Category: Where to Invest

Where to invest is the most common question when someone decides to enter the markets. It doesn’t matter what the market is. It could be a stock market or Forex, or cryptocurrency market. The question will always be the same: Where to invest.
Traders-Paradise aims to give you some clues, to give you some hints of where to invest in.
The possibilities are enormous and if you want to make a profit or secure your future, investing is the most profitable solution. In turn, you’ll enjoy knowing that you made a better choice than savings can ever be. Moreover, you could earn a lot by investing a little money.

Here you will find great articles about new technologies, investment opportunities, all with suggestions.

The main goal that Traders-Paradise has is to show you how investing process can be easy and profitable. If you want to get more knowledge about investing, this place is top for you. Traders-Paradise knows that investing may sound strange and difficult. But, if you have any doubts about investing this is the place where you can find all answers.

The website Traders-Paradise will show you where should you start and how to begin your investing journey. You may read different financial websites but this one is unique due to its true fact-checking, honesty, clear, serious, and comprehensive observations on a given subject. You’ll have a true and detailed picture of the world of investing. That is a common goal for both you and Traders-Paradise’s team.

We wish you profitable investing.

Is Coca Cola Overvalued – Trick Or Treat

Coca-Cola has performed very well in 2019. The stock isn’t cheap but also, not overvalued. The increasing margin and investors seeking yield couldn’t be a problem for the company to continue great performing.

The question Is Coca Cola overvalued could be a trick. Why do we think so? If we take a cash flow at a consideration we can see that Coca Cola is trading at 24.4 times operating cash flow and 31.3 times earnings. Further, the forward price-to-earnings ratio is at 24.6%. and the latest price is $54.69 (data from January 3th, source Yahoo Finance). Although, the company is not expensive.

Further, if you have in your mind that most government bonds are trading under 0% yield, the negative interest rate in the EU, currently inflation is low, KO that provides a 2.9% yield, you must understand that it isn’t expensive.

Of course, it will be better if the stock can provide a higher yield but for that, we have to wait for additional dividend increases. On April 9, the stock traded at $55.77, the current price is at $54.69 but we all have to admit it isn’t a sharp decline in the stock price. Coca Cola management may reinvest the company’s operating cash in capital expenditures (CapEx) to get, improve, and keep the property, improve technology, or equipment. Further, the company can reinvest in development such as innovation to improve the product portfolio, marketing or M&A to maintain the business like it was in the past 20 years or more.

Also, Coca Cola can use the operating cash to further improve profitability. That would influence its P/E ratio.
Having all these indicators in mind it is easy to conclude that Coca Cola isn’t overvalued stock.

It has a high debt

Coca Cola has raised debt levels. The company has a slightly low liquidity position as the current ratio is at 0.92. The sustainable level should be 1.00 but the current debt levels are not something to be worried about. Boosted debt came from the fast increase of long-term debt and falling sales. But as we said, the company plans to improve sales and operating cash flow will likely grow. That could easily cover the debt. Moreover, the company’s bonds are doing very well.

Why do some investors think that Coca Cola is overvalued?

Some investors avoided this stock due to its valuation. But try to be honest, it isn’t expensive. The company is paying a stable dividend yield and, according to its statements, it plans to have strong sales in the future. Coca Cola isn’t in the phase of low operating cash flow. Experts’ opinion is the stock hasn’t sell signal. It is contrary, with 31.3 earnings it has “hold” or even “buy” signal. Moreover, some estimations and predictions show that stock may hit over $60 (close to $65) this year. Well, Coca-Cola is a solid dividend-paying stock and it will likely continue to produce stable profit for its shareholders.

The profitability of the company

Let’s see is Coca Cola overvalued. Over the last four years, the company had a total revenue drop of $10 billion to $34.3 billion. Operating margin was improved by 560 points up to almost 29% and income dropped to about $10 billion which is a difference of just $400 million. The good sign is that the company increased cash by almost $10 billion from its operations while dividend payments hit a new record of $6.74 billion.

This year, Coca Cola has got back $3.4 billion through dividends and distributed stock worth $233 million. Yes, it is lower than for the same period last year due to several factors and the dividend increase of 3% may not be so visible. But the stock has had a great play in 2019 with a return of over 16%. So, what do you think, is Coca Cola overvalued? We think it isn’t. The company has a great product portfolio that could boost sales. So, KO could be one of the best investments in the next year since, as we can see, there is still a lot of potentials. Maybe the better question could be is Coca Cola undervalued rather that is Coca Cola overvalued stock.

Coca Cola through the history

After 133 years of existing Coca Cola isn’t a woman-body-shaped-bottle. More about the company you can find in its fresh statements updated for Q3 earnings result for 2019.

The Coca-Cola Company is an American corporation established in 1892. It is primarily recognized as a producer of a sweetened carbonated beverage. It is a global brand not only the US trademark. The company is also focused on producing and sells soft and citrus drinks. Its product portfolio consists of more than 2,800 products available all over the world. That makes it one of the largest beverage producer and seller in the world and, also, one of the biggest corporations in the US. The company is headquartered in Atlanta, Georgia.

Almost 55% of its sales come from carbonated soft drinks. The rest 45% goes to juice, dairy, tea, coffee, etc. The interesting part is that Coca Cola is a market leader in almost all of these areas selling its products through over 28 million customer stores.

Speaking about its stock, Coca Cola could be everything but not overvalued. Moreover, it is a growing brand after 133 years. And the company still has great ambitions to meet consumers’ demands. Respect.

And don’t be worried if this famous producer is able to meet them. Despite the increasing competition, the company has transformed into an asset-light company. It manages to improve supply chains and modernize its packagings, the concentration of sugar and modern tastes.

Don’t ask is Coca Cola overvalued. It isn’t.

Bottom line

Coca Cola is consumer staples stocks. It provides goods that people need on a daily basis. That fact makes it an excellent investment in practically every economic condition exceptionally winning during economic slowdowns. People will always need these products no matter what economic or financial status is or if there is inflation or market downturns. The whole industry’s total return in 2019 was 27.3%. Compare this data with the 12-year average annual return of 10.4% and you will understand why it is still a good investment choice. Yes, it is 3% points below the S&P 500. Nevertheless, if the market gets rough, and especially if we will face the market correction, this industry will shine.

In the face of this context, Coca Cola is one of the best consumer staples stocks to buy in 2020. This pick should be proficient if the market is turbulence in 2020.

So, KO could be a good addition to investors’ portfolios.

5th January 2020
Buy More Stocks, And Here Is Why

Your money should stay in stocks as bond yields and savings accounts interest rates are being held down

by Guy Avtalyon

Let’s explain why should you buy more stocks in 2020. The first stock market rally this year started with a lot of momentum. The S&P 500 index had its best year in 2019. The last such good year was 2013.

2019 was really an active year. For all investors, the end of the year was a great opportunity to figure out what happened and how well they were doing. Well, it’s normal to make some mistakes but the point is to find any that has had a great influence on your investments. The most important is that these mistakes didn’t hurt your long-term investing goals and when you figure out what you did wrong you’re able to avoid repeating them.

So, you will be prepared for new investments which is very important.

The beginning of the year is the right time to make plans on how to position your portfolio. Since no visible or specific cause could cause the stock market downturn it is the right time to buy more stocks in 2020.
Actually, buying great stocks at reasonable prices should let us build our wealth firmly in the future.

Let’s take a look ahead to 2020 for stock picks

Many analysts are skeptical about the stock market’s gains will proceed with two-digits percentage, that’s true. So, we can conclude they are expecting volatility. This means the stock prices could go down.

And here is where the opportunity comes.

Cheaper stocks represent a buying opportunity and some investors are waiting for that. Some companies are ready to outperform and continue to grow despite the economy slows.

According to analysts from Wall Street, some well-known companies and brands could be the right choice.

Buy more stocks in 2020 to get profit

Picking stocks can be difficult so let’s see what is our choice for potential opportunities.

Kohl’s (KSS)

Kohl’s has over 1.100 stores and represents the largest U.S. department store chain. For some investors, its stock may look too cheap after the company posted the last quarterly results. KSS trades 20% under its five-year average and 25% below its average price-sales ratio. But the company is expected its revenue to grow 1.8% to $19.3 billion. The earnings would stay at $4.88 per share. But Kohl’s performed something else really great: it generated $10.81 per share in free cash flow last year. Its annual dividend payout is $2.68 per share. Just compare these two figures. The current yield is 5.3%.

Visa (V)

It is one of the most powerful payment companies in the world. The company processed 180 billion in transactions worth $11.6 trillion. Net revenue was up 11% in 2019, and net income increased by 17% year-over-year and is about $12 billion. Remarkably, this large company reported two-digit growth both top and bottom line and a free cash flow yield of 3%.
Some new initiatives should provide steady growth for Visa in the future and allow the company to take advantage of and beat competitors. This stock isn’t cheap but the high-quality is costly.

Apple (AAPL)

It is expected that the demand for Apple’s 5G iPhone will boost the company in 2020. AAPL stock price, according to some analysts could reach $300 in the next 12 months. Well, some are expecting the price to climb up to $440 in the year ahead and after 5 years to increase up to $1427.148. Even if you think the price is “overrated” Apple is confirmed as a good investment. Buy more stocks if you have enough capital to invest in.

Amazon (AMZN)

Amazon’s stock could be a top bet fort he next year. Strong growth in its cloud-computing and advertising businesses is expecting. The analysts are rating the stock as a “buy”. The predicted price could pass a $2,000 target this year. Shares could rise by 34% over the year, which is the experts’ opinion.

Walmart (WMT)

Walmart has been modifying. It has been investing in online. The company could take advantage of the growth in the middle class in China. Yes, Walmart’s market value is 40% of Amazon’s, but the difference is lowering. At the end of last year, the price of WMT stock was $120.440 but the price has been in an uptrend for the past 12 months. The future price of the stock could increase by 23%, said analysts, and predicted to be worth over $200 this year.

Kronos Worldwide (KRO)

This company from Dallas (Texas) produces and sells titanium dioxide pigments for broadly used in auto-industry, traffic paint, appliances, interiors, and exteriors. But the investors’ attention is focused on its revenue. It is expected to grow by 3.4% this year or to $1.8 billion. The earnings should rise $0.88 per share or by 14%.
Despite this growth, Kronos shares trade nearly 40% under its five-year average P/E ratio. The quarterly dividend has increased by 20%. The stock yield is 5.4% at $0.18 per share.

Tesla (TSLA)

Tesla Inc will present its first Chinese made Model 3 sedans publically on January 7, reported Reuters. The deliveries came a year after Tesla build its only plant outside the US. The target is 250,000 vehicles a year. Tesla’s China General Manager Wang Hao said the plant had achieved a production target of 1,000 units a week, which is the production of around 280 per day, and that sales for the China-made vehicle had so far been “very good”. If Tesla’s earnings become firm, thenTesla’s stock could rise amazingly. Right now, Tesla stock trades at $418.33 but analysts are expecting to raise over $720 this year.

Starbucks (SBUX)

Starbucks has a great performance last year. Its shares increased by 37.5%. The company has reported revenue growth, an increase in total net revenues to $26.5 billion and net income grew to around $3 billion. Starbucks ended the past year with 31,256 stores in 82 markets. The company continues to grow in China as well as in the US. Starbucks has clear goals for its expansion. That provides a great level of certainty to investors and they could recognize Starbucks as favorable stock to buy.

Why buy more stocks in 2020?

For stock investors, this year already appears like a happy new year.
Investors buy more stocks for many reasons. For example, capital appreciation could be one of them. Also, dividend payments or the ability to vote and control the company.
Several reasons are behind choosing to buy more stocks in 2020. In this stock market condition, stocks provide the best potential for growth as always.
The beginning of the year is an amazing time to decide where to invest. Since there is no 100% sure way to predict the stock market movements why not invest in assets with the greatest returns?

What could we do instead?

All we should do is to create diversified portfolios and adjust them to the market’s movements, to save a value in down markets. The general suggestion is to not look often at your portfolios. Take your time and read books about investing. You can find plenty of them packed with wisdom.

Traders-Paradise wishes you happy investing in the stock market this year.

2nd January 2020
NextEra Energy Could Be The Top Stock Of The Next Year

NextEra Energy’s date of posting quarterly earnings reports is almost here. What investors could expect?

NextEra Energy (NEE) traded the Wednesday, December 24 at $240.51. The most recent price rose for 0.72% from the previous trading day. On the same day the S&P 500’s 0.02% loss, while the Dow lost 0.13%, but Nasdaq scored an increase of 0.08%.

NEE is approaching its next quarterly earnings report. The analysts expect NextEra Energy to post earnings of $1.53 per share. That would represent the growth of 2.68% in comparison to the prior year. Also, there is an expected revenue of $4.69 billion or 6.77% more than in the same period last year.

Speaking about the whole year, analysts’ expectation is earnings of $8.37 per share (an increase of 8.7% compared to the last year) and revenue of $19.27 billion (an increase of 15.09% compared to last year).

The beginning of NextEra Energy

Long-time ago, it was 2001, NextEra Energy’s market value was $10 billion, today it is $117 billion. The company is, in other words, the largest publicly traded utility in the world.
The company has large cash flow thanks to onshore wind-power infrastructure in promising areas, low-cost production and, also, the federal support.

NEE is a good dividend stock too, that paid out $2.1 billion in common stock dividends last year. The current dividend yield is 2.1%. NextEra generates cash flow from a power generation subsidiary NextEra Energy Resources (one of the biggest producers of electricity from the wind and sun) and two Florida utilities.

NEE stock

Currently, the stock’s P/E ratio is 28.53, while the average P/E ratio for the industry is 20.45.

The data shows that the stock price has been in an uptrend for the past 12 months. NextEra Energy stock price has a rising tendency. So we can conclude, the future price of NEE easily could hit $390 which means to increase for more than 28% at the end of the next 12 months period. NextEra Energy stock is a good long-term investment. The experts’ recommendation is to HOLD this stock since the further rise is expected.

But for the short-term traders, this is a good opportunity to sell, because the stock is in the upper part of a weak growing trend so it can be expected the move back towards the lower part of the trend. If the stock passes the level of $242.93 it will be the sign of a strong raising rate. The stock could hit this price in the next 3 months or less, and rise further up to near $250 over the next 3 months.

The company’s ABOUT

NextEra Energy’s headquarters is composed of five buildings in Juno Beach, Florida. It is a leading clean energy company and is the largest rate-regulated electric utility in the US by retail electricity produced and sold.
The center of NextEra Energy’s business is Florida Power & Light. This utility serves about five million customers. It is also the low-cost provider of electricity. The average customer cost is under $100 per month, which is lower than the average of $140.

Recently the company announced that will start the new year with the lower customer bills. The monthly bill for a typical 1,000-kWh residential customer will decrease by nearly $4 due to lower operating costs. That will be about 30% below the national average.

NextEra Energy also owns NextEra Energy Resources, LLC, which is the world’s largest generator of renewable energy and also a global leader in battery storage. The company produces electricity from eight nuclear power units in Florida, New Hampshire, Iowa, and Wisconsin. NextEra Energy is rated as No. 1 in the electric and gas utility industry on Fortune’s 2019 list of “World’s Most Admired Companies”. Also, last year it was rated among the top 25 on Fortune’s list of businesses that “Change the World.”

25th December 2019
Pharmaceutical stocks – Risk and Reward Of Investing In

The pharmaceutical stocks belong to the larger healthcare sector.
With faster drug approvals and increasing customers, investing in pharmaceutical stocks could be a good choice.

Pharmaceutical stocks increased in 2019. The best pharmaceutical stocks have strong Composite Ratings and Relative Strength Ratings. That recommends buying them.
As we can see the healthcare industry will only intensify. The new technologies are developed or in the phase of developing with good predictions to get approvals for use. This industry will continue with modernization, it is obvious.
The increasing development of tech in healthcare also will give new chances for the industry. Prescript medicine sales CAGR from 2019 to 2024 is set to be three times that in the period from 2010 to 2018.|
The forecast annual CAGR of +6.9% for the next 5 years is $1.18trn in the US.

Pharmaceutical stocks to diversify the investment portfolio

Investors who want to diversify their investment portfolios would do well to look at the pharmaceutical stocks.

Pharmaceutical stocks are high-risk investments, but companies from the industry can be very good for investors seeking long-term investing. The changes in this field, almost on a daily basis, approval of new treatments, new drugs and therapies, great returns, make this industry favorable for investors. It shows profitable opportunities.

If you want to invest in publicly traded pharmaceutical companies, just keep a close eye on them when they enter clinical trials. The results of clinical trials are extremely important for investing in pharmaceutical stocks. Why? Well, those trials can be ended with the make-it-further option or break it.
The auspicious results can reach big gains in the stock market, but failures or loss of progress can have a reverse impact.

Approvals before market

Before selling their products, drug companies are required to first test them. Results from pharmaceutical products are sent to the relevant government organizations or agencies to examine the safety, proposed use, and efficacy.

The approval means that they have analyzed the medication’s consequences and that there are more positive than negative effects. There are various approval stages: analyzing the disease the drug is targeting, treatment options, analyzing effects from clinical trials and how to handle any risks linked with the drug or method.

Since there is a lot of examinations, the approval can take years.

Well, drug approvals are possibly the most attractive in pharmaceutical stocks investment opportunities. They are always on the radar. New drugs are innovation on the market, especially when it gets to rare diseases.

For example, during 2018, the US FDA’s CDER approved 59 new pharmaceuticals. Among approved medications were the first to treat smallpox and the first treatment for hypophosphatemia. Over the first 6 months of 2019, the approvals got 16.

All this taken together, represent the excellent market conditions for pharmaceutical companies.

Pharmaceutical stocks: the trends

In the pharmaceutical market currently exist 10 main therapeutic sectors, which shows data from Statista.
The global sales for medicines generated a total revenue of US$36 billion. The top sales go to pain therapy, anti-diabetic drugs, and oncology.
In terms of revenue, pain therapy generates sales of $79 billion, anti-diabetic drugs $40 billion, and oncologic $100 billion.
Treatments and drugs for depressive disorder and anxiety also generate greater revenue. For example, Eli Lilly Company (NYSE:LLY) reached $36 billion in revenue this year.
The main fields of developing new therapies or drugs, so far this year, were treatments for non-small cell lung cancer and breast cancer.

Pharmaceutical stocks: market growth

The global pharmaceutical market is ready for outstanding growth. Big and famous brands are always interesting but small and micro-cap stocks are good too.

According to many reports, the industry reached $1.2 trillion in 2018, up to $100 billion from 2017. In the next 4 years, the market is predicted to grow at a compound annual growth rate between 4% and 5% and to reach $1.3 trillion. But this rate is less than between 2014 and 2018.

Nevertheless, investing in pharmaceutical stocks could be a good addition to everyone’s portfolio. You don’t have to invest in leading pharmaceutical stocks, some are not as big as leaders but have great growth potential. And, they are cheaper, also.

In the next 5 years, the sales volume in the pharmaceutical market is possible to reach $1.18 trillion. It looks like a great opportunity.

Here are some Traders Paradise’s picks:

Merck & Co., Inc. (MRK)

The last price $91.58 (December, 20)
Market Cap $233B

Merck is rapidly growing, the CAGR is 10.9%.

Merck & Co., Inc. offers therapeutic and preventive agents to treat a huge range of diseases such as cardiovascular, type 2 diabetes, chronic hepatitis C virus, HIV-1 infection, insomnia, neuromuscular blocking agents, cholesterol, anti-bacterial and vaginal contraceptive products. Also, the company is focused on products to prevent chemotherapy-induced and postoperative vomiting, treat non-small-cell lung, breasts, thyroid, cervical, and brain cancers, vaccines for measles, mumps, rubella, varicella, rotavirus gastroenteritis, and pneumococcal diseases. Additionally, the company produces antibiotics and anti-inflammatory drugs to treat fertility disorders, and pneumonia in cattle, bovine, and swine, and antibiotics and vaccines for fish, dog, cat, and horse vaccines, and many others. It has collaborations with many bio-pharmaceuticals companies. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.

Roche Holding AG (RHHBY) (SIX:ROG)

The last price $39.88 (December, 20)
Market Cap $271B

Roche Holding AG is the leading trend in biotechnology, with a forecasted $38.7bn of sales in 2024

On December, 23 Roche announced that it entered a $1.15 billion worth licensing agreement with Sarepta Therapeutics to get the right to start and commercialize Sarepta’s investigational gene therapy for Duchenne muscular dystrophy outside the US.
Roche will make a payment of $750 million in cash and $400 million worth in equity. Sarepta’s micro-dystrophin gene therapy SRP-9001 is in clinical development.
Roche said the agreement is supposed to close in the first quarter of 2020.

Eli Lilly & Co. (LLY)

Last price $132.43 (December, 20)
Market Cap $127B

Lilly published a better-than-expected financial outlook for 2020 while confirming the previously announced 2019 sales and earnings plans. Lilly awaits adjusted earnings from $6.70 to $6.80 per share in a year ahead. Revenues are expected from $23.6bn to $24.1bn. If the company reaches this planned sales range, it will exceed its 7% revenue CAGR target. Lilly is expecting important results for several key pipeline drugs. Also, it awaits approvals for two new drugs and three new launches in the next year.

Eli Lilly’s stock price has a rising tendency and it looks like a good long-term investment.

Bottom line

These stocks are just a suggestion. Of course, you may choose some other pharmaceutical stocks. For example, Pfizer Inc. (PFE) with Market Cap: $227.87 billion that generates an 18.7% annual return. Or Johnson & Johnson (JNJ) with a Market Cap of $375.67 billion. Zoetis Inc. (ZTS) can be a good investment choice with 17,7% of the annual return.

If you are looking for long-term investment for your portfolio, investing in the pharmaceutical industry could be one of the best places to invest in.

But be conscious, the overall performance for the industry was worse in 2018. The leading pharmaceutical sector market index (S&P Pharmaceuticals Select Industry Index) made negative returns of -16.87% last year. The index started at a closing value of 5,082 and ended at a value of 4,225 at the end of the year.

23rd December 2019
Three Best Stocks to Buy In 2020

2019 is almost done, so it is time to think about where to invest next. These three stocks could be the top stock picks to buy in 2020.

By Guy Avtalyon

It is always hard to point three best stocks to buy or pay attention to, but the next year could be really challenging. Firstly, this year that is almost ending, was extremely exciting in the stock market. While some economists and analysts predicted market crashes and economic downturns, crisis, and inflation, the others claimed totally opposite.

The facts are, over this year the stocks boosted prices to the levels we could see only several times in history.

Our opinion, at Traders Paradise, is the next year could be even more volatile than this one. So, we paid a lot of our attention to pick three best stocks to buy in the next year.

First of all, we had to examine which stocks will have a possibility to grow but also, stability too. Thousands of stocks are trading on the stock markets but we wanted to find the very best stocks able to generate massive gains. Matching these two criteria wasn’t so easy but we pick them. Here are the three best stocks to buy in 2020. Our opinion is based on news available about these companies and their stocks.

Trading stocks based on news

Walt Disney (NYSE:DIS)

The market cap $268 billion
Current price $148.46

No, we didn’t pick Walt Disney company among three of the best stocks to buy in 2020 from sentimental reasons. Instead, we did it based on the fact that this company generated almost $70 billion of revenue over the last fiscal year.

It’s marvelous to imagine how this all empire is founded by Walt Disney, started from a small studio in 1922 and a secondhand movie camera. With his brother, Roy, Walt created Oswald the Lucky Rabbit. After that, the new character was born. A lively, dynamic, and a naughty mouse called Mickey. It was planned to create only two movies with Mickey Mouse but Disney created at least 25 but Mickey appeared in at least 130.

Today, Walt Disney (NYSE: DIS) has a valuable group of entertainment franchises. The great revenue for the company comes from TV networks, movies, Hulu, merchandise, and theme parks. Disney’s ideas have delivered shareholders a bunch of money.

Disney’s studios’ solely generated an awesome $11 billion in revenue in fiscal 2019, which is an 11% increase from the last year. The company’s Board of Directors announced this summer a semi-annual cash dividend of $0.88 per share.

The most interesting part with DIS, the stock is more popular with time. So, the stock will likely continue to hit new highs and generate satisfying returns. Traders Paradise thinks that DIS is a good mid and long-term investment.

Fortinet, Inc. (FTNT)

The market cap of $18.1 billion
Current price $107.24

Fortinet, Inc. is a provider of network security devices and Unified Threat Management network security solutions covering enterprises, service providers, and government entities. Its shares attempted to break out on December 13 but closed just below the entry.

The estimated earnings growth rate is 31% for this year.

For the current quarter, Fortinet estimates revenue from $595 million to $610 million. The analysts’ estimated $584.7 million in sales. It’s easy to explain why this stock takes place among the three best to buy in the next year.

Fortinet FTNT also announced the acquisition of SOAR provider CyberSponse but for an unrevealed amount.

CyberSponse is Fortinet Security Fabric’s partner for some time and this acquisition will support Fortinet sin its security operations especially in incident response capabilities. This covers Fortinet’s offerings FortiAnalyzer, FortiSIEM, and FortiGate.

AstraZeneca PLC (AZN)

The market cap of $130 billion
Current price $49.31

AstraZeneca (AZN, $49.32) is a biopharmaceutical company based in the UK.

It is focused on treatments in oncology, cardiovascular, renal, respiratory, and others. It has a lot of approved drugs. But the main advantage comes from a 155 trial-stage treatments, and nine new molecular testings in late-stage.

Among its leading products are several cancer drugs. For example, Tagrisso is approved in 87 countries, and it is AstraZeneca’s best-selling drug. This particular product generated $2.3 billion in sales over the first 9 months of this year. It is 82% growth in the past 12 months in sales and represents 13% of the company’s annual revenue.

AZN stands out among the three best stocks to buy in 2020.

The company recorded strong growth in China. Over the first 9 months this year, the company had $3.7 billion in revenues. That was 30% more than in the same period last year. AstraZeneca should work well in the next year.

Trading stocks right now

Here are the three best stocks to buy in 2020, that Traders Paradise thinks will shine. Some of them are typical defensive stocks able to resist possible recession. Some have characteristics that could shield them from trade turbulence. But all of them deserve a place in stock portfolios in the next year.

For the stock market, 2019 was a fantastic year. The S&P 500 rose by almost 25%. The tech sector has done especially well. But it’s not the time for complacency. Soon, 2019 will be over and all eyes will be on the year ahead.

So, it’s time to start watching some of the best stocks to buy in 2020. With that in mind, we are suggesting you three best stocks that may be top stock picks to buy in 2020.
Just follow the trading stocks rules.

17th December 2019
Tellurian Inc – Large Reward But With High Risk

Even without a product and with big risk, this stock could generate a large reward.

By Guy Avtalyon

Tellurian Inc trades on the NASDAQ under the ticker symbol TELL.
The large rewards always come with risks. So, if you want to make a big profit be prepared to take a big risk. But a smart investor can assume where the potential traps may occur.

Tellurian stock is such potential.

This is the natural gas company but without the product yet. Instead, it has plans to make the Driftwood export terminal and Driftwood pipelines. Tellurian, a natural gas company based in Texas, owns and manages the LNG processing and export facility through its wholly-owned subsidiary Driftwood Holdings.

The U.S. Federal Energy Regulatory Commission issued the final environmental impact statement for the LNG project in January and granted authorization to build and operate the LNG facility along with the pipeline in April this year. Tellurian Inc. is building the terminal that will be able to export up to 27 million, 600.000 tonnes of LNG per year to customers.

This project is still in the early stages of development, but it’s where investors see the final achievement of Tellurian’s potential. For example, India’s Petronet signed a memorandum of understanding with the LNG and took a stake in the project. Its expectation is to get five million metric tons of LNG per year.

On December 13, the stock traded at $6.57.

The analysts’ forecasts range from $6.00 to $20.00 with average expectations for Tellurian’s share price to reach $12.33 in the next twelve months. This implies the potential for the stock price to increase by 87.7% from the current price which is $6.56 today, December 16.

Tellurian Inc stock is likely a very good long-term investment.

Based on analysts’ estimates investors may expect an increase up to $11 over the next 5 years and also, the revenue to be about 70%. If you invest $10.000 today, your investment will be over $17.000 worth at that time.

Where is the risk with Tellurian Inc stock?

Investing in the company without the product is a big risk. Tellurian isn’t an exception. There is a risk but this company can easily be one of the few where the risk pays off.

Tellurian Inc (NASDAQ: TELL) published its quarterly earnings results on Wednesday, November, 6th. The company reported $0.18 earnings per share for the quarter, while analysts’ consensus estimates were $0.13 by $0.05. Tellurian Inc reported revenue of $9.34 million, while analysts expected $13.60 million. Also, the company had a negative return on equity of 57.16% and a negative net margin of 677.62%.

Why buy this stock?

The 50-day moving average for the TELL stock price trend is bearish. Currently, the stock price is decreasing from 50 SMA.

The company showed a return of 10.50% from the beginning of this year. The stock dropped for the last three days after a significant increase.

As we said, there is a lot of drawbacks with this stock but at the same time a lot of possibilities. Risk provides a profit. Maybe you just have to leave the comfort zone. But be careful and trade smart.

You can test as long as you want. The app is easy to use and all data is accurate. You just have to enter your exit strategy (stop-loss and take-profit levels) and the app will show you how it was executed in the last 7 days, 3 months, and one year. The ability to check your exit strategy will help you to significantly decrease the risk and make a profit.

That’s the end of every good trade!

16th December 2019
Get Into Cannabis Investment

More and more countries allow medical and recreational use of marijuana. But the inconsistent set of rules and regulations cause that the companies involved in cannabis have problems.

Yes, it is time to get into cannabis investment. Despite many problems, volatility or lack of legislation, this industry is still alive.
It is in better condition now than 10 or 12 months ago. The companies are stronger, they have the market experience, they are developing, new retail stores are opening. Good news is coming from Canada, where in line with the second phase of legalization cannabis derivatives will find their place on the store’s shelves.

Also, it seems that the US is one step closer to a broader legalization law.

For investors, this means it is time to get into cannabis investment. It is always better to invest in the early stage of some company, the stocks are cheaper and speaking about cannabis companies, they are progressing. Their full potential is coming. So, think, maybe right now is time to get into cannabis investment.

Expect Big Profits

One more reason why is time to get into cannabis investment is that this industry easy could grow to over 30 billion next year. Try to look at these companies as innovative start-ups but well established. They are covering a broad of sectors: growers, suppliers, pharmaceuticals.

Their products are for the therapeutic and recreational markets as well. And the appearance in the market is changed. In the early days, these stocks were very cheap (actually they are but it is an advantage) and many companies didn’t survive due to various reasons. But those who did make it are strong and became the publicly traded companies today.

Yes, there are notable limitations on how investors can get in the cannabis investment. For example, marijuana is still illegal at the federal level in the US. So, the companies that are dealing with marijuana directly are not traded on the NASDAQ or NYSE.

The investors may buy the stocks of companies that are operating in other countries, for example in Canada or giving the service to the business but don’t have any contact with products. You can find that situation in the US.

Nevertheless, investors’ interest in cannabis stocks is huge. Let the facts to speak. Publicly listed cannabis stocks have large increases in share value, some companies surpassing a billion dollars of market capitalization.

Is this the right time to get in the cannabis investment?

It’s the typical growth stock puzzle. These companies have grown revenues and earnings. On the other side, they are still developing and expanding which means they are spending a lot on that. Do you have the guts to buy early?

Think, is it better to buy now or when the companies receive a new money infusion and the stock price jumps? If you wait for that to happen you will have fewer opportunities for a large profit.

Just pay attention to how companies define the problems that blocked them to have better results. If they do it with due diligence and clear, without any doubts, it is time to get into cannabis investment. But remember, you have to be patient. Plan your trades correctly and don’t let be influenced by rumors and emotion.

Bottom line

Despite the fact that it isn’t clear which cannabis stocks will be long-term winners, investors shouldn’t avoid them. Currently, all cannabis stocks are suffering. The whole industry is in problems. And there is one more tricky part. Until the lawmakers and regulators change the attitude toward marijuana there are small possibilities to be different, the industry will have losses and the dark market will grow
Investing in cannabis needs more regulatory, that’s true.
Until then, watch the companies, do your homework and examine the stock, buy while they are cheap and wait and take a profit. This is the right time to get into cannabis investment.

12th December 2019
Fidelity MSCI Health Care Index ETF Investment

FHLC is conducted by Fidelity. The fund tracks the performance of the MSCI USA IMI Health Care Index.
The index covers U.S. small-, mid- and large-cap stocks that fall into the health care sector.

By Guy Avtalyon

Fidelity MSCI Health Care ETF (FHLC, $43.60) with the current price at $48.31 ( December, 9). It is a cheap fund that covers almost the complete health care range. The investors will like this broad-based health care fund. This cheap index fund covers the complete healthcare waterfront. Fidelity MSCI Health Care ETF holds 28% of assets in pharmaceutical companies, approximately a quarter in health care facilities, and 19% in biotechs.

The other assets in its portfolio are spread on health insurance companies, health care services, supplies, and equipment.
It is one of the industry’s giants, the other is the Vanguard Health Care ETF. It holds shares of Johnson & Johnson, UnitedHealth, Pfizer (PFE), Abbott Laboratories, etc.
Many investors will like more of these large-spread funds than some small but aggressive biotech stocks. Yes, you will never reach the large gains but this kind of investment is safer during the market downturns. Everyone will need health care no matter what is the condition of the market or economy.

Fidelity MSCI Health Care ETF and Vanguard Health Care ETF provides:

Dividend yield: 2.1%
Expenses: 0.08%
3-year return: 9.9%
5-year return: 9.2%

Fidelity MSCI Health Care Index ETF trades on the New York Stock Exchange (NYSE)Arca under the ticker name FHLC.

Should you invest in the Fidelity Msci Health Care fund?

According to analysts, the Fidelity Msci Health Care fund be a profitable investment option for investors with a long horizon.

Based on analyst’s estimates, investors can expect a long-term increase.

For example, with a 5-year investment, the revenue could be around +10%. If you invest, let’s say $10.000 ( Traders Paradise likes this amount obviously) after 5 years your investment is possible to increase up to $11.000 which means you will have a $1.000 in profit.

Who sold who bought Fidelity MSCI

During the last 3 months, some institutional investors purchased FHLC stock. For example Karp Capital Management Corp, Virtu Financial LLC, FormulaFolio Investments LLC, Mackey Komara & Dankovich LLC, Full Sail Capital LLC, CWM LLC, Tower Research Capital LLC TRC, Eldridge Investment Advisors Inc. Maybe it isn’t bad to follow their example.
But some have sold Fidelity MSCI Health Care Index ETF stocks. For example Global Retirement Partners LLC, Boston Private Wealth LLC, BB&T Securities LLC, Commonwealth Equity Services LLC, Stifel Financial Corp, Traynor Capital Management Inc., Fisher Asset Management LLC or Sigma Planning Corp.
We mentioned them just in case you follow some of them.

Anyway, Fidelity MSCI Health Care Index ETF is a good long-term investment.
You can buy FHLC shares through online brokerages that have access to the US stock market. For instance, you can do that over TD Ameritrade, E*TRADE, Charles Schwab, and some others.
If you do that today, you will need to pay $48.31 per share of FHLC stock. Its market capitalization is $1.61 billion.
There are some risks when investing in funds. They can also lose money during market downturns. If the fund has a narrow focus it can be sensitive to particular industry risks. For example, changing the regulatory situation. Further, if some of the bigger shareholders experience sharp price decline it may influence the whole fund.

But, honestly, the risk involved in healthcare funds is lower than with other funds. At the same time, the returns are a lot above average,

The fund’s risk compared with that of other funds in the health peer group for the trailing three years is considered below average by Morningstar. The level of return of Fidelity MSCI Health Care Index ETF is rated as above average for the past three years.

10th December 2019
Tiffany Forever Shining Diamonds

In the Q3 earnings report, Tiffany posted net income decreased by 17%
The earnings report comes a week after the French LVMH made a deal to acquire Tiffany for $16.2 billion.

By Guy Avtalyon

For more than 180 years, the first thoughts about Tiffany are luxury jewelry but the one that takes your breath away. Tiffany, elegant, great and original design, one-word perfection.
In on1886, it created the eponymous diamond ring as a permanent symbol of promise showing that Tiffany vote for love. Tiffany diamonds are keeping by many generations and showing to the world on extraordinary occasions as refine feeling for luxury.

Recently, Tiffany and Moët Hennessy – Louis Vuitton SE and simply is known as LVMH, announced that LVMH acquires Tiffany. The official announcement state it is: “for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.”
This deal could help the famous jeweler to launch more affordable jewelry. But what happened?

Just a week after, the company posted worse-than-expected Q3 results for this year and Tiffany’s stock price fell.
The analysts expected that Tiffany could earn 85 cents per share. It was the opposite, Tiffany & Co. had reduced net income by 17%. During the previous period, the price per share was 77 cents and after the Q3 report, it fell to 65 cents per share.

How did Tiffany work in 2019?

The company’s revenue was the same, $1.015 billion as last year but lower than the foreseen $1.037 billion. The analysts expected a 1.4% growth but it didn’t happen.

Company’s CEO Alessandro Bogliolo said in an official statement: “Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas.”

On December, 9 TIF was traded at $133.48.

Tiffany’s market cap was $16 billion at Monday’s close.

Exit strategy for TIffany’s stock

We checked it out by using our app how TIF stock will perform and we set a stop-loss level at -4.75% from the current price and take-profit level at 5.25% form the same price. Our tool showed a return of $186.94 in the next 10 days with the position of $10.000. Since the position isn’t closed, the possibility that our exit strategy is good is shown from the historical performances. According to the historical data for 3 months this strategy was good at 74% trades and for one year in 55%.

Of course, you might have some other exit strategy and it is best if you check it by yourself.

Should you invest in TIF stock?

Today is December 10, Tuesday. The current price of TIF stock is $133.50 and our historical data shows that the stock price has an overall rising tendency for the past 12 months.
Traders Paradise uses its own app to determine if TIF is a good portfolio addition. And we saw that this stock has a chance to rise for around 23% after 12 months and could easily hit the price around $165 at the end of that period. According to our given position at $10.000, this means that after one year our potential profit will grow and we will have $12.300 in total with a profit of $2.300.
So, we think Tiffany (TIF) is a good addition to any portfolio. Hold this stock, it is a good long-term investment.

10th December 2019
O2Micro International Limited – Penny Stock To Buy

O2Micro International Limited increased the Q4 2019 revenue forecast to be at a $17 million range.
This stock is a good short-term opportunity

By Guy Avtalyon

O2Micro International Limited is a penny stock and recently the company announced great revenue for the third quarter. The revenue was up by about 12%. Moreover, several days ago the company raised revenue forecast for Q4. And investors noticed it. Yes, the price of shares dropped on Friday, December 6 for 1.36% and the current price is at a bit more than $1.73.

But what makes us think it is a good stock to be watched in December?

According to Reuters, O2Micro International Limited develops, produces and sells components for power management. They are supplying producers of computers, the communication industry, automotive. O2Micro International Limited produces integrated circuits for LCDs and for LED, desktop and notebook monitors, digital cameras, electric bikes, LEVs (low emission vehicles) apps, smartphones, GPS, etc.

O2Micro International Limited financial highlights for the third quarter

O2Micro International Limited reported Q3 revenue of $16.0 million. It was up 12.3% but lower 4.7% from the same quarter last year. The gross margin in the last reported quarter was 51.4%. It is higher from 50.1% in the second quarter and by 50.5% higher than in the third quarter of last year. The company kept the gross margin in the targeted range.

O2Micro International Limited reported that over the third quarter it recorded total GAAP operating expenses of $9.4 million. For the second quarter, it was $9.7 million. In its Q3 report, we could see the GAAP loss of $200,000, while in the Q2 it was $2.8 million.

GAAP net loss per fully diluted ADS was $0.01 in Q3 this year, in Q2 it was $0.11 and for the third quarter last year, it was $0.13.

The future of OIIM stock price

In our opinion, O2Micro International Limited stock isn’t a good long-term investment. It is still a high-risk long-term investment. But if you prefer short-term investing, not longer than 3 months, this could be a good choice. Traders Paradise sees this stock at the lowest price at $1.90 in the next 14 days. But be prepared for several jumps and falls during that time. Our data shows that this stock was in the uptrend in the past 12 months and this will continue over the next 3 months since the stock is in rising tendency.

Actually, the stock is in the middle of a strong and wide uptrend. In the short term, it isn’t bad since it could rise around 29% in the next 3 months and hit the price between $1.90 and $2.40 at the end of that period.

Bottom line

On December, 2 O2Micro International Limited (NASDAQ: OIIM) increased the Q4 2019 revenue forecast to be in the mid to high $17 million range. That is for one million more than the company reported in its Q3.

Does it mean that the management has some trump card to show in the coming months? We believe the answer is yes.

Don’t miss this: Investing In Penny Stocks Can Be A Highly Profitable Strategy

There is a buy signal coming from the relation between short and long moving average. If the stock price breaks down somewhere between $1.70 and $1.50, which are the support levels, the sell signal will be issued. Well, some negative signal is already issued. On December, 4 a sales signal came from a pivot top point. That means further falls until a new bottom pivot has been found. Traders should know that the volume of this stock fell by 4 590 with the dropping stock price. Technically speaking, it is good. But the risk may come from the low liquidity.

The stock has several short-term signals and a good trend. That’s why we think that there is a buying opportunity for the short-term.

9th December 2019