Tag: investing

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  • What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?
    Create portfolios that will work no matter what the next year is going to bring. The recession will come or not, but your investments have to be protected. 

    By Guy Avtalyon

    What to expect from the stock market in the year ahead? The stock market could correct itself during the early days of 2020. But, despite some dark predictions, the stock market may keep rising over the long run.
    This is the last day (at the moment of writing) of the year during which the market was so unpredictable. At least, it was surprising.
    For example, Uber’s IPO was followed by fanfare, and what happened? Great disappointment.
    But many other stocks hit their highest-ever highs and quickly dropped to the lowest lows. The only truth in the stock market is that there will always be shocks. 

    Okay, that year is behind us so let’s take a look at what to expect in the stock market for 2020.

    The stock market will rise more

    The stock market boomed in 2019. The S&P 500 recorded a gain of 29.2% in 2019. Some analysts already told us the market will be down in 2020 but, to be honest, they could be wrong. Since the stock market rose over 20% in 2019 it is more likely in 2020 to see even greater returns than it was in the previous year.

    What you have to do? the answer is simple. If you had good returns in 2019 and your investment portfolio was doing well, just stay with it. Why would you change the winners? 

    But…

    Nothing related to the stock market is for sure and forever. There is always something to worry about. It’s our money. If you hold cash and not invest in stocks or somewhere else, your money will go anyway. So, don’t be frightened, come back to the market, and invest smartly. The year ahead could be promising. Build your portfolio, mix the assets, and avoid emotions. Yes, the stock market could be more volatile in the next year could since 2019 was much less volatile than the prior year.

    Some unpleasant occasions may arise over the coming year. 

    Firstly, in January due to the January Effect. What is this? The January effect is an increase in stock prices during that month. But is a seasonal increase. Usually, In December,  the stock market records an increase in buying, and the stock price is dropping. In January, stock prices will increase as always. 

    In fact, the January effect is a theory and calendar-related effect. Some small caps could be affected more than any other. But according to history, it was a case until several years ago. Since then, markets seem to have adjusted for it.

    What to expect from the stock market 

    The stock market is pretty much unpredictable, we can only guess. Maybe the right question is what to expect from the investors. So far the majority showed spectacularly bad timing when it comes to stocks. They are selling and buying at the wrong time. Many of them are selling just before rallies or accumulate stocks when they have to sell. 

    If you believe that the market is increasing and that it is a predominant trend, adjust your portfolio for the ups and downs in 2020. But it is the same as always. Your actions will depend on what your expectations are toward the stock market in the next year. Maybe, you will invest more money when the markets are more volatile with the expectation that pullback is temporary, who knows?

    The value stocks will come back

    Yes, stocks are growth or value type. Growth stocks are so attractive and popular. Everyone is talking about them, they are in the headlines, media are paying a lot of attention to them and burn our brains too. The whole world is watching the stocks of Amazon, Facebook, Uber, and many others because the growth stocks are giving great returns, they are well-known companies, famous brands.

    On the other side, we have value stocks. They are mostly companies form the utility industry, or energy or something else less attractive. Such stocks don’t have spectacular prices, the companies are not fast-growing. 

    Yes, the growth stocks are performing better results in growing markets but the value stocks will always do better in down markets.

    To be told, the growth stocks are increasing their value year-to-year and some experts are expecting a reversal in 2020. So, growth stocks may change their prices and decrease.

    A diversified portfolio will be helpful as always. If you hold any of these great players just sell part of it if you follow the experts’ estimations. At least, your portfolio will be less volatile.

    What to expect from the stock market: The bear market is coming for sure

    This prediction was wrong for many prior years. But, maybe the next year may confirm market bears’ expectations. We have a bull market and it showed a great strength over the year. It was faced with a yield curve inverted, trade war, Brexit, the possibility of a recession. Well, to add more pain into your lives, the bull market has to end at some point. Some experts expect that 2020 is that time.

    So, what investors have to do is to hedge the risk and take some profit, of course. As the market motto advises “you will never go broke taking profits.” Maybe it is really time to take some profit from your investment. If you believe the downturn in the stock market will come for sure, be ready to reinvest big gains. What different could you do when the important selloff comes in 2020?

    Will the recession surely come?

    Recession is an element of any business. So, we can expect it to come at any time, sooner or later. It may happen in 2020 or 2021 or 2022, literally anytime. Many circumstances have an influence on it, we are witnesses of some, that’s true. 

    Investors shouldn’t adjust their portfolios based on guessing. However, it is smart to analyze your allocation. Maybe some stocks are out of balance. Let’s say you wanted to hold 50% in stocks but you noticed that suddenly you hold 70%. That would be a clear sign that is clever to exit some positions. Just adjust your portfolio with your risk tolerance and investment goals.

    We all know that the stock market forecasts are useless. No one can predict how the market will perform. But still, we click on them to see and compare them with our opinions. The reduction of difficulties is in the essence of human nature.
    However, investing in the stock market certainly includes difficulties and risks. Seeking out for expert opinions about what to expect from the stock market in 2020 can be the wrong way to lessen risks or uncertainty.
    Investors must do their own examination. If you think the crypto will go up, just buy some of them or parts of them, or if you think Uber is a great investment, just buy some shares of it. A small portion will be quite enough notwithstanding that experts are expecting a big increase.

    One is a-hundred-percent sure, you will make at least one mistake. Take it as certain. But that’s life and also, that’s investing, be prepared for that.
    Just do your best to secure your right calls overpass your wrong ones. 

    Happy New Year!

  • Stock Market Correction – The Storm Is Coming

    Stock Market Correction – The Storm Is Coming

    Stock Market Correction – The Storm Is Coming
    A lot of mergers and acquisitions, drop trade investment and lack of business trust indicate a coming stock market correction Bear in mind that markets will not disappear, so you can get back 

    By Guy Avtalyon

    The dark sign of an upcoming stock market correction might be when the companies are buying back their stocks and use them for buying other companies. In this example, the stocks are used as currencies. We can see that so many companies are doing exactly that. Further, we are witnesses of a lot of mergers and acquisitions. The companies are uniting to survive something. But what? What they are expecting?

    Is the logical answer that they are expecting stock dumping and the stock market correction?

    Some analysts say YES.

    The first sign of possible stock market correction they see in companies buying other companies, in mergers with rivals and financed by shares exchange is the signal that the market is close to the end of its bullish period. The opposite opinion befalls when the companies invest in new activities, new operations, development. That would be a good signal for the stock market. But when the companies are using their own shares to buy growth it only can be a sign of the lost confidence.

    Yes, the economy runs in cycles. The sunny days will always follow after rainy days. But we have to be worried when the economy’s condition pattern indicates the coming storm just as we are in a hurry when the real storm is coming.

    How to manage the stock market correction?

    A stock market correction is an alarming condition but quite normal. Some might be surprised, but it is a sign that the market is healthy. Well, in most cases.

    How could we know that the stock market correction is coming? When the stock prices are dropping 10% or higher from their most current peak but not more than 20%. In such a case, we would have a bear market.

    Firstly, don’t try to “time the market.” Avoid swing trading even though trading the ups and downs may give you some profit but for a short while. Many investors are trying to avoid losses by putting money in some other investments where they think there is a better possibility of profiting. 

    Most people lose money by trying to move their money around to participate in the ups and avoid the downs. This is a documented behavior studied by academics around the world. The field of study is called behavioral finance. That is a behavioral bias.

    Our two cents

    When you build your investment portfolio it should be based on knowledge and your education, not on prejudices. It is normal to expect that for every quarter of the year, you will have some negative returns. Tn order to lessen those negative returns or to control them you have to have a diversified portfolio. That means you need to combine your investments. Pick a mix of assets that have more potential for upsides and fewer chances for high returns because that means less risk.

    During the market correction, savvy investors have more discipline, less fear, and stay with their investing playbook. Don’t trade at those times because you may catch larger losses. Behind these words lies the stats, you can easily check it.

    Follow the old Wall Street pattern: Never catch a falling knife.

    Be mentally prepared

    A market crash may happen. When? It doesn’t matter. You have to be mentally prepared for that because the markets are unpredictable and it had happened before. Yes, we all like to be rich even on the paper and it’s really hard to chew a big bite. And the stock market correction is just that – a big bite. Some investors might feel fears, be frightened, and start selling their stocks at the worst time.  

    If you are a long-term investor type, you must have trust that the stock market will adjust eventually. 

    Corrections can last from several days to months or longer but the last mentioned are rare. Remember, a correction may damage your investment for short, but it is a great opportunity for adjusting overvalued stocks. So, buying opportunities are undoubted. So, just keep adding stocks to your investment portfolio while others are selling in a panic.

    Can we predict a stock market correction

    Nope. No one can predict a stock market correction. They aren’t predictable. Moreover, they can be generated by different matters. For example, we know the Great Recession has erupted on the housing bubble. But we know that after everything was finished. But predicting the main cause of the next correction just isn’t possible.

    What we know for sure comes from research. According to one conducted on the example of the Dow Jones, the average correction lasted about 72 trading days or three and a half calendar months. And the correction is when the overall stock prices drop more than 10% and if the decline of more than 20% it is a so-called market crash. That’s all.

    For whom the market correction matters?

    Stock market correction matters for short-term traders. If you stay focused on the long term you will survive anyway. When correction occurs those who’ve adjusted their trading as the short term or those who have leveraged their account with the use of margin, should be worried.

    Traders that used margin had bigger losses during the market downturn. Also, active traders had increasing costs united with their losses during the correction. Holding long-term investment was the best way to survive the stock market correction. At least such investors had a peaceful life.

    Don’t be afraid of a stock market correction. It is usually a great time to buy high-quality companies at a lower price. So, you can add stocks to your portfolio for long-term investments, even the one that previously appeared to be a bit too pricey. Also, a market correction is a good time to examine again what you hold. Sell your position only if you see that your investment, but each in your portfolio, couldn’t meet the cause of keeping it.

    A stock market correction doesn’t need to be terrifying.  If you don’t want to taste it, it is best to stay away from investing in the stock market. Instead, stick with safe investments. 

    Keep your balance.

  • A Good Entry Point, the More Chances of Profit

    A Good Entry Point, the More Chances of Profit

    A Good Entry Point, the More Chances of Profit
    The entry point is very important and can determine the end of your trade both in losses or in profits.

    Having a good entry point is the first round in reaching a prosperous trade.
    What is the entry point? It is actually the price investors have to pay to buy/sell a stock. The exit point, on the other hand, represents the price at which investors exit the trade with loss or in profit.

    While the entry point has been extensively examined from the divergence/convergence aspect, the exit point has not got full attention.

    Why is that? Well, exits may have hidden tendencies.  

    But let’s stay on a good entry point.

    Traders’ successes or failures depend a lot on trade entries. One wrong entry can destroy your trading, for example. Yes, traders are using stop-loss to lessen the risk in case the market makes big moves.
    But let’s talk about how the risk-reward potential can be enhanced by a better trade entry.

    First of all, never enter the trade when the market is near to extreme highs or lows from the recent position. That fault may ruin your trade.
    We already have seen traders that decided to enter the trade when the trend broke the final high with the hope that the stock price will continue running up.
    That was the wrong decision because when the price reaches its highs, in most cases the only way it can go further is down. The price will drop into the previous range. So, you will make a loss.
    The reason behind this is that markets never move in one direction forever. Especially after the trend reaches extreme highs and lows. If you place the entry point when the trend reaches the highest, it will always result in losses.
    But if you like to take more risks in trading you can do that but be sure where you want to set the stop-loss to lower your losses when exiting the trade.
    The wrong entry may occur if you are trying to enter the trade at the point where a large move is, but you are not sure what caused this move is. The direction may shift quickly in the opposite direction and your trade will end in losses.

    Reversal strategy for a good entry point

    Some traders like to set entry using reversal strategy. What does that mean?
    In this entry strategy, the traders are taking the trade with the hope that the market will make changes its trends. They are using pivot point levels, so-called Fibonacci levels. This entry is useful only when the market isn’t trending in an obvious, clear direction.
    Don’t use this in all trading.

    The real role of a good entry point

    The role of a good entry point is to allow you to identify high probability trades. You need the confirmation that you have an edge by reducing emotions.
    You need a trading strategy that makes sense and where you can execute entry orders with confidence. It is very important and your good entry point should provide you that. Otherwise, it isn’t good.
    Eventually, with a good entry point, you are more likely to enter the profit target or stop-loss. And the chance to look for other opportunities is here also.
    A good entry will help you to repeat your trades and increase your advantage. But don’t be too focused on your entry point. Overoptimizing is never good.

    Bottom line

    A good entry point is very important for the success of your trade. But the exit point is what will control your profit. So, you will need to optimize it. To be honest, the best way is backtesting and finding out what works best for you. There are two ways to do that. You can use complicated calculations, charting, etc. or you can use Traders Paradise’s unique and simple app for optimizing your exit strategy. It’s up to you. 

    Remember, all is important. But as you can see, you can enter the trade in many situations but you can end your trade with only two: profit or loss.

    Trading is a game, you have to make the best move at the right moment.

  • Superstition In the Stock Market May Lead You to Lose the Shirt

    Superstition In the Stock Market May Lead You to Lose the Shirt

    Superstition In the Stock Market
    Stevie Wonder wrote in his famous song:
    Very superstitious
    Writing’s on the wall
    Very superstitious
    Ladder’s about to fall
    Thirteen-month-old baby
    Broke the looking glass
    Seven years of bad luck
    Good things in your past

    Superstition is so live in the stock market that you can barely believe. Imagine that it is Friday 13, just like it was in April, September, and December this year. Some people, especially scientifically-minded, would roll the eyes. But, despite the fact that Friday 13th is just a day in the calendar and it may occur several times in one year, some investors truly believe that it is a bad-luck day. 

    When enough investors share this foolish belief, stock prices can be changed but not in the investors’ favor.

    But do superstitions really affect the stock markets? 

    Some studies revealed that people are more risk-averse when thinking about Friday13.
    One study from 2005 discovered that hesitation to do business on this day ends in a loss for the US economy of almost $900 billion. Does this scare affect stock prices? Believe or not, yes.

    First superstition: Friday 13th

    According to a study, returns on Friday 13th are lower compared with other days.

    This Friday 13th effect was broad spread among numerous investors until 1980 but has disappeared. The reason is simple: automated trading erased the “Friday 13th effect”. 

    But it so funny to talk about Wall Street superstitions. So let’s proceed.

    Superstition In the stock market No2: Did you know anything about the witching hour?

    Several years ago I found an article written by the man who worked as a broker on Wall Street. I am sorry, I didn’t remember his name. But what I remember is the witching hours are between 2 and 3 PM. Superstition linked to this part of the day (notice, it was on a daily base) was related to market close. If the market sold off at that time, it was a sure sign that the market will be closed on a positive mark. In that interval, from 2 to 3 PM, he and his colleagues were maniacally buying stocks. Just to provide a stronger close.  

    It worked until it didn’t. They didn’t leave the stats.

    Superstition In the Stock Market No3: Sell on Rosh Hashanah and buy on Yom Kippur

    The superstition works like this: on Rosh Hashanah, which is the first day of Jewish New Year investors should sell some of their positions and buy them back on Yom Kippur. This year Rosh Hashanah began on the evening of Sunday, September 29 and ended on the evening of Tuesday, October 1. 

    Do you believe that this trade works? Well, yes. More often than not. But for Jewish. Maybe you should try to sell some of your positions on January 1 or on Christmas or on Islamic New Year. In 2020 it will begin in the evening of Wednesday, August 19 and ends in the evening of Thursday, August 20

    But I am not so sure, dates may vary. 

    Chinese new year will begin on Saturday, January 25, 2020. 

    Did you know that for one part of Orthodox the New Year actually begins on January, 14? Confused? It is just a calendar. But if it works for Jewish why it doesn’t work for others? There is no reason. The only thing to consider is, do you have to trade according to the Jewish calendar or you can use any.

    What I learned during my life is: about superstition and taste is worthless to argue. Take it or leave it.

    Superstition No 4: Super Bowl theory

    This theory goes that the Dow Jones will have a good year if a National Football Conference (NFC) team wins the Super Bowl. But if the American Football Conference (AFC) team wins it will end the year lower.

    For those with a lack of knowledge about American football, the American Football Conference (AFC) and National Football Conference (NFC) are parts of the National Football League (NFL). Honestly, European football is simpler. 

    From 1967 to 2003 this superstition showed it was accurate 68%.  Several years in a row AFC teams were winning the Super Bowl and that was a period of economic growth, but who cares?

    Let’s ask the stats.

    It was 1967 when one AFC team won the first Super Bowl. During the following period, AFC teams have won 11 times, if you check the stock market result you will be surprised. In 6 of those 11 years, the stock market was dropped. On the other side the stats aren’t so favorable, NFC won Super Bowl more than 30 times and Dow Jones didn’t advance in each of them.

    October Effect

    This one is a bit harder to rebut. 

    The October effect is a market anomaly. The stocks tend to decrease during October. Honestly, it is mainly a psychological effect rather than a real wonder. The stats show something different than this theory. 

    But…

    October has this reputation thanks to Panic in 1907, Black Monday, Black Tuesday and Black Thursday in 1929, and Black Monday in 1987.

    Black Monday, 1987 that happened on October 19. The Dow fall 22.6% in one day. It was possibly one of the most unlucky days for investors and the stock market. 

    Despite the scary title, this effect is not statistically exact. From a historical view, October has seen the end of bear markets more than it witnessed the beginnings. But, investors see this month as dangerous and they are selling, and that sentiment creates possibilities to buy on the other side. So, superstition or not, while one sees the end, the other will see the beginning.

    Bottom line

    Irrationality and superstition in investing will always cause lower returns. Traders, whether they admit it or not, are superstitious. Some will have a happy pen, the other lucky shirt or underwear (hard to believe), some will have some other talisman. Superstition in the stock market is broad spread.

    Luckily, many investors and traders are devoted to science, education, and knowledge. 

    As Stevie Wonder wrote: 

    When you believe in things
    That you don’t understand,
    Then you suffer,
    Superstition ain’t the way

    Happy trade!

  • Three Best Stocks to Buy In 2020

    Three Best Stocks to Buy In 2020

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

    By Guy Avtalyon

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

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

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

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

    Trading stocks based on news

    Walt Disney (NYSE:DIS)

     

    The market cap $268 billion
    Current price $148.46

    Three Best Stocks to Buy In 2020

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

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

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

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

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

     

    Fortinet, Inc. (FTNT)

     

    The market cap of $18.1 billion
    Current price $107.24

    Fortinet, Inc. (FTNT)

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

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

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

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

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

     

    AstraZeneca PLC (AZN)

     

    The market cap of $130 billion
    Current price $49.31

    Three Best Stocks to Buy In 2020

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

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

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

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

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

    Trading stocks right now

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

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

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

     

  • Tellurian Inc – Large Reward But With High Risk

    Tellurian Inc – Large Reward But With High Risk

    Tellurian Inc - Large Reward But With High RiskEven without a product and with big risk, this stock could generate a large reward.

    By Guy Avtalyon

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

    Tellurian stock is such potential. 

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

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

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

    On December 13, the stock traded at $6.57.

    Tellurian Inc - Large Reward But With High Risk

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

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

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

    Where is the risk with Tellurian Inc stock?

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

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

    Why buy this stock? 

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

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

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

     

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

    That’s the end of every good trade!

     

  • Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Came Out With Q2 Earnings For 2020
    Oracle is one of ten companies with the greatest cash in the US.
    Since its 2016 fiscal year, the company spent more than $75 billion on buyback shares

    Oracle Corp. issued a sales outlook for the current quarter. As we can see, it was exactly what analysts estimate. The company plans to increase its revenue by 1% to 3% in the fiscal third quarter which is in line with Wall Street estimation of a 2.3% rise. This software company outperformed expected earnings for its fiscal second quarter. Oracle reported a revenue rise of 0.4%. That is the 6th quarter in a row that the company had revenue growth under 5% in comparison to last year.
    During the conference call on Thursday, December 12, the company’s  Chief Executive Safra Catz said that revenue is expected to grow from 1% to 3%, but the problem was currency fluctuations.
    The stock price declined 3% in extended trading (after the release of the results) and traded at $56.47.

    Oracle Corp Announced Q2 Earnings For 2020

    The company previously reported sales increased less than 1% to $9.61, which is less than analysts’ projections of $9.65 billion. But the stock has increased by 25% this year while the S&P 500 SPX, has increased by 27%.
    This Oracle’s report was the first after Mark Hurd, the company’s top sales executive, died in October. Safra Catz stayed as sole CEO since Hurd was one of two chief executives.
    Oracle made some progress in cloud computing and storage, but it is still a leader in the field of enterprise database software. Oracle’s trump card is a new Autonomous Database that runs without human administrators. But the strong competition comes from Amazon.com Inc’s enterprise solutions. 

    The truth is that Oracle had unsteady sales growth in the past five years. Earlier, in September this year, Catz promised to investors that revenue would quicken in this fiscal year and next. Also, the earnings per share is supposed to grow by a double-digit percentage. The company announced in the same month a new AI-driven operating system and partnerships with Box Inc. and VMware Inc.
    But, cloud license sales declined 7.5% to $1.13 billion in the period, which means the company is getting fewer new deals. 

    The Oracle (ORCL) stock

    In the current quarter, Oracle Corp. predicted earnings of 95 to 97 cents per share. Analysts estimated 96 cents per share. 

    The analysts’ median target is $57.00 which will be a 0.94% increase from the current price of $56.47. A high estimate is $66.00 and a low estimate of $35.00. This stock has a strong HOLD recommendation.

    Traders Paradise app can help you to define your exit strategy for ORCL. Try and find the best strategy for your trade.

    The company’s ABOUT

    Oracle Corp is headquartered in Redwood City, CA. The company is a hardware and software behemoth, specialized in business software products. Oracle started in 1977 as Software Development Laboratories. 

    This software giant has a lot of borrowing and spending. The company has spent about $75 billion to buy back stock since its 2016 fiscal year. Also, it spent $41 billion in the last five quarters. That’s a lot of money for the company with $19 billion in free cash flow. The buying back shares has pushed the company into a net debt of $35.7 billion in cash.

    According to FactSet Research, Oracle is among ten companies with the greatest cash in the US. But its net cash is negative $17 billion. Since 2016, it is about $32 billion declines and the company took a lot of cheap debt to finance buying back shares. That’s probably the reason why the stock rose by only 35%.

    More problems for Oracle Corp.

    Maybe the biggest problem for Oracle is its hesitation to react to the increase of cloud computing. Oracle’s main rivals Salesforce, Workday, Amazon, and Microsoft, are taking market share from Oracle.

    The dynamic buybacks may arise from the fact that co-founder Larry Ellison himself owns 35% of Oracle’s shares, according to a statement filed in September with the SEC. Also, the reason could be some M&A activity. All companies would like to have more cash and less debt, that’s not in question. Microsoft,  Apple, or Berkshire Hathaway, have over $100 billion of cash, for example.
    Oracle has $35.70B.

  • The Dilemmas About Aramco Investing Are Showing Up

    The Dilemmas About Aramco Investing Are Showing Up

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

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

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

    The end of the fairy tale?

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

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

    Must be somewhere. 

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

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

    Why the dilemmas about Aramco investing arise?

    For several reasons.

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

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

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

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

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

     

    Bottom line

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

  • Get Into Cannabis Investment

    Get Into Cannabis Investment

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

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

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

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

    Expect Big Profits

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

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

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

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

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

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

     

    Get Into Cannabis Investment

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

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

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

     

    Bottom line

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

     

  • Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News

    Forty Seven Inc. Increased On A Good News
    Forty Seven Inc. announced preclinical proof-of-concept data for its novel all antibody conditioning regimen. This announcement caused the stock price climbing.

    Until Monday, December 9, Forty Seven Inc. (FTSV) shares were traded at $14,44. Two days ago, its price per share rose at $30.43. On Tuesday, December 10, the stock price increased for an additional 13% or $4.22 and traded at $34.65.

    Forty Seven Inc. Increased On A Good News

    What happened?

    The stock price rose upon the news. It was a response to new data from the Phase 1b clinical trial of magrolimab, in combination with Celgene’s Vidaza, in treating patients with MDS and AML patients to whom induction chemo isn’t suitable. The new results were shown at ASH in Orlando.
    FTSV scored 110.73% gain, meaning the investors found a great opportunity here.

    You might be interested: Why Biotech Stocks Are A Good Investment

    Guggenheim equity researchers improved the status of Forty Seven, shares to a “buy” rating in the report from November 20th, 2019. Mizuho also was rating FTSV as “Buy”. Same as ROTH Capital.
    Since Forty Seven Inc. announced preclinical data for its new all antibody conditioning regimen, the stock price has skyrocketed. 

    Forty Seven Inc. What To Watch

    The current dividend yield for FTSV is zero, this means the investors will get the return investors no matter how the company’s performance will be in the future period. Furthermore, the company increased sales from quarter to the quarter which was the sign of progress. Forty Seven Inc. belongs to the healthcare sector and biotechs industry. Its market capitalization is $1.26B.
    Its EPS was $-2.78 and outstanding shares were 41.40M. The shareholders have to look a bit deeper. The company has recorded a weekly performance of 134.98%. The monthly performance is at 268.85%.

    FTSV is currently showing an average of 217.78K in volumes. The volatility of the stock per month is at 14.09%, and the per week volatility levels are recorded at 28.84% with 134.98% of gain in the last week.

    The analysts’ estimation for Forty Seven Inc is a median target of $37.50, with a high of $45.00 and a low of $20.00. This median estimate shows a +8.21% increase from the current price of 34.66. The price target established for the stock is $19.36, an awesome set of a potential movement for the stock.

    Don’t miss this: Axsome Therapeutics (AXSM) Is A Good Investment

    The company’s ABOUT

    Forty Seven Inc. is a clinical-stage immuno-oncology company. It is developing treatments that target cancer immune evasion pathways. The technology for that is licensed from Stanford University.

    The company’s main program, magrolimab, is a monoclonal antibody against the CD47 receptor. This antibody is being estimated in various clinical studies in patients with myelodysplastic syndrome, ovarian cancer, non-Hodgkin’s lymphoma, acute myeloid leukemia, and colorectal carcinoma.

    The company is dedicated to developing a defense against cancer. They strongly believe that CD47-SIRP-alpha is a novel immune pathway. This approach in anti-cancer therapy means patients can fight cancer with their immune cells. Its new class of immunotherapies gives a new pathway to patients living with cancer and may have no other option. This discovery came from Irv Weissman and his colleagues at Stanford University who identified CD47-SIRP-alpha.

    The company is established in 2015.