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  • 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.

  • O2Micro International Limited – Penny Stock To Buy

    O2Micro International Limited – Penny Stock To Buy

    O2Micro International Limited - Penny Stock To BuyO2Micro International Limited increased the Q4 2019 revenue forecast to be at a $17 million range.
    This stock is a good short-term opportunity

    By Guy Avtalyon

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

     

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

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

    O2Micro International Limited financial highlights for the third quarter 

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

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

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

    The future of OIIM stock price

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

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

    Bottom line

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

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

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

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

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

     

  • Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF Shares (VHT)

    Vanguard Health Care Index Fund ETF
    Healthcare ETF is good for investors with less risk tolerance
    Vanguard Health Care Index Fund ETF is one of the largest in the stock market

    Vanguard Health Care Index Fund ETF is focused on stocks in the U.S. health care sector. It is managed by Vanguard and is covering health care stocks in the U.S. stock market. It is a big fund that holds shares of 388 companies. The Fund owns shares of Pfizer Inc, Merck & Co, AbbVie Inc., Johnson & Johnson, UnitedHealth Group Inc., and Abbott Labs. Its 10 top holdings account for almost 45% of the portfolio. But the fund has an extremely good diversified portfolio. It has holdings in pharmaceuticals, biotechnology, health care equipment, health care, supplies, facilities, services, technology, distributors, and life sciences tools and services.

    Healthcare stocks are hot

    Everyone needs health care and everywhere. But the main source comes from boomers. We have nothing against them, but the truth is that as people are aging, they need more health care. Correlated with this is the increased demand for medical products. But this isn’t the whole truth. 

    Also, there is great progress in new technologies that are likely to create great growth for companies in this industry. 

    For example, pharmaceuticals. You can see drugmakers that are developing new procedures, new methods, and drugs. Today we have personalized therapy, based on personal genetic data for each patient individually. This is especially important for cancer treatment, for example.

    Today, biotechs and pharmaceutical companies are practicing gene editing as the treatment for rare genetic diseases.

    The healthcare field is huge and connected. For instance, for early diagnosis of cancer, the liquid biopsy is very popular today and accurate. But someone had to develop it. The same is with AIs and robotics, medical device companies are developing new types of high-tech equipment. So many companies are involved to improve healthcare services. Look at the telehealth, it is adopted broadly. We have robots as surgeons. Monitoring patients with chronic diseases out of hospitals is easier than ever.  

    These products are not aimed at older populations only. Also, we have great progress in aesthetics, skincare, body care, hygiene, etc. 

    Can you see now why healthcare is a hot zone of interest for investors?

    Vanguard Health Care Index Fund ETF Shares 

    Vanguard discovered the ETFs. 

    It tracks the performance of the MSCI U.S. Investable Market Index (IMI)/Health Care 25/50.  

    This ETF has delivered an average annual return of 9.47% since it started in 2004. It has generated average annual returns of 9.78% over the last three years and 9.2% over the last five years.

    The Fund’s dividend yield is of 2,1%, the expense ratio 0.10% which is one of the lowest among ETFs.

    Vanguard Health Care Index Fund ETF

    Vanguard Health Care gives wide exposure. VHT stock is cheap to hold. Its liquidity is strong. The problem is the same as with other Vanguard funds. It is restricted transparency since the holdings are published monthly with 2 weeks delay.

    Still, for the long- term investors a reduction of transparency shouldn’t so much important. VHT fell by -0.13% on Thursday, December 5, but rose for 0,69% on Friday, December 6. The current price is $187.93, $1.29 more than the previous one. Daily fluctuation of stock was 0.79%, a day high was $188.50, a day low was $187.02.

    During the last 2 weeks, the stock price was shifting up and down but still, the 2-weeks gain was 2.78%.
    Since the volume has increased by 47 673 shares on falling prices, you should take this as an early sign of increasing risk in the next several days. Anyway, the price is dropping so it is time to buy it.

    According to analysts, the stock is in the upper line of a rising trend in the short term. This can be a very good selling chance for the short-term traders because the move towards the lower band of the trend can be expected.
    If the price breaks up the top trend line at $188.45 it is expected to increase by 11.09% in the next 3 months with a price between $195 and $210 at the end of this period.

    Bottom line

    Investing in a healthcare ETF decreases the risks for investors thanks to a diversified portfolio across various stocks.
    Moreover, ETFs can modify their holdings when it is necessary. Also, healthcare ETFs can resist during economic downturns because we will all need medical care no matter if it a crisis or not. But keep in mind, ETFs can drop during the crisis or recession too. They are not immune. But as the lesson from 2008, when some ETFs dropped by two-digit percentages, they had been rising again and did it fast.
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    Featured image credit: *Total Shape*

  • Revance Therapeutics – A Wrinkle-Causing Year

    Revance Therapeutics – A Wrinkle-Causing Year

    Revance Therapeutics - A Wrinkle-Causing YearThe company is a biotech pioneer establishing a new category of long-lasting neuromodulators.
    The Revance Therapeutics stock can be a good addition to the investment portfolio 

    by Guy Avtalyon

    Wednesday was a rough day for shares of Revance Therapeutics (NASDAQ: RVNC). Investors were surprised by lowered the biotech stock for 16.4%  on Wednesday and traded at $16.61.

    Only a few days ago, or the day before, the shares had been rising. But the company submitted an application to the FDA for DAXI in November. On Monday, shares rose over $20 per share until the end of Tuesday’s session. On Wednesday it was announced $17 per share. 

     

    What happened with DAXI?

    For a long time, DAXI is a neurotoxin, but better than Botox, a global favorite. Revance Therapeutics has proof that it works better. Botox sales have risen to $2.7 billion per year and the producer AbbVie has a lot of reasons to be satisfied. 

    But let’s go back to Revance

    FDA’s evaluation of DAXI could take months and we still don’t know if and when it will start. Revance Therapeutics’ partner Mylan announced the possibility to fund late-stage development of DAXI until April 30, 2020. What if FDA doesn’t start its review until then? You see, despite a published good result of DAXI and great expectations for selling it, one paper can disappoint investors. Yes, it is an important paper and a lot of things depend on it. For example, the future of Revance Therapeutics and its partnership with Mylan.

    If Mylan supports DAXI and gives Revance a two-digit percentage on sales, it could deliver a great return. 

    On an investment of $10.000 in less than 2 months, you may have a nice return of $1.047 if you set your stop-loss at 19,25% level from the current price and take-profit at 40,25% level. But once again check yourself.

    Revance Therapeutics had the problematic announcement 

    Revance Therapeutics, Inc. is a biotech company. It develops next-generation neurotoxins for treating aesthetic and therapeutic conditions. On December 4, it announced the pricing of an underwritten public offering of 6,500,000 shares of its common stock at a price of $17.00 per share. 

    Revance has allowed the underwriters a 30-day option to buy up to 975.000 additional shares. The gross incomes from the offering are expected to be approximately $110.5 million. The offering is supposed to close about December 6, 2019. Revance Therapeutics plans to use this net profit of common stock to proceed to fund the commercialization of DAXI. The additional income will spend mostly on research and development.

    Revance Therapeutics

    Revance is fusing new science with the entrepreneurial vision of Silicon Valley. It is a modern biotech company with an innovative approach to aesthetic and therapeutic treatments.

    The company stated on its website:
    “Our lead investigational product, DaxibotulinumtoxinA for Injection (DAXI), combines a proprietary stabilizing peptide excipient with a highly purified botulinum toxin that does not contain human or animal-based components.”

    It has been completed a Phase 3 program for DAXI in grimace lines. It showed fantastic efficiency and duration, and the company is seeking FDA approval.
    The company is focused on developing products and treatments in dermatology and aesthetics. Its products are RT001, botulinum toxin type A (BoNT-A) for cosmetic and dermatologic treatments. The previous name of the company was Essentia Biosystems, Inc. Under the name Revance Therapeutics, Inc. it is founded in 2002 with headquarters in Mountain View, California.

    As Traders Paradise can conclude the stock price of Revance Therapeutics can easily hit at least $18 in the next 10 days.

    At the moment of writing this article, it is December 05, Thursday, the current price of RVNC stock is $16.840 which is a bit more than yesterday. This stock had a declining tendency for the past 12 months. Biotech stocks are really tricky. But Traders Paradise thinks the stock price could rise significantly in the next 2 months. Over the one year, the price could be almost doubled. Hence, this is a strong BUY stock.

  • Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment
    The biotech companies have strong earnings growth
    The Nasdaq Biotech Index (NBI) has slightly outpaced the S&P 500 over the past 12 months.

    Biotech stocks are the most impressive, exciting and, at the same time, one of the trickiest assets of the stock market. Biotech firms use technological methods based on science to produce products. The majority of biotech companies are focused on clinical research and the development of new medicines. 

    But the whole industry has a lot of different purposes, the drugs are just a part of that. You can find biotech stocks on genetic experimentation, food modifications, health care, almost everywhere. One thing is common for every single producer: they have to go through a harsh, expensive and intensive experimental process before getting approval for the market.

    The biotech companies have strong earnings growth 

     Discovering the best biotech firms to invest in can be difficult. Laboratory ideas don’t always come to success and frequently biotech stocks are subject to strict regulations and rules.

    What you have to keep in mind is earnings growth. Biotech stocks are giving exactly that. If you are looking for great rewards, the biotech stocks are for you. One thing is important to be noticed here: these stocks carry a big risk too.

    Biotech stocks have great potential

    Well, there is an explanation of why that is. Every company needs time to develop its business, operations, presence in the market. Biotech companies frequently depend on the success of several trials of their products. During that phase, its stock isn’t expensive. Contrary, it can be very cheap. When the company gets approval for a drug or some positive news about testing comes, the stock price can skyrocket. Refusals or bans, though, can cause a disaster. So, for normal investors, it can be difficult to gauge how the testing of some drugs or anything from the field of the biotech industry will end. Well, here is one suggestion. Stay tuned on what the analysts who are well informed in the biotech industry are saying. If you see a stock that is frequently surrounded by bulls, it is a sign that something worth is nearby. 

    Recognize your biotech stock better than anyone

    We will show one example of how to do so.

    Axsome Therapeutics is developing new drugs for the treatment of CNS disorders. Yes, it is clinical-testing stage and biotech stocks can be uncertain for investors. But this stock is remarkably fit for any investor with an aggressive approach to investment.

    AXSM stock has increased over 1.200% in this year. The investors are excited about the upcoming clinical study results. Axsome Therapeutics is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD. The company is expecting results from another study, a drug for treating treatment-resistant depression, by the end of the first quarter in 2020. Also, the company expects positive results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020. And stock market analysts are predicting a huge revenue for the company and the shareholders. So, the hint that some biotech stock is a good investment is coming from the news.

    How to pick the best biotech stocks

    Over the past year, the Nasdaq Biotech Index (NBI) has kept up with the market.
    This year has been a hard ride for everyone. But the biotech sector, with its large firms, is definitely catching its pace. The index is rising. We were witnesses of interesting mergers during the past several years that starting to be profitable. Some new technologies are starting to gain excellent results which boosts hope for many patients. The cost of their tests is enormous, it is around $2 billion approximately. Also, it takes almost 10 years until some drug gets permission for distribution and human usage.
    It sounds like a lot of responsibility. Moreover, producers need to form a strong base for future growth.

    If you are focused on biotech stocks you should find biotech companies that are driving cutting-edge therapies. The brands that are well-positioned provide big premiums.

    Traders-Paradise recently wrote about one of them, but stay tuned, there will be more.

  • Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good InvestmentAxsome Therapeutics gained 1.70% in the last trading day ( Friday, Nov 29), increasing from $38.71 to $ 39.37. Will the company be able to continue growing?

    By Guy Avtalyon

    Axsome Therapeutics is developing innovative therapies for the treatment of CNS disorders. Yes, clinical-stage biotech stocks can be a risky suggestion for investors. Well, at the same time this stock is extremely suitable for any dynamic investors. If you prefer an aggressive approach to your investment this stock deserves your attention.

    Axsome Therapeutics (AXSM) has jumped over 1.200% in this year. The investors are awaiting the biotech’s upcoming clinical study results excited. Well, the company is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD to the end of the year. The company is awaiting results from another study, a drug for treating treatment-resistant depression and it will be published to the end of the first quarter in 2020. Also, Axsome Therapeutics expects to present excellent results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020. 

    To the end of this year, the company is expected to present the results from a late-stage study of AXS-07 in treating migraine and of AXS-12 in treating narcolepsy. Analysts estimate AXS-05 could obtain annual sales of more than $1 billion when approved. 

    The main problem is that Axsome Therapeutics’ results could be failed like it is with so many drugs.
    But if they get a good result this stock will be high rocketed. 

    The current price is $39.37 (Nov 29). This small-cap stock in the S&P 500 had the greatest total return over the past 12 months. It is 959.6%

     

    Why invest in Axsome Therapeutics

    Axsome Therapeutics, Inc can be a profitable investment option for investors wanting good returns. Axsome Therapeutics, Inc quote is $39.370 on December 2. This stock can provide more than 300% of revenue after 5 years since it is expected the price to rise to $160 in the next year.

    Axsome Therapeutics has a median target of $46.50, where a high estimate of $53.00 and a low estimate of $25.00. The median estimate represents a +18.11% jump from the current price. The investment analysts’ suggestion is to buy this stock. 

    Axsome Therapeutics ABOUT

    The company’s market cap is $1.36B. Axsome Therapeutics reported Q3 2019 financial results on Nov 7, 2019.

    Axsome Therapeutics is a clinical-stage biopharmaceutical company that develops innovative treatments for CNS disorders, especially for those with limited treatment possibilities. Axsome’s center CNS product portfolio covers four clinical-stage products, AXS-05, AXS-07, AXS-09, and AXS-12. AXS-05 is in a phase 3 test in treatment-resistant depression, the same as MDD, and a Phase 2/3 trial in difficulties connected with Alzheimer’s disease. AXS-05 is also being developed for smoking end therapy. AXS-07 is in two Phase 3 trials for the treatment of migraine. AXS-12 is in a Phase 2 trial in narcolepsy.

    AXS-05, AXS-07, AXS-09, and AXS-12 are drug products not approved by the FDA. For more specific information, you have to visit the company’s website. The Company may occasionally disseminate material, nonpublic information on the company website.

    Is AXSM a good investment?

    This company’s liquidity data is interesting: its Quick Ratio is 1.41 and its Current Ratio is 1.41. This shows a good ratio between its short-term liquid assets and its short-term liabilities. So we can easily conclude it is a less risky investment. This stock’s RSI score is at 50.78, which means that the stock is not oversold or overbought.
    The important clinical wins could place this company on the route to produce greater gains. Hence, we think it is a good investment.

     

  • Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Eagerly Awaits Black Friday and Cyber Monday

    Walmart Expects Black Friday and Cyber Monday To Come
    Walmart is one of the biggest companies in the world and capable to resist the competition.
    The stock price dropped but it easily can go up very soon

    Walmart (NYSE:WMT) is transforming and this retailer is ready for Black Friday and Cyber Monday. Everything is in place, so shopping can start. These two holidays are a great test for Christmas. After Black Friday and Cyber Monday, the possibility for Walmart’s stock price to rise is real and even before Christmas. The current price is $118.92 and it dropped by 0.37% from the previous price. But the price rose after hours to &118.95.

    Walmart Expects Black Friday and Cyber Monday To Come

    What makes us think shopping will increase?

    First of all, the unemployment rate is lower than in the last 50 years, job growth is stable, salaries are rising. The St. Louis Fed published that the personal savings rate is at 8.3% which is the highest level since 2012. So, Americans will spend their money on holidays, there is no doubt. 

    The holidays are great for retailers and Walmart plays a big role since it has been transforming and has been aggressively investing in online. Three years ago Walmart bought Jet.com, a US online retailer and took a large stake in the JD.com, online retailer in China.

    Walmart grew its annual profit forecast because quarterly earnings beat estimates. Its shares have risen 26% and trade at 24 times earnings. 

    Well, when it comes to food, Walmart is ready. The grocery is very important for the company’s online business. Walmart customers can purchase groceries online, with unlimited delivery for $98 a year or $12.95 a month.
    E-commerce is a field where  Walmart can get this holiday season since online shopping is supposed to grow by 14% to 18% gaining $149 billion.

    But Walmart has already made profits. Walmart reported third-quarter e-commerce sales rose 41%, driven by growth in online grocery shopping. But Thanksgiving falls on Nov. 28 and the holiday shopping season is shorter by six days. This gives the company less opportunity for sales. 

     

    As always there is Amazon, Walmart’s rival. To beat the competition, Amazon announced some beneficial for its Prime members. Not for all, but still the grocery delivery will be free of charge.
    Management at Walmart announced the lower prices from electronics to playthings. Walmart, also, has shown that it can balance the other features of its businesses despite the Trade war.

    Walmart started offering holiday sales almost a week before Halloween this year. Well, the company called it Early Drop Deals, not Black Friday sales. The company opened its doors for the customers and made their Black Friday purchasing available earlier. Making this, the company actually spread Black Friday’s shopping over more days. 

     

    Walmart stock price and its future

    Walmart’s stock price dropped by 0.37% on  Monday, November 25. Now it has 3 days of dropping in a row. This could be an early signal the risk will be raised somewhat for the next few days and the stock price may slightly drop further. 

    Walmart is currently in the lower frame of a small and weak rising trend in the short term. This is usually a signal for a good buying opportunity. This short-term trend shows the stock is likely to rise by around 5% in the next 3 months and stay between $124 and $128.

    But Walmart stock is a good long-term investment since, as Traders Paradise can see, this stock is going to be profitable over a long period offering the revenue of almost 65%. Speaking about 5-years investment, for example, if you invest $1.000 right now your investment may grow to $1.600 at the end of that period. 

     

    Company’s ABOUT

    Walmart is one of the most profitable retailers in history. It is one of the most successful and well-known companies in the world.
    The company was founded in 1962 by Sam Walton, in Rogers, Arkansas with one store. To the end of 1968, the Walmart chain was expanded outside Arkansas and later opened the stores in every US state. In 1995, Walmart opened its first stores in Canada.
    From 1990, Walmart is the largest retailer in the U.S. and began to expand abroad, opening a store in Mexico and opened stores in the U.K., Germany, China.
    By 1999, Walmart wasn’t only the biggest private employer in the U.S. but in the whole world. Today it is the 29th company in the world, as Amazon, Alphabet, Microsoft or Apple with a host of Chinese companies, have passed Walmart by.
    By the second decade of this century, the chain had increased to over 11,000 stores in 28 countries.