Category: Top Stocks For Buy and Hold

  • Is Coca Cola Overvalued – Trick Or Treat

    Is Coca Cola Overvalued – Trick Or Treat

    Is Coca Cola Overvalued
    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.

  • Buy More Stocks, And Here Is Why

    Buy More Stocks, And Here Is Why

    Buy More Stocks In 2020
    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.

     

  • Fidelity MSCI Health Care Index ETF Investment

    Fidelity MSCI Health Care Index ETF Investment

    Fidelity MSCI Health Care Index ETFFHLC 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.

     

  • Tiffany Forever Shining Diamonds

    Tiffany Forever Shining Diamonds

    Tiffany Eternally Shining DiamondsIn 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 Eternally Shining Diamonds

    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.

  • Levi Strauss On The Market Again

    Levi Strauss On The Market Again

    Levi Strauss On The Market Again
    Levi Strauss & Co. trades on the NYSE under the ticker symbol LEVI.
    This famous brand promises to be a good investment

    By Guy Avtalyon

    Levi Strauss is riding again.
    We are sure you have several of Levi’s products. When say Levi’s you mean eternity. Levi’s jeans is always IN. This denim cloth producer went public in March this year. The jeans on the trading floor. Sounds good even if it didn’t change the dress-code there. Actually, that decision was the second appearance of Levi’s on the stock market. 

    Firstly, the company was listed in the 1970s. But 15 years later, the company was taken private. Descendants of Strauss, well-known the Haas family bought it out. In March this year, that decision was changed and Levi’s is listed again on the NYSE under the ticker symbol LEVI. Levi’s started trading publicly for the second time in its 165-year history.

    At that time, the shares were priced at $17 and grew 32% in the first trading day. On the closing bell, the price was $22.41 and the valuation was over $8.5 billion.

    The LEVI price history

    The LEVI price history isn’t long but we can see that it had a few good trading weeks after went public. The price dropped in August and was traded at about $16. In October, the price increased to almost $20 but dropped again at $17 and stabilized in that area.

     

    On November 21 the LEVY was traded at $16.57 which was an increase of 0,20% from the previous day.

     

    The experts’ forecast for Levi Strauss & Co.’s median target at $23.50, with the highest price at $28.00 and the lowest at $18.00. That would be a 41.82% rise from the current price of $16.57. Their estimation shows a buy signal for Levi Strauss & Co. stock.

    The forward P/E ratio is 15.49 and P/E growth is 3.79, the dividend yield is 3.62%.

    Levi Strauss & Co. posted its quarterly earnings report on October 8th. The company reported $0.31EPS for the quarter, beating analysts’ estimates of $0.27. Levi Strauss & Co. earned $1.45 million during the quarter.  The company had a return on equity of 37.44% and a net margin of 6.85%. The revenue was up 4.3% related to the same quarter in the previous year. Levi Strauss & Co. issued its revenue guidance of $5.882-5.909 billion.

    Selling of Levi Strauss & Co. stock

    The company’s main shareholder Walter J. Haas sold 73,845 shares on Wednesday, November 20th at an average price of $16.53, for $1,220,657.85.
    Previously, on November 13th, Walter J. Haas sold 37,290 shares of the company at an average price of $16.96, for  $632,438.40.
    Two days earlier, on November 11th, Walter J. Haas sold 22,321 shares of stock at an average price of $17.06, for $380,796.26.
    On November 8th, Walter J. Haas sold 50,749 shares at an average price of $17.10, for $867,807.90.

    Hedge funds have new holding positions in the Levi’s

    Commerzbank Aktiengesellschaft FI got a new position in Levi Strauss & Co. at approximately $253,000.
    Acadian Asset Management LLC took a new position at around $174,000.
    Parallel Advisors LLC took a new position at approximately $96,000.
    Aperio Group LLC took a new position at around $62,000.
    NumerixS Investment Technologies Inc got a new position at about $58,000.
    Institutional investors hold 9.21% of the Levi Strauss & Co. stock.

    Experts’ ratings on LEVI

    Bank of America boosted its price target on LEVI from $20.00 to $22.00 and marked the stock as a “buy” in October.
    Guggenheim repeated a “buy” rating in September.
    ValuEngine upgraded Levi Strauss & Co. from a “sell” rating to a “hold” in October.
    Levi Strauss & Co. currently has a consensus rating of “Buy” and a  price target of $24.43.

     

    About Levi Strauss

    The company is founded by Levi Strauss, an immigrant from Bavaria who came to San Francisco in 1850 during the Gold Rush. He brought dry goods for selling to the miners. he recognized the miners’ need for durable pants and hired a tailor to sew clothes out of tent canvas. Denim came later.
    A partnership of three Strauss brothers was built in 1853.
    After Strauss died the leadership of the company passed to the Haas family. By the 1960s, Levi’s jeans became popular globally. In 1971, when the company went public it was operating in 50 countries.

    Levi Strauss & Co designs, and markets jeans, casual dress, pants, skirts, jackets, footwear, and accessories for women, men, and children under the brands: Levi’s, Dockers, Signature by Levi Strauss & Co, and Denizen. The company also authorizes Levi’s and Dockers’ trademarks for many product categories, like footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery.

    Levi’s is a famous brand but the stock needs a price accumulation before it keeps the advance. Anyway, this is the stock to be watched. Its trends in Europe are strong, rising at 20% a year for the past two years and 14% in 2019. Levi proceeds to diversify its distribution in Europe and it is now 50% direct-to-consumer sales. But the U.S. sales are down and now it represents 30% of Levi’s overall sales.

  • LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market
    LCI Industries (LCII) supplies a large number of highly engineered components for the leading original equipment manufacturers.
    Recently, LCI announced the Q3 earnings report and the stock looks like a good option for value investors.

    By Gorica Gligorijevic

    LCI Industries (LCII), announced a few days ago that the Board of Directors authorized a quarterly dividend of $0.65/share of common stock on December 20, 2019. The dividend is payable to the stockholders that record at the close of business on December 6, 2019. Almost at the same time the company LCI Industries appointed Johnny Sirpilla to Board of Directors. Johnny Sirpilla is the founder of Encourage LLC. It is a small equity firm investing in population health management, employee health, medical device development, cancer prevention testing, fashion, interior design, senior living communities, residential and commercial development projects, etc.

    This stock could easily provide a 204% profit in just over 5 years. Insider information claims that there is a strong buying activity of this stock. 

    It is currently traded at $104.71.

     

    On November 5 the company issued a Q3 earnings report and had an earnings call presentation. 

    LCI Industries revenue

    The company reported third-quarter revenues of $586 million which is down 3% from the same quarter last year. Its wholesale shipments declined double-digits. Also, LCI reported a content increase in towable RVs, innovations that provide them to perform better than the other similar companies in the market.

    LCI’s international markets now exceed 41% of the total net sales. The operating margins are improved, according to the report.

    Despite the increase in the content of towable RV increasing 2.2%, there was a drop in content for the motorhome. That decreased 2.9% over the past 12 months due to a shift to smaller motorhomes this year. The bright side of this report is the increase in sales RVs among younger buyers. 

    LCI Industries reported $1.42 EPS for the quarter, beating the consensus estimate of $1.40 by $0.02. As we said, the company had revenue of $586.20 million for the quarter. The consensus estimation was of $578.87 million. LCI Industries has made $5.86 earnings per share over the last year. The current price-to-earnings ratio is 17.9. LCI Industries’ next earnings publication date is Thursday, February 6th, 2020 based on last year’s report dates.

    Investors interested in stocks from this industry estimate the LCI value opportunity in the future.

    Why LCII stock has a buy signal?

    LCII’s earnings have an improving outlook. Value investors examine figures to determine whether a company is undervalued.

    LCII forward P/E ratio is 18.88 and a PEG ratio of 1.18, which is a very important figure for a company’s expected earnings growth rate.

    The P/B ratio is 3.41. For value investors, the P/B ratio is important to compare a stock’s market value to its book value. 

    LCII stands above others due to its stable earnings outlook. 

    So Traders-Paradise opinion is that LCII is an excellent value option with more possibilities in the future.

    LCI Industries has increased its EPS by an average of 2.2% per year, during the last 3 years. In the last year, but its revenue is down by 5.7%. To be honest, it is always better to see revenue growth, but never forget how EPS growth is important. For LCI Industries, these two metrics are running in diverse directions, so despite the fact that it is difficult to be sure of future performance, we think this stock deserves to be watched. Moreover, this stock looks undervalued in comparison to its fair value. LCII  is trading at $104.71 which is below some experts estimations of the stock’s fair value at $150.64.

    About LCI Industries

    LCI Industries manufactures recreational vehicles, popular RVs, and accessories. The company sells toolboxes, truck caps, running boards, side-outs, mattresses, alignment systems, shock absorber, power stabilizer jacks, baggage doors, and sliders. LCI Industries sells its products globally.

    Customers are extremely satisfied with this company claiming the workers and support service at this company are great. Investors could be satisfied since the estimations show that the company has offices in Elkhart, Bradenton, Chesaning, Denver, and in 32 other locations. LCI has over 10.000 employees across 55 locations. The company’s headquarters is in White Plains, New York, United States.

     

  • International Paper Company Could Be Great Stock In 2020

    International Paper Company Could Be Great Stock In 2020

    International Paper (IP) Could Be Great Stock In 2020

    International Paper Company is quite capable of surprise, it is undervalued due to its EPS growth, but dividends are steady
    Market Cap: $17.7 billion
    Yield: 4.5%
    Revenue: $22.8 billion

    International Paper Company (IP) is a producer of packaging, paper, and pulp, based on fiber. You might think how a paper producer can be a good choice for investing in when everything around us is already digitized, who and why would need paper. Well, that is true, but only this part about digitalization. The usage of paper isn’t dead and the paper isn’t going to lose the battle in the digital era. Okay, we are ordering things online but do they come to our doors? Packed in one of International Paper’s products. Or from some other producer, of course, but we are talking about IP now.

    Not to be forgotten, some news appears that IP is about to go ex-dividend on November 14. So, you have to buy their shares before that date to receive the dividend. It will be paid on December 16.

    International paper dividend

    The company’s next dividend payment to shareholders will be $0.5 per share. That is less than the last year when they paid $2.1. If we take a look at payments from the past year, the company has a trailing yield of about 4.4% on the share price of $46.21. 

     

    Some data is very important when you have to decide to buy or not some stock because of its dividend. 

    The International Paper paid out 58% of its profit to shareholders last year. Nothing strange with that payout,  it is a regular level for most companies. But take a look at its cash flow since it is more valuable than profits when estimating a dividend. Well, IP did it well last year, it paid 35% of free cash flow. It’s good to see that the dividend is well covered, so the dividend is sustainable. Of course, it will be until earnings drop sharply.

    Is it a good dividend stock? 

    International Paper shareholders have seen a support expansion from the money managers in the past several months. After the second quarter of this year, about 30 hedge funds held IP in their portfolios. But the surprising thing is that IP stock isn’t amongst the 30 most popular. That has to be noticed.

    This company is paying dividends over 10 years now. For long-term investors, the companies that are paying dividends can be worthwhile.  International Paper Company is yielding 4.8% so for some investors it is a good opportunity if they want to buy the stock because of it.  The company has significant debts, so you will need to check its balance sheet to see if there is any debt risks.
    International Paper has a net debt of 2.61 times its EBITDA. Yes, debts are good to stimulate business growth but can boost the risks. During the last 10 years, the IP dividend has been constant. That is a sign that the company had a consistent earnings dynamic. 

    International Paper Company paid $1,00 per share in 2019, last year it paid $2,00 which is a CAGR of about 7.2% a year. This is very worthy over the long term investors if the rate of growth can be kept or increased. Also, IP would have a better result if earnings per share could grow too. Instead, the company’s EPS are flat over the past 5 years. 

    Bottom line

    When we want to buy a dividend stock, we want to know will the dividend grow, is the company is capable to support it in different economic conditions and is the dividend payout is sustainable. International Paper company’s dividend payments look fully covered. Moreover, International Paper appears like a great chance. It could be a good fit.

  • Shefa Gems Mining Company Stock

    Shefa Gems Mining Company Stock

    Shefa Gems Mining Company Stock
    Shefa Gems is an Israeli company, a miner concentrated on precious stones.

    By Guy Avtalyon

    Shefa Gems projects are taken in Northern Israel. It is the explorer of globally recognized Carmeltazite. It is from Israel and listed on the London Stock Exchange.

    Market Cap £8.6mln
    Price: 5 GBX

    Updated: October 29, 2019

    Shefa Gems Ltd (LON:SEFA) Death of Director Abraham Ben Leah (Avi)
    Shefa Gems announced that Avi Taub, Chief Executive Officer of the Company, has passed away following a short illness.
    Vered Toledo, Chief Operating Officer said: “We all stayed with Avi vision and we have a mission to fulfill now – open the first alluvial gems mine in the Kishon Mid Reach northern Israel – I’m sure that with the help of God we will do it all for Abraham Ben Leah blessed memory.”
    Our condolences to his family and the Shafa team.

    Is Shefa Gems publicly listed

    Shefa Gems is listed on the London Stock Exchange (LSE) under the ticker: SEFA

    In the USA trading in the Shefa Gems Shares is available via brokers such as Fidelity or Charles Schwab

    Shefa Gems Ltd (LON: SEFA) is an Israel-based exploration mining company with its operations orientated to the north of the country.

    Shefa Gems Mining Company Stock

     

    About Shefa Gems Ltd.

    Shefa Gems, formerly known as Shefa Yamim, is essentially a precious stone miner. It discovered rubies, sapphires, Carmel sapphires, and diamonds.
    Shefa Gems’ focus is on exploration targets that it believes to have the highest upside and can be taken into production at an almost low cost. The company offers its services in Israel where founded in 1999.

    Shefa Gems is a pioneer in precious stones exploration in Israel.

    We found on its official website: “The first and only company in Israel focusing exclusively in mining exploration of precious stones in the North of the holy land.”
    Shefa Gems Ltd (LON: SEFA) has delivered the highest grade results to date from Zone 2 of its Kishon Mid-Reach project in Northern Israel.
    Shefa Gems (LSE: SEFA) is currently moving towards trial mining and revenue generation at its Kishon Mid-Reach project in the Mount Carmel region of Northern Israel. Besides regulatory and operational works to reach the result, the company is developing an intelligent marketing strategy. They are creating a jewelry collection in cooperation with the internationally acclaimed designers.

    The company is a multi-commodity explorer and the Kishon Mid-Reach is its primary asset. It a 4.5km-long and 150m-wide ground. The company has separated this field into three zones. Every zone is at different stages of exploration and development. Currently, most of the work is in Zone 1

    Shefa Gems finished an independent technical-economic evaluation on Zone 1 in February 2019 and found that the first mine should be able to process 1.5Mts of gravel over 11 years. This capacity can probably be doubled, showed the result of the evaluation, by halving unit operating costs to $10.15/t.

    The Possibilities

    The company owns two prospectings and one exploration permit in northern Israel, covering a total area of 614 square kilometers. The main exploration spots are the primary volcanic sources on Mount Carmel and the secondary sources of valley-filled sediment deposits everywhere the Kishon River.

    At Mount Carmel, the company has permission for 4 sources: Rakefet Magmatic Complex, Muhraka, Har Alon, and Beit Oren.

    To date, most of the exploration work has been carried out on the Rakefet Magmatic Complex. The geological mapping and rock and soil sampling are completed. The gems and industrial minerals are found.

    At Kishon, the main exploration target is the Kishon Mid-Reach. There is the company’s most high-level exploration project and open-ended exploration activities are being initiated to determine a SAMREC compliant Mineral Resource. 

    In October this year, the company performed its highest degree results to date from Zone 2 of its Kishon Mid-Reach project in Northern Israel. A sample yielding resulted in a mineral collection grade of 467 carats per 100 tonnes.

    The company renewed its license for Zone 1 in August this year for added 12 months.

    Shefa Yamim, today Shefa Gems Ltd. is listed on the London Stock Exchange in December 2017 after a placing and subscription at 110p per ordinary share. The company’s initial market capitalization was approximately £15.3mln. The company was 75% in the ownership of the subsidiary of Shefa Yamim Ltd, listed on the Tel Aviv Stock Exchange. After the London entry, the shareholding of Shefa Yamim Ltd has reduced to 48.9%. Traders-Paradise’s opinion is that investing this stock can have potential in the future.

     

  • 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!

     

  • Stocks Under 5 Dollars Per Share to Buy Right Now

    Stocks Under 5 Dollars Per Share to Buy Right Now

    Stocks under 5 dollars
    Stocks under $5 can be a good opportunity, they are low-cost but can generate a large percentage gains

    By Guy Avtalyon

    Why should anyone invest in stocks under 5 dollars per share? Just read this post to the end. There is no excuse for not investing. You can do it with just $5 per share. Traders-Paradise presents you three stocks under 5 dollars per share with pretty great potential. There is a great risk involved too since they are really volatile. Be aware, all stocks under $5 are volatile. Because of their nature, these stocks may provide you great returns but large losses too.

    So, these are our tips on stocks to buy right now and make a profit.

    Reebonz Holding Limited 

    Ticker – RBZ
    Market cap – $16.053M

    Reebonz is an online platform with a focus on buying and selling luxury products. Headquarter is in Singapore. The company was founded in 2009, today it is the leading online platform for buying and selling luxury products in the Asia Pacific region. It has offices in Singapore, Thailand, Hong Kong, Korea, Taiwan, Japan, China, Australia, the United States, and many other countries.

    On Friday it stated that will release its unaudited business results for the first half of 2019, before the opening of U.S. markets on September 23. So, we will see. 

    Until then, let’s see what do we know about this company.

    This platform operates as an eco-system of B2C e-tail and B2C marketplace covering more than 1,000 brands. It is supported by C2C which provides private members to sell luxury products. Shopping is very easy since the company’s UI is user-friendly. Reebonz sources collections of many brands from luxury boutiques from all over the world.

    The current price per share is $2.58. The analysts estimated the RBZ stock will be one year from now at $11. Our suggestion is to buy its shares.

     

    ReneSola Ltd 

    Ticker – SOL
    Market cap – $71.59M

    ReneSola Ltd was founded in 2005. ReneSola Ltd is headquartered in Shanghai, China. The company is listed on the New York Stock Exchange in 2008. It is an international technology provider of green energy products. 

    It is a Chinese producer of the range one solar panel with a 10-year product and 25-year performance warranties. Their panels are corrosion resistant, and that fact makes them very convenient for installation by the sea. Renesola has offices in Sydney and Melbourne too.

    The company produces string inverters, microinverters, and LED lighting too. It provides the highest quality green energy products and services for EPC, installers, and green energy projects all over the world.

    The current price per share is $1,88. So, our suggestion is to purchase since the shares are undervalued for no reason. These shares are good. They already beat analysts’ expectations.

     

     

    Trevi Therapeutics Inc.

    Ticker TRVI
    Market cap $82,930,751

    Trevi Therapeutics was founded in 2011. Its headquarter is in New Haven, the U.S. state of Connecticut. They are developing nalbuphine ER, treatment for uremic pruritus, improving “the quality of life of patients suffering from the serious symptoms associated with chronic neurologically mediated conditions” as they stated on the official website.

    The Trevi Therapeutics’ team is highly engaged and experienced in life science clinical development, successful commercialization, and building companies of exceptional value. 

    Since launching, Trevi has raised $92.2 million in the financing, according to the filing for its IPO this May. 

    Trevi Therapeutics, Inc. is focused on the development and commercialization of nalbuphine ER to treat serious neurologically mediated conditions. The company’s nalbuphine ER  is in a clinical trial. The purpose is for the treatment of chronic pruritus, chronic cough in patients with idiopathic pulmonary fibrosis, and levodopa-induced dyskinesia in patients with Parkinson’s disease.

    The current price per share is $4,5 but analysts predict that easily can be over $16 in the next 12 months

    These are only three stocks under 5 dollars worth to buy right now. There are more, of course. The price per share is low, the growth potential is reasonably good. But remember, the low-cost stocks are extremely volatile. The high potential risk is involved but the reward can be great also. Everything is up to you when it comes to stocks under $5. This is just a suggestion. But I would like to give more info on trading so-called penny stocks.

    Why trade penny stocks?

    As I just gave you a suggestion of stocks under $5 I would like you to know that these are so-called penny stocks. So, penny stocks represent the companies whose stocks are valued under $5. You can find that definition can vary but, in essence, this is the right explanation. At least, it isn’t wrong. So, let’s put aside the definition. You may ask yourself why should you trade penny stocks.
    Trading penny stocks has one reasonable goal: to turn a little money into the big money. Traders’ profit comes from small changes in stock price but from large percentage gains. They trade with large leverage. That’s the point. Also, that’s the way how you can trade with a little money and earn very nice. Once I said don’t be shy to buy cheap stocks, stocks under 5 dollars. This is especially valuable for the penny and undervalued stocks.

    At the end of the day what really matters is your profit. Happy investing!