Author: Editor

Invest in Saudi Arabia

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

By Guy Avtalyon

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

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

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

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

Tadawul

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

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

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

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

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

Where to invest in Saudi Arabia

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

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

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

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

The case of Saudi Aramco

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

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

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

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

Why invest in Saudi Arabia

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

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

18th October 2019
European Undervalued Stocks to Buy and Hold

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

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

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

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

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

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

Henkel

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

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

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

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

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

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

Roche Holding AG

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

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

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

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

BASF

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

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

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

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

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

Bottom line

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

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

17th October 2019
Sterling Weakened But Demands Increased

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

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

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

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

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

Sterling weakened 0,3% against the euro too.

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

But demand for the British pound has continued Wednesday.

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

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

16th October 2019
Asian Undervalued Stocks To Buy

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

By Guy Avtalyon

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

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

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

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

What are Asian undervalued stocks?

Japan Tobacco

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

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

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

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

Sinopharm

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

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

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

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

CK Infrastructure Holding

Ticker symbol CKISY
Market cap $18.2B
Current price 34.41

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

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

Is it good if a stock is undervalued?

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

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

How to trade Asian undervalued stocks?

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

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

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

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

By Guy Avtalyon

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

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

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

The stock market is plunging

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

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

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

Is a safe-haven stock right move?

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

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

Stocks with low volatility

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

Basic goods and utilities as a safe investment

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

What to do when the stock market is plunging?

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

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

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

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

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

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

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

Verizon Communications Inc. (NASDAQ: VZ)

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

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

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

Xilinx (XLNX)

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

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

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

Apple (AAPL)

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

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

Qualcomm (QCOM)

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

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

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

Ericsson (ERIC)

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

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

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

Bottom line

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

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

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

By Guy Avtalyon

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

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

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

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

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

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

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

Will marijuana stocks go up in smoke?

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

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

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

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

Is investing in cannabis stocks risky?

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

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

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

13th October 2019
Female Entrepreneurs Enjoy More Trust Than Male

Female entrepreneurs are faced with rude questions about private life, family, marital status, or children. At the initial stage, investors implied they are a greater risk of loss.

By Gorica Gligorijevic

According to a new report from the Female Founders Forum, female founders are bringing more venture capital funding. More than male founders.
Startups led by female founders raised extra rounds in the percentage of 52, while the male result is 51%. This is data from the UK. It isn’t a big difference but we can learn something from this data.

First of all, female entrepreneurs are faced with investors skepticism when starting the business. But as time goes by they gain more trust. So, we can say that the biggest difficulty for female entrepreneurs happens in the beginning stages of setting up a business. Later, when they break that wall, it becomes easier.

To illustrate how difficult is for females in the early stage of their businesses there is an additional statistical result. The numbers in funding in the early stage are horrible for female-led startups. Only 21% of them have access to any investment. But when they succeed to get it, their startups raise cash faster than males’.

The stats show: after 4 or 5 years from the first raise round, 66% of female-led startups are winning second funding round. On the side without a female founder, the result is 62,8%.

Female entrepreneurs success

Female entrepreneurs have long been underrepresented in entrepreneurship. Male entrepreneurs had an advantage but that bias is changing now. Actually, since 2007, for example, in the US the number of female entrepreneurs has grown over 30%. In the moment of the census 2012, females were on the head of 36% overall US businesses.

If we take a look at the global entrepreneur scene, according to the Global Entrepreneurship Monitor, entrepreneurship amid women grew bt 13%. In the same period, male entrepreneurship grew by 5%.

The fact is that females are starting their businesses harder and with more barriers, but when they jump over them they show better results. Some studies revealed that if there could be more gender parity in entrepreneurship, US GDP might grow by $28 trillion by 2025.

And the picture is almost the same all over the world.

The worst places for female entrepreneurs

A study by HSBC Private Banking has exposed that over 30% of female entrepreneurs felt gender bias while seeking investors. Also, females get about 5% less funding than males while trying capital funding. The survey titled ‘She’s the Business’, studied 1200 female and male entrepreneurs in 8 distinct markets. The focus was on the entrepreneurs who have gained a minimum of £100,000 worth of funding. The study titled ‘She’s the Business’, taken by the HSBC Private Banking pointed: “Our research identifies the particular hurdles faced by women in the start-up community at critical points along the way, and explores the underlying, often subtle reasons why female entrepreneurs feel negatively impacted”

Gender bias

The scary fact is that some female entrepreneurs were questioned about marital status, children, suggesting them they are a bigger risk for investors. This study reveals that the UK is probably the worst place for female entrepreneurs to try to raise funding. More than half of them said they felt gender bias. The next worst country is the US. The interesting thing, in China, only 17% of female entrepreneurs said they faced similar bias.

Women entrepreneurs have made changes that can lessen gender inequality. First is an expansion in business networks for women. That should help them to make connections.

The gender inequality can decrease when more women make their wealth. Female entrepreneurs are inviting investors to take effort by making the fundraising process more transparent, incorporating at least one women in the panels, presenting precise criteria, and complete feedback after.

The gender disparity between entrepreneurs will not bring progress.

11th October 2019
How Long to Hold Penny Stocks?

by G. Gligorijevic

Trading penny stocks is one of the most hazardous investments in the market. They are extremely cheap, and this makes them volatile.

Do you want to make money with these cheap stocks? Well, you have to know the basics. And one of the basics is to know how long to hold penny stocks. Like with many other assets in the market, you have to know when is the right time to buy penny stocks and when it is to sell.

But why the penny stocks are so special?

As a difference from most blue-chip stocks, penny stocks ordinarily don’t match cyclical trends in the market. It may be more challenging to recognize how long to hold penny stocks. In reality, penny stocks will follow the general market trends in the sector they belong to.

If a positive event happens, most stocks in the given sector will follow the trend.

When we are talking about penny stocks, as you can guess, a minimum change in price will cause a great gain in percentages. To understand this, take a look at this company’s stock chart.

BroadVision, Inc. is an international software vendor of self-service web apps for business social software, automated commerce, business portals, etc.

The stock price of BVSN was yesterday $2.84 which is $0.16 up or +5.97% from the previous trading day.

But here is the tricky part. Penny stocks, no matter which company you are looking at, will always hit the peak. But what is following after the peak is what matters. Apps are booming nowadays. And typically for the penny stocks is that when the whole sector is rising most sector stocks will jump. When it comes to high-tech penny stocks, the volatility joined with positive feelings has produced some serious breakouts. What happens after those breakouts is more important. The stocks may collapse or to consolidate.

The consolidation can be difficult

The stock will surely pull back but to a level lower than the peak and almost every time, that new level will be above previous highs.
What you as an investor or trader has to do is watch the indicators. Pay attention to indicators that display overbought or oversold. Use the RSI indicator. Yes, it is a simple tool but can help you to determine what to do with your penny stocks.
Never expect from penny stocks to give you a huge gain by holding them for a long time. Holding them too long is an extremely risky strategy. It is always better to set small goals. For example, 20-25% profit. Also, you can use some other stock-trading indicators or combine them. But you have to know that indicators will not show you everything.

Some traders don’t even use them, they believe they have a good hunch.
When it gets to buying penny stocks or selling them it is all up to you. Of course, there are plenty of tools you can use to be surer if it is time to buy or sell. But even they are not sure-fire. This is particularly true when it comes to how long to hold penny stocks. The problem with the period of holding penny stocks is that despite all indicators and your confidence some bad news like the company’s annual report may ruin everything. So, watch your penny stocks carefully, and when you see they are rising, and indicators show they could rise more, don’t wait too long. Take profit. That is what matters at the end of the day.

You can hold penny stocks 5 minutes or 5 months but never more than 6 months. That’s the answer.

10th October 2019
Getting Started Investing is the Hardest Part

Getting started investing can be very easy and smooth since you need a little money to start. Investing is better than savings accounts because it can shorten the period of earning.

By Gorica Gligorijevic

Getting started investing isn’t a big deal, it shouldn’t fright you. Honestly, it’s so easy.

You know what, when I was just a little girl (my grandma used to sing this) my parents gave a lot of effort to teach me how to save money. Grandparents would like to give me money for some holidays with advice to keep it for rainy days. I had my savings account. From time to time, they would put some money there but most of the time they insisted I have to put. And I did it. Not frequently, I have to admit, but still. With time that habit got strong roots. Every month I’d put 10% of my earnings on my savings account. I am still doing the same. That first savings account is my 10%-account.

No matter how big or small portion is. 10% would every time end there.

I can only speak from personal experience but I am sure that other people could easily find themselves in the same situation.

I am not going to give you advice because I know that is almost impossible to put anything on your savings when you are living paycheck to paycheck. Yes, the amount of money that the majority have available to spend every month is insufficient to put something aside. Despite the old saying about money: If you save me today, I’ll save you tomorrow.

But we all know how important is to have something aside. And it is possible. Let me show you how.

How getting started investing

Okay, do you know the rule “pay yourself first”? Yes, starting this is hard. But do you understand the meaning of this rule? Of course, you do but why not tell it again. This means you have to put on your savings every month some amount of money. It doesn’t matter how much it is. A few dollars, or other currency you have. Just when you get your salary, put aside several coins. Every month. And you will see, that amount will grow with time. Try this. I am not going to tell you how should you spend this money. You may have enough for exotic travel, or to buy a car, or after some time you may have enough for house buying deposit. Just start.

No, I will never tell you to live below your means.

Sacrificing isn’t a good way to save anything except life. If you try this method, living below your means, you will be unhappy and you will always have the feeling that something was taken from you. It can be a trigger for something more serious. But, anyway, try not to purchase the famous brands, too expensive things. Do it occasionally if it makes you happy. But don’t let it be your goal. Life is a lot more than brands.

Create a budget

What you can do is to make a budget frame. It is a smart idea to write down the amount of money you have every month. You can do that in some excel spreadsheet, or just in some memo. Also, there is a lot of money management apps you can use. OK, that’s the first step. The next is to subtract all the costs you have, for example, taxes, debts, loans if you have (don’t worry, we all have), etc. What you have in your hands after these deductions is your net income. This is the amount you have to use as a base for creating your budget. So, track your spending to be able to make some adjustments if it is necessary and possible, of course. You should review your budget from time to time to be sure you are on a good track.

Getting started investing

Do you know that your money can work for you? Yes. Let’s assume that after one year of saving you have enough for exotic travel. Why do you need to make it right now? Go somewhere else and save e.g. $1.000 on your trip. That amount is more than enough for getting started off investing. You can do that with less money, here you will find how. You can choose to invest in some mutual funds (it is probably the best for starting), or stocks, or real estate. By investing you will generate a greater return than your money sleeping in your savings account. If you invest in something you will let your money work for you. The whole process may be done with your banker’s help. Your bank has financial advisors, investment advisors, they will tell you where to invest. Or you can engage some brokers.

What are the advantages of investing

One of the main advantages of investment is that you can have your money work for you to earn more. Let’s say this way. You don’t need to work more to earn more. Your investment will that for you. Investing could bring you a higher living standard, for example.

Further, you can apply investment plans for saving and growing money. The best part of investing is that you can be a long-term investor and money earned from investments can be spent to cover future expenses, for example, for your retirement, or buying a house, new car, your children’s higher education costs, or just you want to have more.

It is important for you to understand that investing isn’t gambling.

You can make a profit on investment due to research and careful choice of a suitable investment vehicle. It isn’t betting. The truth is that you can make losses in the market. That’s the reason to make less risky investments. Never mind if they have lower returns. Stay on them until you find yourselves capable to play riskier. That time may never come. You can stay in safe investments for your whole life. It is OK.

In that way, you will protect your property in the long run.

So, you can see that getting started investing isn’t always the hardest part. It can be very easy and smooth. You just need a little money to start. At least if you have some targeted amount you have to save in some period, investing will short that period. You’ll be able to gain it sooner. Sounds good, don’t you think?

10th October 2019