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  • AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals.Stock

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

    By Guy Avtalyon

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

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

     

     

    About AVEO Pharmaceuticals, Inc.

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

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

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

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

    Why invest in AVEO?

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

     

  • LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market

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

    By Gorica Gligorijevic

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

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

    It is currently traded at $104.71.

     

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

    LCI Industries revenue

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

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

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

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

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

    Why LCII stock has a buy signal?

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

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

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

    LCII stands above others due to its stable earnings outlook. 

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

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

    About LCI Industries

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

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

     

  • Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch

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

    By Guy Avtalyon

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

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

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

    Here is the formula:

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

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

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

    Is it good or bad for Designers Brands?

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

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

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

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

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

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

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

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

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

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

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

    What is Designer Brands?

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

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

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

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

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

     

  • Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

    Canopy Growth Lost $20.3 million

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

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

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

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

    Canopy Growth Lost $20.3 million

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

    What tends to go wrong, will go wrong

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

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

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

     

    Canopy Growth lost, what will happen to the shares?

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

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

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

     

  • Amazon’s Workers or Why I’ll Never Invest in Amazon?

    Amazon’s Workers or Why I’ll Never Invest in Amazon?

    Amazon's Workers or Why I’ll Never Invest in Amazon?
    Amazon’s workers are under pressure, afraid of being punished if take time off, don’t talk to each other during working hours
    Over three months 28 ambulance calls were made from just one of Amazon’s fulfillment centers asking for medical help. Over the years several were made way too late to save people’s lives

    by Gorica Gligorijevic

    Amazon's workers work under pressure

    First of all, I don’t need toxic toys, diet books, self-help books, or clothes that don’t match the picture from the catalog. And moreover, I don’t understand people who are still buying on Amazon after the reports of the inhuman treatment of their employees. For me, as an investor, is extremely important that the company has good vibes with employees. That it takes care of them, and that it is honest. 

    Recently I was reading some articles about Amazon’s PR “headaches” and concerns about work conditions in its fulfillment centers. The stories I found were true horror.  

    The company has installed a stupid advertising campaign featuring employees saying things like: “I bake cakes every Tuesday!” 

    What does it mean, for God’s sake? Should it have to show us how happy they are? What’s wrong with you people? Workers are not robots (yes, I know Amazon prefers robots), workers are human beings, with problems, emotions, ambitions, life outside the workplace.

    Amazon’s invisible army of hundreds of thousands of employees secures millions of packages are delivered every day. The employees’ testimonies, I have been reading, were scary.

    They expressed their long work hours as a “brutal”, labor slavery, compulsory 60-hours work weeks, they are afraid to take time off, report workplace injuries, and the enormous pressure even during regular days not only around the holidays. And moreover, the company doesn’t care.

    For example, Business Insider reported that ambulance callouts increased during the company’s busiest weeks of the year to three Amazon warehouses in the UK.

    Amazon’s $15 minimum wage per hour

    What Amazon’s workers have to do for that amount?
    Amazon stated it is satisfied with its “great working conditions, wages and benefits, and career opportunities.” Really?
    Should we ask Nick Oates from Kansas City?
    Prior to Cyber Monday in 2018, it was ugly weather in Kansas City. The governor at the time, Jeff Colyer, had to declare a state of emergency on November 25, and people had to stay off the roads. But Oates and his colleagues had to work without excuse. For several months he was living in his car and worked in the fulfillment center since he took medical leave from Amazon for depression. Nobody cared!

    Amazon stated at that time: the staff is advised to stay at home if they think it’s not safe to travel and can do so without fear of punishment. But Oates said his experience showed how far employees will go to provide Amazon’s ability to operate. I would like to add: and how afraid they are to take time off or refuse the overtime. 

    Barely these workers had been in the spotlight.

    In September this year, Billy Foister, a 48-year-old warehouse worker in Amazon, died after a heart attack at work. His brother told media that an Amazon human resources representative said to him that Billy had lain on the floor for 20 minutes before getting attention from Amazon’s internal safety responders.

    “How can you not see a 6ft 3in man laying on the ground and not help him within 20 minutes? A couple of days before, he put the wrong product in the wrong bin and within two minutes management saw it on camera and came down to talk to him about it,” Edward Foister said to The Guardian.

    How is possible that the worker is on the floor 20 minutes and nobody notice that? It is unbelievable! If you have co-workers, colleagues, working with you, you are talking from time to time during the shift, you can see each other, even if you are working in some lab, not in bloody Amazon’s warehouse.

    More accidents to Amazon’s workers 

    This case isn’t the first the company has been accused of providing delayed medical attention to a warehouse worker during working hours. In January this year, the widow of Thomas Becker filed a lawsuit against Amazon. She claimed that management hesitated to provide medical attention during a cardiac arrest. Becker worked at Amazon’s warehouse in 2017 in Joliet, Illinois. 

    From January to March 2019, over three months 28 ambulance calls were made from the warehouse in Etna, Ohio. Five employees with suicidal concerns and five on-the-job injuries. About 3,700 workers are employed at this fulfillment center.

    An Amazon spokesperson said: “Safety is a fundamental principle across our company and is inherent in our facility infrastructure, design, and operations.” Really? With reports of temperatures reaching 45 degrees Celsius during summers in some warehouses and workers who work in them for stretches of 4-5 hours without a break, worker safety doesn’t appear to be “fundamental principle”.

    Bottom line

    Horror stories of working conditions in Amazon and Amazon’s workers have overwhelmed the news, walkouts have erupted across Europe, and lawmakers in the US have lobbied for pay raises. Amazon’s founder and CEO, Jeff Bezos, has turned Amazon into a $790 billion worth company. Yes, he is the richest man in the world. But I don’t have to make him richer. Not me. I wish him luck but my money will stay with me. I’ll never invest in such a cruel company. Profit is important but human lives are more so. 

    I don’t want to say that Amazon isn’t worth investing in, these are my personal reasons why I want to stay away from it.

  • Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits
    Crocs have sold more than 300 million pairs of shoes in more than 90 countries.
    Crocs is traded on the NASDAQ stock market under the ticker symbol CROX. Market Cap:  $2.44 B Current Price: $35.51

    Crocs reported Q3 on October, 30. The company reported revenues of $313 million, which represents the new third-quarter record for Crocs or an increase of 20% – 21%. It also reported reducing revenues due to currencies of $3.0 million and reduced revenues of $4.0 million due to closing stores. But the wholesale revenues increased by 25.4%, e-commerce sales rose 28.2%, and retail comparable store sales increased by 12.5%. Gross margin was 52.4%, in the same period last year it was 53.3%. Adjusted gross margin increased 30 basis points compared to last year’s third quarter. 

    Crocs had, according to the Q3 report, adjusted earnings per share of 57 cents. The experts’ estimation was 40 cents. The company’s shares were up more than 10% to nearly $37 after reporting. The current price is $35.51. CEO Andrew Rees said, “Our Americas business delivered exceptional growth, driven in part by another highly successful back-to-school season.”
    The great results produced a tendency for Crocs to boost its full-year guidance to 11%–12% revenue growth over 2018.

     

    “The Crocs brand momentum continues to gain pace, and for 2020 we anticipate revenue growth over 2019 of 12% to 14%,” said Rees.

    Crocs have closed more than 150 stores over the past several years. The competition was very strong. It has also focused its works on its Classic clog, profiting from the shift toward more casual and comfortable footwear. 

    Is Crocs a good investment?

    The investors should be enthusiastic about the Crocs (NASDAQ: CROX).
    Crocs is in the center of a strong increasing trend in the short term. The stock is assumed to increase 54.16% in the next 3 months and, so the price to climb between $52.32 and $62.85, expect experts. Moreover, they are seeing only positive signals for this company and strong buy signals from the short and long-term moving averages.
    A general buy signal is supported by the relationship of those two, the short-term average is above the long-term average.

    Where the problem may arise?

    The support level is between $35.42 and $32.45. If the price falls under these levels it will be a sell signal. For now, it is a strong buy signal and an indication of additional gains. The consideration may occur because the volume fell on November, 12 notwithstanding growing prices. This shows a divergence between volume and price and it may be an unexpected warning. 

    But some experts see a great potential of holding this stock in the long run. Their estimations show a possible fantastic 152% profit in 18 months. The investment analysts think the Crocs stock is good to buy. 

    Important info about Crocs

    Crocs, Inc. is a worldwide recognized as a leading producer of casual footwear with a broad portfolio of all-season colorful pairs of shoes. Crocs were first exposed at the 2002 Fort Lauderdale Boat Show.

    Famous clogs were originally developed as boat shoes produced by a Canadian Company, Foam Creations, Inc. The new shoes were molded into the shape of a human foot. Just a few years later they have become practical footwear in households and professions. The ugly trend overflowed the world. You cannot love Crocs because of its aesthetics. These ugly clogs made a trap for the brand. The producer claimed that only one pair will last a lifetime. The fashion industry surviving thanks to many and frequent shifts and this kind of thinking was so far from the industry. But that has never slowed Crocs down. The slippers wipe-clean and non-slip build sent them straight to kitchens, hospitals, everywhere the workers have to stay on their feet for a long time. 

    It went public in 2006

    The company had already adopted Crocs, Inc. In its presentation to investors, the company announced plans that requested for new footwear models, developed distribution in the US and over the world. 

    As investors’ interest in Crocs expanded, the company was able to increase its asking price and the number of shares on the market. Firstly, the plan was to sell 9.9 million shares at $13 to $15 per share. Crocs managed to add a bit more than a million shares and hit its asking price to the $19 to $20 range. Investors liked the company since the Crocs had extraordinary growth and a product that had a global appeal.

    Today nothing has changed. Crocs is one of the most popular producers of slippers. But that isn’t the only product they have: clogs, boots, other kinds of footwear, but with a common characteristic: comfortable, long-last, colorful and funny.
    The stock should be watched closely, it can produce a great profit.

     

  • Civeo Corporation Could Be Good Turnaround Stock

    Civeo Corporation Could Be Good Turnaround Stock

    Civeo Corporation Could Be Good Turnaround Stock
    Civeo Corporation is a spin-off the Oil States International.
    It is a US accommodation service and multinational corporation. It is a spin-off of Oil States International and a public company listed on the NYSE

    by Gorica Gligorijevic

    Civeo Corporation is publicly traded on NYSE under the ticker name CVEO. According to the current price, it may never be so cheap. What we think is that this stock could easily be a great opportunity for investing. How does it come? Well, when the stock is cheap as this one is just a small sign of good news can send them flying.

    What we are talking about is the Civeo Corporation stock is turnaround stock. It had happened before, this particular stock made 115% profit in 1 month. This stock is ready to give some of the highest returns. How do we know that? Well, as we said just a small sign appeared recently. Investor Carl Icahn bought a 9.9% stake. That is a sign of a turnaround. The most interesting thing with this stock is that you will receive the 4.7% dividend while waiting for a turnaround.

    If you buy this stock now it is possible to double its value very soon. This stock can perform very well in 2020 as being an incredible buy. 

    Market Cap $162.547M
    Current price $0.9587

     

    Why invest in Civeo Corporation stock?

    Turnaround stock investing is a real source for investors. Hence, when you notice that some stock has a great probability of return within a year.

    Civeo ( CVEO) reported third-quarter revenues of $148.2 million, a net income of $4.5 million, and an operating cash flow of $23.6 million.

    Civeo Corporation delivered a third-quarter adjusted EBITDA of $36.2 million. It is up 62% compared to the previous year, and also, there is a free cash flow of $20.3 million Also, the reduced leverage ratio from 4.26x to 3.52x on September 30, this year.

    The company completed the acquisition of Action Industrial Catering which provides the company’s presence in the Integrated Services and Western Australian markets. Moreover, for the fourth quarter of 2019, Civeo awaits adjusted EBITDA $19.5 million to $23.5 million. For the full of this year, Civeo Corporation is expanding adjusted EBITDA guidance in the range of $98.0 million to $102.0 million. Civeo is reducing its 2019 capital expenditure guidance to a span of $33 million to $37 million.

    “We are encouraged by the Company’s achievements this quarter and we will continue to focus on operational execution, revenue diversification, free cash flow generation, deleveraging our balance sheet and winning new work as opportunities present themselves,” said Bradley J. Dodson, Civeo’s President, and Chief Executive Officer.

    Civeo Corporation company

    Civeo Corporation is the foremost provider of hospitality services.  But also has notable market positions in the oil operations in Canadian and the Australian. Civeo gives full solutions for accommodations of workers with long term and temporary lodging and gives food services, full housekeeping, power generation, communications systems, and logistics services. Currently, Civeo Corporation operates a total of 30 lodges in Canada, Australia, and the U.S., with approximately 31,000 rooms.

    Why invest in turnaround stocks?

    First of all, they may never be cheap again. By investing in turnaround stocks you may score double or triple-digit gains. How? The beaten-down stocks with real value will survive and provide a profit despite the overall market because they are driven by key developments in the company. And, the most important, turnaround stocks can run independently of the markets.

    The turnaround stocks may be hidden for the majority of investors. Hence, you must have a focus on several key criteria. The company must have a stable focus on businesses and be able to recognize and drop all profitless ventures. Such a company makes changes in management with successful turnarounds. 

    In the past, such a company completed a turnaround plan that gave clear, real direction to employees. Also very important to be noticed, the company must have several great shareholders who will support the turnaround attempt. The company has to be a trustworthy brand. All of these are guarantees that stock will have a great turnaround. It’s up to us to recognize the potential and buy on a bargain.

    When you notice all these indicators, it means you have got the opportunity to buy a great turnaround stock. It is time to put some of your money into stocks that give excellent value and powerful management. Yes, they are still beaten down but is it fair? This particular stock is ready for a big return.

     

  • Nokia Stock – The Tale of the Rise and Fall

    Nokia Stock – The Tale of the Rise and Fall

    Nokia Stock - The Tale of the Rise and Fall

    Nokia’s problems around 5G networks may lead to sustained per share loss and limited margin expansion over the next 12-24 months

    Nokia stock is falling. On Friday, November, 8 shares of Nokia Corporation, (NYSE: NOK) displayed a change of 0. That day session it closed at $3.57. Nokia Corporation, a Finland based company, is the technological and communication equipment business. The shares of Nokia Corporation was among the active stocks on that day.

    What did happen?

    The famous manufacturer of telecom-grade networking equipment posted on October, 24 a Q3 report. And shares of Nokia fell 27.9% in the aftermath. The stock price fell due to disappointing undershooting of the guidance targets. Also, it fell in the Helsinki trade because Credit Suisse downgraded Nokia to neutral from outperform. Credit Suisse lowered Nokia’s target price to 3.85 euros from 5.70 euros. Credit Suisse thinks that Nokia may also lose 5G market share due to product delays and high costs.

    The Q3 report points to the 5G network as the main problem. 

    The company’s revenue rose 4% to $6.31 billion. Adjusted earnings lowered from $0.06 to $0.05 per American depositary receipt. Nokia also cut its earnings guidance by 22%. The reason behind, as the report declares, are the growing costs of keeping the company competitive in 5G business.

    Nokia also redirected its dividend funds into even more 5G investments. But don’t be so happy if Nokia is your favorite one. This move will not make Nokia a titan among others because the company is losing 5G contracts with important network operators, for example with Telecom Italia.

    The sudden drop in price isn’t recognized as a buying solution for Nokia shares. Wall Street issued some downgrades too and critical statements after the Q3 report. J.P. Morgan cut its price target on Nokia by 44% and excluded this stock from the list of top recommended.

    It is hard for Nokia’s stock to survive under these difficult conditions. The dividend cut is a clear sign for many investors to stay away and sell stocks, cheaper and cheaper.

    Nokia is suffering now due to stupid business decisions and strong-minded competition. It looks that 5G is a too big bite for this company. Do you remember what did Nokia with the possibility of develope smartphones? It was almost 10 years ago. Instead to took part, Nokia stepped away and made space for others. Only to enter the market late in the game with the Windows Mobile platform, which was dead on arrival due to illogical design decisions. It looks that market shifts with the speed that Nokia isn’t able to catch.

    This became obvious in late October when Nokia made important cuts in its guidance and suspended its dividend. 

    Are there better times for Nokia stock?

    Well, the company made all these moves with an explanation that Nokia has the goal: huge capital investments into 5G networking. That could be a good hunch. But, on the other hand, Nokia may place a big bet, bigger than the company can afford at this time. Increasing investments in the way Nokia is doing may produce some income in the long term, but it has to survive on that path. Is it able? 

    Investors say no. Nokia stock is currently displaying a down return of -2.46 all last week and we can see the bearish return of -27.73 for the last 30 days.

    Some can ask why decreasing the Nokia stock price is not a good buying opportunity. Well, it looks that Nokia came too late on this battlefield.

    5G technology is in development for some time and the biggest players in tech were preparing for a long time to take advantage. Despite the thinking that a low price is a good chance to buy stock, this stock looks very suspicions. Maybe it is better to stay away for some time and watch in which direction the company will go. 

    Bottom line

    Today is November 12, 2019. It’s Tuesday and the current price of NOK stock is $3.535. Our data shows that the price is in a downtrend during the past 12 months with a sharp drop after the Q3 report. This stock should tend to fall more. Should you add a Nokia stock to your portfolio now? It’s up to you. Our opinion is that NOK may decline further in the next 12 months, even to 35%. But in the long run, NOK may be a good investment if you can wait for several years.

  • Brookfield Renewable Partners – High Yielding Stock

    Brookfield Renewable Partners – High Yielding Stock

    Brookfield Renewable Partners - High Yielding Stock

    Brookfield Renewable Partners trades on the Toronto Stock Exchange under the ticker symbol BEP.UN and on the New York Stock Exchange under the ticker symbol BEP.

    On November, 11. Brookfield Renewable Partners, a Canadian company, reported financial results for the three and nine months ended September 30, 2019. 

    The company has been doing great work last year to sustain its renewable energy portfolio and its balance sheet. The work showed great results over the third quarter. Brookfield Renewable Partners presented important cash flow growth. Moreover, the company plans to keep that success and to continue growing its 4.6%-yielding dividend.

    The company proceeded to execute on strategic priorities in the third quarter. There were many new investments, operations, and creating liquidity to reinforce its strong balance sheet.

    The stock is strongly bullish.
    Market Cap): $13.42 B
    Current price: $43.485

    Brookfield Renewable Partners - High Yielding Stock

     

    Sachin Shah, CEO of Brookfield Renewable said:

    “We are also pleased to announce our intention to create a Canadian corporation with publicly-traded shares that we expect will be economically-equivalent to the units of the partnership. This should position us well to continue attracting new investors to our globally-diversified renewable power portfolio.”

    Brookfield Renewable summarized Funds from operations (FFO) growth of 27% which is in currency $133 million or $0.43 per unit. It is for the last three months, until September 30, 2019.
    The net loss for the same period was $53 million or $0.17 per unit. These results were backed by recent acquisitions and the execution of its operating initiatives.

    The company’s portfolio is growing

    This Canadian company invested $100 million BEP equity into TerraForm Power and there was the acquisition of a 200-megawatt wind farm in China. Also, it sold two mature European wind portfolios for $74 million net to BEP,  from selling five of its six assets in South Africa, BEP gains $42 million of net profit. That selling of, returned nearly two times its capital invested.

    Brookfield Renewable Partners completed a C$600 million green bond issuance. That is the largest corporate level green bond ever issued in Canada. This transaction provides the company to increase the average duration of the corporate debt by 5 years to 10 years and to maintain a strong total available liquidity of $2.5 billion.

    Canadian Corporation

    The company announced an intention to form a Canadian corporation “in order to provide investors with greater flexibility in how they invest in Brookfield Renewable’s globally diversified, multi-technology renewable power portfolio” as they said in a statement. 

    The new entity will be publicly listed on the same exchanges as BEP. The quite interesting idea will give investors the possibility to invest in Brookfield Renewable Partners through a partnership or Canadian corporation. That could increase demand and improved liquidity for the company.

    Moreover, Brookfield Renewable Partners plans to distribute on a tax-free basis to the majority of unitholders, class A shares of the new corporation, Brookfield Renewable Corporation (BEPC). This will be an adjustment for the number of shares outstanding, without changing the aggregate cash flows or net asset value 

    The class A shares will be convertible for one BEP share. 

     

    The success of Brookfield Renewable Partners operations

    Its hydroelectric operations increased its cash flow by 20%. Although the company produced less electricity in the U.S. Northeast and Canada due to climate issues, BEP balanced that problem by making better results in its operations in South American and boosted the profitability of its businesses in Brazil and Colombia.
    Its wind business grew its cash flow by 24%. The benefits came from the acquisition of 210 megawatts of wind capacity in India and a 51 MW wind farm in Ireland. At the same time, its investment in TerraForm Power proceeded to pay dividends.
    Brookfield’s solar, storage, and other sections were flat for many years. But this year its solar business grew 16% thanks to growth at TerraForm.
    On the other side, earnings from storage were down 45.5%. That is the result of a 33% drop in actual production over the period.

    Bottom line

    Brookfield Renewable Partners’ third-quarter results reveal that its strategic plan manages to pay dividends. Hence, it is reasonable to expect that the company will be successful in the future.
    Its aim is to increase its cash flow at a more than 10% annual rate in the next 4 years. So, it will be easy for them to increase their high-yielding payout to 9% per year. So, what do you think, is this a good choice for investors willing to invest in renewable energy? For us, it looks like a good pick.

     

  • International Paper Company Could Be Great Stock In 2020

    International Paper Company Could Be Great Stock In 2020

    International Paper (IP) Could Be Great Stock In 2020

    International Paper Company is quite capable of surprise, it is undervalued due to its EPS growth, but dividends are steady
    Market Cap: $17.7 billion
    Yield: 4.5%
    Revenue: $22.8 billion

    International Paper Company (IP) is a producer of packaging, paper, and pulp, based on fiber. You might think how a paper producer can be a good choice for investing in when everything around us is already digitized, who and why would need paper. Well, that is true, but only this part about digitalization. The usage of paper isn’t dead and the paper isn’t going to lose the battle in the digital era. Okay, we are ordering things online but do they come to our doors? Packed in one of International Paper’s products. Or from some other producer, of course, but we are talking about IP now.

    Not to be forgotten, some news appears that IP is about to go ex-dividend on November 14. So, you have to buy their shares before that date to receive the dividend. It will be paid on December 16.

    International paper dividend

    The company’s next dividend payment to shareholders will be $0.5 per share. That is less than the last year when they paid $2.1. If we take a look at payments from the past year, the company has a trailing yield of about 4.4% on the share price of $46.21. 

     

    Some data is very important when you have to decide to buy or not some stock because of its dividend. 

    The International Paper paid out 58% of its profit to shareholders last year. Nothing strange with that payout,  it is a regular level for most companies. But take a look at its cash flow since it is more valuable than profits when estimating a dividend. Well, IP did it well last year, it paid 35% of free cash flow. It’s good to see that the dividend is well covered, so the dividend is sustainable. Of course, it will be until earnings drop sharply.

    Is it a good dividend stock? 

    International Paper shareholders have seen a support expansion from the money managers in the past several months. After the second quarter of this year, about 30 hedge funds held IP in their portfolios. But the surprising thing is that IP stock isn’t amongst the 30 most popular. That has to be noticed.

    This company is paying dividends over 10 years now. For long-term investors, the companies that are paying dividends can be worthwhile.  International Paper Company is yielding 4.8% so for some investors it is a good opportunity if they want to buy the stock because of it.  The company has significant debts, so you will need to check its balance sheet to see if there is any debt risks.
    International Paper has a net debt of 2.61 times its EBITDA. Yes, debts are good to stimulate business growth but can boost the risks. During the last 10 years, the IP dividend has been constant. That is a sign that the company had a consistent earnings dynamic. 

    International Paper Company paid $1,00 per share in 2019, last year it paid $2,00 which is a CAGR of about 7.2% a year. This is very worthy over the long term investors if the rate of growth can be kept or increased. Also, IP would have a better result if earnings per share could grow too. Instead, the company’s EPS are flat over the past 5 years. 

    Bottom line

    When we want to buy a dividend stock, we want to know will the dividend grow, is the company is capable to support it in different economic conditions and is the dividend payout is sustainable. International Paper company’s dividend payments look fully covered. Moreover, International Paper appears like a great chance. It could be a good fit.