Category: Financial News

In this category, Latest Financial News visitors can find everything that Traders-Paradise finds it is related to the educational material existing here. As the name suggests it is news but ONLY related to Traders-Paradise’s tutorials, courses, guides about trading, and investing.

Here the readers can find posts and articles about recession and how to overcome it. Many trading or investing strategies are explained here. For example, why to use open interest strategy when investing, or growth stock investing strategy.
Here, our experts and journalist are taking examples from the real-life. it is usually breaking news, and use them to explain what is the best solution for traders and investors over a given time or related to the particular event.
Also in Latest Financial News readers can find an explanation of, for example, ratios useful to measure the particular market conditions.

Also, Traders-Paradise gives you some clues on how to react to changes in the markets, no matter if it is the stock market, the Forex market, or any other.
The main aim of the Latest Financial Market News is to connect the real events with the theory. Traders-Paradise uses real-life examples to explain the theoretical rules of investing and trading.
Also, when some breaking out news appear Traders-paradise will write about it but at the same time, the visitors will have a comprehensive analysis of what caused that event and how to overcome it.
Traders-Paradise hopes that this category will be very useful for its visitors and that they will find it helpful.

  • The Dilemmas About Aramco Investing Are Showing Up

    The Dilemmas About Aramco Investing Are Showing Up

    The Dilemmas About Aramco Investing Are Showing UpInvestors’ demand drove Saudi Aramco market value to $2 trillion on the first 2 days of trade in Riyadh

    But the dilemmas about Aramco investing rose. Yes, Saudi Aramco (SE:2222) reached the $2 trillion target. Saudi leader Crown Prince Mohammed bin Salman had a wish, and it became a truth on Thursday, December 12. Aramco shares have been rising for the second day to make Saudi Prince happy. Finally, this guy has a chance to show how big visionary he is. 

    Aramco’s initial public offering (IPO) is the cornerstone of his vision to provide Saudi’s economy the independence from oil. The money ($25.6 billion) collected by selling the shares of Aramco will be used for developing some other fields of the national economy. That is how the plan was presented in public. So far, so good.
    This is a tremendous opportunity for the Kingdom. Oil has long been the main export product for Saudi Arabia and Aramco is the biggest oil company in the world.

    The end of the fairy tale?

    The bubble around Aramco shares grows. Even before its IPO. It was represented as a great investment, a great opportunity for investors all over the world. But just be careful. If some sharks are buying those shares it doesn’t mean that everyone should do the same. Maybe Saudis have to do that but you don’t. Saudi Aramco is a state-owned company and some Saudis, according to media reports, are taking loans to buy the shares.

    Saudi Aramco’s IPO gives opportunities for Saudi citizens. Now, they can have a part of this Kingdom’s crown jewel. And everyone is excited, full of optimism and enthusiasm. But, where is the limit of it?

    Must be somewhere. 

    The share price is high in December, as we can see and it seems it will rise more. But what if the stock is overvalued? What if it is a bubble? It will explode and the prices will eventually fall.

    Don’t miss: Trading With Success – A FULL guide for beginners

    Why the dilemmas about Aramco investing arise?

    For several reasons.

    Saudi Aramco has become the most valuable listed company in history. This oil producer gained a market value of $1.9tn on its first day of trade.
    Shares were climbing almost $200bn above the $1.7tn valuation established before its market appearance on Riyadh’s stock exchange.
    This the biggest “provider” of the climate crisis had been valued at more than Apple and Facebook together. Also, double more than Amazon and Alphabet. 

    On the second trading day, it hit the $2 trillion target.

    But investors should be worried because of the company’s relationship with a state. And it isn’t SOME state. Saudi Arabia is well known as related to human rights abuses and with some dark things too. Have you ever asked yourselves why the main support for the company comes from the Saudis and the Middle East?
    But the main concern comes from investment index providers such as S&P Dow Jones, MSCI, or FTSE.
    They all said they will include Aramco shares into their indices. What are the consequences? Well, the investors from all around the world, pension funds and other funds will be forced to buy these Aramco shares.
    The dilemmas about Aramco investing came directly from the state of Saudi Arabia. 

    Saudi officials said that the government will sell more shares after the IPO. If the Saudi government does so, it will overwhelm the market with additional shares. And the bubble burst is coming! 

    The sale of more shares by the government could easily cause the price of Aramco shares to decrease notably. 

     

    Bottom line

    We don’t want to say that you should or shouldn’t invest in Saudi Aramco. We just want to say that you should avoid Aramco-mania. Stock investing is risky. In the markets, nothing goes up permanently. So, keep this in mind. And invest smartly and carefully.

  • 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.

  • Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF
    Healthcare ETF is good for investors with less risk tolerance
    Vanguard Health Care Index Fund ETF is one of the largest in the stock market

    Vanguard Health Care Index Fund ETF is focused on stocks in the U.S. health care sector. It is managed by Vanguard and is covering health care stocks in the U.S. stock market. It is a big fund that holds shares of 388 companies. The Fund owns shares of Pfizer Inc, Merck & Co, AbbVie Inc., Johnson & Johnson, UnitedHealth Group Inc., and Abbott Labs. Its 10 top holdings account for almost 45% of the portfolio. But the fund has an extremely good diversified portfolio. It has holdings in pharmaceuticals, biotechnology, health care equipment, health care, supplies, facilities, services, technology, distributors, and life sciences tools and services.

    Healthcare stocks are hot

    Everyone needs health care and everywhere. But the main source comes from boomers. We have nothing against them, but the truth is that as people are aging, they need more health care. Correlated with this is the increased demand for medical products. But this isn’t the whole truth. 

    Also, there is great progress in new technologies that are likely to create great growth for companies in this industry. 

    For example, pharmaceuticals. You can see drugmakers that are developing new procedures, new methods, and drugs. Today we have personalized therapy, based on personal genetic data for each patient individually. This is especially important for cancer treatment, for example.

    Today, biotechs and pharmaceutical companies are practicing gene editing as the treatment for rare genetic diseases.

    The healthcare field is huge and connected. For instance, for early diagnosis of cancer, the liquid biopsy is very popular today and accurate. But someone had to develop it. The same is with AIs and robotics, medical device companies are developing new types of high-tech equipment. So many companies are involved to improve healthcare services. Look at the telehealth, it is adopted broadly. We have robots as surgeons. Monitoring patients with chronic diseases out of hospitals is easier than ever.  

    These products are not aimed at older populations only. Also, we have great progress in aesthetics, skincare, body care, hygiene, etc. 

    Can you see now why healthcare is a hot zone of interest for investors?

    Vanguard Health Care Index Fund ETF Shares 

    Vanguard discovered the ETFs. 

    It tracks the performance of the MSCI U.S. Investable Market Index (IMI)/Health Care 25/50.  

    This ETF has delivered an average annual return of 9.47% since it started in 2004. It has generated average annual returns of 9.78% over the last three years and 9.2% over the last five years.

    The Fund’s dividend yield is of 2,1%, the expense ratio 0.10% which is one of the lowest among ETFs.

    Vanguard Health Care Index Fund ETF

    Vanguard Health Care gives wide exposure. VHT stock is cheap to hold. Its liquidity is strong. The problem is the same as with other Vanguard funds. It is restricted transparency since the holdings are published monthly with 2 weeks delay.

    Still, for the long- term investors a reduction of transparency shouldn’t so much important. VHT fell by -0.13% on Thursday, December 5, but rose for 0,69% on Friday, December 6. The current price is $187.93, $1.29 more than the previous one. Daily fluctuation of stock was 0.79%, a day high was $188.50, a day low was $187.02.

    During the last 2 weeks, the stock price was shifting up and down but still, the 2-weeks gain was 2.78%.
    Since the volume has increased by 47 673 shares on falling prices, you should take this as an early sign of increasing risk in the next several days. Anyway, the price is dropping so it is time to buy it.

    According to analysts, the stock is in the upper line of a rising trend in the short term. This can be a very good selling chance for the short-term traders because the move towards the lower band of the trend can be expected.
    If the price breaks up the top trend line at $188.45 it is expected to increase by 11.09% in the next 3 months with a price between $195 and $210 at the end of this period.

    Bottom line

    Investing in a healthcare ETF decreases the risks for investors thanks to a diversified portfolio across various stocks.
    Moreover, ETFs can modify their holdings when it is necessary. Also, healthcare ETFs can resist during economic downturns because we will all need medical care no matter if it a crisis or not. But keep in mind, ETFs can drop during the crisis or recession too. They are not immune. But as the lesson from 2008, when some ETFs dropped by two-digit percentages, they had been rising again and did it fast.
    For trading stocks use our FREE Trading Exit Strategy, to calculate and optimize the numberless exit strategies, an app that you have for the first time in history.

    Featured image credit: *Total Shape*

  • Fiat Chrysler Stock to Watch in December 2019

    Fiat Chrysler Stock to Watch in December 2019

    Fiat Chrysler Stock to Watch in December 2019
    FCAU could be a solid portfolio addition since Fiat Chrysler Automobiles is a good investment.
    The labor concerns are solved and Fiat Chrysler can switch its attention to its merger with Peugeot owner, PSA Group.

    Of course, you will watch the stocks you like, but our choice of stock to watch in December is Fiat Chrysler. On Monday, December 2, its shares were changed a bit since the Fiat Chrysler stated that the automaker made an agreement with the United Auto Workers (UAW) over the last weekend. It looks that Fiat Chrysler Automobiles will avoid a strike. Previously, General Motors and Ford made agreements with the UAW.

    So, it will be interesting to watch this stock in December and how this agreement will influence the stock price.

    The UAW revealed some parts of the agreement. According to UAW Fiat Chrysler will invest $9 billion to add 7,900 jobs in the next four years. The negotiations were focused on benefits, salary, and job security. The deal is expected to be reviewed by UAW’s national council on Wednesday, December 4. If UAW’s council confirms it, the next step is Fiat Chrysler union members to ratify it. It should be happening on Friday.

    The smart choice made Fiat having in mind how big financial damage experienced General Motors during the UAW strike in September and October.

    General Motors’s revenue declined 1% in the third quarter,  net income fell by nearly 9%. But that is not the end, General Motors easy could experience further downs next year when its Q4 earnings report is expected.

    With this deal, Fiat Chrysler opened a space to continue with the merger with Peugeot owner PSA Group. The past tries to couple with this European car company, didn’t result in a union. 

    The Fiat Chrysler’s problems grow

    The Schall Law Firm announced the filing of a class-action lawsuit against Fiat Chrysler Automobiles N.V. (NYSE: FCAU) for violations of the Securities Exchange Act of 1934 and Rule 10b-5 declared thereunder by the U.S. Securities and Exchange Commission.
    Investors who bought the Fiat securities between February 26, 2016, and November 20, 2019, didn’t have the real data, according to the law firm.

    According to the Complaint, Fiat Chrysler presented incorrect and misleading reports to the market. Fiat joined in a bribery system created to obtain beneficial terms from labor unions for its collective agreements. The top-level management was engaged or had information about the schemes. The law firm said that Fiat’s “public statements were false and materially misleading throughout the class period.” When the market noticed the facts about Fiat, investors experienced losses. Some of them have losses above $100,000.
    The Schall Law Firm represents investors all over the world and specializes in securities class action lawsuits and shareholder rights litigation. 

    Fiat Chrysler (FCAU) stock price

    Fiat Chrysler Stock to Watch in December 2019

    Fiat Chrysler stock was traded at $14.73 on Monday which was a decline of 0,14 %. Today it is $14.760 with an increase of 0.1017%. It is a good company, the stock can provide a good return, so we can say it is a lucrative investment option.

    Based on Traders-Paradise’s calculations, this stock is a good long-term investment. In the 5-years period, the revenue on your investment could be about 40% and the stock might worth above $20 at the end of that period.

    The analysts forecast for Fiat Chrysler Automobiles a median target of $17.85. A high estimate is about $20 and a low estimate is around $12. The future price of the stock is predicted at $28.799 after a year according to some other analysts. On 2019 December 03, the current price of FCAU stock is $14.765 and our data shows that the stock price has been in a downtrend for the past 12 months.

    FCAU stock price has been presenting a declining tendency but Check our tool to determine the best exit strategy.

     

  • 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.

     

     

  • Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Expects Black Friday and Cyber Monday To Come
    Walmart is one of the biggest companies in the world and capable to resist the competition.
    The stock price dropped but it easily can go up very soon

    Walmart (NYSE:WMT) is transforming and this retailer is ready for Black Friday and Cyber Monday. Everything is in place, so shopping can start. These two holidays are a great test for Christmas. After Black Friday and Cyber Monday, the possibility for Walmart’s stock price to rise is real and even before Christmas. The current price is $118.92 and it dropped by 0.37% from the previous price. But the price rose after hours to &118.95.

    Walmart Expects Black Friday and Cyber Monday To Come

    What makes us think shopping will increase?

    First of all, the unemployment rate is lower than in the last 50 years, job growth is stable, salaries are rising. The St. Louis Fed published that the personal savings rate is at 8.3% which is the highest level since 2012. So, Americans will spend their money on holidays, there is no doubt. 

    The holidays are great for retailers and Walmart plays a big role since it has been transforming and has been aggressively investing in online. Three years ago Walmart bought Jet.com, a US online retailer and took a large stake in the JD.com, online retailer in China.

    Walmart grew its annual profit forecast because quarterly earnings beat estimates. Its shares have risen 26% and trade at 24 times earnings. 

    Well, when it comes to food, Walmart is ready. The grocery is very important for the company’s online business. Walmart customers can purchase groceries online, with unlimited delivery for $98 a year or $12.95 a month.
    E-commerce is a field where  Walmart can get this holiday season since online shopping is supposed to grow by 14% to 18% gaining $149 billion.

    But Walmart has already made profits. Walmart reported third-quarter e-commerce sales rose 41%, driven by growth in online grocery shopping. But Thanksgiving falls on Nov. 28 and the holiday shopping season is shorter by six days. This gives the company less opportunity for sales. 

     

    As always there is Amazon, Walmart’s rival. To beat the competition, Amazon announced some beneficial for its Prime members. Not for all, but still the grocery delivery will be free of charge.
    Management at Walmart announced the lower prices from electronics to playthings. Walmart, also, has shown that it can balance the other features of its businesses despite the Trade war.

    Walmart started offering holiday sales almost a week before Halloween this year. Well, the company called it Early Drop Deals, not Black Friday sales. The company opened its doors for the customers and made their Black Friday purchasing available earlier. Making this, the company actually spread Black Friday’s shopping over more days. 

     

    Walmart stock price and its future

    Walmart’s stock price dropped by 0.37% on  Monday, November 25. Now it has 3 days of dropping in a row. This could be an early signal the risk will be raised somewhat for the next few days and the stock price may slightly drop further. 

    Walmart is currently in the lower frame of a small and weak rising trend in the short term. This is usually a signal for a good buying opportunity. This short-term trend shows the stock is likely to rise by around 5% in the next 3 months and stay between $124 and $128.

    But Walmart stock is a good long-term investment since, as Traders Paradise can see, this stock is going to be profitable over a long period offering the revenue of almost 65%. Speaking about 5-years investment, for example, if you invest $1.000 right now your investment may grow to $1.600 at the end of that period. 

     

    Company’s ABOUT

    Walmart is one of the most profitable retailers in history. It is one of the most successful and well-known companies in the world.
    The company was founded in 1962 by Sam Walton, in Rogers, Arkansas with one store. To the end of 1968, the Walmart chain was expanded outside Arkansas and later opened the stores in every US state. In 1995, Walmart opened its first stores in Canada.
    From 1990, Walmart is the largest retailer in the U.S. and began to expand abroad, opening a store in Mexico and opened stores in the U.K., Germany, China.
    By 1999, Walmart wasn’t only the biggest private employer in the U.S. but in the whole world. Today it is the 29th company in the world, as Amazon, Alphabet, Microsoft or Apple with a host of Chinese companies, have passed Walmart by.
    By the second decade of this century, the chain had increased to over 11,000 stores in 28 countries.

     

  • The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming
    The packaged-food giant reached rock bottom and positive signs are unfortunately weak. They are not enough to warrant a buy right now.

    The Kraft Heinz Company (NASDAQ: KHC) reported third-quarter 2019 financial results on October 31. The company reported lower net sales and higher input costs. So, the third quarter performances for this company were a lot below their potential but still, the company showed growth in comparison to the first six months this year.

    Kraft Heinz CEO Miguel Patricio said: “We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction. Although there is still much work ahead, we’re encouraged by our improving performance, and are even more confident in our ability to turn around the Company and set a path of long term growth and profitability.”

    The Kraft Heinz Company results

    Net sales were $6.1 billion, and it was 4.8% below than it was in the same period last year.
    Net income increased to $899 million and diluted EPS increased to $0.74. Adjusted EBITDA declined 7.8% to $1.5 billion. The drop was caused by the drop in the United States and Canada, but there are higher overall corporate expenses also.
    The Board of Directors of the Kraft Heinz Company announced a quarterly dividend of $0.40 per share of common stock. It will be payable on December 13, 2019.
    The KHC stock was traded at $30.54 on Friday, November 22, which is an increase of 0.99%.

    The Kraft Heinz Company Is Bottoming

    Should you buy the Kraft Heinz Company stock?

    The analysts offering 12-month price predictions for Kraft Heinz Co have a median target of $32.00. Their high valuation is at $38.00 and a low at $23.00. The median shows a 4.78% rise from the current price.

    The recommendation is to hold stock in Kraft Heinz Co. 

    But the other group of analysts is pretty much sure that the Kraft Heinz stock couldn’t have good returns. That’s the reason why they claim that this stock is a bad and high-risk long-term investment. Today’s quote (Nov 25) for Kraft Heinz is $30.53 which is lower than on Friday. 

     

    Traders-Paradise opinion

    Having the current price of KHC stock in our mind and with the knowledge that the stock price had a downtrend for the past 1 year, we in Traders-Paradise are not sure is this stock is good as a long-term investment. We are close to thinking that this stock could easily drop significantly in the future hitting a decline of over 100% and to end up worthless. So, we suggest staying away from this stock if you are seeking a new addition to your investment portfolio. This is important especially if you are a new player on the market and don’t have enough experience. 

    This stock is trading in bear markets, which is harder for new traders.

    But if your plan is to buy and hold Kraft Heinz stock for a short time, for example, the next 10 days or two weeks, it can be a good choice. As we can see, the stock price could hit around $35 in the next several days.

     

    Bottom line

    The price line shows the possibility of zigzag running to the end of this year. After the end of this year, we are afraid that this stock will gain further declines.

    Our opinion comes from the suspicion that the company is not able to answer the challenges of predicting consumer demands. In its latest report, we couldn’t find that the company is ready to offer new products or to react to rivals’ improvements.
    The Kraft Heinz Company survives 150 years of challenging and produced some of the products well-known over the world. Yes, it is one of the largest global food companies, but the new era is already here and the company has to catch the moment.
    The point is that General Mills or Nestle are better choices in our opinion.
    We can recognize some possible upward movements, but they are weak and don’t provide enough reasons to buy this stock now.

     

  • 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. 

     

  • Tesla Cybertruck: It is not ball proof, but maybe it is bulletproof

    Tesla Cybertruck: It is not ball proof, but maybe it is bulletproof

    Tesla Cybertruck

    Tesla Cybertruck didn’t pass the metal ball test proof
    The company has always tried to meet auto-industry standards, which Elon Musk called “production hell.

    UPDATE 2019/11/25: Was it an embarrassing public presentation last week or just good marketing? Everything is possible. But one of three investors is sure that Tesla’s Cybertruck has a chance to be successful.
    After Elon Musk tweeted that the company received over 200,000 orders for the futuristic truck the stock price jumped for 0,99% on Monday and it is currently $336.34. The rumors increased the stock price. Take a look at the chart.

    Tesla Cybertruck didn’t pass the iron ball test. Are the broken windows the cause of dropping TSLA stock price? During the presentation of the new Cybertruck, something went wrong or the producer didn’t test the model enough before it showed it to the public? Anyway, it was hilarious. Okay! Musk tweeted after the reveal of the new model:

    “We threw the same steel ball at the same window several times right before the event and didn’t even scratch the glass.”

    The demo on late Thursday included hits with a sledgehammer and bullets that the truck could resist. But something went wrong as the windows broke into a thousand pieces when faced with a metal ball. It didn’t pass, though.

    And on that very day, the stock price dropped by 6% to $333.04 and Musk’s net worth plunged $768m after glass failure went viral. The launch of the Cybertruck experienced a delay since its “armored glass” windows shattered. And Wall Street was worried on Friday.

    Tesla Cybertruck

    The idea of Tesla Cybertruck is good? 

    It is constructed from stainless steel, a triangular structure and the base-model truck price is under $40,000. That should point out that Tesla is lowering battery costs. If we put aside the math (can be complicated) we will have a simple conclusion: someone is making EVs under $40.000. 

    There will be three models, the cheapest of which, at $39.900, mid-range model,  is priced at $49.900, and the most expensive at $69,900 that will start production in 2022.
    Electric vehicles are more costly than classic cars powered by internal combustion engines due to the battery pack. 

    However, refueling an EV by plugging it in is cheaper than with gas. And here we come to the pricing. The cost under $40.000 is a powerful promise. It looks the high battery costs are dropping. 

    But Tesla stock didn’t drop just because it had been higher. Over the past 3 months, the stock price has risen by almost 50% because the third-quarter results were better than expected. However, the drop on Friday looks to be related to the presentation of the Cybertruck and broken windows.

    The Robert W. Baird & Co.’s senior analyst, Ben Kallo is positive about Tesla stock, he rated it as Buy and set a target price at $355. 

    “While some may consider the Cybertruck too futuristic of a design,” he wrote in a Friday research report, “we do think strong functionality will eventually win over Tesla loyalists and enable the company to take share from traditional auto OEMs.” 

    Competition is big

    Ford is working on all-electric F-150, General Motors will enter the market in two years. Moreover, Ford and Amazon supported EV startup Rivian that also will bring something in 2020.

    The analyst Jed Dorsheimer from Canaccord Genuity kept a buy rating on Tesla stock and a price target of $375.

    But Oppenheimer analyst Colin Rusch wrote he expected Tesla stock to fall because the investors might be skeptical of adoption of the Cybertruck.

    Yes, this vehicle is very different from current standards. So, what? Is that a problem?

    We think it isn’t. The main Tesla problem is that it isn’t a carmaker in, it is an innovator. They really should engage some constructors and workers with experience in the auto industry to build them a producing line. The industry veterans know that. Last year, Tesla’s factory in California couldn’t assemble the Model 3 sedan. 

    Maybe it is time for Tesla to follow the auto-industry practices and engage the experts in that field. At least, it will give fewer downturns and mistakes in the construction of their cars.

    Bottom line

    Recently Musk said the goal of Tesla is to create a system that provides “the most amount of fun you can have in a car.
    And Tesla added a “Caraoke” library of songs and lyrics, there are more games in Tesla Arcade. A partnership with gaming company StudioMDHR for its game Cuphead is signed. So, full entertainment is here. Where is the car?

    Tesla’s Cybertruck obviously didn’t pass the metal ball test. Will the stock survive that hilarious experiment? This EV maker is spending a lot of time on something the other car makers have almost led to perfection.

    That can make larger trouble in its business. Anyway, after the fiasco, Musk tweeted: “Guess we have some improvements to make before production haha.” Yes, you have, indeed.