Tag: trading

All trading related articles are found here. Educative, informative and written clearly.

  • 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.

  • When to Sell Option Call?

    When to Sell Option Call?

    If the trade is going in your favor or for the trade that is going against you – don’t wait until expiration to see what happens. Sell before.

    Fresh traders, particularly those with a little amount on the account, like to buy options. But do they understand all the rules? The vast of them somehow skip selling prior to the expiration date. The truth is that the call option could be sold at any time. Call options give you the right to buy some assets, you already know that. To know when to sell the option call, pay attention to several situations.

    Let’s say you own calls and you decide to let them expire worthlessly. That’s okay. Your decision. But if you forgot and the stock closes on the expiration date the options will automatically be exercised whenever it is “in-the-money” when the market closes.

    And it will be a problem when the next day comes. The next day, the day after the expiration date, the margin call will come. Where is the problem? When you buy an option call, you are buying the right to buy a stock. Did you know that? If you are new in the options trading it is likely you didn’t. And what happens? When margin call comes you have to pay for shares and you’ll be forced to sell your call options. So, it is better for you to sell your options calls before the expiration date.

    So, you have to close your trade before the expiration date.

    When you opened your position your aim was to make a profit, right? So, don’t wait for options to get too close to the expiration date because they will lose the value. As the expiry date is closer, the value is going down. To make a profit it is better to sell your options and close the trade. Of course, you may take a loss too but if you wait longer and as you are approaching the expiration date, the chances to avoid loss are almost zero.

    Avoid margin call

    Lett’s say you bought one call option. How to know when to sell option call? Don’t forget that one option controls 100 shares of stock. And let’s say the strike price is $30. If the stock closes at $30,03 your options will be automatically exercised and you’ll be the owner of 100 shares of stock. Further, your broker will send you a margin call if you don’t have a sufficient amount on your account to pay that stock. And what you have to do? You will be forced to sell the stock to close out your trade. More often, you will sell it below the exercise price. But it isn’t necessary to be your case. You can avoid this unpleasant situation. Just close out your open position before the expiration day. Before the market closes, of course.

    For a strike price, you can calculate the cost to buy a call option and the cost to use it. You can find plenty of websites with options quotes. All you have to do is to type a stock’s ticker symbol and get a quote. You will see a column with months arranged and with the options expiring that particular month. Remember, you can trade the option until the third Friday of the expiration month.

    Calculate options for a strike price

    Find your wanted strike price in the “strike” column. Strike prices are ordered from cheaper than the stock price to higher than the stock price. Suppose the stock’s price is $50 and the strike prices ranging from $20 to $70 in a $2 increase. And you want to calculate an option with a $60 strike price. And suppose you want to buy a call option with a $2 “ask” price.

    To calculate the whole price to buy one option contract you have to multiply the ask price by 100. In our example, it is $2 x 100 which is $200. No, it doesn’t amount to buying the stock, this amount of money you have to pay for the right to buy the stock. 

    Let’s go further. The next thing to do is to multiply the strike price by 100. That is an added amount you have to pay to use the option.

    $60 x 100 = $6,000

    This means you can buy 100 shares of stock for $6,000 before the expiration date.

    Use volatility forecast

    In general, volatility is extremely important when buying or selling options. Since “returning towards the mean” is especially noticeable on volatility, you can somehow easily forecast the volatility as it goes above a certain point or less than a certain point – it will, most likely, return towards the average volatility.

    You can check the VIX to measure market volatility. Learn here how to do it.

    Bottom line

    Don’t buy call options with the aim to own the stock when the options expire. Your goal has to be to buy a call option and profit when the stock price grows.  If call options expire in the money, you will end up paying a bigger amount to buy the stock. Much bigger than what you would have paid if you had bought the stock. If you want to hold the stock, buy it. Don’t play games with options. 

    And finally, one important note when it comes to questioning when to sell option call.

    The European-style options expire on the third Thursday of the month. The American options expire on the third Friday. Don’t forget about this time difference. This could result in huge financial losses for you.

    Forecast volatility, that’s a key ingredient in profiting from option trading.

  • Is PEG Ratio Really Useful?

    Is PEG Ratio Really Useful?

    Is PEG Ratio Really Useful?

    The PEG ratio is one of the most popular metrics. It is so easy to calculate it. It never takes more than 10 secs even if you are not good at math. 

    But, what do you think, is this extremely simple metric, this PEG ratio really useful?

    Let’s see. Let’s examine it a bit more on some examples.

    First of all, the PEG ratio or the price/earnings to growth ratio is a stock valuation measure. Investors use it to evaluate a company’s performance and investment risk. It is a measure, so it can be calculated. 

    When the PEG ratio value is 1 we can say there is an excellent bond between the company’s market value and its expected earnings growth. If the PEG ratio is higher than 1, the stock is overvalued. But when the PEG ratio is lower than 1, the stock is undervalued.

    The formula for PEG ratio is:

    PE Ratio (Price/Earnings) / Expected Growth Rate = PEG Ratio

    Assume we are examining two stocks with different characteristics

    Stock A company: 

    price – $20/share
    earnings – $4/share
    expected EPS growth – 5%

    Stock B company: 

    price – $40/share
    earnings – $4/share
    expected EPS growth = 20%

    For stock A company

    P/E ratio = $20/$4 = 5
    PEG ratio = 5/5 = 1

    For stock B company

    P/E ratio = $40/$4 = 10
    PEG ratio = 10/20 = 0.5

    If we study the P/E ratio for valuation plans, we will discover that the stock B company has an advantage because it has a P/E ratio that is 50% less than that stock A company has. But if you find that company A is going to improve its earnings 5 times faster than company B, you may modify your opinion. If you use the price to earnings growth, you will see that the stock A company trades at a lower PEG ratio than stock B company. So, what can we conclude? Company A stock may give a better value.

     

    But is that really true?

    Well, there are some weaknesses connected to the PEG ratio. Earnings growth is not an isolated thing in the market minds. To get a whole picture of the stock value you have to take care of many factors such as cash flow, dividends, revenue growth, etc.

    Further, when it comes to “growth” in the phrase “price/earnings to growth ratio” you will be faced with one problem when you are trying to value a company. You actually don’t know the rate of earnings growth. In the best case, you can guess or rely on Wall Street analysts. Having thin in mind, your PEG will be as good as your data is.

    Well, something is good with the PEG ratio. It is very useful for smaller companies but for large companies (for example Disney or Ford) where the growth isn’t so important to total returns, it can cheat.

     

    So, is the PEG ratio really useful?

    You have to keep in mind that it isn’t a mathematical result. The method is as good as its inputs. The future growth rate could be the main problem in this PEG formula. When you or any analyst make forecasts about the future it can be wrong.

    To make it clear, it is easy to calculate the PEG ratio for companies with weak growth. But, mature companies with excellent earnings and great dividends, have a slow growth rate. So, such companies will never have a PEG ratio of 1 or less. Right?

    It is almost the same for companies with fast growth.

    For instance, a company growing in a surplus of 30% per year will be incapable to maintain such a growth rate. Can you see how the PEG ratio is as good as its inputs? A huge amount of failures in the future earnings growth rises from a too optimistic or too pessimistic viewpoint for the company or industry. Getting an exact PEG ratio depends on what factors you use in the calculation. You may find that the PEG ratio is incorrect if you use historical growth rates. This one especially can lead to mistakes when future growth varies from the past.

    Bottom line

    Traders-Paradise wants to give some spotlight on the pros and cons of using the PEG ratio. As the answer to a question Is PEG ratio really useful, we can say: the PEG ratio is useful but only when you use it to improve a more precise discounted cash flow analysis or relative valuation.

     

  • NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc - Marijuana Penny Stock Under The Radar

    By Gorica Gligorijevic

    This company has two subsidiaries Stolle Milk Biologics, Inc., NuVim Powder, LLC. and stock price under one dollar

    Maybe you still didn’t notice this stock. But don’t worry, many didn’t. NuVim Inc stock is currently very cheap as penny stocks. It was traded at $0.0133 at the close of trading on October 21. But it is a stock worth looking out.

    Market cap $299,468
    Current price $0,0133

    NuVim Inc is a company from New Jersey. Actually, it was established in 1999 and is based in Lewes, Delaware. It sells vitamins and dietary supplement drinks. Why this particular stock is interesting to watch?

    Well, its current CEO Rick Kundrat was VP at Unilever’s Thomas J. Lipton Inc and managed the merger with Pepsi in 1991. This deserves to be noticed because of the fast-expanding cannabidiol (CBD) market global. Rick Kundrat has talked about a possible merger for NuVim merger partners. If the company moves into CBD-infused drinks it could be huge progress and stocks could be a goldmine.

    Cannabidiol is used for pain reduction. Moreover, it speeds up healing muscles and joints when have been weakened from hard exercise. But maybe the most important effect is in the field of arthritis or similar illnesses where it can help to reduce chronic pain. 

    NuVim, Inc. produces, distributes and sells beverage products

    The NuVim is a dietary supplement accessible in the refrigerated juice sections of elite supermarkets and fitness stores. You can find it in three flavors: chocolate, vanilla, and strawberry.  It helps to sustain the immune system, improves calcium absorption and digestion. NuVim contains a clinically proven natural prebiotic fiber. 

    NuVim INc is a small company with only 3 full-time employees, according to data from Yahoo Finance. From everything we know about this company, it falls into the packaged foods industry. The Company covers a range of user needs, like joint pain, muscle flexibility, wellness, weight control, nutrient supplement, and muscle recovery.

    When we put this company under the phrase “under the radar” we didn’t have its unrecognition among the investors in mind. The lack of information is obvious. It is very hard to find full information about them. The last info came from the short report:

    “During the second quarter of 2019, the company sold 1,000,000 shares of stock to Derek Spence for $10,000.”

    This was really cheap.

    As Traders-Paradise found, Derek R. Spence is Vi3’s CEO and Chairman of the Board. He joined Vi3 as an investor in 2012 and became a board member in 2014.

    Bottom line

    But what we all can see from its 3-months chart is the stock is doing well.
    Yes, it is a very low float stock that is actively seeking and interviewing merger partners. The merger could send this stock very high. Grab this stock while it is cheap and wait for it to grow.
    It isn’t expensive, honestly, it is very cheap. But this company has interesting potential. As support for this opinion, let’s repeat where is its focus. It is cannabidiol that is fast-expanding and becoming part of medicines, supplements, drinks. This company wants success and seeking for partnership telling us a lot. Grab it.

     

  • How To Know If a Stock is Worth Buying

    How To Know If a Stock is Worth Buying

    How To Know If a Stock is Worth Buying
    How to recognize if a stock is worth investing in?
    What causes a stock to be good or bad?
    What things to consider?

    By Guy Avtalyon

    How to know if a stock is worth buying? Let’s assume you are new in this field and how you can decide what stock to buy. For some investors, it is a tricky part. To be honest, it is hard for everyone. The risk is involved, the volatility of stock or market, the investment goal. Everything is on the table. But if you follow some rules connected to the estimation you can figure out how to know if the stock is worth buying. Yes, many people will tell you stock investing is like a wheel of fortune. And they are wrong. Investing is like solving the problem. Everyone has its own way, own style, but the goal is the same: solving a problem.

    Prudent investors must enter the stock investing as if they have to solve a problem. Step by step. 

    Buying stock isn’t like buying a new sofa and when you find it isn’t for your room you can take it back. When you buy stocks, you have to be convinced they will hold their value, increase in value, and you will gain profit when you sell or deliver to you notable dividends over time. The main point is to know when a stock is worth buying. 

    Look at the price

    When you have to decide if some stock is worth buying the first thing you will find is its price. You have to figure out how much the ownership of shares in some companies will cost you.

    The amount of money you have in your hands will determine how many shares you can buy but the most important is to know historical data about particular stock prices. If you find the stock has steadily increased over time you will know that you can expect a good value in the future. 

    Pay attention to revenue growth

    Share prices will grow if a company is growing. A company is growing when rising its revenue. Increasing revenue will show you if the company is strong. We can say it is a major indicator often called top line. The important part is not looking at revenue isolated. You have to observe all rise and drops in each quarter and year. And here is the tricky part. The positive trendline is good for the stock price but the revenue may be dropping or be flat and it is important to understand why that is.

    You should check the company’s current holdings, projections for future operations and stability. If you hear or read some news, no matter if they are local or even rumors that the company is doing bad, it is better to step back. You wouldn’t like to hold stocks with so much stress. Your money is involved and you could lose everything invested. So, check the company’s revenue, it is easy since almost all companies have their official websites where you can find all this info. 

    But keep one thing in mind. If it is a temporary situation and historical data shows its stock was good in price that can be good for you to buy a stock at a low price and wait for it to rebound over time.

    Some stocks may temporarily drop in price and it can be a good deal to buy them now because they have the potential to recover.

    What is the company’s earnings per share

    This info is important and you can easily count it. Just divide the leftover amount at the end of each quarter by the number of shares the company has sold, and you get the earnings per share. For example, if a company made $100 million in profits in the prior year and has 52 million shares, the earnings per share is $1.92. As an investor, you should pay attention to this since the higher earnings per share (EPS) shows you that the company is in good shape. And the tricky part again arises. Some companies can manipulate with EPS. The process is simple. They do it by buying back their shares. In that way, they are boosting EPS but not increasing profits.

    Use the technical and fundamental analysis to know if a stock is worth buying

    You will have some idea about stock’s quality if you check the prices over the past 200 days, for example. And you will see the trends. Trends are repeating. 

    Analysts think that by observing the movement over a determined period, you can define the baseline, the point where the stock should recover. Here the advice, don’t buy the stock at its highs, wait to come close to the baseline or to hit it. Some may ask how is good stock if hits the baseline. Well, when the stock hits the peak it is expensive, the price is increased, and the stock has no more space to run so the only possible scenario is to go down. If you buy a stock at its peak you will lose your money. So, it isn’t a good time to buy a stock.

    Also, perform fundamental analysis. That will show the current and projected financial aspect. Use that info to discover now’s value. Use the company’s statement and balance sheet to determine the business strength. It isn’t a 100% indicator,  but it is enough good sign of what you can expect from the company in the foreseeable future.

    How to know if a stock is worth buying

    One thing is sure and you must have that in mind when you are trying to know if a stock is worth buying.

    A company can’t manage every single thing that might affect the business. The general economy can influence the health of a company and its stock play. For example, consumer prices, the changes to interest rates can affect how a company is doing. That is not in connection with its own business. But, the stable economy produces companies’ wealth and share increases come with that. And opposite, share prices can stumble during times of economic uncertainty.

    You will find many analysts that issue reports and tips about individual stocks. These tips appear with “buy” or “sell” ratings. But analysts often disagree, so it isn’t recommended to depend on one report. Always compare several to know if a stock is worth buying.

  • How to profit from The Stock Market Plunging?

    How to profit from The Stock Market Plunging?

    The Stock Market Is Plunging But You Can Profit From It

    By Guy Avtalyon

    The stock market is plunging but will it crash or not is still unknown. It isn’t easy to predict the stock market crash because it occurs suddenly. The point is to be prepared for such a scenario and here are several ways on how to do so.

    I don’t want to frighten you, but we have to talk about the stock market plunging.

    The volatility of the markets is back again. Actually, the market is plunging. That is the data from the first six days in October. The S&P 500 has dropped a total of 83 points. Now it is almost 115 points lower than in September. Having this in mind, the trade war and the inverted yield curve, also, let us know how not to speak about a recession. 

    The stock market is plunging

    These gaps are standard. For the last 70 years, there were 37 corrections in the S&P 500. If our counting is good that is almost every second year. And mentioned drops were about 10%. Now, we have 5% and such were more common in history.

    This is the price we have to pay for long-term wealth making. So, you must understand that long-term investors have an advantage against the short-term since they would infrequently experience continuing damage from stock market corrections. Time and patience, wait for a bull market rally. It will nullify the correction in the stock market. Anyway, the point of long-term investing is to buy and hold. Hold on to your stocks, that is the key to winning in the long run.

    I warned you how difficult this year can be. But when investors’ fears overwhelm the market and the stock market is plunging, there is still something you can do.

    Is a safe-haven stock right move?

    Yes, you can thrive during the stock market correction if you buy safe-haven stocks. For example, buy gold. The gold is a store of value, so it is a safe-haven asset.

    The truth is that you will not gain a lot of profit by holding gold for a long time. It is a physical commodity, there is no dividends. So think about buying a stake of shares in some companies that produce the jewelry or anything of gold instead. Also, a good choice is to buy shares of mining. This is also a suitable alternative when the stock market is plunging and getting lower.

    Stocks with low volatility

    Companies that provide constant profits, pay a dividend, and have low volatility can be very beneficial when the course in the market turns. Some of them will give you yield much bigger than the yield of a 10-year Treasury bond, for example. Find some company with the old fashioned model of business. Yes, it can be boring but in the long run, it is excellent. The point is to survive the market plunging.

    Basic goods and utilities as a safe investment

    Buying stocks of some companies that produce cleanser or hygiene is an excellent choice. People will always need to be clean and they will buy these products no matter how deep the crisis is. Also, stocks of energy companies. They are not low-cost but they are eternal. Even more, these defensive basic-need stock can grow in a volatile market.

    What to do when the stock market is plunging?

    Many things in the markets depend on risk tolerance. Your investment portfolio is based on risk tolerance. The main problem with the stock market plunging and when it crashes is that they are coming suddenly, no one can be sure that the crash will come and when, or the market will recover. Market crashes happen quickly, there is no warning. The problem with investors’ risk tolerance is that is very hard to adjust it depending on circumstances, especially during the bear market. You’ll be emotional, panicked, you will be encompassed by fears. To avoid all of these, take care of your portfolio structure. You should hold liquid assets, such as cash, bonds. When the market crash occurs you need a through-out scenario to avoid losses. Liquide commodities will provide you that. 

    Being an investor means you have to put your feelings away. You have to make your decisions separate from them.
    Investing is magnificent. But life is also.

    During the bear markets, even trivial corrections can be remarkably dangerous.  But at the same time, bear markets will offer you great moments. The point is to know what you want and where are looking for. But Warren Buffett thinks about bear markets as buying opportunities. The trick is that in such market periods the stock prices of large companies are going down. When that moment occurs watch in your favorite stocks. The time will do the rest. You should buy it when others are selling.

     

  • Female Entrepreneurs Enjoy More Trust Than Male

    Female Entrepreneurs Enjoy More Trust Than Male

    Female entrepreneurs enjoy more trust than males in later stages
    Female entrepreneurs are faced with rude questions about private life, family, marital status, or children. At the initial stage, investors implied they are a greater risk of loss. 

    By Gorica Gligorijevic

    According to a new report from the Female Founders Forum, female founders are bringing more venture capital funding. More than male founders.
    Startups led by female founders raised extra rounds in the percentage of 52, while the male result is 51%. This is data from the UK. It isn’t a big difference but we can learn something from this data.

    First of all, female entrepreneurs are faced with investors skepticism when starting the business. But as time goes by they gain more trust. So, we can say that the biggest difficulty for female entrepreneurs happens in the beginning stages of setting up a business. Later, when they break that wall, it becomes easier.

    To illustrate how difficult is for females in the early stage of their businesses there is an additional statistical result. The numbers in funding in the early stage are horrible for female-led startups. Only 21% of them have access to any investment. But when they succeed to get it, their startups raise cash faster than males’. 

    The stats show: after 4 or 5 years from the first raise round, 66% of female-led startups are winning second funding round. On the side without a female founder, the result is 62,8%. 

    Female entrepreneurs success

    Female entrepreneurs have long been underrepresented in entrepreneurship. Male entrepreneurs had an advantage but that bias is changing now. Actually, since 2007, for example, in the US the number of female entrepreneurs has grown over 30%. In the moment of the census 2012, females were on the head of 36% overall US businesses. 

    If we take a look at the global entrepreneur scene, according to the Global Entrepreneurship Monitor, entrepreneurship amid women grew bt 13%. In the same period, male entrepreneurship grew by 5%.

    The fact is that females are starting their businesses harder and with more barriers, but when they jump over them they show better results. Some studies revealed that if there could be more gender parity in entrepreneurship, US GDP might grow by $28 trillion by 2025.

    And the picture is almost the same all over the world.

    The worst places for female entrepreneurs

    A study by HSBC Private Banking has exposed that over 30% of female entrepreneurs felt gender bias while seeking investors. Also, females get about 5% less funding than males while trying capital funding. The survey titled ‘She’s the Business’, studied 1200 female and male entrepreneurs in 8 distinct markets. The focus was on the entrepreneurs who have gained a minimum of £100,000 worth of funding. The study titled ‘She’s the Business’, taken by the HSBC Private Banking pointed: “Our research identifies the particular hurdles faced by women in the start-up community at critical points along the way, and explores the underlying, often subtle reasons why female entrepreneurs feel negatively impacted”

    Gender bias

    The scary fact is that some female entrepreneurs were questioned about marital status, children, suggesting them they are a bigger risk for investors. This study reveals that the UK is probably the worst place for female entrepreneurs to try to raise funding. More than half of them said they felt gender bias. The next worst country is the US. The interesting thing, in China, only 17% of female entrepreneurs said they faced similar bias. 

    Women entrepreneurs have made changes that can lessen gender inequality. First is an expansion in business networks for women. That should help them to make connections. 

    The gender inequality can decrease when more women make their wealth. Female entrepreneurs are inviting investors to take effort by making the fundraising process more transparent, incorporating at least one women in the panels, presenting precise criteria, and complete feedback after. 

    The gender disparity between entrepreneurs will not bring progress.