Category: Market Today

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T Stock Has Dropped On Scepticism

T stock has dropped more than 4% on Tuesday. The current price is under $38.00.

UPDATE 2019/11/22: Telefonica (Spain) has signed a contract to use the last-mile network of its U.S. competitor, AT&T, in Mexico. Spanish Telefonica has signed a deal to use some of AT&T’s infrastructure in Mexico.
AT&T stock price was up and traded at $37.60 on Thursday, November 21 which is a 0,42% increase in comparison with the previous day.

T stock has dropped more than 4% on Tuesday. It happened after MoffettNathanson’s Craig Moffett lowered the stock to sell. Behind this stands the understanding thatAT&T has bigger problems than the other participants in the wireless scene could be.

The truth is that the wireless industry is growing and there are more and more competitors out there but Craig Moffett wrote to investors that “the real problem is everything else” pointing the 60% revenues: “Everything else is 60% of revenues. Wireless will have to do an awful lot of heavy lifting.”

T stock is downgraded from sell to neutral

Moffet wrote: “Despite a target price well below AT&T’s recent trading range, we’ve remained Neutral since our upgrade from Sell last November, based largely on the view that global yield starvation would attract capital to AT&T irrespective of its fundamentals.”

T stock has dropped on analyst’s skepticism that the company is able to score its 2020 revenue target. This recommendation on the shares is very unusual and even more, he repeated his estimation at $25 per share price target on AT&T. Moffet’s opinion is based on decreasing growth, a declining number of users and dropping video revenue at the company’s entertainment segment, especially at Warner Media.

As Moffett sees the last chance for AT&T is the wireless business, but that job, according to Moffett, is questionable due to the intense rivalry in the area.

Moreover, HSBC, Investment banking company, also published an announcement, in which they are predicting that difficult times are ahead for the telecom companies. AT&T is on the list.
“AT&T’s new offerings are “a bit aggressive,” wrote HSBC analyst Sunil Rajgopal.

Shares of AT&T is up

Moffett said this is in spite of declining fundamentals and he is suspicious of what is the future company’s outlook. Moffitt admitted that AT&T has de-lever its balance sheet, as they promised and maintain stable EBITDA, but also he stated: “But even as the company has delivered on its promises for 2019, the picture for 2020 and beyond has gotten cloudier.”

AT&T’s dividend yield is 5.15%. AT&T shares have increased by 39% this year. Yes, the competition is bigger than ever and AT&T will have a lot of pressure on its wireless business to produce great results.

Bottom line

AT&T stock price has been showing a rising tendency.

What we think is the future price of this stock could surpass $43 after a year. As we can see, this current decline in price is temporary and the stock could recover in the next two weeks and reach $40 to the end of the year. So, try not to sell in panic and hold your AT&T stock. If we are right about price growth of 13% and you have invested $1000 in AT&T stock, your investment might be worth $1130 at this time next year.

Yes, AT&T Inc holds sales signals. Current resistance is at $39.11 and $39.24. If break-up occurs above any of those two levels the price will go up and it will be a buy signal. Our opinion is that this stock’s price may slightly decline further until finding a new bottom pivot. The price will fall because the volume increased on falling prices on Monday, November 18, 2019. But as we said, it could be just temporary.

20th November 2019
Trulieve Cannabis Corp. Revenue Grew 150% In Q3 Report

Trulieve Cannabis Corp reported higher-than-expected revenue in the Q3 earnings report. The company started trading in the U.S. on the OTCQX markets under the ticker symbol TCNNF and trades on the CSE as TRUL.

Trulieve Cannabis Corp. reported higher third-quarter revenue at $70.7 million which is a surge of 150% and a net income of $60.3 million. Trulieve Cannabis (CSE: TRUL) (OTCQX: TCNNF) published earnings for the third quarter of 2019 yesterday (November 18) after the closing bell. The company reported its revenue increased 22% quarter over quarter and 150% over Q3 2018. That was quite a surprise in comparison to the analysts’ expectations since they projected revenue of $64.6 million The company reported revenue of $57.9 million in the prior quarter.

Trulieve Cannabis Corp. stock was traded at $11.30 yesterday.

Market Cap $972.79 M
Last price $11.500

The excellent part, Trulieve posted a net income of $60.2 million. This was the second strong quarter for Trulieve.

What did the Trulieve report?

First of all, an increase of 19% of Florida patients. The company opened six new dispensaries there and now it has 35 in total with almost 215,000 patients or users of the smokable flowers.

Further, the company completed its second public debt deal and received $61 million in gross. The company had available cash of $100.8 million. Trulieve reported cultivation capacitance of approximately 1.6 million sq ft after made deals in Quincy, Florida, and Massachusetts, Holyoke.

“Trulieve’s strong brand, wide-ranging access to stores, and authentic customer experience have resonated with our customers and patients. The third quarter was also successful in further strengthening our position in our existing markets as well as preparing for new market entry. We continue to build operational efficiencies and financial discipline to ensure a solid foundation, cash reserves, and the right tools at our disposal to expand our footprint. Looking ahead, this is an exciting time as we execute on our strategic vision to be one of the top-performing cannabis companies in North America,” said Trulieve CEO Kim Rivers.

Also, Trulieve stock has increased by 40% this year as the S&P 500 index grew by 25%.

Trulieve Cannabis Corp. increased adjusted EBITDA of $36.9 million

Why is this important?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is important because EBITDA is the primary source of all reinvestment in the operations and for returns to shareholders.

EBITDA is the highest level of cash flow that provides businesses to grow. If the company wants to grow it is necessary to reinvest. EBITA is a measure of cash flow.

Investors and analysts are focused on EBITDA because it shows the company’s capacity to produce cash flow enough to meet all of the demands of the business. Also, to provide fair returns to shareholders.

So, we can say, the higher the company’s EBITDA, the better the value of the company. That’s why Trulieve Cannabis Corp.’s increase in adjusted EBITDA of $36.9 million so important.

Trulieve Cannabis Corp. ABOUT

Among multistate operators, Trulieve is the most profitable. It is largely present in Florida.

Trulieve Cannabis Corp. operates as a holding company in the United States and Canada. The company operates in the cultivation, possession, sale, and distribution of medical cannabis through its subsidiaries. It is the leading medical cannabis company in Florida.

Trulieve went public in Canada via a reverse takeover with a past mining company.

“There are some complications with being a cannabis company in the United States and having primary operations in the United States. So an RTO was the way that we needed to go,” said Kim Rivers, the CEO of Trulieve.

Trulieve managed to avoid the traps of acquisitions because it can be exceptionally costly. This kind of careful fiscal management, and not usual for cannabis businesses, is a big help to Trulieve’s successful operations.

35 Ways to make money online

Bottom line

Trulieve Cannabis Corp stock is not for long-term investing. TCNNF stock can be a bad, high-risk long-term investment option. The current price is $11.500, date 2019/11/19, but your investment may be decreased in the future. These kinds of stocks are very risky but may produce high returns.

19th November 2019
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.

12th November 2019
Yield Curve Turned Positive

The yield curve, an indicator from the bond market a few months ago was inverted and started alerts about the risk of a recession. Yield curve turned positive now, and that brings relief to the markets.

The inverted yield curve is recognized as a recession warning. And now it isn’t inverted, the yield curve has turned positive now. So, can we speak about recession further? Well, that is not how these things work.

OK, the stocks are rising, but they have turned into the new high. And what investors have to do now, to wait or hop? It looks like investors are cautious.

The market is an all-time high, as a difference from the past two years.

The statistic is looking good for income investors since the 21 of the 30 Dow Jones Industrial stocks have yields of over 2%.

But a 10-year US Treasury bond yield is below 2%, that level seems to be too low. Therefore, there seems to be risk without a proper return from holding bonds now. This means, there is a reasonable expectation that investors could turn to stocks. When bond prices are low and yield is low, such as right now, the investors could move out of bonds into stocks because stocks are offering a better return now.

This is something known as great rotation.

The positive yield curve should be a sign that rationality has returned and the markets are in regular condition now. Are investors ready for this situation and are able to adjust immediately? We are afraid that changes happened too fast and investors couldn’t be efficient at making instant trades. Only a few months ago, investors were convinced that the recession is coming, since the yield curve was inverted. And now the inverted yield curve turned positive. Earnings reports are great, stocks are growing, consumer confidence is returning, conditions look excellent. How can we mention the recession anymore?

And this is something we have to make more clear.

The yield curve inversions virtually ever lead recessions, but it isn’t necessarily happening right now, in the same moment. What experts noticed is that we will need about 20 months or 2-3 months more or less to see the recession triggered by inversion of the yield curve.

What can we expect when the yield curve turned positive?

That should produce a change to the markets, and to forget a recession fears. This positive economic turn should produce stock prices to grow. How this can happen? Only if investors take action and invest. Their actions must have turned direction, they have to leave low yield bonds and jump into the stocks. So simple? Yes.

The truth is, we are in an atmosphere where even the smallest piece of negative news adds fears in our lives. When the negative yield curve appeared everyone was talking about it. The newspapers were reporting, the experts were screaming from TVs, investors moved to bonds. And what we had is that yield curve was inverted and now shifts very quickly to positive giving us no breath.

The stock market is driven by expectations but we all have to turn to reality. The reality is clear when it comes to investing: stay focused on long-term goals and avoid emotional reactions. Don’t pay attention to a daily stock price’s changes. We must have a bigger horizon.

10th November 2019
Canadian Solar Inc CSIQ Is Expected To Report Q3 2019 Results

Canadian Solar (CSIQ) is a producer of silicon ingots, cells, wafers, solar panels, and custom-designed solar energy applications. It has a 3-5 year EPS growth rate of 32%.
Market cap – 1.015B
Current price – $17.12
Volume – 819,112

Canadian Solar Inc CSIQ will report Q3 for the 2019 result on Nov 12, before the market open.

The last reported quarter was surprising in a positive meaning. The company released huge earnings of 234.78% with an average of 115.66%.

Since the company is a producer of solar panels it is expected that the biggest growth in Q3 results will come from the sales of solar modules. We didn’t notice any change in the company’s fundamental business. It is still strong due to the stable average selling prices and stable demand. So, what we expect is the company will declare a rising in sales.

There were some interesting sales in the last quarter. Canadian Solar Inc finished the sale to Duke Energy Renewables. It was a big project, a 266 megawatt-peak solar. Also, it looks that the company finished the sales of its projects in Brazil. That is the reason to believe that the company’s main growth is coming from that operations.

Some experts estimated the company’s Q3 revenue at almost $800 million. That would be an increase of around 4% in comparison to the previous quartal.

But, the company had an important rise in operating expenses in the past several quarters, and the income tax expenses have risen in the same period. Speaking about a year over year earnings, it might be a decrease of around 8% in comparison to the same quartal last year.

Should you sell or buy Canadian solar stock

The CSIQ stock price:

30 day high was $19.04 and low was $16.72.
90 day high was $24.82 and low was $16.72.
52 week high for Canadian Solar Inc. $25.89 and low $13.24

A buy signal was issued from a pivot bottom point on Wednesday, November 06, 2019. That shows further profits until a new highest pivot has been found. But some negative signals were issued too. So there are some possibilities of impact on short-term growth.

Image source https://walletinvestor.com/

Hence, there is a general sales signal (the long-term average is above the short-term average) but also sales signals from the short-term and long-term average moving averages.

The resistance level could be somewhere between $17.18 and $18.52 when corrections up. The buy signals will be issued with break-up above these levels. Since the volume fell possible “turning point” is noticed.

Canadian Solar Inc. is in the middle of a very wide and falling trend in the short term. There are signals of further fall within the trend. The experts expect the price to drop almost 27% in the next 3 months and that there is a 90% possibility hold price in the range from $10 to almost $14 after these 3 months. The experts estimate that CSIQ stock is a strong sell candidate. Anyway, we will wait for its Q3 report and see the plans for the future.

8th November 2019
Macy’s Stock Is a Candidate For The Bargain Hunters This Month

Bargain hunting indicates that a stock is undervalued and is therefore worth less than it should be. Being ready to choose undervalued stocks is pretty much a talent. How stock can be undervalued? This one is.

Macy’s Inc (NYSE:M) is undervalued stock. How do we know that? We all could see, now almost at the end of the year, it was the worst-performing stock in the S&P 500 in 2019. The company cut its earnings guidance and the stock fell for 48%.

But here is the tricky part. Don’t you dare to think that some stock is worthless when it touches the bottom? Don’t! When some stock is cheap it is still an opportunity to buy it. Such stock doesn’t deserve to be ignored. You must have a bigger picture and evaluate the market capitalization, the price of the whole company. The market cap of Macy’s is $4.813 billion. Not too much but still. Let’s go further. Macy’s is still a profitable company that makes almost $1 billion in profits this year. The company was forced to cut its guidance because the gross margin has fallen from 38.5% to 39.7%. That was one of the reasons.

But its sales proceed to drive in the right way with a rise of 0.4% over the last 11 months.

Moreover, Macy’s has a lot of expensive real estate that it’s slowly twisting capable to consolidate the value.

The company’s market cap isn’t mentioned accidentally. Macy’s expects to sell assets for $100 million profit and already has a real estate that was priced at about $16 billion by the investment firm Cowen. It was 3 years ago. Compare this value in real estate with its market cap. If you calculate the company’s real estate, plus $100 million in asset sale gains plus future rising sales, plus dividend yielding 9.96%, what can you conclude?

Macy’s is the candidate for the bargain hunters.

The real lure for value seekers. To reveal all about Macy’s we will tell you that it is risky stock regarding the change in retail. The whole truth is the stock is currently trading at a P/E of less than 5.

A stock’s price is a mixture of investor estimates for future growth/revenue/dividends/ and it is only a matter of belief as to whether some stock is undervalued. It is always a question will your estimation for the company’s future growth be firmer than the estimation of other investors.

The point is to be able to notice the value. The value investing will help you to improve long term returns.

Normally, value investors are looking for stocks with low-value multiples and ratios. The most popular variant is the P/E or stock price to earnings ratio. That will not account for growth, of course. A low P/E seems good.

Why analyze Macy’s stock as a candidate for bargain hunters?

The stock market is an almost all-time high, and value stocks are often ignored. But recently, the investors are paying more attention to value stocks. So, maybe it is a good time to analyze some of them. Our first suggestion is Macy’s Inc but there are more value stocks out there and worth your attention. They are lately undervalued which makes them favorable if your estimation shows the growth potential in the future. Macy’s has a great history. It was founded in 1858 by Rowland Hussey Macy. Moreover, in 2015, Macy’s was the largest U.S. department store company by retail sales. Today it has 584 stores throughout the US, Guam and Puerto Rico.

In the second quarter of 2019, Macy’s shares dropped more than 13%. On August 14, shares were worth $15.82. That was their lowest since February 2010.

Our current pick for a candidate for bargain hunters is Macy’s Inc. Watch this stock.

4th November 2019
Saudi Aramco Is Moving To A Publicly-traded Company

by Gorica Gligorijevic

Saudi Arabia announced on Sunday that it had approved plans for Saudi Aramco to go public
This I.P.O. could be the biggest ever, but does it fall short of Saudi Arabia’s goals.

Saudi Arabia announced on Sunday that it had approved plans for Saudi Aramco to go public. This is one of the world’s most gainful company is close to its long-wanted goal: to become a publicly-traded company. The Saudi Capital Market Authority said that Aramco intended to sell an undefined percentage of its shares. Trading could easily start next month.

Bankers on the event have reported the Saudi government that investors will probably value the company at between $1.6 trillion to $1.8 trillion.

Saudi Arabia has to compromise on valuation and said it is ready to accept less than the $2 trillion, the amount that Crown Prince Mohammed bin Salman has said the oil giant is worth. According to media reports, the valuation could easily be around $1,5 trillion.

The zeal to take a lower valuation shows the prince has confidence in his judgment and that he is sure of $2 trillion estimates. This IPO is a central part of the Vision 2020 plan to modernize the Saudi economy. This is a very competitive plan and we can recognize the plan to surpass the $25 billion by Alibaba Group Holding Ltd. in 2015.

Aramco is examining increasing next year’s dividend by an additional $5 billion to $80 billion to get more investors.

Saudi Arabia’s most prosperous families are supporting demand for IPO, but bankers are still attempting to approach to international investors. With that purpose, they have invited money managers in London for a series of meetings next week. An increase in the dividend will support that effort. Aramco’s dividends are still below that paid by oil giants like Royal Dutch Shell Plc and Exxon Mobil Corp.

More about Saudi Aramco privatization

The partial privatization of Aramco will be the biggest shift to the Saudi oil industry since the company was nationalized in the 1970s. Saudi Aramco pumps 10% of the world’s oil from the fields under the Saudi deserts. It is Saudi’s most profitable company globally and the spine of the country’s financial and social security.

Taking a main position in the deal has been one of the biggest contests for global banks. More than 20 banks are working on this deal, with the leading roles have Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co.

The way to today’s resolution hasn’t been so nice. The investors refused the Prince Mohammed’s $2 trillion valuations, the initial plan to list Aramco in New York or London was discarded in favor of a Riyadh flotation only.

Aramco will be faced with the global movement against climate change that’s targeted the world’s largest oil and gas companies. Since the demand for oil is rising all this century Saudi Aramco has to meet that because using oil will peak in the next few decades despite rising electro-cars.

Saudi Aramco could be listed next month

This means the globe’s most valuable company will be traded on the Saudi bourse only. The exchange relaxed a 49% limit for foreign strategic investors in shares of listed companies for foreign investors a few years ago. Saudi Arabia has launched a lot of reforms in the past several years to make it’s stock market attractive to foreign investors.

Saudi Aramco’s dividends

In an effort to make the stock more winning, Aramco wants to pay $75 billion in dividends next year. That would provide investors a yield of 3.75% but only in case if the company meets its goal of a $2 trillion valuation. To be honest, it is a nice yield but still lower than the other big oil companies are paying.

Saudi Aramco is moving forward with an IPO and that could break records and provide investors the opportunity to hold a part of this the most profitable company in the world.

But the Capital Market Authority of Saudi Arabia only said today that it has approved an application to list shares in Saudi Aramco and not say when the IPO would take place or give details on its size. Al-Arabiya, the Saudi news channel, said on Sunday that Aramco would release the prospectus for its listing on 10 November.

Aramco has large oil reserves and huge daily production. Opinions on how much the flotation will grow are broadly different. Even if it is no higher than $1.5 trillion selling 1% of the company would bring $15 billion. Hence, selling 2% could make $30 billion, surpassing the record $25 billion IPO by Alibaba (BABA) in 2015.

Aramco is supposed to sell 5% of the company on two exchanges. An initial listing of 2% on the Tadawul Saudi bourse next month and a 3% listing on some international exchange, that is not selected yet.

Bottom line

By doing so (getting the IPO), does Saudi Arabia show its hopes and, moreover, the interests that no one will find a replacement for oil?
What if this IPO brings Saudi Arabia to among the richest countries in the world, right along with the US and China? Some people are already worried about that.
The time will tell who was right.

3rd November 2019
Big Market Players Are on Schedule

The earnings reports season is continuing. So far companies’ earnings were better than awaited.

by Guy Avtalyon

Big market players are on the schedule this week.

UPDATE 30/10/2019

GE shares rose more than 11% after the company’s earnings report and beat analyst expectations. General Electric also boosted its cash flow for the year.
Apple and Facebook each topped market expectations after the closing bell on Wednesday. Their stocks rose in after-hours trading.
Apple posted earnings of $3.03 per share opposite to analysts’ expectations of $2.83 per share. Revenue was $64 billion and it was expected the $63 billion.
Facebook also topped expectations with earnings at $2.12 opposite to the $1.91 forecast. Revenue was $17.65 billion vs. $17.37 billion forecasted.

UPDATE 29/10/2019

Alphabet (GOOGL) didn’t match earnings expectations in Q3 2019. The earning is$10.12 per share and was expected $12.42.
Alphabet shares dropped by 4% as the company failed expectations for earnings per share, but recovered and set at around 2%.
The rest in the company’s report was almost as investors expected.

It is time for the big market players to reveal reports for the fiscal fourth-quarter earnings.
For example, Tesla stock reported a surprising profit and it’s stock price rose, but the Twitter stock fell. Last week about 21% to $30.75 on Thursday. Among 168 S&P 500 companies that have reported earnings until Thursday morning, 80.4% hit or overcome analyst expectations.

The companies have reported revenue hits about 62% of the time this season. This week we are waiting for several big players to raise the numbers.

Monday, October. 28

First is the Alphabet (GOOGL) on Monday (today). It has come under increased regulatory supervision, but shares stand good at 20%. Wall Street is predicting earnings of $12.28 a share on sales of $40.3 billion.

Wednesday, October. 30 is a day for a really big market players

Apple stock (AAPL) has been up 54% in 2019. Recently the company announced that the new generation of iPhones went better than expected. The demand for new models increased and Apple has grown service offerings. For example, Apple Pay and Apple TV+ produced a lot of gains.

We will see. Wall Street is predicting earnings of $2.83 a share with sales of $259 billion.

Facebook is on schedule on Wednesday too. The market hasn’t paid much attention to regulatory concerns. Facebook shares (FB) have increased by 42% in 2019. Forget how Zuckerberg was grilled In US Congress and what did AOC ask him and Mark’s eye-rolling and constant sipping from a bottle with water.

Wall Street estimates call for earnings of $1.90 a share and sales of about $17.4 billion.

Facebook is followed by General Electric. Its stock (GE) could rise 23% this year, but it is down for 21% in a one-year period. The truth is that investors will keep attention on cash flow, debt reduction, and debt from legacy insurance liabilities. Wall Street estimates call for earnings of 12 cents per share and purchases of $28.9 billion.

Friday, November. 1 is reserved for Exxon Mobil (XOM).

The company earnings have been spent on projects in the Permian Basin and in other countries. Goldman Sachs recently reported that earnings for the whole energy division should jump in 2020. Exxon Mobil stock increased by 1.3% during this year but decreased by 12% in a one-year period. For Q3 2019, Wall Street estimates earnings of 67 cents per share on trades of $60.9 billion.

Bottom line

As we know, good companies are delivering on-going earnings and revenue extension of at least 25%. For a long time, Facebook undoubtedly achieved that, the FB stock went higher and higher. Will Facebook get back to the winning trends?

There’s a lot of skepticism toward Facebook’s future. Its new privacy-focused strategy might depress revenue growth. At the same time, an investigation, regulation, and legislation could restrict Facebook’s vigor. The same may happen to FANG stocks: Facebook, Amazon, Netflix, and Google. Really big market players.

28th October 2019
Beijing-Shanghai High-Speed Railway Plans IPO

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

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

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

China’s railway efforts

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

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

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

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

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

How to invest in China stocks

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

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

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

28th October 2019
Tesla Stock Jumped on Thursday the Most In the Past Six Years

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

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

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

Tesla Stock Jumped Opposite to Wall Street Expectations

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

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

Distrust in Tesla

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

You might be interested: The Boys Are Not All Right

Bottom line

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

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

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

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

25th October 2019