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  • NextEra Energy Could Be The Top Stock Of The Next Year

    NextEra Energy Could Be The Top Stock Of The Next Year

    NextEra Energy Could Be The Top Stock Of The Next Year
    NextEra Energy’s date of posting quarterly earnings reports is almost here. What investors could expect?

    NextEra Energy (NEE) traded the Wednesday, December 24 at $240.51. The most recent price rose for 0.72% from the previous trading day. On the same day the S&P 500’s 0.02% loss, while the Dow lost 0.13%, but Nasdaq scored an increase of 0.08%.

    NEE is approaching its next quarterly earnings report. The analysts expect NextEra Energy to post earnings of $1.53 per share. That would represent the growth of 2.68% in comparison to the prior year. Also, there is an expected revenue of $4.69 billion or 6.77% more than in the same period last year. 

    Speaking about the whole year, analysts’ expectation is earnings of $8.37 per share (an increase of 8.7% compared to the last year) and revenue of $19.27 billion (an increase of 15.09% compared to last year).

    The beginning of NextEra Energy

    Long-time ago, it was 2001, NextEra Energy’s market value was $10 billion, today it is $117 billion. The company is, in other words, the largest publicly traded utility in the world.
    The company has large cash flow thanks to onshore wind-power infrastructure in promising areas, low-cost production and, also, the federal support. 

    NEE is a good dividend stock too, that paid out $2.1 billion in common stock dividends last year. The current dividend yield is 2.1%. NextEra generates cash flow from a power generation subsidiary NextEra Energy Resources (one of the biggest producers of electricity from the wind and sun) and two Florida utilities. 

    NEE stock

    Currently, the stock’s P/E ratio is 28.53, while the average P/E ratio for the industry is 20.45. 

    The data shows that the stock price has been in an uptrend for the past 12 months. NextEra Energy stock price has a rising tendency. So we can conclude, the future price of NEE easily could hit $390 which means to increase for more than 28% at the end of the next 12 months period. NextEra Energy stock is a good long-term investment. The experts’ recommendation is to HOLD this stock since the further rise is expected.

    But for the short-term traders, this is a good opportunity to sell, because the stock is in the upper part of a weak growing trend so it can be expected the move back towards the lower part of the trend. If the stock passes the level of $242.93 it will be the sign of a strong raising rate. The stock could hit this price in the next 3 months or less, and rise further up to near $250 over the next 3 months.

    The company’s ABOUT

    NextEra Energy’s headquarters is composed of five buildings in Juno Beach, Florida. It is a leading clean energy company and is the largest rate-regulated electric utility in the US by retail electricity produced and sold.
    The center of NextEra Energy’s business is Florida Power & Light. This utility serves about five million customers. It is also the low-cost provider of electricity. The average customer cost is under $100 per month, which is lower than the average of $140. 

    Recently the company announced that will start the new year with the lower customer bills. The monthly bill for a typical 1,000-kWh residential customer will decrease by nearly $4 due to lower operating costs. That will be about 30% below the national average.

    NextEra Energy also owns NextEra Energy Resources, LLC, which is the world’s largest generator of renewable energy and also a global leader in battery storage. The company produces electricity from eight nuclear power units in Florida, New Hampshire, Iowa, and Wisconsin. NextEra Energy is rated as No. 1 in the electric and gas utility industry on Fortune’s 2019 list of “World’s Most Admired Companies”. Also, last year it was rated among the top 25 on Fortune’s list of businesses that “Change the World.”

  • A Good Entry Point, the More Chances of Profit

    A Good Entry Point, the More Chances of Profit

    A Good Entry Point, the More Chances of Profit
    The entry point is very important and can determine the end of your trade both in losses or in profits.

    Having a good entry point is the first round in reaching a prosperous trade.
    What is the entry point? It is actually the price investors have to pay to buy/sell a stock. The exit point, on the other hand, represents the price at which investors exit the trade with loss or in profit.

    While the entry point has been extensively examined from the divergence/convergence aspect, the exit point has not got full attention.

    Why is that? Well, exits may have hidden tendencies.  

    But let’s stay on a good entry point.

    Traders’ successes or failures depend a lot on trade entries. One wrong entry can destroy your trading, for example. Yes, traders are using stop-loss to lessen the risk in case the market makes big moves.
    But let’s talk about how the risk-reward potential can be enhanced by a better trade entry.

    First of all, never enter the trade when the market is near to extreme highs or lows from the recent position. That fault may ruin your trade.
    We already have seen traders that decided to enter the trade when the trend broke the final high with the hope that the stock price will continue running up.
    That was the wrong decision because when the price reaches its highs, in most cases the only way it can go further is down. The price will drop into the previous range. So, you will make a loss.
    The reason behind this is that markets never move in one direction forever. Especially after the trend reaches extreme highs and lows. If you place the entry point when the trend reaches the highest, it will always result in losses.
    But if you like to take more risks in trading you can do that but be sure where you want to set the stop-loss to lower your losses when exiting the trade.
    The wrong entry may occur if you are trying to enter the trade at the point where a large move is, but you are not sure what caused this move is. The direction may shift quickly in the opposite direction and your trade will end in losses.

    Reversal strategy for a good entry point

    Some traders like to set entry using reversal strategy. What does that mean?
    In this entry strategy, the traders are taking the trade with the hope that the market will make changes its trends. They are using pivot point levels, so-called Fibonacci levels. This entry is useful only when the market isn’t trending in an obvious, clear direction.
    Don’t use this in all trading.

    The real role of a good entry point

    The role of a good entry point is to allow you to identify high probability trades. You need the confirmation that you have an edge by reducing emotions.
    You need a trading strategy that makes sense and where you can execute entry orders with confidence. It is very important and your good entry point should provide you that. Otherwise, it isn’t good.
    Eventually, with a good entry point, you are more likely to enter the profit target or stop-loss. And the chance to look for other opportunities is here also.
    A good entry will help you to repeat your trades and increase your advantage. But don’t be too focused on your entry point. Overoptimizing is never good.

    Bottom line

    A good entry point is very important for the success of your trade. But the exit point is what will control your profit. So, you will need to optimize it. To be honest, the best way is backtesting and finding out what works best for you. There are two ways to do that. You can use complicated calculations, charting, etc. or you can use Traders Paradise’s unique and simple app for optimizing your exit strategy. It’s up to you. 

    Remember, all is important. But as you can see, you can enter the trade in many situations but you can end your trade with only two: profit or loss.

    Trading is a game, you have to make the best move at the right moment.

  • Superstition In the Stock Market May Lead You to Lose the Shirt

    Superstition In the Stock Market May Lead You to Lose the Shirt

    Superstition In the Stock Market
    Stevie Wonder wrote in his famous song:
    Very superstitious
    Writing’s on the wall
    Very superstitious
    Ladder’s about to fall
    Thirteen-month-old baby
    Broke the looking glass
    Seven years of bad luck
    Good things in your past

    Superstition is so live in the stock market that you can barely believe. Imagine that it is Friday 13, just like it was in April, September, and December this year. Some people, especially scientifically-minded, would roll the eyes. But, despite the fact that Friday 13th is just a day in the calendar and it may occur several times in one year, some investors truly believe that it is a bad-luck day. 

    When enough investors share this foolish belief, stock prices can be changed but not in the investors’ favor.

    But do superstitions really affect the stock markets? 

    Some studies revealed that people are more risk-averse when thinking about Friday13.
    One study from 2005 discovered that hesitation to do business on this day ends in a loss for the US economy of almost $900 billion. Does this scare affect stock prices? Believe or not, yes.

    First superstition: Friday 13th

    According to a study, returns on Friday 13th are lower compared with other days.

    This Friday 13th effect was broad spread among numerous investors until 1980 but has disappeared. The reason is simple: automated trading erased the “Friday 13th effect”. 

    But it so funny to talk about Wall Street superstitions. So let’s proceed.

    Superstition In the stock market No2: Did you know anything about the witching hour?

    Several years ago I found an article written by the man who worked as a broker on Wall Street. I am sorry, I didn’t remember his name. But what I remember is the witching hours are between 2 and 3 PM. Superstition linked to this part of the day (notice, it was on a daily base) was related to market close. If the market sold off at that time, it was a sure sign that the market will be closed on a positive mark. In that interval, from 2 to 3 PM, he and his colleagues were maniacally buying stocks. Just to provide a stronger close.  

    It worked until it didn’t. They didn’t leave the stats.

    Superstition In the Stock Market No3: Sell on Rosh Hashanah and buy on Yom Kippur

    The superstition works like this: on Rosh Hashanah, which is the first day of Jewish New Year investors should sell some of their positions and buy them back on Yom Kippur. This year Rosh Hashanah began on the evening of Sunday, September 29 and ended on the evening of Tuesday, October 1. 

    Do you believe that this trade works? Well, yes. More often than not. But for Jewish. Maybe you should try to sell some of your positions on January 1 or on Christmas or on Islamic New Year. In 2020 it will begin in the evening of Wednesday, August 19 and ends in the evening of Thursday, August 20

    But I am not so sure, dates may vary. 

    Chinese new year will begin on Saturday, January 25, 2020. 

    Did you know that for one part of Orthodox the New Year actually begins on January, 14? Confused? It is just a calendar. But if it works for Jewish why it doesn’t work for others? There is no reason. The only thing to consider is, do you have to trade according to the Jewish calendar or you can use any.

    What I learned during my life is: about superstition and taste is worthless to argue. Take it or leave it.

    Superstition No 4: Super Bowl theory

    This theory goes that the Dow Jones will have a good year if a National Football Conference (NFC) team wins the Super Bowl. But if the American Football Conference (AFC) team wins it will end the year lower.

    For those with a lack of knowledge about American football, the American Football Conference (AFC) and National Football Conference (NFC) are parts of the National Football League (NFL). Honestly, European football is simpler. 

    From 1967 to 2003 this superstition showed it was accurate 68%.  Several years in a row AFC teams were winning the Super Bowl and that was a period of economic growth, but who cares?

    Let’s ask the stats.

    It was 1967 when one AFC team won the first Super Bowl. During the following period, AFC teams have won 11 times, if you check the stock market result you will be surprised. In 6 of those 11 years, the stock market was dropped. On the other side the stats aren’t so favorable, NFC won Super Bowl more than 30 times and Dow Jones didn’t advance in each of them.

    October Effect

    This one is a bit harder to rebut. 

    The October effect is a market anomaly. The stocks tend to decrease during October. Honestly, it is mainly a psychological effect rather than a real wonder. The stats show something different than this theory. 

    But…

    October has this reputation thanks to Panic in 1907, Black Monday, Black Tuesday and Black Thursday in 1929, and Black Monday in 1987.

    Black Monday, 1987 that happened on October 19. The Dow fall 22.6% in one day. It was possibly one of the most unlucky days for investors and the stock market. 

    Despite the scary title, this effect is not statistically exact. From a historical view, October has seen the end of bear markets more than it witnessed the beginnings. But, investors see this month as dangerous and they are selling, and that sentiment creates possibilities to buy on the other side. So, superstition or not, while one sees the end, the other will see the beginning.

    Bottom line

    Irrationality and superstition in investing will always cause lower returns. Traders, whether they admit it or not, are superstitious. Some will have a happy pen, the other lucky shirt or underwear (hard to believe), some will have some other talisman. Superstition in the stock market is broad spread.

    Luckily, many investors and traders are devoted to science, education, and knowledge. 

    As Stevie Wonder wrote: 

    When you believe in things
    That you don’t understand,
    Then you suffer,
    Superstition ain’t the way

    Happy trade!

  • Chinese stocks that will benefit from phase one deal between the US and China

    Chinese stocks that will benefit from phase one deal between the US and China

    Chinese stocks that will benefit from phase one deal between the US and China
    Morgan Stanley believes that IT and Transportation stocks will benefit the most from any de-escalation of trade tensions.

    Morgan Stanley says there are some Chinese stocks that will benefit from phase one deal between the US and China.

    Almost half of them belong to the IT sector. This sector suffered in the trade war because the companies took place on tariff lists. Also, some of them are from the consumer sector.
    Morgan Stanley said in last week’s report: “These two sectors saw the biggest scale of valuation re-rating based on their previous reaction to de-escalation events.” 

    These 29 stocks have significant exposure to U.S. revenues, according to this investment bank.

    The so-called phase one trade deal, the US President and President of China, was made several days ago. It is a kind of initial agreement but nevertheless, it caused some optimism. Anyway, it is progress in this situation. The US President said in his tweet on Saturday that the US and China would  “very shortly” confirm the deal.

    Morgan Stanley wrote: “We believe IT/Internet-related and Transportation stocks will benefit the most from any de-escalation of trade tensions.” The airlines’ stocks or in general, transportation  stocks, is going to benefit from, as bank wrote, from “strengthened CNY/USD” and “improved global trade outlook.”

    What are the Chines stocks that will benefit?

    First on the list could be AAC Technologies, with 58% publicity exposure. It supplies Apple. Further, Lenovo. This laptop producer has 31% exposure to the US revenues. Also, Samsonite could benefit. 

    As much as Alpha Group, Goodbaby International, Nexteer Automotive Group, Ningbo Joyson Electronic,  Regina Miracle International, Zhongji Innolight, Sunwoda Electronic, WuXi AppTec, Crystal International Group, SMIC, Bestway Global Holding, Jiangsu Changjiang Electronics Tech, Cosco Shipping, Jiangsu Yangnong Chemical, Lens Technology, Shandong Nanshan Aluminium, GoerTek, WuXi Biologics Cayman, GigaDevice Semiconductor Beijing,  Luxshare Precision Industry, Shenzhen Sunway Communication, Universal Scientific, FIT Hon Teng, or Legends Holdings are also Chinese stocks that will benefit.

    All of them are publicly listed on Chinese exchanges.

    Morgan Stanley warned that the final outlook for the sector depends on the talks’ “dynamics” among the U.S. and China, including the signing of a deal.
    The bank said that both countries have been so close to signing a deal several times in the past 18 months but it didn’t happen.

    Some US stocks could benefit too

    Intel, the largest producer of semiconductor products in the world. Also, Harsco, a service, and engineered products corporation. Diodes Incorporated, a leading producer and supplier of discrete and analog semiconductor products could benefit from the deal between the US and China, for example.

    Unexpectedly, on Dec 11, China made new offers to the US to end the trade deadlock. China proposed to reduce tariffs on U.S. vehicles from 40% to 15%.

    It seems that both sides are looking to end this trade war. For example, President Trump has offered to mediate in the case of Huawei’s executive whose arrest had increased trade tensions.

    More about China’s economy

    China’s economy began this decade in growth and it looks like it will end with the slowdown, the worst seen since 1990.

    Well, policymakers have the chance to avoid a crisis and they know how to do that. The question is, do they want. For investors, it is a buying opportunity after Chinese stocks dropped to record lows in comparison to world peers.

    The main topic for China for the next 10 years is it going to fix these problems more quickly and dynamic way. The other choice is to have them forever.
    It is surprising how they maintain the pace of growth with the state sector involved. The progress away from a state-controlled economy to a more private-sector is lacking.
    Further, China has very little or low motivation to allow complete fluidity of capital flows into and out of the country.

    Michael Pettis, a finance professor at Peking University recently commented on Bloomberg:

    “China was unlikely to experience a financial crisis and a sharp depreciation of the currency. I think the market didn’t understand that these are mainly balance sheet events, and as long as China’s financial system was closed and its regulators powerful, Beijing could easily extend and restructure liabilities so as to prevent a crisis.”

    Bottom line

    Supplies, Technology,  and Industrial are Chinese stocks that will benefit the most from ending a trade war. So, pay close attention to the stocks from those sectors and make your investment choice.

  • The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week
    Bitcoin rose above $7.402 and market cap moved upward by +0.89% to $137.68 billion

    The Bitcoin price may rise further since it has continued being above the level of $7,000. That is important not from psychological only. Over the weekend, it traded between the $7.100 and $7.200 and by now has grown to reach a bit over $7.402 according to the Coindesk and at the moment of writing,

    The weekend began with cryptocurrencies retracing, but it ended with a rally. Bitcoin (+4.5%), Bitcoin Cash (+4.14%), Ethereum (3.7%), and Litecoin(+4.73%) were the best among the top ten cryptos.

    That caused crypto analysts to be hopeful about the short-term price action of Bitcoin. One of them suggests a price range to which Bitcoin may rise this week.

    @CryptoMichNL wrote:

    “Currently at potential local resistance. Wouldn’t be surprised with the continuation of ranging for the coming days, before we make another push to $7,800-8,000 resistances later next week.”

    Today ( December 23) followed by another tweet:

    Last week, the famous investor and BTC bull Tim Draper had stood by his previous forecast about Bitcoin popping $250,000 by the end of 2022 or by early 2023.

    And CNBC’s crypto expert Brian Kelly said that technically this price action is possible and described how it could befall.

    Brian Kelly said:

    “It sounds bizarre but it wouldn’t be out of the realm of what Bitcoin has done in the past.”

    Kelly showed a chart of Bitcoin price movements since 2013 and pointed out that since then Bitcoin price has been moving within a rising channel. The top of that channel, Kelly says, is right about $200,000 – $250,000.

    As for the fundamentals that could lead to this price leap, Brian Kelly calculated that by late 2022 or early 2023, Bitcoin could take half of the market share from all the world’s gold and by that time the market cap of Bitcoin should be almost $4,5 trillion.

     

    If that arises, Kelly said, Tim Draper’s prediction “isn’t too far out of whack.”

    The Bitcoin market cap moved upward by +0.89% to $137.68 billion and trading volume is at $27.23 billion.

    Bitcoin dominance increased lightly and is now 68.65%.

    Bitcoin has broken the sideways movement after the bullish impulse that made last December 18. The price moved up from $7,150 to exceed the $7,650 value but fall again to $7.402.

    This $500 movement was the confirmation of the trend reversal that was expecting. Will the move proceed until it touches the upper descending trendline at $7,800? We’ll see.

  • Pharmaceutical stocks – Risk and Reward Of Investing In

    Pharmaceutical stocks – Risk and Reward Of Investing In

    Pharmaceutical stocks - Risk and Reward Of Investing In
    The pharmaceutical stocks belong to the larger healthcare sector.
    With faster drug approvals and increasing customers, investing in pharmaceutical stocks could be a good choice.

    Pharmaceutical stocks increased in 2019. The best pharmaceutical stocks have strong Composite Ratings and Relative Strength Ratings. That recommends buying them.
    As we can see the healthcare industry will only intensify. The new technologies are developed or in the phase of developing with good predictions to get approvals for use. This industry will continue with modernization, it is obvious.
    The increasing development of tech in healthcare also will give new chances for the industry. Prescript medicine sales CAGR from 2019 to 2024 is set to be three times that in the period from 2010 to 2018.|
    The forecast annual CAGR of +6.9% for the next 5 years is $1.18trn in the US.

    Pharmaceutical stocks to diversify the investment portfolio 

    Investors who want to diversify their investment portfolios would do well to look at the pharmaceutical stocks.

    Pharmaceutical stocks are high-risk investments, but companies from the industry can be very good for investors seeking long-term investing. The changes in this field, almost on a daily basis, approval of new treatments, new drugs and therapies, great returns, make this industry favorable for investors. It shows profitable opportunities.

    If you want to invest in publicly traded pharmaceutical companies, just keep a close eye on them when they enter clinical trials. The results of clinical trials are extremely important for investing in pharmaceutical stocks. Why? Well, those trials can be ended with the make-it-further option or break it.
    The auspicious results can reach big gains in the stock market, but failures or loss of progress can have a reverse impact. 

    Approvals before market

    Before selling their products, drug companies are required to first test them. Results from pharmaceutical products are sent to the relevant government organizations or agencies to examine the safety, proposed use, and efficacy.

    The approval means that they have analyzed the medication’s consequences and that there are more positive than negative effects. There are various approval stages: analyzing the disease the drug is targeting, treatment options, analyzing effects from clinical trials and how to handle any risks linked with the drug or method.

    Since there is a lot of examinations, the approval can take years.

    Well, drug approvals are possibly the most attractive in pharmaceutical stocks investment opportunities. They are always on the radar. New drugs are innovation on the market, especially when it gets to rare diseases. 

    For example, during 2018, the US FDA’s CDER approved 59 new pharmaceuticals. Among approved medications were the first to treat smallpox and the first treatment for hypophosphatemia. Over the first 6 months of 2019, the approvals got 16.

    All this taken together, represent the excellent market conditions for pharmaceutical companies.

    Pharmaceutical stocks: the trends

    In the pharmaceutical market currently exist 10 main therapeutic sectors, which shows data from Statista.
    The global sales for medicines generated a total revenue of US$36 billion. The top sales go to pain therapy, anti-diabetic drugs, and oncology.
    In terms of revenue, pain therapy generates sales of $79 billion, anti-diabetic drugs $40 billion, and oncologic $100 billion.
    Treatments and drugs for depressive disorder and anxiety also generate greater revenue. For example, Eli Lilly Company (NYSE:LLY) reached $36 billion in revenue this year.
    The main fields of developing new therapies or drugs, so far this year, were treatments for non-small cell lung cancer and breast cancer.

    Pharmaceutical stocks: market growth

    The global pharmaceutical market is ready for outstanding growth. Big and famous brands are always interesting but small and micro-cap stocks are good too.

    According to many reports, the industry reached $1.2 trillion in 2018, up to $100 billion from 2017. In the next 4 years, the market is predicted to grow at a compound annual growth rate between 4% and 5% and to reach $1.3 trillion. But this rate is less than between 2014 and 2018.

    Nevertheless, investing in pharmaceutical stocks could be a good addition to everyone’s portfolio. You don’t have to invest in leading pharmaceutical stocks, some are not as big as leaders but have great growth potential. And, they are cheaper, also.

    In the next 5 years, the sales volume in the pharmaceutical market is possible to reach $1.18 trillion. It looks like a great opportunity.

    Here are some Traders Paradise’s picks:

    Merck & Co., Inc. (MRK)

    The last price $91.58 (December, 20)
    Market Cap $233B

    Merck is rapidly growing, the CAGR is 10.9%.

    Merck & Co., Inc. offers therapeutic and preventive agents to treat a huge range of diseases such as cardiovascular, type 2 diabetes, chronic hepatitis C virus, HIV-1 infection, insomnia, neuromuscular blocking agents, cholesterol, anti-bacterial and vaginal contraceptive products. Also, the company is focused on products to prevent chemotherapy-induced and postoperative vomiting, treat non-small-cell lung, breasts, thyroid, cervical, and brain cancers, vaccines for measles, mumps, rubella, varicella, rotavirus gastroenteritis, and pneumococcal diseases. Additionally, the company produces antibiotics and anti-inflammatory drugs to treat fertility disorders, and pneumonia in cattle, bovine, and swine, and antibiotics and vaccines for fish, dog, cat, and horse vaccines, and many others. It has collaborations with many bio-pharmaceuticals companies. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.

    Roche Holding AG (RHHBY) (SIX:ROG)

    The last price $39.88 (December, 20)
    Market Cap $271B

    Roche Holding AG is the leading trend in biotechnology, with a forecasted $38.7bn of sales in 2024

    On December, 23 Roche announced that it entered a $1.15 billion worth licensing agreement with Sarepta Therapeutics to get the right to start and commercialize Sarepta’s investigational gene therapy for Duchenne muscular dystrophy outside the US.
    Roche will make a payment of $750 million in cash and $400 million worth in equity. Sarepta’s micro-dystrophin gene therapy SRP-9001 is in clinical development.
    Roche said the agreement is supposed to close in the first quarter of 2020.

    Eli Lilly & Co. (LLY)

    Last price $132.43 (December, 20)
    Market Cap $127B

    Lilly published a better-than-expected financial outlook for 2020 while confirming the previously announced 2019 sales and earnings plans. Lilly awaits adjusted earnings from $6.70 to $6.80 per share in a year ahead. Revenues are expected from $23.6bn to $24.1bn. If the company reaches this planned sales range, it will exceed its 7% revenue CAGR target. Lilly is expecting important results for several key pipeline drugs. Also, it awaits approvals for two new drugs and three new launches in the next year.

    Eli Lilly’s stock price has a rising tendency and it looks like a good long-term investment.

    Bottom line

    These stocks are just a suggestion. Of course, you may choose some other pharmaceutical stocks. For example, Pfizer Inc. (PFE) with Market Cap: $227.87 billion that generates an 18.7% annual return. Or Johnson & Johnson (JNJ) with a Market Cap of $375.67 billion. Zoetis Inc. (ZTS) can be a good investment choice with 17,7% of the annual return.

    If you are looking for long-term investment for your portfolio, investing in the pharmaceutical industry could be one of the best places to invest in.

    But be conscious, the overall performance for the industry was worse in 2018. The leading pharmaceutical sector market index (S&P Pharmaceuticals Select Industry Index) made negative returns of -16.87% last year. The index started at a closing value of 5,082 and ended at a value of 4,225 at the end of the year.

  • Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission's Approval For Kadcyla
    Kadcyla is medicine for the adjuvant treatment of people with HER2-positive early breast cancer with the residual invasive disease after neoadjuvant treatment.
    Roche stock price rose for more than 21% over the past 12 months

    Roche on December 19 has announced that the European Commission has approved Kadcyla for the after-surgical treatment of patients with HER2-positive early phase breast cancer. Kadcyla is a single agent for treatment HER2-positive patients metastatic breast or lymph nodes cancer. 

    According to Levi Garraway, Roche’s Chief Medical Officer and Head of Global Product Development, this approval of Kadcyla from the European Commission “will allow many more women with HER2-positive early breast cancer to be given a transformative treatment that may cut the risk of their disease returning or progressing.”

    The purpose of neoadjuvant treatment is to make tumors smaller thus enhances surgical results. Adjuvant treatment helps to eliminate any residual cancer cells and reduce the risk of cancer returning. Patients who have the remaining disease after neoadjuvant treatment have a worse prognosis and this drug should help them to improve the chances of longer and normal life.

    The good results of treatment with Kadcyla are well-known in the US where women are already been treated with this drug. The US Food and Drug Administration approved this treatment on May 4 this year. Kadcyla is approved in 27 countries for the treatment of early breast cancer phase. It is recommended by the St. Gallen International Breast Cancer Conference, the NCCN and the AGO.

    Learn more about breast cancer

    Roche stock

    Roche stock price (SIX: RO, ROG; OTCQX: RHHBY) has risen more than 21% over the past 12 months. During that time, Roche Holding AG got two approvals of new treatments for breast cancer. Kadcyla and Perjeta, both came from the large oncology drugs portfolio at Roche’s Genentech group.

    Roche stock price chart

    So, Roche Holding AG’s stock price is higher than it was 12 months ago, with a return of about 6.4% in the same period. Moreover, it looks like it can hold up for the long-term. For investors, it may seem like very good news. But, the long-term returns were 17% over the three years. It wasn’t too much.

    And Roche Holding had a Total Shareholder Return (TSR) of 25% for the last year. That beat its share price return. This is mainly a result of its dividend payments! 

    Roche Holding has paid shareholders with a TSR of 25% in the past twelve months. The dividend is included. As we can see the TSR for one year is better than for 3 years, which means that the Roche stock is running better in the more recent period.

    The share price momentum continues strong, and it might be worth paying attention to this stock. At the time of writing (December 20), the price of Roche (RHHB) stock is $39.38 and data shows that the asset price is in an uptrend for the past 12 months with a further rising trend. That may drive the price up to $46 or $47 in the next 12 months. 

    The current consensus among analysts is to buy stock in Roche Holding AG.

    About the company

    Roche is a pharmaceutical and diagnostics company, the largest biotech company in the world. This combination under the roof of one company made it the leader in personalized healthcare.
    Its products are aimed at oncology, infectious diseases, immunology, ophthalmology and diseases of the CNS. Roche is famous for in-vitro diagnostics and tissue-based cancer diagnostics. Also, it is a leader in diabetes treatments.

    The company is founded in 1896. Since then, more than thirty drugs developed by Roche are in the World Health Organization Model Lists of Essential Medicines.
    By the Dow Jones Sustainability Indices (DJSI), Roche is for 11 years one of the most sustainable companies in the pharmaceutical industry.

    Its headquarters is in Basel, Switzerland. Last year, Roche invested around $11.2 billion in R&D and posted sales of almost $58 billion. In the US, Genentech is a wholly-owned member of the Roche Group. Also, Roche is the majority shareholder in Chugai Pharmaceutical, Japan.

  • Shopify The Fast-Growing Large-Cap Stock

    Shopify The Fast-Growing Large-Cap Stock

    Shopify Is The Fast-Growing Stock
    Shopify Inc shares have more than tripled in the past year. On Wednesday, Shopify shares were up by an extra 3.4% above $400.

    Shopify (NYSE:SHOP) is the fast-growing tech stock.
    If you are looking for growth stocks this particular stock is outstanding. Five years ago Shopify went public and provided to many investors a real wealth. But it is not the end. This stock is likely to give more. 

    Shopify’s rise has been truly beautiful to investors. This commerce platform went public in May 2015 and today its shares are up unbelievable 1,400%.
    Its annual GMV rose from $3.8 billion in 2014 to more than $41 billion in 2018, and grew 50%, to $225.0 million this year, driven by the growth of Gross Merchandise Volume. Its revenue rose from $105 million to above $1 billion.
    The great thing with Shopify is that the number of merchants that use Shopify’s tool will continue to grow. The reason is clear, e-commerce is growing and will more and more.

    Shopify is a leading global commerce company that offers easy for entrepreneurs to begin a business at just $9 per month.

    Why Shopify is better than Amazon?

    As a difference to Amazon, Shopify gives retailers to have own brands on the packaging, so their customers can recognize them. This is a great advantage for merchants and provides Shopify with a fast increase share in the industry. You have to admit that it is better than “powerful” Amazon. Shopify may easily become a master of the game. Don’t underestimate this feature  – a new fulfillment network.

    Shopify prepares and sends its retailers’ products over the U.S. It uses ML technology to optimize its catalog and minimize transportation costs. It is extremely helpful to small businesses but the benefit is on Shopify’s side too. Its management values that small businesses represent a $70 billion opportunity. And Shopify just started to enter that field. 

    By helping smaller retailers to grow their businesses, Shopify could become a more large company.

     

    Third-quarter financial report

    On October 29, Shopify Inc issued Q3 2019 Financial Results.

    – Total revenue in the third quarter was $390.6 million, a 45% increase from the equal quarter in 2018.
    – Subscription Solutions revenue grew 37% to $165.6 million. This increase was made by growth in Monthly Recurring Revenue1 (“MRR”) and to an increase in the number of merchants joining the platform.
    – Merchant Solution’s revenue grew 50%, to $225.0 million
    – MRR as of September 30, 2019, was $50.7 million, up 34%. Shopify Plus gave $13.5 million, or 27%, of MRR compared with 24% of September 30, 2018.

    – GMV for the third quarter was $14.8 billion, which is an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 rose to $6.2 billion
    – Gross profit dollars grew 45%, to $216.7 million
    – Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue
    – Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018.
    – Adjusted net loss for the third quarter of 2019 was $33.6 million, or $0.29 per share.
    – Shopify had $2.67 billion in cash, cash equivalents, and marketable securities. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

     

    Shopify’s stock price

    Shopify’s stock isn’t cheap, currently, it is $396.94. But it is the essence of growth stocks, they are expensive. But profit comes from mighty global trends that are driving its growth.

    Shopify Is The Fast-Growing Stock

    Shopify’s current market capitalization is $45 billion. If you invest today in this company you will have fairly big gains in the future.
    Shopify has had a great year. It surpassed the number of 1,000,000 customers, launched a new fulfillment network, and increased its outlook for annual revenue. Yes, the stock is up 165% this year.

     

    The bright future for Shopify

    Shopify is forecasted to grow revenue at 44% in 2019 to $1.55 billion. That is 7.5 times its revenue in a period of 4 – 5 years. Its extraordinary growth put the company in a third-place (measuring a share of e-commerce sales over the last year) just after Amazon and eBay. Traders Paradise thinks that it will be the second place very soon, and will be ranked in front of eBay.

    The company is spending its profits very smart to improve the platform and on acquisitions which provides new growth. Shopify invested $1 billion to implement a fulfillment network that is more merchants-friendly than Amazon’s. The company is investing in its operations and don’t expect to be profitable soon. This e-commerce platform holds $2.7 billion in cash and securities, so it has enough space to fund its businesses.

    We can see that even when some company becomes giant, it has a lot of space to grow more.

    If you already bought this stock, hold it since the new increase is very possible. If you still didn’t invest, it’s time.

  • Forex signals – How Do They Work?

    Forex signals – How Do They Work?

    Forex signals - How Do They Work?Are you going to use Forex signals or not, depends on your personality and trading plan. In case you are an individual with little time, Forex signals offer an alternative to manual trading.

    Forex signals behave like a trade alert for the currency market. In Forex, trading signals are used by traders all over the world. They help them to make crucial decisions about trades.

    Trading signals in Forex are one of the most valuable tools you can have. Almost all traders prefer to use them because they can profit from proper signals. A trading signal is completely a suggestion of when and how to trade. The information is based on special price analysis. The trading signal is commonly formed by an expert or it is formed by the program which uses multiple technical indicators.

    By using trading you will be methodical. All you have to do is to find a trustworthy source that is compatible with your trading strategy.

    Find a signal provider able to provide the individual support, and a ‘strike rate’ of previous signals.

    The Forex signal has to show you the entry point.

    Your entry point shows you the price level at which to open a trade on the forex pair. The signal must show the level which will trigger market activity and it will be your entry point.

    Some signal providers will automatically create the order to open a new forex position if the price hits the settled level. That is a great advantage because you don’t need to be in front of your device when the entry point is breached. The other choice is to set a price alert at the entry point level. Then you can manually open a trade when the alert is triggered.

     

    The Forex signal has to show you the exit point.

    A good trading signal must provide you with two exit points. It must indicate where to close every position formed as a response to the signal. This means it must show the stop level and the limit level. The limit level is where you could make a profit.

    The stop level is important information because it is the point where you have to close the position if your trade is moving unfavorably. That will protect you from taking a loss. 

    The limit level will show you the point where to close the position if the trade is moving in your benefit. That will secure your profit. 

    For example, the signal could indicate a short-term price rise will result in a reversal. Well,  you would like to pick a profit at the peak of the rise, just before your earnings go reversal.

    Stop and limit levels are an essential component of your trading plan. That’s why the good trading forex signal must have the exact information about them.

     

    Forex Signals can be placed into three groups:

    News trading signals
    Technical signals
    Real-time trading ideas – Webinars

    The first one in the list is the fundamental approach to Forex signals. This signal aims to get the news release as quickly as possible and provide a trader to gain the maximum level of profit in a short time.

    Forex signals often come with daily or weekly commentary and analysis.

    Technical trading signals are simply trading tips on the basis of technical analysis.

    That means you trust the experience and follow the record of the signal provider. You are sure it is the best Forex signals service. You may prefer to trade on this data rather than to open trade on your senses.

    Technicals are usually given along with various risk management strategies. The purpose is to guarantee minimum losses if the plan does not act as it was originally supposed.

    Most online Forex signals have this feature. So, searching for the best Forex trading signal provider can be a much harder and longer task.

    General knowledge of Forex signals may help you in finding the best Forex trading signals provider.

     

    Forex signals can be received from many firms that have this service. 

    Also, you can get them from top Forex brokers. They provide them with other traders. Forex signal is an impulse for entering a trade on a currency pair, typically at a specific price and time.

    The signal is produced either by a human expert or an automatic Forex robot.

    They must be timely. So you will need some very fast communication. You will receive the signals via email, website, SMS, RSS, tweet or other comparably quick methods. And you can find a lot of them for free. 

    To find the best for you, try to search: best free forex trading signals, free forex signals live, live forex signals no registration, free forex signals providers, free forex signals online in real-time, free forex signals software, etc.

    Services that you get by signing up usually vary from provider to provider.

    You can receive almost anything from performance trackers, email, or SMS alerts, customer support via email or phone and, of course, advanced analysis.

    Forex signal providers must protect their strategies. That’s why trading with them always means full trust, to some degree. More about this you can find HERE

  • Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Preview
    During Q2 reporting everyone will look at Nike’s direct-to-consumer business. The company’s revenue is expected to be $10.08 billion and EPS $0.58 

    Nike is prepared to report Q2 earnings on Thursday, December 19. It will be interesting to see will the famous sportswear producer sustain success which made over this year and what is the new plan. Nike (NYSE:NKE) shares have risen 34.2% this year, exceeding the S&P 500’s 27.5% rise. 

    Nike stock chart

    So, a lot depends on its Q2 2020. Will the gains continue? It looks like a lot of things depend on the company’s digital and direct-to-consumer efforts.

    Nike continued to fund its Direct strategy, the rollout of its apps to other countries and its partnerships with e-commerce platforms. For example, Tmall and WeChat Chain’s services. Nike dealt more acquisitions, such as NFL star Russell Wilson’s TraceMe startup. This startup has one important feature, a built-in sports-prediction service.

    Nike revenue

    The revenue is expected to be $10.08 billion and EPS $0.58.
    Nike shares have risen in 2019, despite the overall trade and economic slowdown. The company’s performance this year indicates the management is doing right. The stock rally will have a great test tomorrow after Nike issues its fiscal 2020 Q2 earnings.
    During this year there was no reason to believe that the company is doing something wrong. 

     

    Nike’s growth strategy showed good results

    The leading Nike’s efforts is “Triple Double Strategy.” The goal is to double its resources on its digital features; more and faster innovation and product creation, and increasing one-to-one connections.

    Nike has established a powerful track record of delivering on its strategy. Nike has beaten quarterly earnings estimations more than 90% for the past 11 years. And the company made it at the same time when Amazon got a major portion of customer spending. Moreover, this famous brand became more powerful, by spreading sportswear out of gyms to the street. 

    The result was that Nike grabbed a larger market share from its main EU rival, Adidas. Also, its presence on the home market is larger too and with increasing sales. The same result comes from the markets of Asia.

    For example, in Nike’s Q1 earnings report, the company released that sales in China rose by 27%. It is an impressive result because this success came during the trade war, and having such a good result in this communist country means that Nike, as an American brand, was doing well.

     

    The break out with Amazon 

    Recently, Nike ended the relationship with Amazon that lasted the past two years. This break appeared as part of a continuing effort to improve digital selling. 

    The first change at a stock price after the announcement showed how right they were. The stock increased by more than 7%. 

    Nike’s idea of digital selling is more idea of creating a personalized experience for customers. Some media reported that Nike spent about $1 billion on this strategy. The company’s digital loyalty program, NikePlus has more than 170 million subscribers and it is still growing. Thanks to app customers can find the perfect shoes for their feet because this app has a fantastic feature – it scans the foot in a few seconds. Of course, the app has other features too, from reserving some products to the mentioned one.

     

    Nike and Michael Jordan

    Nike is the official uniform supplier of the NFL and the NBA. Its Micheal Jordan brand is still going strong, fans all over the world like the latest Jordan shoe model. That’s why it made more than $3 billion in revenue for fiscal 2019, which is more than 7%  in comparison to last year.

    Bottom line

    Nike’s stock price might seem as expensive. Its gain for this year and  P/E ratio at 37, may cause such thinking.

    The current share price of $99.65 and the stock is traded at $100.10 at the pre-market. The point is that the stock price is very close to the analysts’ estimation of $103.60 so some investors may think there is a small space for the rise. But, it is expected Nike to report great data on digital and direct-to-consumer sales. The natural movement in shares will be to bounce higher.

    Nike’s stock could easily hit $150.00 or even $160 in the next 12 months. So, NKE is considered to be a good long-term investment.