Author: Editor

  • Builders FirstSource Inc. Is Good Long-Term Investment

    Builders FirstSource Inc. Is Good Long-Term Investment

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

    By Guy Avtalyon

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

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

    Builders FirstSource Inc.

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

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

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

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

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

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

    BLDR stock is currently trading at $25,36.

    What’s next for the Builders FirstSource stock?

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

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

    The company’s ABOUT

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

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

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

    The company is headquartered in Dallas, Texas.

    Should you buy the Builders FirstSource stock?

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

     

  • T Stock Has Dropped On Scepticism

    T Stock Has Dropped On Scepticism

    T Stock Has Dropped On Scepticism

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

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

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

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

    T Stock Has Dropped On Scepticism

    T stock is downgraded from sell to neutral

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

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

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

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

    Shares of AT&T is up

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

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

    Bottom line

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

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

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

     

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

    Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

    Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

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

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

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

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

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

    What did the Trulieve report?

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

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

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

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

     

    Trulieve Cannabis Corp. increased adjusted EBITDA of $36.9 million

    Why is this important?

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

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

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

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

     

    Trulieve Cannabis Corp. ABOUT

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

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

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

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

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

    35 Ways to make money online

    Bottom line

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

     

  • AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals.Stock

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

    By Guy Avtalyon

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

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

     

     

    About AVEO Pharmaceuticals, Inc.

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

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

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

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

    Why invest in AVEO?

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

     

  • LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market

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

    By Gorica Gligorijevic

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

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

    It is currently traded at $104.71.

     

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

    LCI Industries revenue

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

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

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

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

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

    Why LCII stock has a buy signal?

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

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

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

    LCII stands above others due to its stable earnings outlook. 

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

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

    About LCI Industries

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

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

     

  • Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch

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

    By Guy Avtalyon

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

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

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

    Here is the formula:

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

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

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

    Is it good or bad for Designers Brands?

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

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

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

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

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

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

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

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

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

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

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

    What is Designer Brands?

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

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

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

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

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

     

  • Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

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

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

    Don’t miss: Amazon’s Workers or Why I’ll Never Invest in Amazon?

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

    Canopy Growth Lost $20.3 million

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

    What tends to go wrong, will go wrong

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

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

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

     

    Canopy Growth lost, what will happen to the shares?

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

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

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

     

  • 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.