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.

  • Saudi Aramco Is Moving To A Publicly-traded Company

    Saudi Aramco Is Moving To A Publicly-traded Company

    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.

     

  • Apple’s Results in Q4 are Really Good, But Some Analysts Weren’t Excited

    Apple’s Results in Q4 are Really Good, But Some Analysts Weren’t Excited

    Apple’s results in Q4 are really good

    Barclays is worried that Apple’s average iPhone pricing is too low
    In an attempt to increase its subscriber base for its services, Apple has been selling iPhones cheaper.
    The iPhone 11 starts cheaper than last year’s iPhone XR.

    Apple’s results in Q4 are great and investors are buying up Apple Inc. (AAPL) shares as the company beat expert estimations. Despite the fact that sales of the iPhone weren’t what was expected but iPad sales and increased Apple TV subscribers add more favorability to these shares. 

    Both hugely beat what investors anticipated.

     

    Apple’s headlines took most of the attention after the closing bell Thursday.  But what if Apple’s historically strong pricing power is slipping, Barclays’ Tim Long is worried.
    In an aim to expand its subscriber base for its services, Apple is selling iPhones cheaper. According to Barclays, the price may be too low.

    “iPhone revenues were in-line, but we believe ASPs were weaker,” Barclays analyst Tim Long said in a message to clients Thursday. 

    Don’t miss this How To Know If a Stock is Worth Buying

    Apple’s results in Q4 came from services

    The truth is that slow iPhone sales at lower prices did not halt Apple to come with the best Q4 revenue ever.

    The company earned a record of $64 billion in revenue. Yes, iPhone sales are decreasing, but service revenue scored a great high result. That is the new Apple’s strategy and it shows the result. The most important thing isn’t hardware sales, instead, expanding the subscription services.

    The $64 billion in revenue is up 2% correlated to Q4 2018, and quarterly earnings per diluted share of $3.03, up 4 percent from Q4 last year. Here is the full report.

    The iPhone sales, Apple’s major moneymaker, proceeded to decrease contrasted to last year. This year it brings $33.36 billion in revenue but last year the iPhone sales brought $,3,40bn more. This year’s drop is a bit more than 9%. Also, Mac revenue was down nearly 5% to $6.99 billion. But earnings came from the other side, from the services business. Apple’s services had touched a record gaining $12,5bn in Q4, the previous quarter ended with $11.46 billion gained from the services. During this year Apple got over 120 million subscribers more than last year and now has over 450 million.

    Some of Apple’s results in Q4 are not so good

    Mac revenue was also down nearly 5% to $6.99 billion, although iPads ($4.65 billion in revenue) and Apple’s wearables/home/ accessories unit ($6.52 billion in revenue) both saw sizable jumps compared to last year.
    Shares of Apple surged more than 1% on Thursday, only several hours after the company reported Q4 earnings and revenue. Apple recorded earnings of $3.03 per share on revenue of $64 billion. 

    Wall Street was foreseeing earnings of $2.48 per share on revenue of $62.99 billion. 

    Barclays now predicts a 12% average selling price drop in 2019 and a 6.5% average selling price drop in 2020.

    On Apple’s official website, you can find a statement:

    “Apple is providing the following guidance for its fiscal 2020 first quarter:
    revenue between $85.5 billion and $89.5 billion
    gross margin between 37.5 percent and 38.5 percent
    operating expenses between $9.6 billion and $9.8 billion
    other income/(expense) of $200 million
    tax rate of approximately 16.5 percent”

    From September this year, Apple has three new iPhone models:  the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max.

    The iPhone 11 is $699, which $50 cheaper than iPhone XR. These lower prices attracted more customers to Apple’s services business and the company covered the lost gains on the one side with growth on the other. The lower pricing strategy showed good results. 

    Bottom line

    The experts’ concerns are all about average selling prices that were weaker. Investors’ fears are focused on the US-China trade deal. If it falls apart Apple could be faced with rising costs.
    The main question now is Apple capable to set new 5G iPhones next year and how much it will cost.
    Will Apple be able to charge enough without hurting demand? The lower pricing strategy can be very challenging for 5G. At least, the ASP for 5G iPhones has to be $150 higher.

    That’s why Apple’s next quarter will be an intriguing one. Q1 quarter usually includes holiday sales, also it’ll be the first that adds the TV Plus service. Apple is projecting revenue for Q1 2020 in the range from $85.5 billion to $89.5 billion. The revenue in Q1 this year was $84.3bn.

  • Fiat Chrysler and Peugeot Merger

    Fiat Chrysler and Peugeot Merger

    Fiat Chrysler and Peugeot Merger

    Fiat Chrysler Automobiles will merge with PSA Groupe, owner of Peugeot automobiles

    Fiat Chrysler (FCA) and Groupe PSA (Peugeot is the largest PSA brand), have agreed to continue a merger. That would form the fourth-largest carmaker in the world. Their boards are working together on a new relationship. The Wall Street Journal reported the companies are moving forward with a merger. Both companies confirmed this news.

    The merger will give shareholders of each group equal ownership in the new entity.

    On Thursday morning both companies stated that their boards have a mandate to finalize the negotiations in the next few weeks, which means FCA will not tie-up with Renault as was thought this summer.

    The merger would create a company with revenues of €170bn, with an operating profit of over €11bn and vehicle sales of 8.7m. That would lead them ahead of General Motors and Hyundai-Kia in sales. The new potential entity would have a market value of between €45-50bn.

    The model of the merger is a 50-50 all-stock.

    PSA is listed on the Euronext Paris stock exchange.

     Fiat Chrysler and Peugeot Merger

    Since 2014, FCA is officially listed on the NYSE.

     

    After the Fiat Chrysler and Peugeot Merger 

    When the two companies do a merger, PSA chief executive Carlos Tavares is assumed to lead that new group while John Elkann, Fiat Chrysler’s chairman will hold the same position at the new entity.
    Despite this speed, a final agreement of merger needs time and regulatory scrutiny.

    According to Reuters, a merger between FCA and PSA could build a “$50-billion giant better placed to tackle a host of costly technological and regulatory challenges facing the global auto industry.” Details were not published, but some aspects have known.

    For example, the Journal published that the new company would be “legally domiciled in the Netherlands,” with “operational headquarters in the U.S., France, and Italy.”
    Further details and any influence on employment are not yet transparent. The known fact is that FCA has plans to add nearly 5,000 jobs to the Detroit factory to build SUVs. So, the obvious conclusion is that a merger would eventually help FCA in Detroit.

    It isn’t a secret that the Peugeot Group has plans to re-enter the U.S. market. The merger with FCA would provide it through the Chrysler/Dodge/Jeep/Ram dealer network.
    To adjust the value of the two companies, the PSA shareholders should get about a €3bn dividend from the sale of the 46% stake in parts carmaker Faurecia.
    FCA shareholders will receive a €5.5bn ($6.12 billion) cash payout and incomes from the sale of its robot-making Comau unit, estimated at between €200m to €300m.

    New headquarters

    The new group will be based in the Netherlands, a neutral location, where FCA is domiciled and listed in Paris, Milan and New York. The Financial Times reported the FCA will “continue to maintain a significant presence in the current operating head-office locations in France, Italy and the US.”

    Around €3.7bn in predicted annual run-rate synergies are targeted, 80% during the first 4 years. The total one-time cost of achieving the synergies is estimated at €2.8bn, the two companies revealed in the statement.

    Bottom line

    Carmakers are facing large investments in electric cars. That is the reason behind the merge. Costs. This merger would create one of the biggest carmakers groups in the world with well-known brands Citroen, Jeep, Opel, Alfa Romeo, Peugeot, and Vauxhall. This has the potential to be a true rival to Volkswagen, Toyota and the Renault-Nissan Alliance.

    The merger of those two companies looks as wise given the global competition, capital power, and industry complexity from autonomous technologies.

    This could create a global automotive leader.

  • Cannabis Companies Are Infusing Optimism Into Markets

    Cannabis Companies Are Infusing Optimism Into Markets

    Cannabis Companies Are infusing Optimism Into Markets

    There are so many prejudices about cannabis stocks. Yes, the truth is that most cannabis stocks are losing money. But if you take a look at the industry as a whole you will find it is profitable from the beginning.

    Yes, the bulk of cannabis companies based in the US and ADRs are trading trade over the counter. But several cannabis companies are traded on the NASDAQ. That adds liquidity as opposed to the OTC market. Anyway, some investors prefer NASDAQ listed cannabis companies.

    But investors are also very informed that hot investments, like cannabis, demands time to improve. This kind of investment isn’t profitable from the beginning, and investors know that. Several reasons lie behind this. First of all, it is regulation. 

    Regulatory issues have essentially restricted growers to set their products into dispensaries. And taxing the legal pot consumers, also. The end result is that the black-market is blooming. It will take time to fix all these issues. The consequence is that a lot of cannabis companies gain losses.

    But there is one rare part – extraction service providers. Investors are able to recognize them easily, they are present in the market. For example, MediPharm Labs (OTC:MEDIF), or Neptune Wellness Solutions (NASDAQ:NEPT). Their clients can use resins, and cannabinoids, edibles, or infused non-alcoholic drinks. 

    The cannabis industry has begun to shift into the green.

    Moreover, as the cannabis industry has grown, uplisting from an OTC market to a high-ranking U.S. exchange has become a great achievement for many growing cannabis companies. 

    The NASDAQ was the first automated exchange and has long been synonymous with technology and biotechnology. The cannabis companies on the NASDAQ work in the biotech area of the industry. Here are the NASDAQ-listed cannabis stocks we want you to pay attention to.

    Cronos Group Inc. (NASDAQ:CRON)

    It is a Canadian company that holds and wants to locate subsidiaries and licensed producers. Last year Altria invested $1.8 billion in Cronos. 

    Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP)

    It is a cannabis biotech company that researches, developing, and manufacturing. All their products are for cannabis drugs for chronic, inflammatory and many other diseases.

    GW Pharmaceuticals Plc. (NASDAQ:GWPH)

    This company is developing a selection of CBD drugs. For example, Sativex for the spasticity associated with multiple sclerosis and tumor pain. Also, Epidiolex for the therapy of childhood epilepsy. Their products are in use in countries outside the US with regulatory approval. Epidiolex has FDA permission as a therapy for two forms of early-onset epilepsy. GW Pharmaceuticals is developing its products for glioma, autism, and schizophrenia therapy.

    Bottom line

    The most interesting thing about these cannabis companies is that they are starting to uncover their true potential. Or we are starting. And for now, the best choice for investors is extraction companies.

    This subsidiary cannabis niche is now profitable. Can you imagine how much they can increase in the coming years?

     

  • Big Market Players Are on Schedule

    Big Market Players Are on Schedule

    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.

    Big Market Players Are on Schedule

    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.

    Big Market Players Are on Schedule

    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.

  • Beijing-Shanghai High-Speed Railway Plans IPO

    Beijing-Shanghai High-Speed Railway Plans IPO

    Beijing-Shanghai High-Speed Railway Co that 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”.

     

  • Tesla Stock Jumped on Thursday the Most In the Past Six Years

    Tesla Stock Jumped on Thursday the Most In the Past Six Years

    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.

     

  • NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc - Marijuana Penny Stock Under The Radar

    By Gorica Gligorijevic

    This company has two subsidiaries Stolle Milk Biologics, Inc., NuVim Powder, LLC. and stock price under one dollar

    Maybe you still didn’t notice this stock. But don’t worry, many didn’t. NuVim Inc stock is currently very cheap as penny stocks. It was traded at $0.0133 at the close of trading on October 21. But it is a stock worth looking out.

    Market cap $299,468
    Current price $0,0133

    NuVim Inc is a company from New Jersey. Actually, it was established in 1999 and is based in Lewes, Delaware. It sells vitamins and dietary supplement drinks. Why this particular stock is interesting to watch?

    Well, its current CEO Rick Kundrat was VP at Unilever’s Thomas J. Lipton Inc and managed the merger with Pepsi in 1991. This deserves to be noticed because of the fast-expanding cannabidiol (CBD) market global. Rick Kundrat has talked about a possible merger for NuVim merger partners. If the company moves into CBD-infused drinks it could be huge progress and stocks could be a goldmine.

    Cannabidiol is used for pain reduction. Moreover, it speeds up healing muscles and joints when have been weakened from hard exercise. But maybe the most important effect is in the field of arthritis or similar illnesses where it can help to reduce chronic pain. 

    NuVim, Inc. produces, distributes and sells beverage products

    The NuVim is a dietary supplement accessible in the refrigerated juice sections of elite supermarkets and fitness stores. You can find it in three flavors: chocolate, vanilla, and strawberry.  It helps to sustain the immune system, improves calcium absorption and digestion. NuVim contains a clinically proven natural prebiotic fiber. 

    NuVim INc is a small company with only 3 full-time employees, according to data from Yahoo Finance. From everything we know about this company, it falls into the packaged foods industry. The Company covers a range of user needs, like joint pain, muscle flexibility, wellness, weight control, nutrient supplement, and muscle recovery.

    When we put this company under the phrase “under the radar” we didn’t have its unrecognition among the investors in mind. The lack of information is obvious. It is very hard to find full information about them. The last info came from the short report:

    “During the second quarter of 2019, the company sold 1,000,000 shares of stock to Derek Spence for $10,000.”

    This was really cheap.

    As Traders-Paradise found, Derek R. Spence is Vi3’s CEO and Chairman of the Board. He joined Vi3 as an investor in 2012 and became a board member in 2014.

    Bottom line

    But what we all can see from its 3-months chart is the stock is doing well.
    Yes, it is a very low float stock that is actively seeking and interviewing merger partners. The merger could send this stock very high. Grab this stock while it is cheap and wait for it to grow.
    It isn’t expensive, honestly, it is very cheap. But this company has interesting potential. As support for this opinion, let’s repeat where is its focus. It is cannabidiol that is fast-expanding and becoming part of medicines, supplements, drinks. This company wants success and seeking for partnership telling us a lot. Grab it.

     

  • This Week is Full of Q3 Earnings Reports – Stay, Watch and Monitor

    This Week is Full of Q3 Earnings Reports – Stay, Watch and Monitor

    Q3 earnings reports

    This week will start with Q3 earnings reports on Monday with Halliburton and TD Ameritrade.

    The question arises, will economic instability and trade worries continue to frighten investors? Let’s see what we can expect from the Q3 earnings reports.

    Tuesday is a day D for Procter & Gamble, McDonald’s, Kimberly-Clark, United Technologies, Chipotle Mexican Grill.

    Procter & Gamble (NYSE: PG)

     

    It will be on the schedule before the morning bell. Wall Street wants a profit of $1.24 per share and revenue of $17.4 billion to start off the company’s 2020 fiscal year.

    Procter & Gamble’s stock has grown from $81.91 in September 2018 to $117.47 now. In Septembre this year, it was $123.

    This company managed to grow earnings at a rate of 7% per year, but revenue has risen by a slight more 1% per year over the past 3 years. It is expected that the company will report earnings per share at $1,24. For the first quarter, it was $1.12. Also, the analysts’ consensus estimates revenue at $17.43 billion. That is 4.4% bigger than the $16.7 billion gained last year.

    In the last quarter of 2019, earnings rose by 17% and revenue rose by 4%. Analysts foresee earnings to increase by 7% in fiscal 2020, and revenue to increase by 3.5%. The return on equity was 23.9% and a profit margin of 21.9% which is solid for the management’s effectiveness.

    Yes, someone may say it isn’t so good if compare with some high-tech stock, but Procter & Gamble is giant, one of the oldest in the US and the consumer packaged goods company.

    McDonald’s (MCD)

     

    It looks like Mickey D’s hits an increase in third-quarter profits and sales. Investors will like to know how McDonald’s will capitalize on two new trends such as the chicken sandwich craze and the demand for meat-alternative burgers. In September, McDonald’s began testing a Beyond Meat plant-based burger in Canada. 

    McDonald’s is scheduled to report earnings on Tuesday, Oct. 22, before the market bell. According to analysts’ consensus estimate, the company is expected to report $2.21 a share profit on sales of $5.49 billion.

    McDonald’s shares are displaying peaking and finished the week at $208.50. 

    It looks that new products such as all-day breakfast or doughnut sticks attracted new consumers and Mickey D’s global sales gain a great increase. Investments in new technologies continue to pay off and are increasing traffic. Good news for investors because share momentum again revives.

    On Wednesday Ford is scheduled for Q3 Earnings Reports

    Ford Motor Company (NYSE:F)

    It will release Q3 earnings on October 23, after the market close. The fears among investor is great. The largest automakers is challenging difficulties in improving demand for its cars. Analysts forecast that the company will report $0.26 a share profit on sales of $36.86 billion.

    Ford has several very hard years behind. After so many successful years, this carmaker giant is forced to restructure because the demand for its sedan cars is decreased.

    This restructuring will result in cutting salaried jobs, some oversea factories may be closed and also the car dealer. Ford has to build the capacity to manufacture electric and driverless cars if wants to stay in the focus of buyers. And yes, the management already took some steps toward this. But the company’s shares are still under pressure and currently are traded at $9,29. At the end of the last trading week, the stock rose by 2%.

    Thursday is for Intel’s Q3 Earnings Reports.

    Intel (NASDAQ:INTC)

    Q3 Earnings Reports

     

    The globe’s largest chipmaker will also come under intense analysis when it reports earnings on Thursday, Oct. 24. It is scheduled after the close. According to analyst consensus, it is expected to report $1.23 a share profit on revenue of $18.02 billion.

    Its last report showed that the company is able to outdo everyone’s expectations. Over that period Intel Intel profited from growing demand for personal computers, and sales of higher-priced server chips. Investors will check is this semiconductor giant was able to maintain that demand surge in Q3. Also, they would like to know what are the company’s plans for the end of the year.

    Intel shares were closed at $51.36 on Friday. But have underperformed the benchmark S&P 500 Index this year. The main reason is concerns due to the trade war. If it escalates and China raises tariffs it can be tricky for this company because China is a major semiconductor market.

    Coming Q3 earnings reports could help exclude some of those questions.

    Bottom line

    This week is overflowing with questions about whether economic instability and trade worries will continue to scare investors. It will be a very hard week for many companies. What investors can do is to watch and monitor to be able to react if it is necessary.

     

  • Sterling Weakened But Demands Increased

    Sterling Weakened But Demands Increased

    Sterling Weakened But Demands Increased

    Sterling weakened from five-month highs.
    Stocks in London dropped on Wednesday.
    The UK and the EU close to concluding a draft agreement on Brexit.

    Sterling has experienced decreasing from five-month highs. At the same time stocks in London fell on Wednesday. This disturbing situation came on concerns of talks between the UK and the EU to secure a Brexit deal. At this moment it looks like everything may fall apart.

    This was the second volatile day in the UK markets caused by political uncertainty about the Brexit. At the end of last week talks about Brexit were continued. To the end of last week, sterling has surged about 5%. But on Wednesday the negotiations were paused. The national currency and stocks dropped on that news. The fresh news about Michel Barnier’s optimism about getting a deal couldn’t help.

    Sterling has surged some 5% since late last week when London and Brussels restarted intense Brexit talks.

    Wednesday morning showed a bad result for sterling. Sterling was down 0.3% at $1.2731, off session lows. Also, it a lot below a five-month high of $1.28 hit the day before.

    Sterling weakened 0,3% against the euro too.

    Trading volumes have grown in recent days.  According to Refinitiv data, investors purchased and sold much more pounds than any other day in the past 12 months.
    UK and EU officials renewed talks on Wednesday, but without an agreement before the summit that will be held on Thursday. The companies listed on the London market that operate at home, such as housebuilders or banks, grown last week. For example, JP Morgan’s domestic asset basket has beaten some exporters and the blue-chip FTSE 100.
    Trading in sterling options showed high volatility in the currency.
    British government bonds profited from the restored uncertainty. The10-year yields down 3 basis points at 0.66 %. September inflation data had a limited market influence.
    Britain’s inflation rate slipped to grow as expected in September. The reason should seek in petrol prices. They dropped at the fastest rate in more than three years.

     

    But demand for the British pound has continued Wednesday.

    Investors are focused on the situation concerning Brexit. So, yesterday fresh news appeared. The UK and the EU are close to achieving an agreement on Brexit. The only concerns are will Boris Johnson gets support from Northern Ireland’s Democratic Unionist Party. Investors are waiting for the summit on Thursday. After that, the scenario of Brexit will be more clear. 

    The GBP stabilized after an important rally last week. Optimism toward the agreement of the Brexit process started to decline. EU diplomats want additional concessions from UK PM Boris Johnson. The important economic reports from the UK should come soon.