrusted a huge quantity of assets to the Public Investment Fund (PIF). The goal is to increase employment, especially in the private sector, in retail, healthcare, and education.

Foreign investments are welcome too. To encourage them, the government opened the Saudi Arabian Stock Exchange, named Tadawul.

Tadawul

Tadawul is the only securities exchange in Saudi Arabia with about 150 listed companies and itis controlled by the Capital Market Authority. The exchange is weighted towards the financial services and energy industries but covers many other industries.

The Tadawul All Share Index (TASI), is very similar to the S&P 500.

The foreign investment rules are now more liberal than ever. The most important, listings and capital raises in Saudi Arabia were strong over the earlier year, while capital markets in other regional and oil-driven economies have dried up.

Saudi Arabia can be a very attractive investment target when oil prices are rising. At the same time, it is the trickiest part. The country is depending on crude oil and it is a limited source. Despite the government’s efforts, the diversification in other industries may not show the sustained result. We will see. But there are other benefits of investing in Saudi Arabia.

Relying on oil has some crucial benefits. Oil revenues are directed to the economic development programs managed by the government funds. Further, the government has already taken steps to privatize some industries, for example, telecom and electricity. Actually, they want to open up their market to fresh investment from foreign investors and especially in non-energy markets.

Where to invest in Saudi Arabia

Saudi Arabia has currently over 500 domestic funds in operation. That is the largest number of funds in the Middle East by a large margin. You can invest in asset classes such as listed equities, money market instruments, and corporate and sovereign debt. Also, private funds invest in real estate. That is the main asset for high net worth and institutional Saudi investors. Nowadays, there is an increase in private equity and venture capital due to the support of the CMA, SMEA, and other government authorities and various stimulus programs.

Saudi Arabia adopted seven Guiding Principles for Investment Policymaking in 2019. It includes among others, non- discrimination, investment protection, investment sustainability, transparency, protection of public policy concerns. And foreign investors are there.

For example, Aubin Group from the UK invested $743 million, DuPont, and Alphabet.

The stock of foreign direct investment rose last year and reached $230 billion. Foreign investments are essentially located in the chemical industry, tourism, fuel, automobiles, etc.

The case of Saudi Aramco

With a net income, last year of $111.1 billion, Saudi Aramco, the kingdom’s oil company, and the world’s most profitable company is not listed in Tadawul.

And the criteria for listing on the Tadawul aren’t as rigorous as some other exchanges like the London Stock Exchange or the New York Stock Exchange, for example.

“What we have always said is that Aramco is ready for listing whenever the shareholders make a decision to list,” Aramco President and CEO Amin Nasser told recently to reporters at the World Energy Conference in Abu Dhabi.

“The primary listing is to list locally but we are ready also for listing outside in other districts,” Nasser added.

Why invest in Saudi Arabia

If you want to invest in Saudi Arabia you should know some things. Saudi Arabia is ranked as 5th in the world for fiscal freedom. Also, it is the 3rd most rewarding tax system in the world. This country is among the 20 biggest economies and the biggest in the Middle East. It is one of the world’s fastest-growing countries and the largest free market in the Middle East. Also, Saudi Arabia is the biggest recipient of Foreign Direct Investment (FDI) among the Arab countries. The downside of investing in Saudi Arabia can be limited resources. But you can find plenty of companies to invest in. For example, it is recommended buying these stocks: THOB AL ASEEL CO., or ABDULLAH SAAD MOHAMMED ABO MOATI FOR BOOKSTORES CO., or BAAZEEM TRADING CO. Check them.

But stay tuned, there will be more about Saudi Arabia companies good to invest in.

18th October 2019
European Undervalued Stocks to Buy and Hold

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

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

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

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

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

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

Henkel

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

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

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

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

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

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

Roche Holding AG

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

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

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

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

BASF

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

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

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

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

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

Bottom line

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

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

17th October 2019
Sterling Weakened But Demands Increased

Sterling weakened from five-month highs.
Stocks in London dropped on Wednesday.
The UK and the EU close to concluding a draft agreement on Brexit.

Sterling has experienced decreasing from five-month highs. At the same time stocks in London fell on Wednesday. This disturbing situation came on concerns of talks between the UK and the EU to secure a Brexit deal. At this moment it looks like everything may fall apart.

This was the second volatile day in the UK markets caused by political uncertainty about the Brexit. At the end of last week talks about Brexit were continued. To the end of last week, sterling has surged about 5%. But on Wednesday the negotiations were paused. The national currency and stocks dropped on that news. The fresh news about Michel Barnier’s optimism about getting a deal couldn’t help.

Sterling has surged some 5% since late last week when London and Brussels restarted intense Brexit talks.

Wednesday morning showed a bad result for sterling. Sterling was down 0.3% at $1.2731, off session lows. Also, it a lot below a five-month high of $1.28 hit the day before.

Sterling weakened 0,3% against the euro too.

Trading volumes have grown in recent days. According to Refinitiv data, investors purchased and sold much more pounds than any other day in the past 12 months.
UK and EU officials renewed talks on Wednesday, but without an agreement before the summit that will be held on Thursday. The companies listed on the London market that operate at home, such as housebuilders or banks, grown last week. For example, JP Morgan’s domestic asset basket has beaten some exporters and the blue-chip FTSE 100.
Trading in sterling options showed high volatility in the currency.
British government bonds profited from the restored uncertainty. The10-year yields down 3 basis points at 0.66 %. September inflation data had a limited market influence.
Britain’s inflation rate slipped to grow as expected in September. The reason should seek in petrol prices. They dropped at the fastest rate in more than three years.

But demand for the British pound has continued Wednesday.

Investors are focused on the situation concerning Brexit. So, yesterday fresh news appeared. The UK and the EU are close to achieving an agreement on Brexit. The only concerns are will Boris Johnson gets support from Northern Ireland’s Democratic Unionist Party. Investors are waiting for the summit on Thursday. After that, the scenario of Brexit will be more clear.

The GBP stabilized after an important rally last week. Optimism toward the agreement of the Brexit process started to decline. EU diplomats want additional concessions from UK PM Boris Johnson. The important economic reports from the UK should come soon.

16th October 2019
Asian Undervalued Stocks To Buy

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

By Guy Avtalyon

Asian undervalued stocks are the same as any other undervalued stock. It is a stock that is selling at a price below what is expected to be its intrinsic value. For example, if a stock is selling for $20, but it is deserving $50 based on future cash flows, we can say it is an undervalued stock.

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

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

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

What are Asian undervalued stocks?

Japan Tobacco

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

The first of Asian undervalued stocks is Japan Tobacco, Inc. The company started in 1898 and its headquarter is in Tokyo, Japan.

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

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

Sinopharm

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

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

The company’s focus is on the wholesale and retail of pharmaceutical and healthcare products in China. Its Pharmaceutical Distribution section distributes medicines, medical devices, and pharmaceutical products to hospitals, retail drug stores, clinics, other distributors. The company’s Retail Pharmacy section manages and franchises a network of retail drug stores. They have over 5,100 retail pharmacies. Medical Device section distributes medical devices.

Also, Sinopharm focus is on the production, sale, and financial leasing of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products. Also, it offers information technology development and medical consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, etc.

CK Infrastructure Holding

Ticker symbol CKISY
Market cap $18.2B
Current price 34.41

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

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

Is it good if a stock is undervalued?

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

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

How to trade Asian undervalued stocks?

Undervalued stocks have noteworthy potential to yield solid returns. It’s up to investors to correctly evaluate and analyze all the different variables related to undervalued stocks. This requires some level of knowledge to recognize if the company is worth investing in.
For example, value investors will wait for the stock price to reach the value below its intrinsic value. The principle is obvious if they can buy a stock at a discounted price, why should they buy it at its current price or even higher.

Investors with strong knowledge over the stock market maybe are the only ones who should trade undervalued stock. Trading undervalued stocks can be risky if traders follow the suspicious analysis. The data proved by analysts and experts must be accurate. The other problem both for traders and investors is that undervalued stocks are time-consuming. In other words, they’ll have to wait maybe much longer for important changes in stock price.

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

15th October 2019
How to profit from The Stock Market Plunging?

By Guy Avtalyon

The stock market is plunging but will it crash or not is still unknown. It isn’t easy to predict the stock market crash because it occurs suddenly. The point is to be prepared for such a scenario and here are several ways on how to do so.

I don’t want to frighten you, but we have to talk about the stock market plunging.

The volatility of the markets is back again. Actually, the market is plunging. That is the data from the first six days in October. The S&P 500 has dropped a total of 83 points. Now it is almost 115 points lower than in September. Having this in mind, the trade war and the inverted yield curve, also, let us know how not to speak about a recession.

The stock market is plunging

These gaps are standard. For the last 70 years, there were 37 corrections in the S&P 500. If our counting is good that is almost every second year. And mentioned drops were about 10%. Now, we have 5% and such were more common in history.

This is the price we have to pay for long-term wealth making. So, you must understand that long-term investors have an advantage against the short-term since they would infrequently experience continuing damage from stock market corrections. Time and patience, wait for a bull market rally. It will nullify the correction in the stock market. Anyway, the point of long-term investing is to buy and hold. Hold on to your stocks, that is the key to winning in the long run.

I warned you how difficult this year can be. But when investors’ fears overwhelm the market and the stock market is plunging, there is still something you can do.

Is a safe-haven stock right move?

Yes, you can thrive during the stock market correction if you buy safe-haven stocks. For example, buy gold. The gold is a store of value, so it is a safe-haven asset.

The truth is that you will not gain a lot of profit by holding gold for a long time. It is a physical commodity, there is no dividends. So think about buying a stake of shares in some companies that produce the jewelry or anything of gold instead. Also, a good choice is to buy shares of mining. This is also a suitable alternative when the stock market is plunging and getting lower.

Stocks with low volatility

Companies that provide constant profits, pay a dividend, and have low volatility can be very beneficial when the course in the market turns. Some of them will give you yield much bigger than the yield of a 10-year Treasury bond, for example. Find some company with the old fashioned model of business. Yes, it can be boring but in the long run, it is excellent. The point is to survive the market plunging.

Basic goods and utilities as a safe investment

Buying stocks of some companies that produce cleanser or hygiene is an excellent choice. People will always need to be clean and they will buy these products no matter how deep the crisis is. Also, stocks of energy companies. They are not low-cost but they are eternal. Even more, these defensive basic-need stock can grow in a volatile market.

What to do when the stock market is plunging?

Many things in the markets depend on risk tolerance. Your investment portfolio is based on risk tolerance. The main problem with the stock market plunging and when it crashes is that they are coming suddenly, no one can be sure that the crash will come and when, or the market will recover. Market crashes happen quickly, there is no warning. The problem with investors’ risk tolerance is that is very hard to adjust it depending on circumstances, especially during the bear market. You’ll be emotional, panicked, you will be encompassed by fears. To avoid all of these, take care of your portfolio structure. You should hold liquid assets, such as cash, bonds. When the market crash occurs you need a through-out scenario to avoid losses. Liquide commodities will provide you that.

Being an investor means you have to put your feelings away. You have to make your decisions separate from them.
Investing is magnificent. But life is also.

During the bear markets, even trivial corrections can be remarkably dangerous. But at the same time, bear markets will offer you great moments. The point is to know what you want and where are looking for. But Warren Buffett thinks about bear markets as buying opportunities. The trick is that in such market periods the stock prices of large companies are going down. When that moment occurs watch in your favorite stocks. The time will do the rest. You should buy it when others are selling.

15th October 2019
Make money in 5G Stocks – The List of the Best

What 5G stocks will get an increase?
What are the telecom companies in the advanced stages of developing 5G wireless networks?
Faster phone speed isn’t the only benefit, developing a new network is a great opportunity to invest.

Is it possible to make money in 5G stocks? It’s assumed to help the next surge of technological progress. Some market analysts expect the market for 5G infrastructure to rise to $26 billion in 2022. Estimations from a few years ago foretold that 5G would be 1,000 times as fast as 4G. Anyway, it is something we have never seen before. So many companies are involved in developing 5G and almost all of them are in investors’ focus. The tricky part is that we can not for sure which one will make it. Whatever appears, some 5G stocks to buy will come from the big companies, the leaders in the modern networks.

Traders-Paradise opinion is that you should look at several companies if you want to make money in 5G.

Verizon Communications Inc. (NASDAQ: VZ)

Verizon is a wireless provider company. They stated on its website: “We’re building the most powerful 5G experience in more places around the country right now, so more people can experience it together.”

Verizon stock is interesting for investors seeking income. Verizon 5G stocks could have much greater demand in the future. Last month was very good for Verizon, it climbed strongly above its 50-day moving average. Moreover, this telecom titan was on the top growth stocks. The broadband companies are investing in Verizon’s 5G.

In the top 50 markets, Verizon controls the ownership of key 5G spectrum bands. VZ is one of the best stocks to buy for 5G mainly for its spectrum holdings. Dividends paid at 4.2%.

Xilinx (XLNX)

Xilinx is a chipmaker worth $29 billion. It was one of the pioneer companies to invest in the new generation of wireless networks. So it honestly gains a place as one of the best 5G stocks to buy. While the new 5G network is developing more and more, along with that infrastructure demands will rise. There will be Xilinx to sell its chips. Their chips are used as components for 5G.

The revenue in XLNX’s communications division rose 74% year over year.

According to our estimation Xilinx stock is a good long-term investment since it can be a good and profitable investment. Some analysts predict that Xilinx’s stock price could reach $213.528 in the next 4 years. The revenue for a 5-years investment could be about +122% If you invest $1,000 today after 5 years it is possible for your investment to rise up to $2200,00.

Apple (AAPL)

The newest version of the iPhone did not offer 5G abilities but Apple will be one of the more notable 5G stocks in the coming years. We believe that Apple will not lose the race in this field and it will have a solid appearance in this industry. Apple is one of the initial innovators in the wireless market.

Its stock trades at a P/E ratio of 20 and gives a firm record of dividends. The current yield 1,34% maybe isn’t so attractive for investors, but its dividend is higher and higher every year. Apple stocks are good for long-term holding. When Apple enter the 5G market with the new iPhone offering 5G facilities, its 5G stocks will increase. Remember this, you can make money in 5G stocks.

Qualcomm (QCOM)

Whoever wants to produce millimeter-wave network equipment will likely to buy their chips. At the moment they are the only producer of network chips that use radio spectrum of 30GHz and above, which is the main advantage of 5G over the other technologies.

The list of 5G stocks is inadequate without Qualcomm. This chipmaker has an amazingly powerful portfolio of property related to 5G tech. A worth contract with Apple enables Qualcomm to provide chips for the iPhone for the next 6 years. So, there are no barriers for Apple to launch the new 5G compatible iPhone.

Qualcomm spreads its 5G patents, royalties should be important to shareholders in the coming years. Qualcomm offers a 3,34% dividend.

Ericsson (ERIC)

This Swedish communications equipment company is a pivotal actor in the global rollout of 5G technology.

It provides telecom companies to upgrade their networks to the new higher-speeds. Ericsson provides software and radio network hardware. Recently gained a licensing agreement with Chinese smartphone maker Oppo. Ericsson could have benefited from banning Huawei due to US national concerns.

In June this year, Ericsson estimate global 5G subscriptions to be 1.9 billion by 2024. Much more than it estimated last year.

Bottom line

The coming change from 4G to 5G cellular networks is supposed to promote the next stage of technological development and innovation. That is a great opportunity for investors in the high-tech industry. The new wireless network will be something incredible. Something with great potential for further technological developments. So, if you ask can you make money in 5G stocks, the short answer is – yes!

14th October 2019
Will Marijuana Stocks Go Up In Smoke?

Shares of Aphria (NYSE: APHA), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) dropped by 13.8%, 9.9%, and 12.6%, on Thursday.

By Guy Avtalyon

It was a bad day, will marijuana stocks go up in smoke. All three stocks felt after HEXO declared discouraging preliminary fiscal 2019 last quarter revenue. Its outlook for fiscal 2020 is going to be very bad. How HEXO bad news influenced Aphria, Canopy Growth, and Tilray to big declines?

HEXO expected to report net revenue between 14.5 million and 16.5 million Canadian dollars on October 24. This result is considerably under the company’s expectations. Moreover, HEXO stated that “uncertainties in the marketplace” caused such bad results and that they expect their expectations for the next fiscal year has to be lessened. That caused investors’ concerns about Canopy Growth, Tilray, and Aphria pot stocks, also.

The main problem for HEXO is the insufficiency of retail cannabis stores, also the chances of restrictions for some types of cannabis derivative products are the problem. And there are, according to the company’s statement “signs of pricing pressure.” And the other cannabis producers share their worries and have the same problems.

Almost all of them reported delays in Canadian provinces launching retail cannabis stores. Canopy, Aphria, and Tilray are expecting to Cannabis 2.0 market to make an increase to sales. But those delays may crash their expectations.

Aphria is, let’s say that, probably in the best situation because the majority of its revenue comes from Europe, in fact from Germany.

Aphria had completed its acquisition of CC Pharma GmbH in January this year. CC Pharma GmbH is a leading distributor of pharmaceutical products. That includes medical cannabis. They have more than 13,000 drugstores in Germany and throughout Europe.

Canopy Growth and Tilray, and HEXO, still rely on Canadian marijuana sales.

Will marijuana stocks go up in smoke?

Despite the fact that some of these companies brought profits in some periods, the whole picture is different. Marijuana stocks aren’t profitable yet. It is still hard to estimate which of them will be winners in long-term meaning. So, the best way to handle these stocks is understanding that they are fast-growing, but still, they are not making the money. Pot stocks will not disappear but every investor should know that they are extremely volatile right now. If you want to buy pot stocks you must have a very high-risk tolerance.

The greatest risk of buying marijuana stocks is valuations. Share prices more reflect the stocks’ growth hopes. Since marijuana stocks aren’t yet profitable, evaluating the stock price and possible profit is more challenging.

The risks connected to marijuana stocks are genuine and can’t be neglected. But as we already know, the risks should be compared with the possible profit that marijuana stocks give.

The cannabis industry is fast-growing. So, what we can expect is holding these stocks over time, investors will have gains and losses. But isn’t it the same with all stocks?

Is investing in cannabis stocks risky?

Investing in marijuana stocks is naturally risky, but some stocks are riskier than others. To avoid losses invest in a company with a wide range of operations, one that sells products in various countries which can be a competitive advantage, for example.

On the other hand, it isn’t always smart to buy the stock with the lowest volatility today. They can be less volatile today but after a few months, they can be extremely volatile. Negative relationships over some periods can balance positive relationships over some other periods. That will make the overall volatility lower.

Investors have to be focused on the business prospects of the company like they do it with stocks in any industry. So, will marijuana stocks go up in smoke? No!

13th October 2019