Author: Editor

  • Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good InvestmentAxsome Therapeutics gained 1.70% in the last trading day ( Friday, Nov 29), increasing from $38.71 to $ 39.37. Will the company be able to continue growing?

    By Guy Avtalyon

    Axsome Therapeutics is developing innovative therapies for the treatment of CNS disorders. Yes, clinical-stage biotech stocks can be a risky suggestion for investors. Well, at the same time this stock is extremely suitable for any dynamic investors. If you prefer an aggressive approach to your investment this stock deserves your attention.

    Axsome Therapeutics (AXSM) has jumped over 1.200% in this year. The investors are awaiting the biotech’s upcoming clinical study results excited. Well, the company is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD to the end of the year. The company is awaiting results from another study, a drug for treating treatment-resistant depression and it will be published to the end of the first quarter in 2020. Also, Axsome Therapeutics expects to present excellent results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020. 

    To the end of this year, the company is expected to present the results from a late-stage study of AXS-07 in treating migraine and of AXS-12 in treating narcolepsy. Analysts estimate AXS-05 could obtain annual sales of more than $1 billion when approved. 

    The main problem is that Axsome Therapeutics’ results could be failed like it is with so many drugs.
    But if they get a good result this stock will be high rocketed. 

    The current price is $39.37 (Nov 29). This small-cap stock in the S&P 500 had the greatest total return over the past 12 months. It is 959.6%

     

    Why invest in Axsome Therapeutics

    Axsome Therapeutics, Inc can be a profitable investment option for investors wanting good returns. Axsome Therapeutics, Inc quote is $39.370 on December 2. This stock can provide more than 300% of revenue after 5 years since it is expected the price to rise to $160 in the next year.

    Axsome Therapeutics has a median target of $46.50, where a high estimate of $53.00 and a low estimate of $25.00. The median estimate represents a +18.11% jump from the current price. The investment analysts’ suggestion is to buy this stock. 

    Axsome Therapeutics ABOUT

    The company’s market cap is $1.36B. Axsome Therapeutics reported Q3 2019 financial results on Nov 7, 2019.

    Axsome Therapeutics is a clinical-stage biopharmaceutical company that develops innovative treatments for CNS disorders, especially for those with limited treatment possibilities. Axsome’s center CNS product portfolio covers four clinical-stage products, AXS-05, AXS-07, AXS-09, and AXS-12. AXS-05 is in a phase 3 test in treatment-resistant depression, the same as MDD, and a Phase 2/3 trial in difficulties connected with Alzheimer’s disease. AXS-05 is also being developed for smoking end therapy. AXS-07 is in two Phase 3 trials for the treatment of migraine. AXS-12 is in a Phase 2 trial in narcolepsy.

    AXS-05, AXS-07, AXS-09, and AXS-12 are drug products not approved by the FDA. For more specific information, you have to visit the company’s website. The Company may occasionally disseminate material, nonpublic information on the company website.

    Is AXSM a good investment?

    This company’s liquidity data is interesting: its Quick Ratio is 1.41 and its Current Ratio is 1.41. This shows a good ratio between its short-term liquid assets and its short-term liabilities. So we can easily conclude it is a less risky investment. This stock’s RSI score is at 50.78, which means that the stock is not oversold or overbought.
    The important clinical wins could place this company on the route to produce greater gains. Hence, we think it is a good investment.

     

  • EU Banks Welcome Bitcoin

    EU Banks Welcome Bitcoin

    EU banks welcome Bitcoin on January 10, 2020
    From next year banks in EU banks will offer their customers cryptocurrencies in online banking
    The German lawmaker is the leader in the regulation of cryptocurrencies.

    By G. Gligorijevic

    EU banks welcome Bitcoin??? Yes. In the ever-running war of governments against money laundering and terrorism financing new regulations are being enacted and implemented in many countries on almost regular yearly levels. And the approaching deadline for implementing one such regulation in the EU is good news for all investors and potential investors in cryptocurrencies from this supranational block. The governments of EU member states have until January 10, 2020, time to implement the 5th Anti-Money Laundering Directive (5th AMLD) which brings a sorely needed legal framework for trading and investing in cryptos. Until recently, among the EU legislators existed a strong negative attitude towards the cryptocurrencies. Most often justified by a lack of proper legal framework and the potential for a sinister use of the advantages they are lauded for. But from January next year, such obstacles shall be removed, and crypto trading will be available along with the more conventional banking and investment products.

    What does 5th AMLD bring?

    While most of the public and media is putting the focus on the parts of the new regulations which tighten the AML rules concerning the regulation of real estate agents and precious metals dealers, on the sidelines are left novelties regarding the cryptocurrencies.

    The most important novelty is the implementation of a definition of what is a cryptocurrency. Even though the general public knows what it is and what it is not, this was a crucial moment for making investment and trading with cryptos through traditional institutions possible in the EU. Now the commercial and investment banks will have a precise legal language of what cryptocurrencies are.

    The second crucial part of legal regulations is the definition of a waller provider. This will have the effect of allowing all of the existing financial regulations to be applicable to cryptocurrencies. And such applicability will legally equalize the traditional investment vehicles with the cryptocurrencies.

     

    The impact on traders, investors and common people

    That would be the legal language of it, but what does it mean in simple terms. In the most simple terms, it means that cryptocurrencies such as Bitcoin, Etherum, and others; will be equal to the fiat currencies. Banks will be able to provide all of the traditional banking products to their customers in cryptocurrencies. People and institutions will be able to hold them in their accounts, exchange them for other fiat or cryptocurrencies. But also they will be able to use cryptocurrencies to purchase other financial assets with cryptocurrencies. Bonds, stocks, derivatives, and the likes will be available for purchase. 

    Implementation still lagging

    The deadline for implementation of new AML regulation is fast approaching, but many member states are well behind is this regard. On November 14 this year, Geman’s Bundestag has passed a new bill which now awaits the passage in the upper house of German Parliament, after which ratification by all 16 federal states must follow.

    After this new financial regulation bill becomes the law of the land, Germany will join the likes of Austria, Belgium, Ireland, Greece, Finland, Croatia, Italy, Latvia, and Luxembourg; as another country that has implemented new rules and made cryptocurrency investing and trading possible. But, Germany is an economic powerhouse and one of the financial centers of the EU, thus this move has a higher significance than meets the eye. Germany is not just another country. It is a country with a GDP amounting to 22% of the whole block, and its financial regulations and market trends are closely watched and often copied by other member states.

    The public reaction on how EU banks welcome Bitcoin

    The public reaction to the new bill was somewhat as expected, some have welcomed it while others decided to criticize less novel potential impacts. 

    The Association of German Banks has reacted positively to the news that EU banks welcome Bitcoin. This comes as no surprise bearing in mind how much this institution was expressing support for regulating cryptocurrencies, and thus bringing it into a legitimate system of banking in Germany out from the grey zone it existed till now. The criticism can be boiled down to repeated yelling “banks are crooked”. And these concerns do have merit. In the past, commercial and investment banks did, and often still do, behave in a predatory way. But that is not the reason to fight against bringing the cryptos into the world of traditional banking. It is a reason to better regulate traditional banks, and protect their customers. After all, decreasing the power of banks over common people was one of the philosophical reasons for the invention of cryptocurrencies.

    In the end, a long time considered as an obsession of pimpled geeky libertarians cryptocurrencies is about to enter the game after January 10, when the second-largest economy per GDP makes them part of its regulated financial system.

     

     

  • Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA
    FDA sent numerous warnings about the CBD, substance found in cannabis.
    The stock prices of important cannabis stocks are dropping on a new warning from the FDA.

    By Guy Avtalyon

    Cannabis stocks are under attack. On Tuesday the US Food and Drug Administration (FDA) published new guidance on CBD. FDA notified that CBD can cause liver damage and also, some other injuries might be caused by using CBD.

    This information caused blast to the medical cannabis producers especially among those publicly listed on markets. Those companies have plans, they are investing in development, researching, and have licenses. We are talking about Canadian producers and their investors that were looking for the area for selling cannabis products and the US seemed to be that one. And now FDA issued a statement that their products are not safe for humans. Okay, even if it is true, how FDA can explain that GW Pharmaceutical’s CBD products are safe. This isn’t an attack on GW Pharmaceutical, it’s contrary, why other companies are forbidden to make health claims for its products use. 

    The FDA announced late Monday it is pointing on 15 private companies that are illegally selling products with CBD.
    The regulator said, “there is very limited available information about CBD, including about its effects on the body.”

    What is CBD?

    CBD is a non-intoxicating cannabis compound but it lives in regulations’ vacuum. FDA has approved GW Pharmaceutical’s GWPH drug that contains CBD, a drug for the treatment of childhood epilepsy but, FDA told the other producers that they have no permission to include this ingredient to food or drinks. The reasons are already mentioned.

    “Not so fast,” wrote MKM analyst Bill Kirk. “The FDA’s statement includes some balloon-bursting language,” MarketWatch reported.

    Cannabis stocks were crashed again on Tuesday. That was the signal for analysts to make new estimations and to update the previous.

    Cannabis legalization is slow both in Canada and the US. That causes the black market to grow, while the legal companies are struggling to increase revenue and become profitable. Some of them had to cut selling, cancel the agreements, and save the cash for the following days in expectation for the issue to be solved. 

    But investors have different sentiment and the stock prices of these companies are dropping.

    FDA influences the price of cannabis stocks

    The FDA’s update is in line with a note from the regulator’s former commissioner, Scott Gottlieb. He tweeted: “FDA’s actions on CBD show any available pathway – FDA issuing a regulation, new dietary ingredient notification for supplements, or a food additive petition for human or pet food – will require extensive studies and industry data to address serious safety concerns identified by FDA.”

    Extensive studies? Okay. Is there anything that they are working on? If yes, tell them to hurry up, the health benefit is in question. Tell them to have in mind a relief of pain and mental suffering. How about that?
    And, what they were doing for all the time? Haven’t yet find anything about cannabis? So many studies are already done. 

    The most important cannabis stocks trade in CBD products. Some of them were failing in trading after the FDA’s announcement. Canopy Growth fell by a bit more than 1%, and Tilray was falling by 3%. But they are connected to the section. The worse came for Charlotte’s Web which stock was down by almost 8% and we are speaking about the leader in the CBD market. 

    One stock was especially successful on that day. GW Pharmaceuticals was up. 

    Cannabis Stocks Are Not All Equal For FDA
    (The image was taken on Nov 27.)

    Guess, it has FDA approval for selling the CBD products. GW Pharmaceuticals is a unique one. Yes, their stock price was only slightly up, if the rise of 1.62% is slight. But still.
    The FDA said the next step is to make a framework to allow companies that are producing CBD-based goods to deliver them to the market. Oh, yes, they have to wait for clinical trials. Only after that, the market will be opened to them.
    Until then, investors will sell in panic cannabis stocks or hold them till the better times.

     

  • Target Corporation The Hot Stock In The Market

    Target Corporation The Hot Stock In The Market

    Target Corporation The Hot Stock In The Market
    Target Corporation’s market capitalization is $64.11B with the total outstanding Shares of 179.
    The company has an EPS growth of 8.06% for the coming year.

    By Guy Avtalyon

    Target Corporation (NYSE: TGT) has made excellent moves in the late years. They developed a lot of benefits to customers. Besides remodeling their stores, they added same-day fulfillments, in-store orders for goods, and delivery through Shipt and Drive Up. The result was that the TGT stock price rose almost twice in 2019.

    The best of all, the holidays are coming and it looks that Target is prepared for an extra rise in sales. Target Corporation has added 50 million paid hours and has increased the number of employees, all of this with the expectation that the sales will grow over the holidays. To make a better offer to customers, the company added 10.000 new toys, including Disney’s products and numerous cheap gifts that you have to pay less than $15. Moreover, they made a deal with Toys R Us to improve online sales. 

    So, Target looks prepared for Black Friday and holiday shopping season.

    TGT price was $126.89 yesterday (Nov 26) and marked an increase of 1.36% or $1.70.

    Investors were fascinated with Target Corporation

    Target has almost doubled its market value this year. Its quarterly reports fascinated investors. Over a third-quarter, Target rose its comparable sales by 4.5%. That drives the stock price to the sky.

    The company’s digital comparable sales increased by 31% in Q3. The great contribution came from Its same-day fulfillment services. That should provide a Target to have strong traffic in the fourth quarter.

    It is possible for Target’s earnings to go up to 10%.  

    If you want to trade TGT stock Traders Paradise tool shows that you can set up stop-loss at  -2% and take-profit level at +1.75%, which will give you a nice return of $74,78 in less than two days on your investment of $10.000. But it is better if you check it on your by your own.

     

    The future of  TGT stock

    We at Traders-Paradise think Target Corporation stock is a good long-term investment.
    If you are looking for stocks with good returns, Target Corporation can be a profitable investment option. TGT is quoted at $126.89 today (2019-11-27).
    Based on historical data, but more on our analysis,  investors may expect an increase in TGT stock price after five years it can easily reach  $207 with revenue of more than 60%. If you invest $10.000 in this stock today after five years your investment could be over $16.000. The analysts’ recommendation is a strong BUY for this stock. This year Target is sixth-best performing stock in the S&P 500 index.

    About Target Corporation

    “Expect more. Pay, less.” This is the company’s motto from the early days. Target Corporation is founded by George D. Dayton, a New York businessman who’s first interest was the banking and real estate. He started this business on Nicollet Avenue, Minneapolis by opening the Dayton Dry Goods Company, today is known as Target Corporation. Dayton was head of the company until he died in 1938. Later, his son and grandsons developed the company into a national retailer.

    The first Target store started on May 1, 1962. It was a branch of the  Dayton’s department store offering “a new kind of mass-market discount store that caters to value-oriented shoppers seeking a higher-quality experience.”

    Its main rival is Walmart with prices hard to beat, and instead of that Target appeared as “cheap chic” by recruiting well-known designers like Michael Graves, Tracy Reese, or Lilly Pulitzer. This great tactic has made Target retail with richer customers than Walmart’s. Honestly, even the wealthiest Americans like to purchase at Target. Even the people with a net worth above $5 million are shopping there.

     

  • Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Expects Black Friday and Cyber Monday To Come
    Walmart is one of the biggest companies in the world and capable to resist the competition.
    The stock price dropped but it easily can go up very soon

    Walmart (NYSE:WMT) is transforming and this retailer is ready for Black Friday and Cyber Monday. Everything is in place, so shopping can start. These two holidays are a great test for Christmas. After Black Friday and Cyber Monday, the possibility for Walmart’s stock price to rise is real and even before Christmas. The current price is $118.92 and it dropped by 0.37% from the previous price. But the price rose after hours to &118.95.

    Walmart Expects Black Friday and Cyber Monday To Come

    What makes us think shopping will increase?

    First of all, the unemployment rate is lower than in the last 50 years, job growth is stable, salaries are rising. The St. Louis Fed published that the personal savings rate is at 8.3% which is the highest level since 2012. So, Americans will spend their money on holidays, there is no doubt. 

    The holidays are great for retailers and Walmart plays a big role since it has been transforming and has been aggressively investing in online. Three years ago Walmart bought Jet.com, a US online retailer and took a large stake in the JD.com, online retailer in China.

    Walmart grew its annual profit forecast because quarterly earnings beat estimates. Its shares have risen 26% and trade at 24 times earnings. 

    Well, when it comes to food, Walmart is ready. The grocery is very important for the company’s online business. Walmart customers can purchase groceries online, with unlimited delivery for $98 a year or $12.95 a month.
    E-commerce is a field where  Walmart can get this holiday season since online shopping is supposed to grow by 14% to 18% gaining $149 billion.

    But Walmart has already made profits. Walmart reported third-quarter e-commerce sales rose 41%, driven by growth in online grocery shopping. But Thanksgiving falls on Nov. 28 and the holiday shopping season is shorter by six days. This gives the company less opportunity for sales. 

     

    As always there is Amazon, Walmart’s rival. To beat the competition, Amazon announced some beneficial for its Prime members. Not for all, but still the grocery delivery will be free of charge.
    Management at Walmart announced the lower prices from electronics to playthings. Walmart, also, has shown that it can balance the other features of its businesses despite the Trade war.

    Walmart started offering holiday sales almost a week before Halloween this year. Well, the company called it Early Drop Deals, not Black Friday sales. The company opened its doors for the customers and made their Black Friday purchasing available earlier. Making this, the company actually spread Black Friday’s shopping over more days. 

     

    Walmart stock price and its future

    Walmart’s stock price dropped by 0.37% on  Monday, November 25. Now it has 3 days of dropping in a row. This could be an early signal the risk will be raised somewhat for the next few days and the stock price may slightly drop further. 

    Walmart is currently in the lower frame of a small and weak rising trend in the short term. This is usually a signal for a good buying opportunity. This short-term trend shows the stock is likely to rise by around 5% in the next 3 months and stay between $124 and $128.

    But Walmart stock is a good long-term investment since, as Traders Paradise can see, this stock is going to be profitable over a long period offering the revenue of almost 65%. Speaking about 5-years investment, for example, if you invest $1.000 right now your investment may grow to $1.600 at the end of that period. 

     

    Company’s ABOUT

    Walmart is one of the most profitable retailers in history. It is one of the most successful and well-known companies in the world.
    The company was founded in 1962 by Sam Walton, in Rogers, Arkansas with one store. To the end of 1968, the Walmart chain was expanded outside Arkansas and later opened the stores in every US state. In 1995, Walmart opened its first stores in Canada.
    From 1990, Walmart is the largest retailer in the U.S. and began to expand abroad, opening a store in Mexico and opened stores in the U.K., Germany, China.
    By 1999, Walmart wasn’t only the biggest private employer in the U.S. but in the whole world. Today it is the 29th company in the world, as Amazon, Alphabet, Microsoft or Apple with a host of Chinese companies, have passed Walmart by.
    By the second decade of this century, the chain had increased to over 11,000 stores in 28 countries.

     

  • The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming
    The packaged-food giant reached rock bottom and positive signs are unfortunately weak. They are not enough to warrant a buy right now.

    The Kraft Heinz Company (NASDAQ: KHC) reported third-quarter 2019 financial results on October 31. The company reported lower net sales and higher input costs. So, the third quarter performances for this company were a lot below their potential but still, the company showed growth in comparison to the first six months this year.

    Kraft Heinz CEO Miguel Patricio said: “We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction. Although there is still much work ahead, we’re encouraged by our improving performance, and are even more confident in our ability to turn around the Company and set a path of long term growth and profitability.”

    The Kraft Heinz Company results

    Net sales were $6.1 billion, and it was 4.8% below than it was in the same period last year.
    Net income increased to $899 million and diluted EPS increased to $0.74. Adjusted EBITDA declined 7.8% to $1.5 billion. The drop was caused by the drop in the United States and Canada, but there are higher overall corporate expenses also.
    The Board of Directors of the Kraft Heinz Company announced a quarterly dividend of $0.40 per share of common stock. It will be payable on December 13, 2019.
    The KHC stock was traded at $30.54 on Friday, November 22, which is an increase of 0.99%.

    The Kraft Heinz Company Is Bottoming

    Should you buy the Kraft Heinz Company stock?

    The analysts offering 12-month price predictions for Kraft Heinz Co have a median target of $32.00. Their high valuation is at $38.00 and a low at $23.00. The median shows a 4.78% rise from the current price.

    The recommendation is to hold stock in Kraft Heinz Co. 

    But the other group of analysts is pretty much sure that the Kraft Heinz stock couldn’t have good returns. That’s the reason why they claim that this stock is a bad and high-risk long-term investment. Today’s quote (Nov 25) for Kraft Heinz is $30.53 which is lower than on Friday. 

     

    Traders-Paradise opinion

    Having the current price of KHC stock in our mind and with the knowledge that the stock price had a downtrend for the past 1 year, we in Traders-Paradise are not sure is this stock is good as a long-term investment. We are close to thinking that this stock could easily drop significantly in the future hitting a decline of over 100% and to end up worthless. So, we suggest staying away from this stock if you are seeking a new addition to your investment portfolio. This is important especially if you are a new player on the market and don’t have enough experience. 

    This stock is trading in bear markets, which is harder for new traders.

    But if your plan is to buy and hold Kraft Heinz stock for a short time, for example, the next 10 days or two weeks, it can be a good choice. As we can see, the stock price could hit around $35 in the next several days.

     

    Bottom line

    The price line shows the possibility of zigzag running to the end of this year. After the end of this year, we are afraid that this stock will gain further declines.

    Our opinion comes from the suspicion that the company is not able to answer the challenges of predicting consumer demands. In its latest report, we couldn’t find that the company is ready to offer new products or to react to rivals’ improvements.
    The Kraft Heinz Company survives 150 years of challenging and produced some of the products well-known over the world. Yes, it is one of the largest global food companies, but the new era is already here and the company has to catch the moment.
    The point is that General Mills or Nestle are better choices in our opinion.
    We can recognize some possible upward movements, but they are weak and don’t provide enough reasons to buy this stock now.

     

  • The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market
    Good and bad news may have a great influence on the stock price
    These two stocks show both sides, winning and losing on the market

    Top winners and top losers last week in the stock market is easy to find but what lies behind sometimes looks like a tricky part.
    For example, EyeGate Pharmaceuticals, Inc. (EYEG) is one of the winners last week. But what did make it become a winner? 

    The news about the high quality of its ocular bandage gel eye drops is able to provoke investors’ sentiment and confidence in the company. What did that news show us? The company is investing in research and development and improve its products. 

    And shares rose by more than 90%.

    The news that the company’s innovative eye-drop bandage worked better than the usual kinds of care. Its bandage contact lens, for the patients in need of corneal wound repair, is better than the others. EyeGate intends to submit a new application to the Food and Drug Administration in the first half of 2020.
    EyeGate CEO Stephen From said: “If approved, it will be the first product indicated to repair corneal defects, as well as the first prescription hyaluronic acid eye drops in the U.S.,” stated in a release. The company is expecting additional data this week. 

    And what happened? 

    The stock price jumped on good news.EyeGate shares rose on data for eye treatment data.

    The Top Winners And Top Losers In The Market

    Top winners and top losers last week are always the subject of investors’ attention. Yes, the stock price may jump on bad news too as well to drop on a good. Traders-Paradise wrote about it already.

     

    Let’s go a bit deeper in top losers. One of them is Pure Storage, Inc. (PSTG).

    Pure Storage (PSTG) stock dropped Friday after the company reported Q3 results on Thursday. The results missed Wall Street estimates. Pure Storage is a provider of data system technology. On Thursday last week, they reported an adjusted profit of 13 cents/share but Wall Street expected a profit of 9 cents. That was good but revenue of $428.4 million missed the estimation of $440 million. The company’s revenue was $11.4 million below estimation.

    The stock price dropped despite the fact that the company’s revenue grew 15% in comparison to the same period last year. The problem arose due to the fact that it was the slowest growth over 4 years.

    Pure Storage stock dropped 15.1%, closing at $16.86 on Friday.

    Top gainers often continue to rise and reach new highs with strong fundamentals. When a stock continues reaching new highs it’s essential to pay attention since there might be a retracement.

    Bottom line

    What Traders-Paradise thinks about those two stocks, the top winners and top losers?

    News reports about EYEG stock have been trending positive lately. That may easily cause optimism among investors and hence, the good news is likely to affect the stock price rising in the near future. So, this stock has a BUY signal. 

    EyeGate Pharmaceuticals, Inc stock is a good long-term investment. If you are seeking stocks with stable returns, this one can be a beneficial investment choice. EyeGate Pharmaceuticals, Inc was traded at $7.090 last Friday. We are expecting a further increase in the next years. This stock may reach $14 in the next 4 years. If you invest $1.000 today you may have $2.000 at the end of that period since the revenue is expected to be about 100%.
    This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 26.89 million shares bought and sold for approximately $453.37 million.

    On the other hand, Pure Storage, Inc stock can be a bad long-term investment and high-risk investment option.
    Pure Storage, Inc was traded at $16.860 on Friday last week. It dropped from $19.85 and that marked a fall of 3 days in a row. Volume has grown in the last day by 21.42 million shares but on dropping prices. The Traders-Paradise opinion is the stock will continue to fall in the days ahead and your investment may be decreased in the future. 

     

  • 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.