Category: Market Today

Market Today is the place where visitors can find all of the most important world stock market news. Traders-Paradise’s main goal is to provide valuable information. All are deep researched and fact-checked.

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Market Today covers the main financial world stock market news. We cover all financial sectors such as the stock market, the Forex market, cryptocurrency market.
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  • The Black Swan Event – Is it Coronavirus?

    The Black Swan Event – Is it Coronavirus?

    The Black Swan Event
    No one can predict the Black Swan event, but this coronavirus is a danger in many ways.

    The question could coronavirus be the Black Swan event for the stock market, started with the increasing number of infected people. But this reason isn’t the only one that generates this question. Numerous companies temporarily shut down their operations in China. According to CNBC, General Motors’s spokesman sent an email that stated the company said to its employees that it will keep its factories in the country shut through Feb. 9. General Motors is the largest U.S. automaker in China. Also, Starbucks temporarily shut down almost half of the existing locations in the same country. Moreover, if the infection progresses, the company will close more without hesitation, said its CEO, Kevin Johnson. Google is another large company that temporarily closed its offices, and Microsoft employees in China will work from home until Feb. 9. Amazon and Google have restricted employees to travel to China. Also, many airline companies slashed or stopped their flights to China. All due to government-imposed travel bans in China.

    Markets reaction

    Markets are reacting to the potential consequence of the coronavirus blast.
    Global markets sold off on Monday but started to stabilize on Tuesday. The stocks are still close to record highs reached recently. But the comparisons with the 2003 SARS is out the question. Though, everyone makes them. 

    Could coronavirus be the Black Swan event for the markets?

    Let’s say this, in 2003 China growth was reduced by 1 percentage point. But the growth rate of China’s economy since 2003 increased and China has a bigger role in the worldwide markets today. Maybe the markets shouldn’t be so careless this time.

    The coronavirus could have a far more serious impact on the world economy than the SARS epidemic in 2003. At the end of 2002, the Chinese GDP was estimated at around $1.5 trillion, 4% of global GDP. In 2019, the Chinese GDP was $14.3 trillion and above 16% of global GDP. In the time of the SARS epidemic, China just joined the World Trade Organization. That’s the main difference.

    Influence on the global economy

    According to some estimates, today even a small downturn in the Chinese economy can cause volatility in the global oil market and global trade, for example.
    Firstly, the number of tourist and business trips to China is already declining. Further, China’s GDP growth rate could decline by 0.5% to 5.6 percent this year, as a result of the outbreak of the virus corona epidemic, according to some experts.
    As we can see, the coronavirus has already impacted the world’s commodity markets, including the oil market. 

    The price of Brent crude oil has fallen 14% since the beginning of this year, largely due to news from China and continues to decrease.

    But could it be a Black Swan event?

    The coronavirus is an understandable concern to stock market investors. Since the stock market is overbought and in such a condition, it can be extremely unsafe and vulnerable. Some investors are convinced that the coronavirus epidemic could cause the Black Swan event in the markets. Moreover, they started to buy on dips thinking that this event is temporary and will not live for a long time.

    We all hope so since medical science has dramatically advanced and the virus could be contained. But who can predict what is going to happen in the markets? The Black Swan event could happen or not. There is a 50/50 chance, in fact.

    Investors should be realistic. The coronavirus can be a seasonal event and by spring it can be contained. But as we said, even such a small and short-term event may cause changes in the stock prices. Of course, when the number of cases is increasing, the stock market is decreasing. The main problem to the market is that this virus appeared in the time of bullishness in the stock market. This is a critical point.

    It can be the Black Swan event for the Asian market

    Asian markets fell Thursday, January 30. The reported number of coronavirus infected increases every minute. That makes difficulties for the global economy. Hong Kong’s Hang Seng Index (HSI) had its worst day since August this year on Wednesday, January 29. The index lost 2.1% and it already has fallen over 5% in January. 

    Japan’s Nikkei 225 sunk by almost 2% on Wednesday. South Korea’s Kospi fell 1.5%. But Taiwan is the biggest loser among the Asian markets, Taiex fell 5.5%.

    So, the virus can really disrupt China’s and Asian economy. How far it will spread? Will it affect the global markets? 

    Several circumstances could lead coronavirus to affect asset prices on a global level. On Monday, January 27, the US stocks dropped significantly gaining a new low record since October last year. The fear is rising. Investors are moving their holdings from risky stocks to safe havens. The coronavirus affected the global markets. Is it a Black Swan event? The risk is high and also the possibility. The influence of coronavirus on global stock markets is than SARS could ever do. 

    How is it possible the coronavirus affects markets so quickly?

    First of all, the news is spreading very fast creating reasons for turbulent market moves. The virus’ is spreading over the world fast and leads to market downswings. The global supply chains are interconnected tighter than ever. The trade networks are complex and, at the same time, vulnerable. So, some kind of domino-effect is very possible. If the coronavirus spread extensively that will influence the companies based in China. 

    Also, if the coronavirus continues to spread, it could reflect in stock prices. Well, one of the biggest global economies is affected already.
    JPMorgan decreased its  GDP estimate for China on Wednesday, indicating a “demand-side shock” caused by the coronavirus. 

    Thus, the positive 2020 economic predictions can be undone very easily due to coronavirus.

  • What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?
    Create portfolios that will work no matter what the next year is going to bring. The recession will come or not, but your investments have to be protected. 

    By Guy Avtalyon

    What to expect from the stock market in the year ahead? The stock market could correct itself during the early days of 2020. But, despite some dark predictions, the stock market may keep rising over the long run.
    This is the last day (at the moment of writing) of the year during which the market was so unpredictable. At least, it was surprising.
    For example, Uber’s IPO was followed by fanfare, and what happened? Great disappointment.
    But many other stocks hit their highest-ever highs and quickly dropped to the lowest lows. The only truth in the stock market is that there will always be shocks. 

    Okay, that year is behind us so let’s take a look at what to expect in the stock market for 2020.

    The stock market will rise more

    The stock market boomed in 2019. The S&P 500 recorded a gain of 29.2% in 2019. Some analysts already told us the market will be down in 2020 but, to be honest, they could be wrong. Since the stock market rose over 20% in 2019 it is more likely in 2020 to see even greater returns than it was in the previous year.

    What you have to do? the answer is simple. If you had good returns in 2019 and your investment portfolio was doing well, just stay with it. Why would you change the winners? 

    But…

    Nothing related to the stock market is for sure and forever. There is always something to worry about. It’s our money. If you hold cash and not invest in stocks or somewhere else, your money will go anyway. So, don’t be frightened, come back to the market, and invest smartly. The year ahead could be promising. Build your portfolio, mix the assets, and avoid emotions. Yes, the stock market could be more volatile in the next year could since 2019 was much less volatile than the prior year.

    Some unpleasant occasions may arise over the coming year. 

    Firstly, in January due to the January Effect. What is this? The January effect is an increase in stock prices during that month. But is a seasonal increase. Usually, In December,  the stock market records an increase in buying, and the stock price is dropping. In January, stock prices will increase as always. 

    In fact, the January effect is a theory and calendar-related effect. Some small caps could be affected more than any other. But according to history, it was a case until several years ago. Since then, markets seem to have adjusted for it.

    What to expect from the stock market 

    The stock market is pretty much unpredictable, we can only guess. Maybe the right question is what to expect from the investors. So far the majority showed spectacularly bad timing when it comes to stocks. They are selling and buying at the wrong time. Many of them are selling just before rallies or accumulate stocks when they have to sell. 

    If you believe that the market is increasing and that it is a predominant trend, adjust your portfolio for the ups and downs in 2020. But it is the same as always. Your actions will depend on what your expectations are toward the stock market in the next year. Maybe, you will invest more money when the markets are more volatile with the expectation that pullback is temporary, who knows?

    The value stocks will come back

    Yes, stocks are growth or value type. Growth stocks are so attractive and popular. Everyone is talking about them, they are in the headlines, media are paying a lot of attention to them and burn our brains too. The whole world is watching the stocks of Amazon, Facebook, Uber, and many others because the growth stocks are giving great returns, they are well-known companies, famous brands.

    On the other side, we have value stocks. They are mostly companies form the utility industry, or energy or something else less attractive. Such stocks don’t have spectacular prices, the companies are not fast-growing. 

    Yes, the growth stocks are performing better results in growing markets but the value stocks will always do better in down markets.

    To be told, the growth stocks are increasing their value year-to-year and some experts are expecting a reversal in 2020. So, growth stocks may change their prices and decrease.

    A diversified portfolio will be helpful as always. If you hold any of these great players just sell part of it if you follow the experts’ estimations. At least, your portfolio will be less volatile.

    What to expect from the stock market: The bear market is coming for sure

    This prediction was wrong for many prior years. But, maybe the next year may confirm market bears’ expectations. We have a bull market and it showed a great strength over the year. It was faced with a yield curve inverted, trade war, Brexit, the possibility of a recession. Well, to add more pain into your lives, the bull market has to end at some point. Some experts expect that 2020 is that time.

    So, what investors have to do is to hedge the risk and take some profit, of course. As the market motto advises “you will never go broke taking profits.” Maybe it is really time to take some profit from your investment. If you believe the downturn in the stock market will come for sure, be ready to reinvest big gains. What different could you do when the important selloff comes in 2020?

    Will the recession surely come?

    Recession is an element of any business. So, we can expect it to come at any time, sooner or later. It may happen in 2020 or 2021 or 2022, literally anytime. Many circumstances have an influence on it, we are witnesses of some, that’s true. 

    Investors shouldn’t adjust their portfolios based on guessing. However, it is smart to analyze your allocation. Maybe some stocks are out of balance. Let’s say you wanted to hold 50% in stocks but you noticed that suddenly you hold 70%. That would be a clear sign that is clever to exit some positions. Just adjust your portfolio with your risk tolerance and investment goals.

    We all know that the stock market forecasts are useless. No one can predict how the market will perform. But still, we click on them to see and compare them with our opinions. The reduction of difficulties is in the essence of human nature.
    However, investing in the stock market certainly includes difficulties and risks. Seeking out for expert opinions about what to expect from the stock market in 2020 can be the wrong way to lessen risks or uncertainty.
    Investors must do their own examination. If you think the crypto will go up, just buy some of them or parts of them, or if you think Uber is a great investment, just buy some shares of it. A small portion will be quite enough notwithstanding that experts are expecting a big increase.

    One is a-hundred-percent sure, you will make at least one mistake. Take it as certain. But that’s life and also, that’s investing, be prepared for that.
    Just do your best to secure your right calls overpass your wrong ones. 

    Happy New Year!

  • 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.

  • Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday
    Investors are expecting that a draft bill for an updated EVs tax credit could become law.

    UPDATE 18/12: Tesla stock closed up 3.74% yesterday and was priced $393.15. It was a new all-time high. Over the past 6 months, TSLA rose by almost 74%, making it up 11% in the last five days alone and up 60% over the last 3 months.
    TSLA is on pace for its best quarter.
    Last time, the stock was near these levels last year after the “funding secured” failure of last year.

    What’s behind this bullishness?

    Bloomberg reported Wednesday that the company is planing cutting the price of Tesla’s China-built Model 3 sedans by 20% or even more. The next few weeks will be interesting.
    Take a look at the new chart.

    Shares of Tesla (NASDAQ: TSLA) hopped on Monday, approaching their all-time high and were up 6.45%.
    The stock jumped on the investors’ belief that House Democrats are going to vote on a bill that would renew the federal tax credit for purchasers of EVs. The news triggered the stock price.

    Shares of Tesla Hopped On Monday

     

    General Motors Company (GM) shares marked the rise in price after a sharp decline in November. The stock price rose by 1.29% Monday.

    The new draft energy tax package supported by Congressman Mike Thompson would increase the limits on the federal tax credit for EVs.

    The current tax credit is not available to buyers when a producer has sold 200,000 EVs in the U.S. That number was reached by both Tesla and General Motors. 

    The updated credit would begin to phase out after the producers reach 600,000 EV in sales. Moreover, the tax credit deductible would be decreased from $7,500 to $7,000. This would provide this benefit to more EV buyers.

    The bill is called the Growing Renewable Energy and Efficiency Now (GREEN) Act. It is expected to increase demand for Tesla and General Motors EVs. But nothing is officially finished yet. The investors should wait for it. But it looks that they are pretty much assured that the renewed tax bill will become the reality.

    A tax-credit extension was asked by Tesla

    Many of the companies and groups that had earlier lobbied on similar acts of extending the credit, all settled on the “Driving America Forward Act” as their prime goal.

    The current tax credit, first passed in 2008 and revised in 2009, increased buyers’ interest in EVs and also urge the production.

    But it looks like the industry demands a new portion of the support.

    Tesla hit the 200,000 in sales, and without a new tax-credit bill, it is hard for the electric vehicle maker to grow further. Earlier this year Tesla’s sales have dropped since its per-vehicle credit decreased to $3,750. The tax credit was lowered to $1,875 in July again.

    Shares of Tesla are rising

    Tesla stock is rising, up more than $23, or 6.5%, in Monday trading. That’s a new 52-week high. But why shares are rising nobody knows for sure.

    The new U.S. federal EV tax credits law seems to be the only reason for investors’ optimism.

    Tesla is a heavily-shorted stock. The investors borrow shares and trade them, speculating on price drops. That could create more stock volatility. 

    Closing at Monday’s prices was the highest close since August 7, 2018. On that date, shares were closed at $379.57. Moreover, shares are increased by more than 110% from their 52-week lows of $178.97 on June 3, 2019. It has been an extraordinary run.

    Shares of Tesla are up about 14% per year but Tesla stock is up nearly 57% over the last three months.

  • Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Came Out With Q2 Earnings For 2020
    Oracle is one of ten companies with the greatest cash in the US.
    Since its 2016 fiscal year, the company spent more than $75 billion on buyback shares

    Oracle Corp. issued a sales outlook for the current quarter. As we can see, it was exactly what analysts estimate. The company plans to increase its revenue by 1% to 3% in the fiscal third quarter which is in line with Wall Street estimation of a 2.3% rise. This software company outperformed expected earnings for its fiscal second quarter. Oracle reported a revenue rise of 0.4%. That is the 6th quarter in a row that the company had revenue growth under 5% in comparison to last year.
    During the conference call on Thursday, December 12, the company’s  Chief Executive Safra Catz said that revenue is expected to grow from 1% to 3%, but the problem was currency fluctuations.
    The stock price declined 3% in extended trading (after the release of the results) and traded at $56.47.

    Oracle Corp Announced Q2 Earnings For 2020

    The company previously reported sales increased less than 1% to $9.61, which is less than analysts’ projections of $9.65 billion. But the stock has increased by 25% this year while the S&P 500 SPX, has increased by 27%.
    This Oracle’s report was the first after Mark Hurd, the company’s top sales executive, died in October. Safra Catz stayed as sole CEO since Hurd was one of two chief executives.
    Oracle made some progress in cloud computing and storage, but it is still a leader in the field of enterprise database software. Oracle’s trump card is a new Autonomous Database that runs without human administrators. But the strong competition comes from Amazon.com Inc’s enterprise solutions. 

    The truth is that Oracle had unsteady sales growth in the past five years. Earlier, in September this year, Catz promised to investors that revenue would quicken in this fiscal year and next. Also, the earnings per share is supposed to grow by a double-digit percentage. The company announced in the same month a new AI-driven operating system and partnerships with Box Inc. and VMware Inc.
    But, cloud license sales declined 7.5% to $1.13 billion in the period, which means the company is getting fewer new deals. 

    The Oracle (ORCL) stock

    In the current quarter, Oracle Corp. predicted earnings of 95 to 97 cents per share. Analysts estimated 96 cents per share. 

    The analysts’ median target is $57.00 which will be a 0.94% increase from the current price of $56.47. A high estimate is $66.00 and a low estimate of $35.00. This stock has a strong HOLD recommendation.

    Traders Paradise app can help you to define your exit strategy for ORCL. Try and find the best strategy for your trade.

    The company’s ABOUT

    Oracle Corp is headquartered in Redwood City, CA. The company is a hardware and software behemoth, specialized in business software products. Oracle started in 1977 as Software Development Laboratories. 

    This software giant has a lot of borrowing and spending. The company has spent about $75 billion to buy back stock since its 2016 fiscal year. Also, it spent $41 billion in the last five quarters. That’s a lot of money for the company with $19 billion in free cash flow. The buying back shares has pushed the company into a net debt of $35.7 billion in cash.

    According to FactSet Research, Oracle is among ten companies with the greatest cash in the US. But its net cash is negative $17 billion. Since 2016, it is about $32 billion declines and the company took a lot of cheap debt to finance buying back shares. That’s probably the reason why the stock rose by only 35%.

    More problems for Oracle Corp.

    Maybe the biggest problem for Oracle is its hesitation to react to the increase of cloud computing. Oracle’s main rivals Salesforce, Workday, Amazon, and Microsoft, are taking market share from Oracle.

    The dynamic buybacks may arise from the fact that co-founder Larry Ellison himself owns 35% of Oracle’s shares, according to a statement filed in September with the SEC. Also, the reason could be some M&A activity. All companies would like to have more cash and less debt, that’s not in question. Microsoft,  Apple, or Berkshire Hathaway, have over $100 billion of cash, for example.
    Oracle has $35.70B.

  • Ollie’s Bargain Outlet Posted the Third Quarter Report

    Ollie’s Bargain Outlet Posted the Third Quarter Report

    Ollie’s Bargain Outlet Posted the Third Quarter Report
    Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) reported its quarterly earnings results on Tuesday, December, 10 and surprise all analysts.

    It was a hard quarter for Ollie’s Bargain Outlet (NASDAQ: OLLI). Its CEO and founder Mark Butler passed away. But despite that tragedy, the management succeeded to give his company a strong third-quarter performance. Here is the transcript.

    Ollie’s Bargain Outlet reported stable growth. They succeeded thanks to opening the 13 new stores and extension of its presence to 25 states. That increased revenue gains in the third quarter. Total sales recorded 15.3% of growth in the last 12 months, or $327 million. Gross margins increased over the year to 40.8%. Ollie’s Bargain Outlet stated the progress came from increased margins on merchandise. At the same time, they managed to hold under control costs in the supply.

    The company reported a 22% increase in operating income and it is $35.7 million.  Also, net income increased by 8.6% to $27 million, and earnings grew by 7.9% to $0.41 per diluted share.

    Ollie’s Bargain Outlet stock

    OLLI stock rallied 12% in the extended session yesterday (Tuesday, December, 10) after reporting third-quarter results that were beyond Wall Street expectations. John Swygert became the company’s president and CEO, also. In a company’s press release, it is stated that the Q3 earnings report surpassed analyst expectations. Ollie’s Bargain Outlet announced it earned $27 million in the quarter. That is more than $24.8 million, which was in the same quarter last year. Sales grew 15% to $327 million, from $284 million a year ago. 

    Analysts’ expectations were the company would report GAAP and adjusted earnings of 38 cents a share on sales of $323 million.

    Today, December, 11 Ollie’s stock price is $60.30 which is the growth of 0.12%. But on pre-market the stock traded at $66.45.

    Ollie’s Bargain Outlet Posted the Third Quarter Report

    The analyst’s forecasts for Ollie’s stock are the median target of $75.50, a high estimate of $94.00 and a low of $65.00. The median estimate represents a +25.21% jump from the last price of $60.30.

    Regarding the earnings reported, Ollie’s might amaze us afresh. Traders Paradise’s opinion is the stock a good buy. 

    The guidance on next quarter’s earnings

    Ollie’s Bargain Outlet updated its earnings guidance yesterday, on December 10. It provided EPS guidance of $1.95-2.00. Ollie’s issued revenue guidance of $1.419-1.430 billion, which almost the same as the consensus revenue estimate of $1.43 billion. 

    Some investors are short selling OLLI and 17.2% of the shares of the stock are short sold currently.

    Company’s ABOUT

    This company is a retailer that offers food products, books, stationery, housewares, bed and bath products, health and beauty products,  electronics, toys, hardware, candy, clothing, pets, garden products. It offers its products essentially under the names: Ollie’s, Ollie’s Bargain Outlet, Ollie’s Army, Good Stuff Cheap, Real Brands! Real Bargains, Real Brands Real Cheap!,  Steelton Tools, Sarasota Breeze, American Way, Commonwealth Classics. From this year, the company is present in 25 states in the eastern part of the US. The company’s previous name was Bargain Holdings, Inc. The name was changed to Ollie’s Bargain Outlet Holdings, Inc in March 2015. The company was founded in 1982 with headquarters in Harrisburg, Pennsylvania.

  • Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News
    Forty Seven Inc. announced preclinical proof-of-concept data for its novel all antibody conditioning regimen. This announcement caused the stock price climbing.

    Until Monday, December 9, Forty Seven Inc. (FTSV) shares were traded at $14,44. Two days ago, its price per share rose at $30.43. On Tuesday, December 10, the stock price increased for an additional 13% or $4.22 and traded at $34.65.

    Forty Seven Inc. Increased On A Good News

    What happened?

    The stock price rose upon the news. It was a response to new data from the Phase 1b clinical trial of magrolimab, in combination with Celgene’s Vidaza, in treating patients with MDS and AML patients to whom induction chemo isn’t suitable. The new results were shown at ASH in Orlando.
    FTSV scored 110.73% gain, meaning the investors found a great opportunity here.

    You might be interested: Why Biotech Stocks Are A Good Investment

    Guggenheim equity researchers improved the status of Forty Seven, shares to a “buy” rating in the report from November 20th, 2019. Mizuho also was rating FTSV as “Buy”. Same as ROTH Capital.
    Since Forty Seven Inc. announced preclinical data for its new all antibody conditioning regimen, the stock price has skyrocketed. 

    Forty Seven Inc. What To Watch

    The current dividend yield for FTSV is zero, this means the investors will get the return investors no matter how the company’s performance will be in the future period. Furthermore, the company increased sales from quarter to the quarter which was the sign of progress. Forty Seven Inc. belongs to the healthcare sector and biotechs industry. Its market capitalization is $1.26B.
    Its EPS was $-2.78 and outstanding shares were 41.40M. The shareholders have to look a bit deeper. The company has recorded a weekly performance of 134.98%. The monthly performance is at 268.85%.

    FTSV is currently showing an average of 217.78K in volumes. The volatility of the stock per month is at 14.09%, and the per week volatility levels are recorded at 28.84% with 134.98% of gain in the last week.

    The analysts’ estimation for Forty Seven Inc is a median target of $37.50, with a high of $45.00 and a low of $20.00. This median estimate shows a +8.21% increase from the current price of 34.66. The price target established for the stock is $19.36, an awesome set of a potential movement for the stock.

    Don’t miss this: Axsome Therapeutics (AXSM) Is A Good Investment

    The company’s ABOUT

    Forty Seven Inc. is a clinical-stage immuno-oncology company. It is developing treatments that target cancer immune evasion pathways. The technology for that is licensed from Stanford University.

    The company’s main program, magrolimab, is a monoclonal antibody against the CD47 receptor. This antibody is being estimated in various clinical studies in patients with myelodysplastic syndrome, ovarian cancer, non-Hodgkin’s lymphoma, acute myeloid leukemia, and colorectal carcinoma.

    The company is dedicated to developing a defense against cancer. They strongly believe that CD47-SIRP-alpha is a novel immune pathway. This approach in anti-cancer therapy means patients can fight cancer with their immune cells. Its new class of immunotherapies gives a new pathway to patients living with cancer and may have no other option. This discovery came from Irv Weissman and his colleagues at Stanford University who identified CD47-SIRP-alpha.

    The company is established in 2015.

  • EU Banks Welcome Bitcoin

    EU Banks Welcome Bitcoin

    EU banks welcome Bitcoin on January 10, 2020
    From next year banks in EU banks will offer their customers cryptocurrencies in online banking
    The German lawmaker is the leader in the regulation of cryptocurrencies.

    By G. Gligorijevic

    EU banks welcome Bitcoin??? Yes. In the ever-running war of governments against money laundering and terrorism financing new regulations are being enacted and implemented in many countries on almost regular yearly levels. And the approaching deadline for implementing one such regulation in the EU is good news for all investors and potential investors in cryptocurrencies from this supranational block. The governments of EU member states have until January 10, 2020, time to implement the 5th Anti-Money Laundering Directive (5th AMLD) which brings a sorely needed legal framework for trading and investing in cryptos. Until recently, among the EU legislators existed a strong negative attitude towards the cryptocurrencies. Most often justified by a lack of proper legal framework and the potential for a sinister use of the advantages they are lauded for. But from January next year, such obstacles shall be removed, and crypto trading will be available along with the more conventional banking and investment products.

    What does 5th AMLD bring?

    While most of the public and media is putting the focus on the parts of the new regulations which tighten the AML rules concerning the regulation of real estate agents and precious metals dealers, on the sidelines are left novelties regarding the cryptocurrencies.

    The most important novelty is the implementation of a definition of what is a cryptocurrency. Even though the general public knows what it is and what it is not, this was a crucial moment for making investment and trading with cryptos through traditional institutions possible in the EU. Now the commercial and investment banks will have a precise legal language of what cryptocurrencies are.

    The second crucial part of legal regulations is the definition of a waller provider. This will have the effect of allowing all of the existing financial regulations to be applicable to cryptocurrencies. And such applicability will legally equalize the traditional investment vehicles with the cryptocurrencies.

     

    The impact on traders, investors and common people

    That would be the legal language of it, but what does it mean in simple terms. In the most simple terms, it means that cryptocurrencies such as Bitcoin, Etherum, and others; will be equal to the fiat currencies. Banks will be able to provide all of the traditional banking products to their customers in cryptocurrencies. People and institutions will be able to hold them in their accounts, exchange them for other fiat or cryptocurrencies. But also they will be able to use cryptocurrencies to purchase other financial assets with cryptocurrencies. Bonds, stocks, derivatives, and the likes will be available for purchase. 

    Implementation still lagging

    The deadline for implementation of new AML regulation is fast approaching, but many member states are well behind is this regard. On November 14 this year, Geman’s Bundestag has passed a new bill which now awaits the passage in the upper house of German Parliament, after which ratification by all 16 federal states must follow.

    After this new financial regulation bill becomes the law of the land, Germany will join the likes of Austria, Belgium, Ireland, Greece, Finland, Croatia, Italy, Latvia, and Luxembourg; as another country that has implemented new rules and made cryptocurrency investing and trading possible. But, Germany is an economic powerhouse and one of the financial centers of the EU, thus this move has a higher significance than meets the eye. Germany is not just another country. It is a country with a GDP amounting to 22% of the whole block, and its financial regulations and market trends are closely watched and often copied by other member states.

    The public reaction on how EU banks welcome Bitcoin

    The public reaction to the new bill was somewhat as expected, some have welcomed it while others decided to criticize less novel potential impacts. 

    The Association of German Banks has reacted positively to the news that EU banks welcome Bitcoin. This comes as no surprise bearing in mind how much this institution was expressing support for regulating cryptocurrencies, and thus bringing it into a legitimate system of banking in Germany out from the grey zone it existed till now. The criticism can be boiled down to repeated yelling “banks are crooked”. And these concerns do have merit. In the past, commercial and investment banks did, and often still do, behave in a predatory way. But that is not the reason to fight against bringing the cryptos into the world of traditional banking. It is a reason to better regulate traditional banks, and protect their customers. After all, decreasing the power of banks over common people was one of the philosophical reasons for the invention of cryptocurrencies.

    In the end, a long time considered as an obsession of pimpled geeky libertarians cryptocurrencies is about to enter the game after January 10, when the second-largest economy per GDP makes them part of its regulated financial system.

     

     

  • The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market
    Good and bad news may have a great influence on the stock price
    These two stocks show both sides, winning and losing on the market

    Top winners and top losers last week in the stock market is easy to find but what lies behind sometimes looks like a tricky part.
    For example, EyeGate Pharmaceuticals, Inc. (EYEG) is one of the winners last week. But what did make it become a winner? 

    The news about the high quality of its ocular bandage gel eye drops is able to provoke investors’ sentiment and confidence in the company. What did that news show us? The company is investing in research and development and improve its products. 

    And shares rose by more than 90%.

    The news that the company’s innovative eye-drop bandage worked better than the usual kinds of care. Its bandage contact lens, for the patients in need of corneal wound repair, is better than the others. EyeGate intends to submit a new application to the Food and Drug Administration in the first half of 2020.
    EyeGate CEO Stephen From said: “If approved, it will be the first product indicated to repair corneal defects, as well as the first prescription hyaluronic acid eye drops in the U.S.,” stated in a release. The company is expecting additional data this week. 

    And what happened? 

    The stock price jumped on good news.EyeGate shares rose on data for eye treatment data.

    The Top Winners And Top Losers In The Market

    Top winners and top losers last week are always the subject of investors’ attention. Yes, the stock price may jump on bad news too as well to drop on a good. Traders-Paradise wrote about it already.

     

    Let’s go a bit deeper in top losers. One of them is Pure Storage, Inc. (PSTG).

    Pure Storage (PSTG) stock dropped Friday after the company reported Q3 results on Thursday. The results missed Wall Street estimates. Pure Storage is a provider of data system technology. On Thursday last week, they reported an adjusted profit of 13 cents/share but Wall Street expected a profit of 9 cents. That was good but revenue of $428.4 million missed the estimation of $440 million. The company’s revenue was $11.4 million below estimation.

    The stock price dropped despite the fact that the company’s revenue grew 15% in comparison to the same period last year. The problem arose due to the fact that it was the slowest growth over 4 years.

    Pure Storage stock dropped 15.1%, closing at $16.86 on Friday.

    Top gainers often continue to rise and reach new highs with strong fundamentals. When a stock continues reaching new highs it’s essential to pay attention since there might be a retracement.

    Bottom line

    What Traders-Paradise thinks about those two stocks, the top winners and top losers?

    News reports about EYEG stock have been trending positive lately. That may easily cause optimism among investors and hence, the good news is likely to affect the stock price rising in the near future. So, this stock has a BUY signal. 

    EyeGate Pharmaceuticals, Inc stock is a good long-term investment. If you are seeking stocks with stable returns, this one can be a beneficial investment choice. EyeGate Pharmaceuticals, Inc was traded at $7.090 last Friday. We are expecting a further increase in the next years. This stock may reach $14 in the next 4 years. If you invest $1.000 today you may have $2.000 at the end of that period since the revenue is expected to be about 100%.
    This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 26.89 million shares bought and sold for approximately $453.37 million.

    On the other hand, Pure Storage, Inc stock can be a bad long-term investment and high-risk investment option.
    Pure Storage, Inc was traded at $16.860 on Friday last week. It dropped from $19.85 and that marked a fall of 3 days in a row. Volume has grown in the last day by 21.42 million shares but on dropping prices. The Traders-Paradise opinion is the stock will continue to fall in the days ahead and your investment may be decreased in the future. 

     

  • NIO One Of The Most Volatile Stocks

    NIO One Of The Most Volatile Stocks

    NIO One Of The Most Volatile Stocks

    NIO is one of the most volatile stocks on the market and analysts’ consensus is to hold it
    With 33.4 million shares NIO has one of the highest average daily trading volumes

    NIO is one of the most popular and very liquid stocks in the market. However, the volume of stocks like Nio may give an impression of the market’s raised interest. The volume is measured in shares but stocks like Nio have current prices under $2.

    This is a Chinese automobile maker from Shanghai. It is specialized in designing and developing electric autonomous vehicles. And it is NYSE listed under the ticker symbol NIO. This electrical carmaker’s stock has dropped over 70% from the beginning of this year.

    The reasons are numerous, from a vulnerable macroeconomic climate to the geopolitical tensity.

    These worries could be ended since the EV market is rated as recovered. Something like that said Li Bin, the founder and CEO of Nio, according to the National Business Daily. But let’s take a deeper look at the NIO stock.

    Where is the spring for NIO?

    NIO’s CEO Li said “spring for electric vehicles is near” after the sale of Nio’s car a bit rose in September and October.

    Nio is always compared with Tesla Inc and called China’s Tesla. Nice wishes, but not realistic. Tesla (NSYE:TSLA) is a stock worth $354.83 (Nov 22).

    The company had a very bad start this year. The company delivered to the market 1,805 vehicles in January and 811 in February. March was a bit better with 1.373 delivered vehicles, in April the company reported of 1,124, in May 1,089. 

    In June Nio introduced the new model ES6 and increased its sales to 1,340 cars in that month which was almost 70% higher than the previous.

    With new model ES6, sales deliveries were raised in August to 1,943 vehicles, it was sold 146 ES8s and 1,797 ES6s.

    But even with this, the achievements for the beginning of this year were weak. Hence, the company reported a loss for the second quarter and the management announced restructuring with possible job cuts.

    Spring in September

    Nio’s luck reversed in September. The company reported an increase in deliveries, they managed to deliver 2,019 vehicles. And that increase was followed by good results in October when deliveries jumped for 25.1% or 2,526 units.

    At the same time, the management of the company has been very active in solving the gaps, it announced a deal with Intel Corporation’s Mobileye for driverless consumer cars in China. 

    NIO shares were trading at $1.98 at the time of writing this article.

    Bottom line

    The analysts’ forecast for NIO has a medial target of $14.36. The high estimate is at about $88 and a low estimate of $6.41. The median estimate signifies a 625% rise from the current price of $1.98. The analysts’ consensus is to hold NIO stock.

     

Traders-Paradise