Author: Editor

  • Beijing-Shanghai High-Speed Railway Plans IPO

    Beijing-Shanghai High-Speed Railway Plans IPO

    Beijing-Shanghai High-Speed Railway Co that plans IPO

    Beijing-Shanghai High-Speed Railway Co that plans IPO reveals a company is more profitable than Apple
    Net profit scores 9.5 billion yuan ($1,34 billion), signifying a margin of 38%

    Beijing-Shanghai High-Speed Railway Co has requested to be listed on the Shanghai stock market.
    The company has filed an official application to enter the stock market. Now, the details about its operations are revealed. The company gained a net profit of $1.3 billion from the beginning of this year, which is a margin of almost 38% on the company’s revenue in the same period. This report shows them more profitable than Apple Inc, for example. The filing is published on Friday. Beijing-Shanghai High-Speed Railway Co covers the 1,300km line, made a net profit of $1.3 billion.

    The lucrativeness of the Beijing-Shanghai line shows how great success can be made with high-speed rail networks. This company’s trains drive at speeds of up to 350km/h which is about 217miles per hour. Thanks to these trains the distance between Shanghai and Beijing is possible to travel in 4,5 hours. The trains are comfortable and luxury. Last year this line transported more than 190 passengers which is approximately 6% of all high-speed rail users in China. From the beginning of this year, an average occupancy rate is 80%. The ticket costs are in a span of $78 (553 yuan) for the class of the standard seat up to $130 for the first class. 

    China’s railway efforts

    Despite the progress of this high-speed line, China Railway had a net loss of almost $29 million in the first 6 months of this year. Also, it reported notable debts of $0.75 trillion.
    The undivided attention is brought by Beijing-Shanghai’s IPO now.
    Analysts think that its planned initial public offering will be popular due to its good financial condition and prospects. For a long time, none of the Chinese railway companies didn’t show interest to be listed in the market. So, this easily could be a good sign for the industry’s presence in the market.

    The company stated in its filing it is positive about the future. The reason is clear. This route is most active and provides a potential for increasing traffic and more profit. The downside is that the company might be influenced by volatility in the macroeconomy.

    Beijing-Shanghai High-Speed Railway Co has 67 employees. Also, it has assets of $26.48 billion and liabilities of $3.82 billion. But this ratio of 14, 4% is not bad in comparison to the 65% average for China’s rail drivers. The biggest shareholder is China Railway, followed by Ping An Asset Management and China Social Security Fund, the company stated in its filing.

    The China Securities Regulatory Commission (CSRC) revealed the filing information on its website. CSRC showed it received the company’s planned PO on Oct. 22.

    China’s railway investment was stable in the first 8 months of this year.

    How to invest in China stocks

    There is a lot of logic to get portfolio exposure to China but it isn’t easy. There are risks and challenges.

    For example, if you want to buy stocks listed on Chinese exchanges, first check if your local brokerage will allow it. The Chinese exchanges may ask you to open a brokerage account with some Chinese companies.

    You can find a lot of Chinese stocks listed on US exchanges through ADRs. Those are certificates issued by American banks for shares of foreign stocks. In this way, foreign companies share are available to American investors. Or you can buy shares in ETF Another possibility is to buy stocks traded over the counter or on “pink sheets.” You will notice that their tickers have “OTC” or ÖTH” in the symbol included. These stocks have tickers that include “OTH” or “OTC”.

     

  • When to Sell Option Call?

    When to Sell Option Call?

    If the trade is going in your favor or for the trade that is going against you – don’t wait until expiration to see what happens. Sell before.

    Fresh traders, particularly those with a little amount on the account, like to buy options. But do they understand all the rules? The vast of them somehow skip selling prior to the expiration date. The truth is that the call option could be sold at any time. Call options give you the right to buy some assets, you already know that. To know when to sell the option call, pay attention to several situations.

    Let’s say you own calls and you decide to let them expire worthlessly. That’s okay. Your decision. But if you forgot and the stock closes on the expiration date the options will automatically be exercised whenever it is “in-the-money” when the market closes.

    And it will be a problem when the next day comes. The next day, the day after the expiration date, the margin call will come. Where is the problem? When you buy an option call, you are buying the right to buy a stock. Did you know that? If you are new in the options trading it is likely you didn’t. And what happens? When margin call comes you have to pay for shares and you’ll be forced to sell your call options. So, it is better for you to sell your options calls before the expiration date.

    So, you have to close your trade before the expiration date.

    When you opened your position your aim was to make a profit, right? So, don’t wait for options to get too close to the expiration date because they will lose the value. As the expiry date is closer, the value is going down. To make a profit it is better to sell your options and close the trade. Of course, you may take a loss too but if you wait longer and as you are approaching the expiration date, the chances to avoid loss are almost zero.

    Avoid margin call

    Lett’s say you bought one call option. How to know when to sell option call? Don’t forget that one option controls 100 shares of stock. And let’s say the strike price is $30. If the stock closes at $30,03 your options will be automatically exercised and you’ll be the owner of 100 shares of stock. Further, your broker will send you a margin call if you don’t have a sufficient amount on your account to pay that stock. And what you have to do? You will be forced to sell the stock to close out your trade. More often, you will sell it below the exercise price. But it isn’t necessary to be your case. You can avoid this unpleasant situation. Just close out your open position before the expiration day. Before the market closes, of course.

    For a strike price, you can calculate the cost to buy a call option and the cost to use it. You can find plenty of websites with options quotes. All you have to do is to type a stock’s ticker symbol and get a quote. You will see a column with months arranged and with the options expiring that particular month. Remember, you can trade the option until the third Friday of the expiration month.

    Calculate options for a strike price

    Find your wanted strike price in the “strike” column. Strike prices are ordered from cheaper than the stock price to higher than the stock price. Suppose the stock’s price is $50 and the strike prices ranging from $20 to $70 in a $2 increase. And you want to calculate an option with a $60 strike price. And suppose you want to buy a call option with a $2 “ask” price.

    To calculate the whole price to buy one option contract you have to multiply the ask price by 100. In our example, it is $2 x 100 which is $200. No, it doesn’t amount to buying the stock, this amount of money you have to pay for the right to buy the stock. 

    Let’s go further. The next thing to do is to multiply the strike price by 100. That is an added amount you have to pay to use the option.

    $60 x 100 = $6,000

    This means you can buy 100 shares of stock for $6,000 before the expiration date.

    Use volatility forecast

    In general, volatility is extremely important when buying or selling options. Since “returning towards the mean” is especially noticeable on volatility, you can somehow easily forecast the volatility as it goes above a certain point or less than a certain point – it will, most likely, return towards the average volatility.

    You can check the VIX to measure market volatility. Learn here how to do it.

    Bottom line

    Don’t buy call options with the aim to own the stock when the options expire. Your goal has to be to buy a call option and profit when the stock price grows.  If call options expire in the money, you will end up paying a bigger amount to buy the stock. Much bigger than what you would have paid if you had bought the stock. If you want to hold the stock, buy it. Don’t play games with options. 

    And finally, one important note when it comes to questioning when to sell option call.

    The European-style options expire on the third Thursday of the month. The American options expire on the third Friday. Don’t forget about this time difference. This could result in huge financial losses for you.

    Forecast volatility, that’s a key ingredient in profiting from option trading.

  • Tesla Stock Jumped on Thursday the Most In the Past Six Years

    Tesla Stock Jumped on Thursday the Most In the Past Six Years

    Tesla Stock Jumped on Thursday the Most In the Past Six Years

    Tesla’s stock had its best trading day on Thursday since May 2013.
    The third-quarter was profitable and better than anticipated
    The investors are sure it is the beginning of rising to $4,000

    Tesla’s stock jumped big on Thursday after the company had a surprisingly profitable third-quarter. The turn came from excellent progress in its Shanghai factory and that caused the stock price to rise. Also, the fact that the company is making cash and boosting margin has influence.

    Tesla shares rising about 17% during yesterday afternoon’s trading and gain $298 per share. The traders that shorted the stock or were betting it will decrease in price, lost almost $1,4 billion, is S3 Analytics estimation. The closing price was $299.68, and 17.67% of rising was the confirmation of the stock’s best single day of trading since May 2013. 

     

    Tesla Stock Jumped Opposite to Wall Street Expectations

    This was surprising for Wall Street analysts too, they showed more optimism about Tesla’s future in the light of new stock price.
    But even with the opening price of $300 (the last time is seen in February this year) the stock continued negative for the year, down 10% for 2019.

    The important fact is that Tesla had good free cash flow in the last quarter. The company had a steady growth in overall earnings and sales. Having in mind that the auto industry is lowering it is a real success. 

    Distrust in Tesla

    Maybe the best example of distrust in Tesla arises on Wednesday just before the Q3 earnings report. ARK Group DMCC sold 150,000 Tesla shares but later they stated CNBC that its “conviction in Tesla has not changed” and that Tesla is still one of the most important holdings in Ark’s traded funds. The selling of Tesla shares was explained as “a portfolio management thing.” There are some rules related to Ark’s funds that say that no single stock can be more than 10% of their portfolio.

     

    You might be interested: The Boys Are Not All Right

    Bottom line

    Tesla stock jumped on Thursday while investors were amazed by the company’s third-quarter earnings report.
    The day before, the automaker reported improved third-quarter earnings per share of $1.86. That is less than $2.90 in the previous year, but it is above Wall Street expectations of a loss of 46 cents. Tesla made a revenue of $6.3 billion for the quarter.
    It returned to profitability and recorded positive free cash flow. Tesla reported in its Q3 that operating costs are at the below level since its Shanghai-based factory is fit for production ahead of schedule and since Model 3 production started. CEO Elon Musk said he was “super proud” of the Tesla team. 

    The current consensus among 33 surveyed investment analysts, according to CNN Money com. is to hold stock in Tesla. 

    Several Wall Street analysts boosted their price target on Tesla after it reported an unanticipated third-quarter profit and more economical operating expenses.

    If Traders-Paradise has good data, Tesla’s stock price could reach somewhere between $315 and $365 to the end of this year with a tendency to reach $2,500 in the next five years. Tesla stock is attempting to recover the 300 price level but the buy point isn’t clearly visible.

     

  • Square Stock – Buy Before It Grows

    Square Stock – Buy Before It Grows

    Square Stock - Buy Before It Grows
    Square, the fintech company has the same chief executive as Twitter, Jack Dorsey. Does SQ stock have another big run in store for investors? 

    By Guy Avtalyon

    The Square stock had a big drop back in August and it isn’t recovered yet. And as always it happened, traders who panicked started to sell, that caused individual investors to sell too. Since the drop in August and also, after the Q2 announcement the Square stock price held steady.

    This was a rocky year for Square stock. At the beginning of this year, the price grew, but the last quarter was disappointing for investors. The Square stock fell 25% during the past 3 months. But as far as we know, it could be a great opportunity to buy them.
    That decision depends on personal estimation on whether the stock is a chance today or it is at the risk of further dropping.

    The quarterly result expected to be released in November could be very important. The expectations among investors are lower this time but Square is still under pressure to reach its corrected estimates. If the company show increasing earnings that would be helpful for stock to rise. Analysts are expecting $597.5 million in Q3 revenue. Could they be wrong?

    Square’s revenue in the second quarter was higher by 46%. The company was generating $1.17 billion in revenue. So, we can say that this company is making money. 

    Surprisingly low guidance is what pulled the Square stock price down in the last quarter. So, the Q3 report could be a nice surprise in a positive meaning. Well, you have to know that sometimes the companies depress expectations to provide a space for recovery.

    Why to by Square stock

    Square shares are currently traded at $58.36 (the closing price on Wednesday, October, 23) which is a depressed price. The coming earnings announcement easily could put the stock price higher. 

    So, what we know from the past is – buy low, sell high. Having this in mind, this is the right time to buy Square stocks.

    The field in which Square could happen future extension is in the cannabis industry. Square’s service is open for companies selling hemp-derived CBD products legalized under the Farm Bill. As we know the cannabis industry will grow more and more. So, that is a great potential for the company and investors too. 

    Only the U.S. market is worth as much as $6 billion by 2025.

    Also, there is the company’s Cash App. Over the past 3 months, they had a great increase in users and activities. So big that the company had sales growth of 44%. This phone Cash App is a great potential for getting more customers and gain more profit. 

    Someone may say that the stock is too expensive. Yes, $58.36 isn’t cheap but it is lower than previously. But this is a fast-growing high-tech company. Keep in mind that Square’s extension isn’t done. There is still a lot of potential for developing. For long-term investors, it is a good choice. At least, it is always better to buy now before its recovery and watch how it is growing in the future. Square stock ranks among the top 10 fintech companies. It’s not unusual for big winners like SQ stock to improve more than 50% after scoring a huge run

  • Is PEG Ratio Really Useful?

    Is PEG Ratio Really Useful?

    Is PEG Ratio Really Useful?

    The PEG ratio is one of the most popular metrics. It is so easy to calculate it. It never takes more than 10 secs even if you are not good at math. 

    But, what do you think, is this extremely simple metric, this PEG ratio really useful?

    Let’s see. Let’s examine it a bit more on some examples.

    First of all, the PEG ratio or the price/earnings to growth ratio is a stock valuation measure. Investors use it to evaluate a company’s performance and investment risk. It is a measure, so it can be calculated. 

    When the PEG ratio value is 1 we can say there is an excellent bond between the company’s market value and its expected earnings growth. If the PEG ratio is higher than 1, the stock is overvalued. But when the PEG ratio is lower than 1, the stock is undervalued.

    The formula for PEG ratio is:

    PE Ratio (Price/Earnings) / Expected Growth Rate = PEG Ratio

    Assume we are examining two stocks with different characteristics

    Stock A company: 

    price – $20/share
    earnings – $4/share
    expected EPS growth – 5%

    Stock B company: 

    price – $40/share
    earnings – $4/share
    expected EPS growth = 20%

    For stock A company

    P/E ratio = $20/$4 = 5
    PEG ratio = 5/5 = 1

    For stock B company

    P/E ratio = $40/$4 = 10
    PEG ratio = 10/20 = 0.5

    If we study the P/E ratio for valuation plans, we will discover that the stock B company has an advantage because it has a P/E ratio that is 50% less than that stock A company has. But if you find that company A is going to improve its earnings 5 times faster than company B, you may modify your opinion. If you use the price to earnings growth, you will see that the stock A company trades at a lower PEG ratio than stock B company. So, what can we conclude? Company A stock may give a better value.

     

    But is that really true?

    Well, there are some weaknesses connected to the PEG ratio. Earnings growth is not an isolated thing in the market minds. To get a whole picture of the stock value you have to take care of many factors such as cash flow, dividends, revenue growth, etc.

    Further, when it comes to “growth” in the phrase “price/earnings to growth ratio” you will be faced with one problem when you are trying to value a company. You actually don’t know the rate of earnings growth. In the best case, you can guess or rely on Wall Street analysts. Having thin in mind, your PEG will be as good as your data is.

    Well, something is good with the PEG ratio. It is very useful for smaller companies but for large companies (for example Disney or Ford) where the growth isn’t so important to total returns, it can cheat.

     

    So, is the PEG ratio really useful?

    You have to keep in mind that it isn’t a mathematical result. The method is as good as its inputs. The future growth rate could be the main problem in this PEG formula. When you or any analyst make forecasts about the future it can be wrong.

    To make it clear, it is easy to calculate the PEG ratio for companies with weak growth. But, mature companies with excellent earnings and great dividends, have a slow growth rate. So, such companies will never have a PEG ratio of 1 or less. Right?

    It is almost the same for companies with fast growth.

    For instance, a company growing in a surplus of 30% per year will be incapable to maintain such a growth rate. Can you see how the PEG ratio is as good as its inputs? A huge amount of failures in the future earnings growth rises from a too optimistic or too pessimistic viewpoint for the company or industry. Getting an exact PEG ratio depends on what factors you use in the calculation. You may find that the PEG ratio is incorrect if you use historical growth rates. This one especially can lead to mistakes when future growth varies from the past.

    Bottom line

    Traders-Paradise wants to give some spotlight on the pros and cons of using the PEG ratio. As the answer to a question Is PEG ratio really useful, we can say: the PEG ratio is useful but only when you use it to improve a more precise discounted cash flow analysis or relative valuation.

     

  • NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc - Marijuana Penny Stock Under The Radar

    By Gorica Gligorijevic

    This company has two subsidiaries Stolle Milk Biologics, Inc., NuVim Powder, LLC. and stock price under one dollar

    Maybe you still didn’t notice this stock. But don’t worry, many didn’t. NuVim Inc stock is currently very cheap as penny stocks. It was traded at $0.0133 at the close of trading on October 21. But it is a stock worth looking out.

    Market cap $299,468
    Current price $0,0133

    NuVim Inc is a company from New Jersey. Actually, it was established in 1999 and is based in Lewes, Delaware. It sells vitamins and dietary supplement drinks. Why this particular stock is interesting to watch?

    Well, its current CEO Rick Kundrat was VP at Unilever’s Thomas J. Lipton Inc and managed the merger with Pepsi in 1991. This deserves to be noticed because of the fast-expanding cannabidiol (CBD) market global. Rick Kundrat has talked about a possible merger for NuVim merger partners. If the company moves into CBD-infused drinks it could be huge progress and stocks could be a goldmine.

    Cannabidiol is used for pain reduction. Moreover, it speeds up healing muscles and joints when have been weakened from hard exercise. But maybe the most important effect is in the field of arthritis or similar illnesses where it can help to reduce chronic pain. 

    NuVim, Inc. produces, distributes and sells beverage products

    The NuVim is a dietary supplement accessible in the refrigerated juice sections of elite supermarkets and fitness stores. You can find it in three flavors: chocolate, vanilla, and strawberry.  It helps to sustain the immune system, improves calcium absorption and digestion. NuVim contains a clinically proven natural prebiotic fiber. 

    NuVim INc is a small company with only 3 full-time employees, according to data from Yahoo Finance. From everything we know about this company, it falls into the packaged foods industry. The Company covers a range of user needs, like joint pain, muscle flexibility, wellness, weight control, nutrient supplement, and muscle recovery.

    When we put this company under the phrase “under the radar” we didn’t have its unrecognition among the investors in mind. The lack of information is obvious. It is very hard to find full information about them. The last info came from the short report:

    “During the second quarter of 2019, the company sold 1,000,000 shares of stock to Derek Spence for $10,000.”

    This was really cheap.

    As Traders-Paradise found, Derek R. Spence is Vi3’s CEO and Chairman of the Board. He joined Vi3 as an investor in 2012 and became a board member in 2014.

    Bottom line

    But what we all can see from its 3-months chart is the stock is doing well.
    Yes, it is a very low float stock that is actively seeking and interviewing merger partners. The merger could send this stock very high. Grab this stock while it is cheap and wait for it to grow.
    It isn’t expensive, honestly, it is very cheap. But this company has interesting potential. As support for this opinion, let’s repeat where is its focus. It is cannabidiol that is fast-expanding and becoming part of medicines, supplements, drinks. This company wants success and seeking for partnership telling us a lot. Grab it.

     

  • How To Know If a Stock is Worth Buying

    How To Know If a Stock is Worth Buying

    How To Know If a Stock is Worth Buying
    How to recognize if a stock is worth investing in?
    What causes a stock to be good or bad?
    What things to consider?

    By Guy Avtalyon

    How to know if a stock is worth buying? Let’s assume you are new in this field and how you can decide what stock to buy. For some investors, it is a tricky part. To be honest, it is hard for everyone. The risk is involved, the volatility of stock or market, the investment goal. Everything is on the table. But if you follow some rules connected to the estimation you can figure out how to know if the stock is worth buying. Yes, many people will tell you stock investing is like a wheel of fortune. And they are wrong. Investing is like solving the problem. Everyone has its own way, own style, but the goal is the same: solving a problem.

    Prudent investors must enter the stock investing as if they have to solve a problem. Step by step. 

    Buying stock isn’t like buying a new sofa and when you find it isn’t for your room you can take it back. When you buy stocks, you have to be convinced they will hold their value, increase in value, and you will gain profit when you sell or deliver to you notable dividends over time. The main point is to know when a stock is worth buying. 

    Look at the price

    When you have to decide if some stock is worth buying the first thing you will find is its price. You have to figure out how much the ownership of shares in some companies will cost you.

    The amount of money you have in your hands will determine how many shares you can buy but the most important is to know historical data about particular stock prices. If you find the stock has steadily increased over time you will know that you can expect a good value in the future. 

    Pay attention to revenue growth

    Share prices will grow if a company is growing. A company is growing when rising its revenue. Increasing revenue will show you if the company is strong. We can say it is a major indicator often called top line. The important part is not looking at revenue isolated. You have to observe all rise and drops in each quarter and year. And here is the tricky part. The positive trendline is good for the stock price but the revenue may be dropping or be flat and it is important to understand why that is.

    You should check the company’s current holdings, projections for future operations and stability. If you hear or read some news, no matter if they are local or even rumors that the company is doing bad, it is better to step back. You wouldn’t like to hold stocks with so much stress. Your money is involved and you could lose everything invested. So, check the company’s revenue, it is easy since almost all companies have their official websites where you can find all this info. 

    But keep one thing in mind. If it is a temporary situation and historical data shows its stock was good in price that can be good for you to buy a stock at a low price and wait for it to rebound over time.

    Some stocks may temporarily drop in price and it can be a good deal to buy them now because they have the potential to recover.

    What is the company’s earnings per share

    This info is important and you can easily count it. Just divide the leftover amount at the end of each quarter by the number of shares the company has sold, and you get the earnings per share. For example, if a company made $100 million in profits in the prior year and has 52 million shares, the earnings per share is $1.92. As an investor, you should pay attention to this since the higher earnings per share (EPS) shows you that the company is in good shape. And the tricky part again arises. Some companies can manipulate with EPS. The process is simple. They do it by buying back their shares. In that way, they are boosting EPS but not increasing profits.

    Use the technical and fundamental analysis to know if a stock is worth buying

    You will have some idea about stock’s quality if you check the prices over the past 200 days, for example. And you will see the trends. Trends are repeating. 

    Analysts think that by observing the movement over a determined period, you can define the baseline, the point where the stock should recover. Here the advice, don’t buy the stock at its highs, wait to come close to the baseline or to hit it. Some may ask how is good stock if hits the baseline. Well, when the stock hits the peak it is expensive, the price is increased, and the stock has no more space to run so the only possible scenario is to go down. If you buy a stock at its peak you will lose your money. So, it isn’t a good time to buy a stock.

    Also, perform fundamental analysis. That will show the current and projected financial aspect. Use that info to discover now’s value. Use the company’s statement and balance sheet to determine the business strength. It isn’t a 100% indicator,  but it is enough good sign of what you can expect from the company in the foreseeable future.

    How to know if a stock is worth buying

    One thing is sure and you must have that in mind when you are trying to know if a stock is worth buying.

    A company can’t manage every single thing that might affect the business. The general economy can influence the health of a company and its stock play. For example, consumer prices, the changes to interest rates can affect how a company is doing. That is not in connection with its own business. But, the stable economy produces companies’ wealth and share increases come with that. And opposite, share prices can stumble during times of economic uncertainty.

    You will find many analysts that issue reports and tips about individual stocks. These tips appear with “buy” or “sell” ratings. But analysts often disagree, so it isn’t recommended to depend on one report. Always compare several to know if a stock is worth buying.

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

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

    Q3 earnings reports

    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)

    Q3 Earnings Reports

     

    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.

     

  • Shefa Gems Mining Company Stock

    Shefa Gems Mining Company Stock

    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.

    Shefa Gems Mining Company Stock

     

    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.

     

  • AT&T – This Stock Can Beat Any Recession

    AT&T – This Stock Can Beat Any Recession

    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 - This Stock Can Beat Any Recession

    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.