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.

  • AT&T – This Stock Can Beat Any Recession

    AT&T – This Stock Can Beat Any Recession

    AT&T - This Stock Can Beat Any Recession
    Why this stock is a good choice

    By Guy Avtalyon

    Could AT&T really beat a recession? According to historical data, it is a company with very good performances, a true winner. But let’s go a bit deeper.

    The high dividend yield of more than 6% is awesome
    35 years of continuously increasing
    More than 100 million customers in the US and Latin America 

    AT&T Ticker symbol T (NYSE)
    Market Cap $276.278B

    AT&T - This Stock Can Beat Any Recession

    AT&T Inc. has a great history, actually, it is the history of modern civilization. When 1874 Alexander Graham Bell invented the telephone. Two financial backers found the company that became AT&T. One year later the Bell Telephone Company, the first forerunner company to AT&T, is set up and issues stock to the seven principal shareowners. In 1946 AT&T started offering pre-cellular mobile telephone service. With only three channels available for operation, it was able to provide12 to 20 simultaneous calls in a whole area. But still…

    Next year AT&T develops the theory of cellular telephony. At that time, the technology to realize the theory did not yet exist. Actually, AT&T pioneered almost everything in telephony and communications. 

    A century and a half long history, visions, development, continuously ups, beating the crisis, and becoming greater and greater. 

    AT&T stock today

    Today, AT&T Inc. is one of the best investments you can imagine. The company offers various services like cable, wireless, satellite TV, and broadband telecommunications. This means the company has an extremely well-diversified portfolio. Revenue at more than $170 billion was up by 18% in the most recent quarter. In the same period earnings per share expanding 1.2%. 

    The company’s important $85 billion investment in Time Warner will provide AT&T access to mass-media brands such as HBO, CNN, TBS,  and TNT. Additional competitive edge comes from programming from the NBA, the NFL, MLB. Also, its acquisition of DirecTV in 2015, constituted it among the world’s biggest media companies. The management’s expectations are that this will produce earnings per share of $3.60 by the end of the fiscal year.

    AT&T dividends

    The annual ongoing dividend makes it a top pick for income investors.

    Those businesses give AT&T a wide moat, but it still has gaps. The company’s long term debt is about $158 billion, reported last quarter. The company is maybe too large scope and its wireless growth is a bit slow, the news about the number of its pay-TV customers is not good. 

    Moreover, the activists are forcing AT&T to consider some new opportunities for streamlining its stretched out business. First on the list is a spin-off of DirecTV. 

    Several weeks ago Elliott Management revealed its stake in AT&T and pushed the company to lower costs and make management reforms. One of them is to boost the stock price. Elliott stated its programs, which incorporate an important study of assets that could be traded or spun off, could raise the stock by at least 60% by the end of 2021.

    Relationship with Elliott Management 

    On Thursday, 17/10/19,  AT&T shares rose 0.74% in premarket trading to $38.09. The stock has increased 32.48% year to date and 16.34% during the past 52 weeks.
    The agreement could be reached very soon, maybe by the end of this month. But there are possibilities for agreement to fall apart, also. We will see.

    Nevertheless, analysts anticipate AT&T’s revenue to stay approximately the same next year and that earnings could rise just 2%. Those increase rates look weak, but the stock pays a yield of 5.5%. It’s also boosted its dividend annually for over 35 years.
    The company spent just 50% of its free cash flow on its dividend over the past 12 months. It expects to produce over $28 billion in free cash flow this year. That will be up from $22.4 billion in 2018. 

    AT&T and 5G 

    That could have an important influence on the company’s outlook and earnings next year. AT&T already started deploying 5G in 2018. In April this year, 19 cities had access to the company’s 5G network.  AT&T says the network will be more broadly available across the country next year.

    Investing in AT&T is a great opportunity to grow and there is an extraordinary dividend too. Having its history in mind and its penchant for developing new technologies, AT&T is the obvious winner. Moreover, it is a company that can beat any recession.

  • Invest in Saudi Arabia

    Invest in Saudi Arabia

    Invest in Saudi Arabia
    The Saudi Arabian economy, one of the strongest and most stable in the region, and has started a phase of transition. That is a great opportunity for investors.

    By Guy Avtalyon

    Invest in Saudi Arabia can be profitable but it is connected with some drawbacks. Saudi Arabia is the biggest economy in the Middle East. Its economy is growing, but at a more moderate rate than earlier, for example, during the oil growth at the beginning of this decade. Saudi Arabia’s government is spending about 7% to US$295 billion this year to encourage economic growth.

     

    The economy is still supported by rich oil reserves, but oil prices are at the lowest in the past decade. 

    The Saudi government has endorsed a national plan called ‘Vision 2030’. This plan aims to modernize and diversify the economy. They have entrusted a huge quantity of assets to the Public Investment Fund (PIF). The goal is to increase employment, especially in the private sector, in retail, healthcare, and education.

    Foreign investments are welcome too. To encourage them, the government opened the Saudi Arabian Stock Exchange, named Tadawul. 

    Tadawul

    Tadawul is the only securities exchange in Saudi Arabia with about 150 listed companies and itis controlled by the Capital Market Authority. The exchange is weighted towards the financial services and energy industries but covers many other industries. 

    The Tadawul All Share Index (TASI),  is very similar to the S&P 500. 

    The foreign investment rules are now more liberal than ever. The most important, listings and capital raises in Saudi Arabia were strong over the earlier year, while capital markets in other regional and oil-driven economies have dried up.

    Saudi Arabia can be a very attractive investment target when oil prices are rising. At the same time, it is the trickiest part. The country is depending on crude oil and it is a limited source. Despite the government’s efforts, the diversification in other industries may not show the sustained result. We will see. But there are other benefits of investing in Saudi Arabia.

    Relying on oil has some crucial benefits. Oil revenues are directed to the economic development programs managed by the government funds. Further, the government has already taken steps to privatize some industries, for example, telecom and electricity. Actually, they want to open up their market to fresh investment from foreign investors and especially in non-energy markets.

    Where to invest in Saudi Arabia

    Saudi Arabia has currently over 500 domestic funds in operation. That is the largest number of funds in the Middle East by a large margin. You can invest in asset classes such as listed equities, money market instruments, and corporate and sovereign debt. Also, private funds invest in real estate. That is the main asset for high net worth and institutional Saudi investors. Nowadays, there is an increase in private equity and venture capital due to the support of the CMA, SMEA, and other government authorities and various stimulus programs. 

    Saudi Arabia adopted seven Guiding Principles for Investment Policymaking in 2019. It includes among others, non- discrimination, investment protection, investment sustainability, transparency, protection of public policy concerns. And foreign investors are there.

    For example, Aubin Group from the UK invested $743 million, DuPont, and Alphabet. 

    The stock of foreign direct investment rose last year and reached $230 billion. Foreign investments are essentially located in the chemical industry, tourism, fuel, automobiles, etc.

    The case of Saudi Aramco

    With a net income, last year of $111.1 billion, Saudi Aramco, the kingdom’s oil company, and the world’s most profitable company is not listed in Tadawul.

    And the criteria for listing on the Tadawul aren’t as rigorous as some other exchanges like the London Stock Exchange or the New York Stock Exchange, for example.

    “What we have always said is that Aramco is ready for listing whenever the shareholders make a decision to list,” Aramco President and CEO Amin Nasser told recently to reporters at the World Energy Conference in Abu Dhabi.

    “The primary listing is to list locally but we are ready also for listing outside in other districts,” Nasser added.

    Why invest in Saudi Arabia

    If you want to invest in Saudi Arabia you should know some things. Saudi Arabia is ranked as 5th in the world for fiscal freedom. Also, it is the 3rd most rewarding tax system in the world. This country is among the 20 biggest economies and the biggest in the Middle East. It is one of the world’s fastest-growing countries and the largest free market in the Middle East. Also, Saudi Arabia is the biggest recipient of Foreign Direct Investment (FDI) among the Arab countries. The downside of investing in Saudi Arabia can be limited resources. But you can find plenty of companies to invest in. For example, it is recommended buying these stocks: THOB AL ASEEL CO., or ABDULLAH SAAD MOHAMMED ABO MOATI FOR BOOKSTORES CO., or BAAZEEM TRADING CO. Check them.

    But stay tuned, there will be more about Saudi Arabia companies good to invest in.

  • European Undervalued Stocks to Buy and Hold

    European Undervalued Stocks to Buy and Hold

    European Undervalued Stocks

    European stocks pulled back on Wednesday. Headlines on Britain’s last efforts to progress a deal with the EU left investors attached to the outcome.

    The pan-European STOXX 600 index closed down 0.1% with London’s exporter-laden FTSE 100. FTSE index, which tends to fall when the pound increases, closed with 0.6% of the decline. It looks that the expectations of a no-deal Brexit weakened.

    Germany’s GDAXI. DAX gained 0.3%, and France’s CAC 40.FCHI was flat.

    The interesting thing is that investors’ focus turns to Europe’s earnings season. Analysts assume an earnings recession to expand. Several reasons are behind this expectation. The companies fight with uncertainties about Brexit, a U.S.-China trade and Germany’s recession.

    Experts are expecting for STOXX 600 companies to report a fall of 3.7% in third-quarter earnings. Just a week ago they were forecasting a decline of  3%, so the result will be worse.

    We said this before but investing in European undervalued stocks can be very profitable despite the media reports. After Traders-Paradise gave you and short view on Asian undervalued stocks, there are some European undervalued stocks worth buying.  

    Henkel 

    Ticker symbol HENKY
    Market cap $42.215B
    Current price $23.49

    European Undervalued Stocks

     

    Here is the last half-year report for 2019 from Henkel. The company was founded in 1876 in Aachen. They marketed his first product a universal detergent with silicate used as a base.

    Today it is a big company, the German glue, and detergent maker with headquarter in DĂźsseldorf, Germany.

    At the beginning of this year, Henkel has warned profitability will fall in 2019. The company redirected investment to encourage growth in “a challenging market”. The performance last year wasn’t good and shares in Henkel dropped more than 10% after the announcement in January. Despite the company’s announcement that planned a more generous dividend policy from this year. The producer of Persil and Loctite had to informed investors that adjusted earnings per share growth would be lower than in 2018.

    Henkel still has organic growth. In the first six months of this year, sales rise by 2.8% to 4,969 million euros, organic growth +0.7%. The free cash flow in the first quarter of this year was considerably higher than in the previous year when it was 22 million euros. The company is investing in growth and improving competitiveness.

    Compared to Procter & Gamble Henkel is quite cheap. Its stocks are a very good long-term investment.

    Roche Holding AG

    Ticker symbol RHHBY
    Market Cap $245.384B
    Current price $35.74

     

    Roche Holding was founded in 1896 by Fritz Hoffmann-La Roche. In the beginning, the company was known as the producer of various vitamin preparations. Later, in 1934, the company was the first to mass-produce synthetic vitamin C, known as Redoxon. In 1957 it started production of benzodiazepines, for example, Valium and Rohypnol are the best-known. Roche has produced different HIV tests and antiretroviral drugs. Today it is the leader in manufacturing and selling various cancer drugs.

    It is a research-based healthcare company. The company operates businesses organized into two parts: Pharmaceuticals and Diagnostics. Roche develops medicines for oncology, immunology, infectious diseases, ophthalmology, and neuroscience. Its best known pharmaceutical products are Avastin, Bactrim, Bondronat, Cotellic, Dilatrend, Dormicum, Invirase, Kadcyla, Lariam,  Madopar, Neupogen, Pulmozyme, Rocaltrol, Roferon-A, among others. 

    The suggestion is to buy stock in Roche Holding AG. The company has a steady rating since September.

    BASF

    Ticker symbol BASFY
    Market Cap $67.285B
    Current price $18.27

    Its headquarters is in Ludwigshafen, Germany. The company was founded in 1865, as Badische Anilin-und Soda-Fabrik AG. There are some facts connected to its operations, actually not the bright one.  BASF was extremely influenced company from 1924 to 1947, also BASF was helping to secretly rearm Germany, at that time being a part of IG Farben. Near the end of WWII, the BASF production facilities at Ludwigshafen were bombed. 

    Today BASF SE is a chemical company and one of the largest chemical producers in the world. The BASF Group operates in more than 80 countries and contains almost 390 production sites in Europe, Asia, Australia, America, and Africa. The company has customers in more than 190 countries. 

    At the end of 2017, the company hired around 115,500 workers. The company developed its international enterprises in Asia, for example in places near Nanjing and Shanghai, China and Mangalore, India.

    The investment analysts suggest buying or holding stock in BASF SE. 

    Bottom line

    These European undervalued stocks are the companies with good competitive power, with stable balance sheets, low debts, and good cash flows. They are the cheapest in the same industry but the range of their increase can be huge and hence the profit along with it. Anyway, they are undervalued now for different reasons. That can be re-structuring, investing in researching, or something else. Everything influences the stock price as investors already know.

    Traders-Paradise chooses these three European undervalued stocks based on their market potential.

     

  • Asian Undervalued Stocks To Buy

    Asian Undervalued Stocks To Buy

    Asian Undervalued Stocks To Buy
    These Asian undervalued stocks are the companies with good competitive power, with stable balance sheets, low debts, and good cash flows.

    By Guy Avtalyon

    Asian undervalued stocks are the same as any other undervalued stock. It is a stock that is selling at a price below what is expected to be its intrinsic value. For example, if a stock is selling for $20, but it is deserving $50 based on future cash flows, we can say it is an undervalued stock.

    Finding an undervalued stock isn’t easy. Such stock usually isn’t in the public eye. Even if they are, the media reports are too negative.

    But don’t be shy to buy undervalued stock. Yes, the risk can be a bit higher but rarely. Such companies maybe have temporary problems and will recover soon. Most of them are working to solve the business problem and it will grow their prospects in the future.

    With this in mind, here are three Asian undervalued stocks to buy. By holding them your portfolio may gain a big boost when these stocks come into investors’ courtesy again. 

    What are Asian undervalued stocks?

    Japan Tobacco

    Ticker symbol JAPAF
    Market Cap $38.457B
    Current price $21.74

    The first of Asian undervalued stocks is Japan Tobacco, Inc. The company started in 1898 and its headquarter is in Tokyo, Japan.

    Its interests are in the manufacture and sale of tobacco, pharmaceutical, and frozen and ambient temperature processed food. 

    The company spreads its operations through four business segments. Domestic Tobacco’s focus is on the production and sale of tobacco products. International Tobacco covers the production and sale of tobacco products through JT International S.A. The Medical segment’s focus is on the development, research, production, and sale of medical drugs. The Food Processing section has engagements in the manufacture and sale of frozen and ambient temperature processed foods, bakery, seasoning, etc. The Company also works in the leasing of real estate.

    Sinopharm

    Ticker symbol SHTDY
    Market Cap $9.684B
    Current price $16.41

    Sinopharm Group Co. Ltd. was founded in 2003 and is headquartered in Shanghai, China.

    The company’s focus is on the wholesale and retail of pharmaceutical and healthcare products in China. Its Pharmaceutical Distribution section distributes medicines, medical devices, and pharmaceutical products to hospitals, retail drug stores, clinics, other distributors. The company’s Retail Pharmacy section manages and franchises a network of retail drug stores. They have over 5,100 retail pharmacies. Medical Device section distributes medical devices.

    Also, Sinopharm focus is on the production, sale, and financial leasing of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products. Also, it offers information technology development and medical consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, etc.

    CK Infrastructure Holding

    Ticker symbol CKISY
    Market cap $18.2B
    Current price 34.41

    CK Infrastructure Holdings Limited was founded as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. Its headquarters are in Central, Hong Kong.

    It is an infrastructure company. It develops, invests, and operates infrastructure businesses in Hong Kong, Mainland China, but it spreads its operations in the United Kingdom, Continental Europe, Australia, New Zealand, and Canada. The main investing focus is on energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure-related businesses. Its focus is on the production and laying of asphalt. It also distributes, and sale of cement. Property investment and financing businesses are in their focus. Also, waste management services, including waste collection, resource recovery, and disposal services.  In fact, the company is a branch of Hutchison Infrastructure Holdings Ltd. Due to its international operations, this can be one of the best Asian undervalued stocks to buy right now.

    Is it good if a stock is undervalued?

    The advantage of investing in undervalued stocks is that investors get a high rate of return expansion. This comes because you are buying undervalued stocks while their P/E ratio is low. That will generate great future returns because the P/E ratio will move back into alignment with fair value. The other advantage is that when the stock price is low you can buy more of them and you will receive more dividends. Also, the yield from investing in undervalued dividend stocks is the highest when the cost is low. Hence, the value of cumulative total dividends will be greater over time.

    Also, they are less risky. This may sound contradictory, but here is the explanation. Let’s say you purchased an overvalued stock and its price drops. It will cause big losses. But if your stock drops from fair to undervalue, the recovery will be more prompt. This is the opposite of traditional thinking that only big risks produce big returns.

    How to trade Asian undervalued stocks?

    Undervalued stocks have noteworthy potential to yield solid returns. It’s up to investors to correctly evaluate and analyze all the different variables related to undervalued stocks. This requires some level of knowledge to recognize if the company is worth investing in.
    For example, value investors will wait for the stock price to reach the value below its intrinsic value. The principle is obvious if they can buy a stock at a discounted price, why should they buy it at its current price or even higher.

    Investors with strong knowledge over the stock market maybe are the only ones who should trade undervalued stock. Trading undervalued stocks can be risky if traders follow the suspicious analysis. The data proved by analysts and experts must be accurate. The other problem both for traders and investors is that undervalued stocks are time-consuming. In other words, they’ll have to wait maybe much longer for important changes in stock price.

    Traders-Paradise selects these three Asian undervalued stocks based on several criteria mentioned above but you can choose on some others. But remember, ratios under 1 will show you that some stock is undervalued.

     

  • Make money in 5G Stocks – The List of the Best

    Make money in 5G Stocks – The List of the Best

     

     

     

     

     

     

    Make money in 5G Stocks

    What 5G stocks will get an increase?
    What are the telecom companies in the advanced stages of developing 5G wireless networks?
    Faster phone speed isn’t the only benefit, developing a new network is a great opportunity to invest.

    Is it possible to make money in 5G stocks? It’s assumed to help the next surge of technological progress. Some market analysts expect the market for 5G infrastructure to rise to $26 billion in 2022. Estimations from a few years ago foretold that 5G would be 1,000 times as fast as 4G. Anyway, it is something we have never seen before. So many companies are involved in developing 5G and almost all of them are in investors’ focus. The tricky part is that we can not for sure which one will make it. Whatever appears, some 5G stocks to buy will come from the big companies, the leaders in the modern networks. 

    Traders-Paradise opinion is that you should look at several companies if you want to make money in 5G.

    Verizon Communications Inc. (NASDAQ: VZ)

     

    Verizon is a wireless provider company. They stated on its website: “We’re building the most powerful 5G experience in more places around the country right now, so more people can experience it together.”

    Verizon stock is interesting for investors seeking income. Verizon 5G  stocks could have much greater demand in the future. Last month was very good for Verizon, it climbed strongly above its 50-day moving average. Moreover, this telecom titan was on the top growth stocks. The broadband companies are investing in Verizon’s 5G.

    In the top 50 markets, Verizon controls the ownership of key 5G spectrum bands. VZ is one of the best stocks to buy for 5G mainly for its spectrum holdings. Dividends paid at 4.2%.

    Xilinx (XLNX)

    Make money in 5G Stocks

    Xilinx is a chipmaker worth $29 billion. It was one of the pioneer companies to invest in the new generation of wireless networks. So it honestly gains a place as one of the best 5G stocks to buy. While the new 5G network is developing more and more, along with that infrastructure demands will rise. There will be Xilinx to sell its chips. Their chips are used as components for 5G.

    The revenue in XLNX’s communications division rose 74% year over year. 

    According to our estimation Xilinx stock is a good long-term investment since it can be a good and profitable investment. Some analysts predict that Xilinx’s stock price could reach $213.528 in the next 4 years. The revenue for a 5-years investment could be about +122% If you invest $1,000 today after 5 years it is possible for your investment to rise up to $2200,00.

    Apple (AAPL)

    The newest version of the iPhone did not offer 5G abilities but Apple will be one of the more notable 5G stocks in the coming years. We believe that Apple will not lose the race in this field and it will have a solid appearance in this industry. Apple is one of the initial innovators in the wireless market.

    Its stock trades at a P/E ratio of 20 and gives a firm record of dividends. The current yield 1,34% maybe isn’t so attractive for investors, but its dividend is higher and higher every year. Apple stocks are good for long-term holding. When Apple enter the 5G market with the new iPhone offering 5G facilities, its 5G stocks will increase. Remember this, you can make money in 5G stocks.

    Qualcomm (QCOM)

    Whoever wants to produce millimeter-wave network equipment will likely to buy their chips. At the moment they are the only producer of network chips that use radio spectrum of 30GHz and above, which is the main advantage of 5G over the other technologies.

    The list of 5G stocks is inadequate without Qualcomm. This chipmaker has an amazingly powerful portfolio of property related to 5G tech. A worth contract with Apple enables Qualcomm to provide chips for the iPhone for the next 6 years. So, there are no barriers for Apple to launch the new 5G compatible iPhone. 

    Qualcomm spreads its 5G patents, royalties should be important to shareholders in the coming years. Qualcomm offers a 3,34% dividend.

    Ericsson (ERIC)

    This Swedish communications equipment company is a pivotal actor in the global rollout of 5G technology.

    It provides telecom companies to upgrade their networks to the new higher-speeds. Ericsson provides software and radio network hardware. Recently gained a licensing agreement with Chinese smartphone maker Oppo. Ericsson could have benefited from banning Huawei due to US national concerns.

    In June this year, Ericsson estimate global 5G subscriptions to be 1.9 billion by 2024. Much more than it estimated last year.

    Bottom line

    The coming change from 4G to 5G cellular networks is supposed to promote the next stage of technological development and innovation. That is a great opportunity for investors in the high-tech industry. The new wireless network will be something incredible. Something with great potential for further technological developments. So, if you ask can you make money in 5G stocks, the short answer is – yes!

     

  • Will Marijuana Stocks Go Up In Smoke?

    Will Marijuana Stocks Go Up In Smoke?

    Marijuana stocks go up in smoke
    Shares of Aphria (NYSE: APHA), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) dropped by 13.8%, 9.9%, and 12.6%, on Thursday. 

    By Guy Avtalyon

    It was a bad day, will marijuana stocks go up in smoke. All three stocks felt after HEXO declared discouraging preliminary fiscal 2019 last quarter revenue. Its outlook for fiscal 2020 is going to be very bad. How HEXO bad news influenced Aphria, Canopy Growth, and Tilray to big declines?

    HEXO expected to report net revenue between 14.5 million and 16.5 million Canadian dollars on October 24. This result is considerably under the company’s expectations. Moreover, HEXO stated that “uncertainties in the marketplace” caused such bad results and that they expect their expectations for the next fiscal year has to be lessened. That caused investors’ concerns about Canopy Growth, Tilray, and Aphria pot stocks, also.

    The main problem for HEXO is the insufficiency of retail cannabis stores, also the chances of restrictions for some types of cannabis derivative products are the problem. And there are, according to the company’s statement “signs of pricing pressure.” And the other cannabis producers share their worries and have the same problems.

    Almost all of them reported delays in Canadian provinces launching retail cannabis stores. Canopy, Aphria, and Tilray are expecting to Cannabis 2.0 market to make an increase to sales. But those delays may crash their expectations. 

    Aphria is, let’s say that, probably in the best situation because the majority of its revenue comes from Europe, in fact from Germany.

    Aphria had completed its acquisition of CC Pharma GmbH in January this year. CC Pharma GmbH is a leading distributor of pharmaceutical products. That includes medical cannabis. They have more than 13,000 drugstores in Germany and throughout Europe.

    Canopy Growth and Tilray, and HEXO, still rely on Canadian marijuana sales.

    Will marijuana stocks go up in smoke?

    Despite the fact that some of these companies brought profits in some periods, the whole picture is different. Marijuana stocks aren’t profitable yet. It is still hard to estimate which of them will be winners in long-term meaning. So, the best way to handle these stocks is understanding that they are fast-growing, but still, they are not making the money. Pot stocks will not disappear but every investor should know that they are extremely volatile right now. If you want to buy pot stocks you must have a very high-risk tolerance. 

    The greatest risk of buying marijuana stocks is valuations. Share prices more reflect the stocks’ growth hopes. Since marijuana stocks aren’t yet profitable, evaluating the stock price and possible profit is more challenging.

    The risks connected to marijuana stocks are genuine and can’t be neglected. But as we already know, the risks should be compared with the possible profit that marijuana stocks give. 

    The cannabis industry is fast-growing. So, what we can expect is holding these stocks over time, investors will have gains and losses. But isn’t it the same with all stocks?

    Is investing in cannabis stocks risky?

    Investing in marijuana stocks is naturally risky, but some stocks are riskier than others. To avoid losses invest in a company with a wide range of operations, one that sells products in various countries which can be a competitive advantage, for example.

    On the other hand, it isn’t always smart to buy the stock with the lowest volatility today. They can be less volatile today but after a few months, they can be extremely volatile. Negative relationships over some periods can balance positive relationships over some other periods. That will make the overall volatility lower.

    Investors have to be focused on the business prospects of the company like they do it with stocks in any industry. So,  will marijuana stocks go up in smoke? No!

  • How Long to Hold Penny Stocks?

    How Long to Hold Penny Stocks?

    How long to hold penny stocks

    by G. Gligorijevic

    Trading penny stocks is one of the most hazardous investments in the market. They are extremely cheap, and this makes them volatile.

    Do you want to make money with these cheap stocks? Well, you have to know the basics. And one of the basics is to know how long to hold penny stocks. Like with many other assets in the market, you have to know when is the right time to buy penny stocks and when it is to sell. 

    But why the penny stocks are so special?

    As a difference from most blue-chip stocks, penny stocks ordinarily don’t match cyclical trends in the market. It may be more challenging to recognize how long to hold penny stocks. In reality, penny stocks will follow the general market trends in the sector they belong to.

    If a positive event happens, most stocks in the given sector will follow the trend. 

    When we are talking about penny stocks, as you can guess, a minimum change in price will cause a great gain in percentages. To understand this, take a look at this company’s stock chart.

     

    BroadVision, Inc. is an international software vendor of self-service web apps for business social software, automated commerce, business portals, etc.

    The stock price of BVSN was yesterday $2.84 which is $0.16 up or +5.97% from the previous trading day.

    But here is the tricky part. Penny stocks, no matter which company you are looking at, will always hit the peak. But what is following after the peak is what matters. Apps are booming nowadays. And typically for the penny stocks is that when the whole sector is rising most sector stocks will jump. When it comes to high-tech penny stocks, the volatility joined with positive feelings has produced some serious breakouts. What happens after those breakouts is more important. The stocks may collapse or to consolidate. 

    The consolidation can be difficult

    The stock will surely pull back but to a level lower than the peak and almost every time, that new level will be above previous highs.
    What you as an investor or trader has to do is watch the indicators. Pay attention to indicators that display overbought or oversold. Use the RSI indicator. Yes, it is a simple tool but can help you to determine what to do with your penny stocks.
    Never expect from penny stocks to give you a huge gain by holding them for a long time. Holding them too long is an extremely risky strategy. It is always better to set small goals. For example, 20-25% profit.  Also, you can use some other stock-trading indicators or combine them. But you have to know that indicators will not show you everything.

    Some traders don’t even use them, they believe they have a good hunch.
    When it gets to buying penny stocks or selling them it is all up to you. Of course, there are plenty of tools you can use to be surer if it is time to buy or sell. But even they are not sure-fire. This is particularly true when it comes to how long to hold penny stocks. The problem with the period of holding penny stocks is that despite all indicators and your confidence some bad news like the company’s annual report may ruin everything. So, watch your penny stocks carefully, and when you see they are rising, and indicators show they could rise more, don’t wait too long. Take profit. That is what matters at the end of the day. 

    You can hold penny stocks 5 minutes or 5 months but never more than 6 months. That’s the answer.

  • How to Buy Preferred Stock – The Tricky Road Is Now Simpler

    How to Buy Preferred Stock – The Tricky Road Is Now Simpler

    3 min read

    How to Buy Preferred Stock

    by Guy Avtalyon

    KEY POINTS
    • Preferred stocks are hybrid security. Let’s say,  something between bonds and common stocks.
    • The preferred stocks are riskier than bonds but less than common stocks
    • Pay attention to THIS! Don’t buy a preferred stock issue at or near par value.

    I know you’re probably thinking now to buy preferred stock and where to find them? Truth is it isn’t so easy to find them, so let me help you a bit. 

    I’ll give you the additional data that you can’t find ANYWHERE else.

    First of all, preferred stocks are hybrid security. Let’s say,  something between bonds and common stocks. You have to know that they are riskier than bonds but provide higher payments. And that is exactly what we want – higher returns, right?

    By holding preferred stocks, you will receive regular fixed dividends. The procedure of buying them is the same as it is with common stocks. Firstly, you have to choose your broker. The thing you have to check is that your broker has a good and reliable list of preferred stocks. So, check the range of it before any commitment. Well, you will need some personal research on preferred stocks to pick the right one or several from the list of shares your accessible through your broker. Take your time, they are worth your effort.

    Now, you have to recognize preferred stocks that match your interest. Evaluate the companies you have info that will work well in the future. Keep in mind that preferred stocks are long-term investments. 

    You can trade them on the stock market in the same way you would do it with common stocks. 

    Just like bonds, preferred stocks have credit rating and that is also needed to be checked. 

    Where can you get this info?

    From a corporate credit rating bureau. Based on the data you receive from the bureau you will know if investing in preferred stocks is a good choice for you. 

    But there is one tricky part that shouldn’t terrify you. 

    You will see that credit rating for this kind of stocks is lower than it is for bonds. That comes due to their risky nature. As you can see at the beginning of this article, the preferred stocks are riskier than bonds but less than common stocks.

    Let’s go straight to the point. How to buy preferred stocks, where you can find them?

    You have to read balance sheets. In the stockholders’ equity section, you will notice the amount obtained from issuing preferred stock.

    In the income statement, you will find the annual preferred dividends report.

    Analyze issuing companies completely. Put your feelings about some company away. You are not investing based on your feelings. You have to do that based on your investing goals and risk tolerance. You will need a strong understanding of how a company’s stock works before you make a decision.

    Read the stock’s prospectus. It is easy to find them online.

    Preferred stocks offer a bit more than common stocks or bonds.

    Actually, preferred stocks bring great deals. For example, yields average is 6.1%. It is much above the high-yielding sectors of the market, for example utility stocks and real estate investment trusts.

    Where to find preferred stocks?

    Try to find them among banks, and different financial companies, since they issue more than 80% of preferred stocks. Also, you can find them in telecommunications, health care, energy or similar companies.

    Companies usually issue these stocks at $25 per share. That is par value. When investors start trading them, the price will go up or down. It is due to the interest rates. Just like bonds. When the interest rates climb the price of preferred stocks will fall. And vice versa.

    In regular market conditions, preferred stocks should be better than high-quality bonds. They have to provide you steady income. And taxes below those for bonds interest.

    How to buy a preferred stock simply?

    Look here! A necessary starting point is an online broker that provides screening tools. Companies ordinarily give a grace period before they can redeem shares. It is usually 5 years after they issue preferred stocks. Besides that, a company may recall its shares at any time. So, keep a close eye on the call date.
    Check all dates carefully to be sure you have at least 18 months before a company can repurchase shares. 

    I don’t know if you’ll buy it today or in a month or year. But I want you to know this!

    Experience tells that preferred stocks under $23 are riskier, but if they are over $28 the yield could be too low. Moreover, if it is over $28 the potential loss could be bigger if the stock is called at $25 per share. A perfect yield should be between 5% and 7%, say experts. If the yield is higher, the potential risk is bigger.

    Pay attention to THIS! 

    Don’t buy a preferred stock issue at or near par value.

  • European ETFs: Invest in the World’s Biggest Regional Economy

    European ETFs: Invest in the World’s Biggest Regional Economy

    European ETFs

    by Guy Avtalyon

    European ETFs give a large diversification in mutual funds and with a bit of the fee. If you buy one security as a foreign investor you will have exposure to a lot of firms in the EU. Why Europe is interesting for investors? First of all, some of the biggest companies are located in Europe. So, it is a great opportunity for foreign investors to invest in EU ETFs. The European Union factors about 20% of the world GDP, therefore it looks like one of the most valuable investment targets in the world. 

    Benefits of Investing in European ETFs

    Europe is one of the best-shielded business areas around the globe. To be honest, there are still some risks after the crisis in 2009. The companies in Eastern Europe have better growth potential than Western Europe. Anyway, having EU ETFs in your investment portfolio is a great choice and I’ll try to explain why that is.

    First of all, in Europe are some of the most successful companies. For example, a lot of US investors are very interested in them. Moreover, Europe is consists of several areas. That makes European ETFs very good for diversifying a stock portfolio without the risk which developing markets may give. The added quality is that the EU is honestly low-risk. Just compare it with Asia, for example.

    Many investors are now attempting to enter the European Union market through mergers and acquisitions. Also, by investing in its main businesses. The EU is, in fact, welcoming foreign investment. 

    Here is full information that will help investors about investing in European Union.

    Risks of investing

    Of course, there are some risks involved. 

    The main risk is that the members of the EU are very connected and dependent on each other. At first glance, nothing is bad with that but if a crisis occurs it will spillover among them, and business in the union may fall down like a house of cards. As I mentioned above, Wester Europe economies have slower growth and they may seem less attractive for investing. Especially for investors who want more risky investments.

    Where to find: Top European ETFs

    MSCI European ETF (NYSE: VGK)

    Vanguard is available in Europe. Its European funds are based in Ireland. Vanguard allows non-residents to buy their ETFs/funds through a broker. So you can not directly do it through them. Vanguard’s ETF is a good option but it involves currency exchange. You can simply open an account with any broker with access to the NYSE ARCA. That is the stock exchange where Vanguard ETFs trade. The rest is simple, buy it just like with any other international stock.

     

    iShares MSCI United Kingdom ETF (EWU)

    A lot of investors favor “tracker” funds. They allow you low-cost investments. But not all tracker funds are low cost. Moreover, the fund charge is not all you pay, you will have to pay the broker or fund platform too. The good news is that as your portfolio grows the broker will charge you less on a sliding scale.

     

    SPDR DJ Euro STOXX 50 ETF (NYSE: FEZ)

    FEZ includes the 50 biggest EU companies but the large-caps from countries that don’t use the euro, including the UK, Switzerland, and Sweden, are not included. But, FEZ’s portfolio includes companies from France and Germany. As a difference from other EU funds, it does not hedge euro exposure. 

     

    European ETFs provide the most comfortable approach to get exposure to European markets and the easiest access to invest in Europe. In comparison to buying foreign stocks directly, it is for sure.

    Further, European ETFs are an excellent method to diversify your stock portfolio with low-risk investments. To be honest, I have to say that European ETFs will not suit every investor. Risk seeking investors wouldn’t like them, or for younger investors, European markets are not volatile enough. Yes, there is pretty much a lack of excitement.

  • Boerse Stuttgart Exchange Has Started a Regulated Trading Bitcoin

    Boerse Stuttgart Exchange Has Started a Regulated Trading Bitcoin

    Boerse Stuttgart exchange has started trading Bitcoin
    Boerse Stuttgart exchange plans to add litecoin, ethereum, and XRP euro pairs to the end of this year – UPDATED

    By Guy Avtalyon

    Germany’s second-largest stock Boerse Stuttgart exchange (BSDEX) has started a regulated trading venue for digital assets, the company said. It is a fully regulated digital asset exchange under the German Banking Act, said the company in a statement. In the beginning, BSDEX will trade one pair, only the bitcoin-euro.

    In late 2018, the company revealed that it wants to launch a fully regulated digital asset exchange. In the same announcement, BSDEX stated that institutional and retail investors from Germany will have the chance to trade, but later it will be opened for the investors in the whole EU. The trading will be accessible 24/7 like other exchanges on the globe.

    According to CoinDesk, Boerse Stuttgart exchange plans to add litecoin, ethereum, and XRP euro pairs, besides Bitcoin, to the end of this year.

    “The market in cryptocurrencies is worth billions, and more digital assets will emerge on the basis of blockchain,” CEO Dr. Dirk Sturz revealed in the statement. “Our goal is to build up the leading European trading venue for those assets.”

    Boerse Stuttgart Exchange partnered with SolarisBank

    “BSDEX will give retail and institutional investors direct access to digital assets and provide flexible and relatively low-cost trading. We believe blockchain is set to bring about significant changes in the financial industry, and we want to leverage its potential to create the trading venue of the future,” stated Peter Grosskopf, CTO at BSDEX.

    About a year ago BSDEX announced it will launch the ICO platform and began to trade ETNs and litecoin.

    No Brokers Needed

    According to the press, the trading won’t need brokers. The traders will have access to the platform directly. That is nice, but they limited userbase and restricted trading options. For now, traders may set the market and limit orders, but ASAP the rest of the possibilities will be accessible.

    “Earlier, BSDEX has launched Bison. Bison is a mobile app that lets users trade Bitcoin, Ethereum, Litecoin, and XRP for euros. BSDEX’s trading platform is a sign of its new strategy to open the path for the trading of tokenized assets,” the reports say.
    This is important news for anyone who would like to invest or trade cryptocurrencies. A true step forward.
    Our concern is restrictions and limitations. But let’s not be so suspicious. What about giving them a chance? It looks like a reasonable decision. But will keep an eye on it.

    What we can say is that Bitcoin’s adoption continues. Nice venture.

    LAST UPDATE

    From 25 February 2020, new ETPs that track the inverse value of Bitcoin is available on the Boerse Stuttgart Exchange. It is still connected to the Euro.
    This tracker product’s value represents the inverse performance of the Bitcoin as an underlying asset. Meaning, when the price of Bitcoin drops, the ETP increases, minus management fee for daily trade. The product is completely hedged with the underlying asset 1:1. The launch of the first inverse is presented as a natural extension to the existing unleveraged range of crypto ETPs. Boerse Stuttgart stated that it offers a bigger choice to investors. This choice lies in the possibility for investors to better manage the grown volatility and changes in the cryptocurrency markets.