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  • 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.
    For trading stocks use our FREE Trading Exit Strategy, to calculate and optimize the numberless exit strategies, an app that you have for the first time in history.

    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.

  • 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.

     

  • The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming

    The Kraft Heinz Company Is Bottoming
    The packaged-food giant reached rock bottom and positive signs are unfortunately weak. They are not enough to warrant a buy right now.

    The Kraft Heinz Company (NASDAQ: KHC) reported third-quarter 2019 financial results on October 31. The company reported lower net sales and higher input costs. So, the third quarter performances for this company were a lot below their potential but still, the company showed growth in comparison to the first six months this year.

    Kraft Heinz CEO Miguel Patricio said: “We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction. Although there is still much work ahead, we’re encouraged by our improving performance, and are even more confident in our ability to turn around the Company and set a path of long term growth and profitability.”

    The Kraft Heinz Company results

    Net sales were $6.1 billion, and it was 4.8% below than it was in the same period last year.
    Net income increased to $899 million and diluted EPS increased to $0.74. Adjusted EBITDA declined 7.8% to $1.5 billion. The drop was caused by the drop in the United States and Canada, but there are higher overall corporate expenses also.
    The Board of Directors of the Kraft Heinz Company announced a quarterly dividend of $0.40 per share of common stock. It will be payable on December 13, 2019.
    The KHC stock was traded at $30.54 on Friday, November 22, which is an increase of 0.99%.

    The Kraft Heinz Company Is Bottoming

    Should you buy the Kraft Heinz Company stock?

    The analysts offering 12-month price predictions for Kraft Heinz Co have a median target of $32.00. Their high valuation is at $38.00 and a low at $23.00. The median shows a 4.78% rise from the current price.

    The recommendation is to hold stock in Kraft Heinz Co. 

    But the other group of analysts is pretty much sure that the Kraft Heinz stock couldn’t have good returns. That’s the reason why they claim that this stock is a bad and high-risk long-term investment. Today’s quote (Nov 25) for Kraft Heinz is $30.53 which is lower than on Friday. 

     

    Traders-Paradise opinion

    Having the current price of KHC stock in our mind and with the knowledge that the stock price had a downtrend for the past 1 year, we in Traders-Paradise are not sure is this stock is good as a long-term investment. We are close to thinking that this stock could easily drop significantly in the future hitting a decline of over 100% and to end up worthless. So, we suggest staying away from this stock if you are seeking a new addition to your investment portfolio. This is important especially if you are a new player on the market and don’t have enough experience. 

    This stock is trading in bear markets, which is harder for new traders.

    But if your plan is to buy and hold Kraft Heinz stock for a short time, for example, the next 10 days or two weeks, it can be a good choice. As we can see, the stock price could hit around $35 in the next several days.

     

    Bottom line

    The price line shows the possibility of zigzag running to the end of this year. After the end of this year, we are afraid that this stock will gain further declines.

    Our opinion comes from the suspicion that the company is not able to answer the challenges of predicting consumer demands. In its latest report, we couldn’t find that the company is ready to offer new products or to react to rivals’ improvements.
    The Kraft Heinz Company survives 150 years of challenging and produced some of the products well-known over the world. Yes, it is one of the largest global food companies, but the new era is already here and the company has to catch the moment.
    The point is that General Mills or Nestle are better choices in our opinion.
    We can recognize some possible upward movements, but they are weak and don’t provide enough reasons to buy this stock now.

     

  • The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market

    The Top Winners And Top Losers In The Market
    Good and bad news may have a great influence on the stock price
    These two stocks show both sides, winning and losing on the market

    Top winners and top losers last week in the stock market is easy to find but what lies behind sometimes looks like a tricky part.
    For example, EyeGate Pharmaceuticals, Inc. (EYEG) is one of the winners last week. But what did make it become a winner? 

    The news about the high quality of its ocular bandage gel eye drops is able to provoke investors’ sentiment and confidence in the company. What did that news show us? The company is investing in research and development and improve its products. 

    And shares rose by more than 90%.

    The news that the company’s innovative eye-drop bandage worked better than the usual kinds of care. Its bandage contact lens, for the patients in need of corneal wound repair, is better than the others. EyeGate intends to submit a new application to the Food and Drug Administration in the first half of 2020.
    EyeGate CEO Stephen From said: “If approved, it will be the first product indicated to repair corneal defects, as well as the first prescription hyaluronic acid eye drops in the U.S.,” stated in a release. The company is expecting additional data this week. 

    And what happened? 

    The stock price jumped on good news.EyeGate shares rose on data for eye treatment data.

    The Top Winners And Top Losers In The Market

    Top winners and top losers last week are always the subject of investors’ attention. Yes, the stock price may jump on bad news too as well to drop on a good. Traders-Paradise wrote about it already.

     

    Let’s go a bit deeper in top losers. One of them is Pure Storage, Inc. (PSTG).

    Pure Storage (PSTG) stock dropped Friday after the company reported Q3 results on Thursday. The results missed Wall Street estimates. Pure Storage is a provider of data system technology. On Thursday last week, they reported an adjusted profit of 13 cents/share but Wall Street expected a profit of 9 cents. That was good but revenue of $428.4 million missed the estimation of $440 million. The company’s revenue was $11.4 million below estimation.

    The stock price dropped despite the fact that the company’s revenue grew 15% in comparison to the same period last year. The problem arose due to the fact that it was the slowest growth over 4 years.

    Pure Storage stock dropped 15.1%, closing at $16.86 on Friday.

    Top gainers often continue to rise and reach new highs with strong fundamentals. When a stock continues reaching new highs it’s essential to pay attention since there might be a retracement.

    Bottom line

    What Traders-Paradise thinks about those two stocks, the top winners and top losers?

    News reports about EYEG stock have been trending positive lately. That may easily cause optimism among investors and hence, the good news is likely to affect the stock price rising in the near future. So, this stock has a BUY signal. 

    EyeGate Pharmaceuticals, Inc stock is a good long-term investment. If you are seeking stocks with stable returns, this one can be a beneficial investment choice. EyeGate Pharmaceuticals, Inc was traded at $7.090 last Friday. We are expecting a further increase in the next years. This stock may reach $14 in the next 4 years. If you invest $1.000 today you may have $2.000 at the end of that period since the revenue is expected to be about 100%.
    This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 26.89 million shares bought and sold for approximately $453.37 million.

    On the other hand, Pure Storage, Inc stock can be a bad long-term investment and high-risk investment option.
    Pure Storage, Inc was traded at $16.860 on Friday last week. It dropped from $19.85 and that marked a fall of 3 days in a row. Volume has grown in the last day by 21.42 million shares but on dropping prices. The Traders-Paradise opinion is the stock will continue to fall in the days ahead and your investment may be decreased in the future. 

     

  • Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits

    Crocs Clogs Of Two Digits
    Crocs have sold more than 300 million pairs of shoes in more than 90 countries.
    Crocs is traded on the NASDAQ stock market under the ticker symbol CROX. Market Cap:  $2.44 B Current Price: $35.51

    Crocs reported Q3 on October, 30. The company reported revenues of $313 million, which represents the new third-quarter record for Crocs or an increase of 20% – 21%. It also reported reducing revenues due to currencies of $3.0 million and reduced revenues of $4.0 million due to closing stores. But the wholesale revenues increased by 25.4%, e-commerce sales rose 28.2%, and retail comparable store sales increased by 12.5%. Gross margin was 52.4%, in the same period last year it was 53.3%. Adjusted gross margin increased 30 basis points compared to last year’s third quarter. 

    Crocs had, according to the Q3 report, adjusted earnings per share of 57 cents. The experts’ estimation was 40 cents. The company’s shares were up more than 10% to nearly $37 after reporting. The current price is $35.51. CEO Andrew Rees said, “Our Americas business delivered exceptional growth, driven in part by another highly successful back-to-school season.”
    The great results produced a tendency for Crocs to boost its full-year guidance to 11%–12% revenue growth over 2018.

     

    “The Crocs brand momentum continues to gain pace, and for 2020 we anticipate revenue growth over 2019 of 12% to 14%,” said Rees.

    Crocs have closed more than 150 stores over the past several years. The competition was very strong. It has also focused its works on its Classic clog, profiting from the shift toward more casual and comfortable footwear. 

    Is Crocs a good investment?

    The investors should be enthusiastic about the Crocs (NASDAQ: CROX).
    Crocs is in the center of a strong increasing trend in the short term. The stock is assumed to increase 54.16% in the next 3 months and, so the price to climb between $52.32 and $62.85, expect experts. Moreover, they are seeing only positive signals for this company and strong buy signals from the short and long-term moving averages.
    A general buy signal is supported by the relationship of those two, the short-term average is above the long-term average.

    Where the problem may arise?

    The support level is between $35.42 and $32.45. If the price falls under these levels it will be a sell signal. For now, it is a strong buy signal and an indication of additional gains. The consideration may occur because the volume fell on November, 12 notwithstanding growing prices. This shows a divergence between volume and price and it may be an unexpected warning. 

    But some experts see a great potential of holding this stock in the long run. Their estimations show a possible fantastic 152% profit in 18 months. The investment analysts think the Crocs stock is good to buy. 

    Important info about Crocs

    Crocs, Inc. is a worldwide recognized as a leading producer of casual footwear with a broad portfolio of all-season colorful pairs of shoes. Crocs were first exposed at the 2002 Fort Lauderdale Boat Show.

    Famous clogs were originally developed as boat shoes produced by a Canadian Company, Foam Creations, Inc. The new shoes were molded into the shape of a human foot. Just a few years later they have become practical footwear in households and professions. The ugly trend overflowed the world. You cannot love Crocs because of its aesthetics. These ugly clogs made a trap for the brand. The producer claimed that only one pair will last a lifetime. The fashion industry surviving thanks to many and frequent shifts and this kind of thinking was so far from the industry. But that has never slowed Crocs down. The slippers wipe-clean and non-slip build sent them straight to kitchens, hospitals, everywhere the workers have to stay on their feet for a long time. 

    It went public in 2006

    The company had already adopted Crocs, Inc. In its presentation to investors, the company announced plans that requested for new footwear models, developed distribution in the US and over the world. 

    As investors’ interest in Crocs expanded, the company was able to increase its asking price and the number of shares on the market. Firstly, the plan was to sell 9.9 million shares at $13 to $15 per share. Crocs managed to add a bit more than a million shares and hit its asking price to the $19 to $20 range. Investors liked the company since the Crocs had extraordinary growth and a product that had a global appeal.

    Today nothing has changed. Crocs is one of the most popular producers of slippers. But that isn’t the only product they have: clogs, boots, other kinds of footwear, but with a common characteristic: comfortable, long-last, colorful and funny.
    The stock should be watched closely, it can produce a great profit.

     

  • Fiat Chrysler and Peugeot Merger

    Fiat Chrysler and Peugeot Merger

    Fiat Chrysler and Peugeot Merger

    Fiat Chrysler Automobiles will merge with PSA Groupe, owner of Peugeot automobiles

    Fiat Chrysler (FCA) and Groupe PSA (Peugeot is the largest PSA brand), have agreed to continue a merger. That would form the fourth-largest carmaker in the world. Their boards are working together on a new relationship. The Wall Street Journal reported the companies are moving forward with a merger. Both companies confirmed this news.

    The merger will give shareholders of each group equal ownership in the new entity.

    On Thursday morning both companies stated that their boards have a mandate to finalize the negotiations in the next few weeks, which means FCA will not tie-up with Renault as was thought this summer.

    The merger would create a company with revenues of €170bn, with an operating profit of over €11bn and vehicle sales of 8.7m. That would lead them ahead of General Motors and Hyundai-Kia in sales. The new potential entity would have a market value of between €45-50bn.

    The model of the merger is a 50-50 all-stock.

    PSA is listed on the Euronext Paris stock exchange.

     Fiat Chrysler and Peugeot Merger

    Since 2014, FCA is officially listed on the NYSE.

     

    After the Fiat Chrysler and Peugeot Merger 

    When the two companies do a merger, PSA chief executive Carlos Tavares is assumed to lead that new group while John Elkann, Fiat Chrysler’s chairman will hold the same position at the new entity.
    Despite this speed, a final agreement of merger needs time and regulatory scrutiny.

    According to Reuters, a merger between FCA and PSA could build a “$50-billion giant better placed to tackle a host of costly technological and regulatory challenges facing the global auto industry.” Details were not published, but some aspects have known.

    For example, the Journal published that the new company would be “legally domiciled in the Netherlands,” with “operational headquarters in the U.S., France, and Italy.”
    Further details and any influence on employment are not yet transparent. The known fact is that FCA has plans to add nearly 5,000 jobs to the Detroit factory to build SUVs. So, the obvious conclusion is that a merger would eventually help FCA in Detroit.

    It isn’t a secret that the Peugeot Group has plans to re-enter the U.S. market. The merger with FCA would provide it through the Chrysler/Dodge/Jeep/Ram dealer network.
    To adjust the value of the two companies, the PSA shareholders should get about a €3bn dividend from the sale of the 46% stake in parts carmaker Faurecia.
    FCA shareholders will receive a €5.5bn ($6.12 billion) cash payout and incomes from the sale of its robot-making Comau unit, estimated at between €200m to €300m.

    New headquarters

    The new group will be based in the Netherlands, a neutral location, where FCA is domiciled and listed in Paris, Milan and New York. The Financial Times reported the FCA will “continue to maintain a significant presence in the current operating head-office locations in France, Italy and the US.”

    Around €3.7bn in predicted annual run-rate synergies are targeted, 80% during the first 4 years. The total one-time cost of achieving the synergies is estimated at €2.8bn, the two companies revealed in the statement.

    Bottom line

    Carmakers are facing large investments in electric cars. That is the reason behind the merge. Costs. This merger would create one of the biggest carmakers groups in the world with well-known brands Citroen, Jeep, Opel, Alfa Romeo, Peugeot, and Vauxhall. This has the potential to be a true rival to Volkswagen, Toyota and the Renault-Nissan Alliance.

    The merger of those two companies looks as wise given the global competition, capital power, and industry complexity from autonomous technologies.

    This could create a global automotive leader.

  • UGAZ And DGAZ Stocks – How To Trade Them

    UGAZ And DGAZ Stocks – How To Trade Them

    (Updated October 2021)

    UGAZ And DGAZ Stocks

    UGAZ and DGAZ are ETNs tracking natural gas prices.
    Energy exchange-traded products (ETPs) might be a good trading opportunity as much as energy ETFs.

    UGAZ and DGAZ stock closely watch the US Natural Gas Fund (UNG) and UNG tracks the price movements in natural gas. 

    Let’s make a distinction between those two.

    The main purpose of UGAZ (VelocityShares 3x Long Natural Gas) is to increase the daily performance of UNG by three times. That’s 300%. To make this clear, if UNG price grows 1%, UGAZ will display a daily increase of 3%. The best time to trade UGAZ is when you have a bullish sentiment on UNG.

    The main aim of DGAZ (VelocityShares 3x Inverse Natural Gas) is to generate profits from the losses in the UNG fund. DGAZ will increase the losses by three times inversely. Meaning, if UNG price drops by 1%, DGAZ could bring you a gain of 3%. So, the best time to think about DGAZ is when you have a bearish sentiment on the UNG fund.
    As you can see, both UGAZ and DGAZ have 3:1 leverage. That can notably boost your potential profit.

    Trading UGAZ and DGAZ

    If you want to trade them, it’s vital to watch the UNG fund. UNG fund is the basis of ETF that runs both of them. This can be a complex fund but you can go short in the long term and consider both UGAZ and DGAZ. Natural gas is a highly volatile commodity and UNG is not straight associated with natural gas in the physical sense. So, UNG isn’t a clever investment if you keep in mind it fell by more than 90% after its start. Also, it doesn’t pay dividends. Instead, UNG uses future contracts and OTC exchanges to find and copy the natural gas price. It doesn’t hold stocks. So, we can say that UNG isn’t a good investment by itself. There is where UGAZ and DGAZ come to the scene. If you don’t care for dividends and just want to keep the position for a short-time the long-term volatility of FUNG will not affect your investment.

    As we said, UGAZ increases the UNG gains, while DGAZ goes up when UNG falls in price. But keep for the short-term, as long-term holding is never recommended.

    UGAZ and DGAZ trading opportunities

    These products can be risky. Well, you have to follow the news as ETNs give 3-time leverage in a single day. As we said, when the natural gas price rises by 1%, UGAZ will rise by 3%, and DGAZ will fall by 3%. To repeat, if you want to hold UGAZ or DGAZ the percentage performance will oppose your expectations.
    A lot of circumstances may influence these products. For example, politics, global economy, supply and demand, weather, interest rates, and many others.
    The way to trade USO or UNG is to trade options. That will allow you to achieve better risk-reward levels. The profit potential could be tremendous.

    Bottom line

    If you look at the historical data you will find peaks over winter, for example, but also, sometimes the price can make a sharp move down.
    Why does this happen? The natural gas price depends on weather forecasts. So, you have to watch that. If you see the meteorologists are expecting a warm winter you can be sure the demand will be lower. So, pay more attention to DGAZ.
    The other factor that may influence the gas price is the change in natural gas supply. So, you have to keep attention on weekly natural gas storage reports.
    Both will give you the future course of the natural gas price. And, to add more pain, remember, UNG isn’t always successful while mimicking the gas prices. You have to be ready for the UNG price failure.
    UGAZ is a tactical trading tool. It provides 3-time exposure to its reference index, the S&P GSCI Natural Gas Excess Return Index. This ETN is not designed like a buy and holds an investment. The return can differ hugely from its initial exposure.
    It consists of complex effects and extreme concentration on quick period natural gas prospects.
    DGAZ is the inverse product, it is intended to be a tactical trading tool, not a buy-and-hold investment. It is for a one-day holding period.