Forex News 24 |
- Big Money From “Pre-IPO” Stocks
- Pound Collapse Building Pressure for Reversal or Mere Liquidity Pause?
- Gold Prices May Rise if USD Sinks, US Data Fuels Fed Rate Cut Bets
- Free Thinkers Only! Join me at FreedomFest!
- GBP/USD: plan for the US session on May 24. Theresa May resigns, and the pound leaves this case without attention
- TSLA Stock: Could the Tesla Stock Price Really Fall to $10?
- BABA Stock: Alibaba Will Need Some Help to Move Higher
- Why Buy Apple Stock When Alphabet Is So Much More Attractive?
- Retire rich with just 3 Stocks
- 3 Big Stock Charts for Friday: Alaska Air Group, Comcast and Moody’s
Big Money From “Pre-IPO” Stocks Posted: 25 May 2019 01:30 PM PDT Hits: 5
How to Make Huge Returns from "Pre-IPO" Investing Imagine for a moment that you're the CEO of a company involved in the booming legal marijuana business. You're in an industry that is virtually guaranteed to keep right on booming over the next decade. Your business is riding — and will continue to ride — a historic "tailwind." Making money in these situations can be like hopping on a boat headed down a huge, fast-flowing river. You can practically float your way to profits. As that marijuana CEO, what are the most important numbers you look at each day? Is it a chart that shows sales growth for legal marijuana in the U.S.? Is it the number of states that have legalized marijuana in some form? Is it poll numbers that show how many Americans support marijuana legalization? These are all critical, as are your company's cash position, sales growth figures and more. And yet, none are first and foremost on the minds of marijuana industry CEOs. But I'm going to show you what is. If you were a marijuana exec, you'd probably be obsessed with this chart …
This is the stock price history of Cronos Group since mid-2016. In July of that year, the stock traded for under $0.25 a share. By February of this year, it had soared to $25.10. That's a more than 10,000% return in less than three years! That kind of return will have any CEO — or any investor — thinking about early retirement … thinking about complete and total financial freedom. Want that beach house you've been dreaming of? A new Porsche? A 10,000% return on your shares can make those things and a whole lot more possible. Cronos' chart is a huge, huge deal in the marijuana industry right now. And yet, there's a unique reason behind this incredible performance that very few people are aware of. Even fewer understand it. In this research report, I'm going to explain why Cronos skyrocketed more than 10,000% in less than three years. It's all due to an anomaly in the financial markets … one that could help us make enormous returns in the coming years. I'm going to show you how to make a lot of money in legal marijuana using something I like to call "Jumper Stocks." You could also think of these as "pre-IPO" stocks, since, when done right, you'd be putting your money into these companies BEFORE they IPO on major exchanges — which would likely mean putting your money to work before billions come flooding in from Wall Street and huge multinational companies. ***Jumping From the Minors to the Majors I get asked almost everywhere I go about marijuana stocks. The buzz continues to build, and it's easy to see why. Marijuana and its derivative products were outlawed for decades. But a wave of legalization is starting to sweep the world. Sales in the U.S. and Canada are growing at more than 20% per year … and will do so for many years. The legal marijuana industry is set to grow 10-fold over the coming decade. This will create massive new markets and stock winners. Ironically, while many U.S. states have legalized forms of marijuana, it is still illegal on a federal level and classified as a Schedule 1 drug. This category is supposed to encompass the most dangerously addictive drugs that have no medicinal value. It includes the likes of heroin and ecstasy. Marijuana doesn't belong in that category, and I'm confident it will eventually be reclassified. Until it is, the current legal picture has a lot of ramifications. Few of them matter as much as the ripple effects in financial regulation. Most marijuana companies cannot trade on the New York Stock Exchange (NYSE) or NASDAQ, the two biggest stock exchanges in the country. It's easy to see why. The major exchanges will not approve for trading any company that touches the plant or engages in any activity that is deemed illegal at the federal level. As a result, most marijuana companies trade on what's called the "OTC market." OTC stands for "over the counter." The OTC market has long been a place where smaller companies make their shares available to the general public. The requirements are not as stringent as the NYSE or NASDAQ and the cost is much lower — both valuable to a business that's trying to grow. Here's where it gets interesting: As legalization spreads and marijuana is reclassified, the door will open for many of these companies to uplist — or "jump" — to the big exchanges. It's like being called up from the minor leagues to the major leagues. When you're already invested in these companies and they "jump" to a major exchange, it's almost like you were in at a pre-IPO price. There are big benefits for OTC stocks that make that jump. But by the time they do, the first wave of big gains will have already been banked. That's especially true in the marijuana industry. A lot of people really want to invest in marijuana stocks. Normally, when a lot of folks want to invest in a sector, there are plenty of stocks for them to buy. But because of the federal marijuana laws, there are not many marijuana stocks trading on a major U.S. stock exchange — today there are less than 10. As you would expect, the stocks that are listed on the NYSE or Nasdaq receive an extraordinary amount of attention and money. They've soared hundreds — even thousands — of percent. It's an anomaly that sent the small group of U.S.-listed marijuana stocks flying. It certainly helped companies like Cronos skyrocket in value. It was like 1,000 really thirsty people trying to buy 20 bottles of water. I have no doubt more marijuana stocks will jump to U.S. exchanges and draw in a lot of investor money. Eventually, there will be enough listed stocks, but that won't happen for at least a few more years. That gives us a lot of time to make a lot of money … thanks to this financial market anomaly. To help you understand the kind of opportunity I'm talking about, let's turn back to my earlier example of Cronos Group.
***Jumper Stocks Over Time Cronos was the first Canadian cannabis stock to make the leap to a major U.S. stock exchange when it began trading on the NASDAQ on February 27, 2018. It's hard to believe it has been only about one year since Cronos became the first company with direct ties to marijuana to jump onto a major U.S. stock exchange. This shows just how new this phenomenon is. We are still in the early stages here, which is exactly why it is so compelling and perfect for us here in Early Stage Investor. For the foreseeable future, identifying these stocks before they "IPO" on a major exchange will be one of the most reliable strategies for finding big winners in the marijuana industry. Cronos is a great example of how to profit by investing in stocks before they hit a major American exchange. Let's go back to December 27, 2017 — prior to the company announcing it had filed to list on the NASDAQ. It was trading on the OTC market under the symbol PRMCF. In a newsletter I was writing at the time called NexGen Profit Multiplier, I recommended Cronos when it was trading at $5.50 on the OTC exchanges. Given the newsletter's short-term trading strategy, we sold the stock in just 48 hours — and locked in a nearly 50% profit. Pretty good for a couple of days' work. Buying Cronos on the OTC was somewhat risky, especially considering there was no precedent of marijuana companies jumping to a major stock exchange. But the risk was far outweighed by the huge upside potential in marijuana stocks, especially since we were investing in a leader of a growing industry. It was a fantastic short-term win, but now let's look at Cronos with the longer-term strategy we employ here in Early Stage Investor. On February 27, 2018, Cronos stock jumped to the NASDAQ and made history as the first Canadian marijuana company to list on a major U.S. exchange. Cronos closed the Friday before the announcement at $7.01. One week after the announcement, it traded as high as $10.39 — a rally of nearly 50%. Almost three months later on May 23, 2018, Cronos made another jump in Canada when it moved from the TSX Venture Exchange to the Toronto Stock Exchange (TSX). Two weeks later, the stock was up 28%. (Note: Most Canadian marijuana companies begin their public lives on the TSX Venture Exchange. The jump up to the TSX is the equivalent of uplisting from the OTC to the NYSE in the United States.)
As you can see in the chart above, both jumps resulted in big short-term profits. But the long-term benefits of uplisting to a major stock exchange are what my Jumper Stock System is based on. Fourteen months after my initial recommendation, Cronos trading over $22 — an increase of 300%. Holding on for longer-term gains from the Jumper Stock effect is worth it, wouldn't you say? Let's stay with Cronos as an example. Two months before it jumped to the NASDAQ, its average daily volume was 280,000 shares. Today, its average daily volume is nearly 16 million shares. That's a 5,600% jump in average volume in 14 months and a direct result of the uplisting. Our goal is to identify the stocks with the ability to jump 10X in the next few years. These are the kinds of gains that can change your life. . ***Starting Early Only a handful of marijuana companies made the jump to a major U.S. stock exchange in the last year. They are some of the biggest names in the world when it comes to marijuana — Canopy Growth, Aurora Cannabis, and Aphria. When Canopy was trading on the OTC market in April 2018, the company was known as a leader to those of us who follow the marijuana industry closely. Most investors may have heard the name in passing but had no real knowledge of the stock. And more importantly, they did not own shares of Canopy. On May 24, 2018, Canopy became the first marijuana company to trade on the NYSE. The first day of trading was unimpressive to say the least. The stock fell 6% and shortsighted critics concluded that marijuana stocks were not ready for the big time. Well, we all know by now that they couldn't have been more wrong. Canopy more than doubled just six months after the jump. Because only a few marijuana stocks have successfully jumped to a major stock exchange, there are plenty more opportunities in the future. My system has already identified several companies that I believe will announce their intentions to uplist in the near future. First, it is important to explain why stocks that make this jump are good investments. And just as important is my Jumper Stock System for identifying the best opportunities for us. We'll pick up with that in tomorrow's edition of the Digest. Until next time, Matt McCall Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all. Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all.
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Pound Collapse Building Pressure for Reversal or Mere Liquidity Pause? Posted: 25 May 2019 12:25 PM PDT Hits: 10 Pound Technicals Talking Points:Technical Forecast for British Pound: BullishIt isn't a stretch to label the British Pound the most bearish of the liquid major currencies these past few weeks – and that is saying something. There is serious competition to be lodged by the Australian Dollar which has been hammered by the trade war headlines. It would be willfully dishonest to say the developments of late for the currency were purely chart motivated. The momentum that the Sterling has generated in a peak-to-trough 4.3 percent tumble through May defies the general pace seen in virtually every other corner of the financial system. There are powerful speculative incentives for the market to rebuff strong volatility or a prevailing trend. A lurking divergence between realized and expected volatility, a disparity in prominent risk measures (US indices versus global government bond yields) and an excess in exposure that is unmistakable. To mount such a trend in these conditions, something external to the chart must be driving intent. Even principal technical traders will note how much attention the Brexit situation has drawn. Political headlines from the UK have ventured into direct reference to the UK currency, a correlation that the other side rarely makes as it prefers to focus on the political drama. On Friday, Theresa May announced that she would resign as Prime Minister which crowded out headlines from global concerns over economic activity to escalations in the US-Chinese trade war. We can see below the general interest in 'Brexit' over the past year. The recent drop has been a shift of attention to UK political stability concerns, but the implications will swing back to the two-and-a-half year drama eventually. Below is the Google search interest for the term 'Brexit'. This theme has proven an effective distraction or the markets and kept any rooted trends from developing. So long as the concern persists, multi-month trends are unlikely. Then again, as short-term expectations – and headlines – flare up around this drama, we can absolutely fuel volatility. Moving to a price chart for the Sterling, we can see the headlines in action. Regardless of what major Pound-cross chart you refer, GBP lost significant ground through this past week. From the most liquid of the pairings (GBPUSD), there was an impressive drop. The US Dollar itself was 'under power' for the past few weeks, so the overriding influence was impressive. What is most striking even on a 4-hour chart was the momentum from the pair – consistency as much as progress. This chart shows the distance of spot relative to the 20-period moving average (in purple) which suggests extraordinary pace on this time frame. Now, crossing back above that trailing average, the pressure for a reversal is high. Chart of GBPUSD and 20-Period Rate of Change (4-Hour)Moving the time frame up to the daily, Cable better shows how remarkable the recent bear leg has been – and how unique Friday's advance was. There is some comparison to be found in the August slide – including the relative area that it ended at 1.2650/76 is not far from our rounded low – but we shouldn't assume an exact pattern match. The pace is most important moving forward. We have a bank holiday on Monday and Parliament on recess through the week – which will hamstring Brexit updates to volatile headline fodder. Expect the same conditions as possible for price action: volatility with a higher barrier to trend. If we drift back in a natural rebalance of speculation, it could work to set up a larger, inverse head-and-shoulders pattern with a neckline around 1.3400. Chart of GBPUSD (Daily)Taking the Dollar out of the equation – as the more liquid currency in a pair can sometimes have an overriding influence – an equally-weighted Pound Index shows the same pressure the Sterling has suffered this month. What was an initial break of a diminished wedge to the upside turned into a charged bearish reversal that saw 12 of the past 14 trading days in the red. This synthetic measure has dropped to roughly the 61.8% Fib of the 2019 advance which is a relative position we can find in a number of the Pound's crosses. Chart of Equally-Weighted Pound Index (Daily)What is important for all technical traders to watch nowadays is the implied (expected) volatility building a market – even if it is proving a weak precursor to realized activity. Below, the GBPUSD is overlaid with the CME's British Pound volatility index (green). It is notably much lower than what we saw in late May, but don't take that as a sign that conditions are much more restrained. That drop reflects the temporary extension on the Brexit negotiation timeline. We could very well see this pressure escalate far more quickly than the market is accounting for. Moderation of realized volatility in price action – or trend – means it is more likely that we see a reversal as a rebalancing. Chart of Equally-Weighted Pound Index and CME's Pound Volatility Index (Daily)Looking into the Pound's principle crosses, the most impressive by far is the EURGBP. In terms of its consistency, Friday's weak Sterling recovery represents the break of a 14 consecutive day advance (slide for the Sterling). In the pursuit of this charge, this pair cleared three month range resistance (breaking 0.8680) and then went on to overtake the midpoint of 2019's range and the 200-day moving average around 0.8730. The channel that developed form this move seems remarkably straight, which means any break early next week will readily draw the market's attention. Chart of EURGBP with 200-day Moving Average and Consecutive Candle Count (Daily)Moving down the list of the most liquid Pound crosses, GBPJPY offered up its own remarkable tumble – especially after taking out 144 support. Yet, the consistency was not as unblemished as EURGBP because the Yen contributed its own influence to volatility. Sways in risk trends accelerated progress and briefly stalled it on the bearish side of the GBP. We have gotten to more significant zone of support on this pair with the absolute lows from the beginning of 2019 in sight – though the flash crash low (not in this chart) will be difficult to overtake. Chart of GPBJPY and 200-Day Moving Average (Daily)There are some other interesting crosses to be found across the likes of GBPCHF and GBPNZD, but one of the more interesting 'alternatives' to consider is GBPCAD. Ultimately, USDCAD has marked little progress as of late; so this pair should exhibit a close relationship to the Cable. However, the Loonie itself is proving an anchoring currency which could help to exploit more of the Pound's own decisions. That is beneficial if we were to see a 'reversion' move to develop after the previous three weeks' tumble. Add to that some technical milestones to work within a rising channel support now around 1.6900, and we have a more complete picture between technicals and 'market conditions'. Chart of GBPCAD (Daily)Finally, on the sentiment side of the equation, there is some unusual agreement between the medium-term large speculative futures view on the Pound and the short-term minded retail traders. The net spec positioning from the COT report is a reflection of slow acceptance to the sterling's tumble this month and likely to find some risk rebalancing to prove the measure a lagging indicator. Alternatively, retail traders have built up a strong long GBPUSD view in an effort to fight the prevailing trend. Fighting overt trends is a losing statistical battle over time, but if there is reason to believe an atypical run is petering out, it could represent a point of kismet where unique speculative appetites happen to align to market circumstances. Chart of Net Speculative Positioning in Aggregate Dollar Futures from CFTC Report (Weekly)Chart of Retail Trader Positioning from IG Clients (Daily)Can you get gilded from fx trading? The response is if you go from river forex, and sluttish forex, use algorithms in fxtrading, what is distribution in forex 1 greenback river, netdania forex, verify brimful welfare of the forex system indicators, and inaction the direction fx strategy. We instrument follow win all.
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Gold Prices May Rise if USD Sinks, US Data Fuels Fed Rate Cut Bets Posted: 25 May 2019 12:22 PM PDT Hits: 8 Gold Price Fundamental Forecast: Bullish
Trade all the major global economic data live and interactive at the DailyFX Webinars. We'd love to have you along. XAU/USD WrapGold prices spent most of last week in rather mute trade until a sudden surge of volatility on Thursday sent the precious metal rallying. Looking at the XAU/USD 4-hour chart below, we can see that it rallied at the expense of the S&P 500, US Dollar and local front-end government bond yields. This kind of trading dynamic reflected increased Fed rate cut expectations on a dismal set of US PMI data. Gold Rises as US PMI Data Sinks USD and Bond YieldsChart Created in TradingView Gold Week AheadGold's sensitivity to unison behavior in the Greenback, S&P 500 and bond yields underscores its anti-fiat appeal rather than as a safe-haven asset. The yellow metal has no interest-bearing qualities, which are what typically give currencies their appeal. As an example, last week we saw the Australian Dollar accelerate its depreciation on the buildup of RBA dovish expectations which lead to a 90% probability that we may get a cut in June. With that in mind and using last week as an example, the impetus for additional gains in gold prices depends mostly on how far Federal Reserve rate cut expectations can go. As a reminder, the central bank has reiterated its data-dependent stance. To that end, there are plenty of opportunities such as US consumer confidence and GDP data to impact the Fed's outlook on US economic growth prospects. Not to mention that we will also get the central bank's preferred measure of inflation, core PCE. The US Citi Economic Surprise Index is negative and has been so since around the middle of February. This does suggest that economists' are overestimating the health and vigor of the economy, leaving data vulnerable to disappointment in the coming week. Having said that, data in the US has been tending to fall short by increasingly smaller margins since the beginning of this month. While in the short-run this may support gold, gains in the highly-liquid US Dollar during times of aggressive risk aversion can counter this and should not be discounted. The reason why this is prominent is because of the increase in US-China trade war fears seen as of late. The latter nation seems keener this time around to stand its ground, calling out the other side for leading to the stall in talks with the world's-largest economy. Gold Trading Resources: — Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter http://platform.twitter.com/widgets.js Can you get prosperous from fx trading? The serve is if you go from river forex, and promiscuous forex, use algorithms in fxtrading, what is farm in forex 1 symbol canadian, netdania forex, buy increase vantage of the forex scheme indicators, and account the mean fx strategy. We present follow win all.
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Free Thinkers Only! Join me at FreedomFest! Posted: 25 May 2019 12:18 PM PDT Hits: 6
Can you get moneyed from fx trading? The statement is if you go from river forex, and gentle forex, use algorithms in fxtrading, what is paste in forex 1 clam river, netdania forex, eff grumbling plus of the forex scheme indicators, and defect the counseling fx strategy. We module win win all.
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Posted: 25 May 2019 11:48 AM PDT Hits: 12 To open long positions on GBP/USD, you need: Today’s news that British Prime Minister Theresa May will resign on June 7, passed for the market without a trace, as it was quite expected. Buyers of the pound in the second half of the day need to stay above the support of 1.2662, and the formation of a false breakdown there will be a signal to open long positions based on updating the morning high of 1.2723 and its breakthrough, which will open a direct road to the resistance area of 1.2789, where I recommend fixing the profits. When returning to the support of 1.2662, it is best to open long positions to rebound from a low of 1.2607. To open short positions on GBP/USD, you need: Bears are expected to return in the resistance area of 1.2723, after a report on retail sales in the UK, which did not please traders. The main task for the second half of the day will be a decrease and a breakthrough of the support of 1.2662, which will lead to a new, larger will of sales of GBP/USD with the update of the lows in the area of 1.2607 and 1.2564, where I recommend fixing the profit. Indicator signals: Moving Averages Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market and further uncertainty. Bollinger Bands The volatility of the indicator is low, which does not give signals to enter the market. Description of indicators
The material has been provided by InstaForex Company – www.instaforex.com Can you get moneyed from fx trading? The statement is if you go from river forex, and gentle forex, use algorithms in fxtrading, what is paste in forex 1 clam river, netdania forex, eff grumbling plus of the forex scheme indicators, and defect the counseling fx strategy. We module win win all.
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TSLA Stock: Could the Tesla Stock Price Really Fall to $10? Posted: 25 May 2019 11:34 AM PDT Hits: 14 Over the past several months, the bears have taken control of Tesla (NASDAQ:TSLA) shares amid a flurry of negative catalysts. Broadly, they imply that the company's growth narrative is losing steam. Tesla stock has consequently fallen off a cliff, dropping from $380 in late 2018 to below $200 today. Indeed, the equity currently trades at its lowest levels since late 2016. To make matters worse, Wall Street analysts are throwing in the towel. Quite a few analyst firms are throwing out doomsday targets for the TSLA stock price which are spooking investors. For instance, Morgan Stanley recently cut its bear-case forecast to $10, while Citi lowered its per-share expectations to $36. Currently, the Tesla stock price trades just under $200, and that's a multi-year low. But does that really justify the idea that shares could fall another 90% or more from here? In a doomsday scenario, yes. But it is highly unlikely to happen. Instead, given current trends, it's much more likely that TSLA stock stages a meaningful turnaround over the next few months. How Tesla Stock Could Fall Below $50There is a viable doomsday scenario wherein Tesla stock does indeed fall below $50 in 2019. That scenario is as follows. Think out 10 years. The current car market measures around 70 million vehicle sales every year. That market has grown at a steady low-single-digit compounded annual growth rate for a long time. Ride-sharing and car-ownership trends may stall out growth. Over the next decade, the market may not grow at all. If so, the market could measure 70 million cars by 2030. Electric-vehicle penetration into that market has been steadily rising, and projects to keep doing so. But it may stall out as logistics and price become consumer-pain points, diluting demand. Broadly then, the EV penetration rate may only reach 20% by 2030, implying 14 million EV sales. Tesla's current market share of the global EV market exceeds 10% and is rising, thanks to the Model 3 ramp. Worst-case scenario, Tesla loses significant market share as new vehicle ramp slows and more competitors enter the market. Tesla's market share could fall to 5%, implying only 700,000 vehicles delivered by 2030, representing mild annualized growth from this year's projected 380,000 vehicle-delivery base. Average selling prices could fall in the face of competition towards $50,000, as Tesla is forced to discount to sell more cars. Thus, revenues may only round out to around $35 billion in 2030. For the record, analysts project top-line sales to surpass $30 billion next year. Meanwhile, gross margins may stall out around 20%, while the opex rate may only fall to 15% due to lack of top-line scale. Operating profits, then, would come in around $1.75 billion. Taking out $750 million for interest expense and 20% for taxes, you're left with around $800 million in net profits. On what will likely be 200 million shares out, that equates to $4 in EPS. Based on a market average 16-forward multiple, that equates to a 2029 price target of $64. Discounted back by 10% per year, that equates to a 2019 price target of around $25. Why TSLA Stock Will Rally Back Toward $300To repeat, we could see Tesla stock drop below $50 in 2019 in a dire circumstance. But it's highly improbable. Instead, it's much more likely that it rallies from here. Why? Because most trends remain favorable for Tesla. Sure, demand is waning in the new year, but total vehicle-delivery volume both in the U.S. and globally continues to rise on a trailing-12-month basis. Further, Tesla still has the most popular EVs in the U.S., and the company's market share similarly continues to head higher. The only problems are that U.S. EV demand is stalling out, and Tesla is having trouble delivering its cars in international markets. These two problems won't last. U.S. EV demand surged higher in late 2018. Now, it's normalizing lower. This is natural. It has happened before; several times, in fact. And every time it does happen, growth eventually picks back up, and the EV industry continues on a secular-growth track. The same thing will happen this time, mostly because consumer awareness of and demand for EVs remains robust. Moreover, legislation globally continues to promote EV adoption. Thus, EV demand will bounce back, and when it does, Tesla vehicle delivery volume will pick up, too. Meanwhile, Tesla won't forever struggle delivering its car in international markets. There was a point in time when Tesla had similar difficulties delivering cars in the U.S. Now, Tesla has three of the top six selling EVs in the U.S., and this has been the case for several quarters. The same dynamic will play out overseas. Tesla will figure out its international logistics issues and eventually turn into the leading player in those markets. Overall, then, today's macro and logistics-related headwinds won't last. Once they pass, all Tesla needs to do is continue stabilizing market share in a rapidly growing global EV market. Later, they can let scale drive operating leverage to produce sizable profits down the road. By my numbers, the Tesla stock price is actually worth well over $300 today if you consider the big picture. I think that by 2030, TSLA could easily capture 10% of an EV market that will measure around 25 million vehicles, implying 2.5 million deliveries in 2030. I think that will ultimately propel EPS towards $50 by 2030, which again is based on a market average 16-forward multiple and a 10% discount rate. Combine the metrics together, and they translate to a 2019 price target of over $300. The Bottom LineRight now, everyone is focused on the doomsday scenario for TSLA stock, with many analysts suggesting a drop below $50. But there is a very, very slim chance that doomsday scenario plays out. Instead, given the big-picture fundamentals and long-term growth trends, it is much more likely that Tesla continues to stabilize market share in a rapidly growing EV market. Eventually, this dynamic will help Tesla stock rebound massively from its hugely disappointing 2019 selloff. As of this writing, Luke Lango was long TSLA. Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all. Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all.
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BABA Stock: Alibaba Will Need Some Help to Move Higher Posted: 25 May 2019 10:56 AM PDT Hits: 7 What's interesting about Alibaba (NYSE:BABA) is that it has been a much better company than an investment. It's hard to argue that Alibaba hasn't lived up to expectations since its IPO nearly five years ago. Yet it hasn't done all that much for the BABA stock price. Since its first-day close just under $94, Alibaba stock has risen about 69%. That's good performance, certainly, suggesting roughly a 12% annual appreciation. But over that stretch, BABA has actually underperformed large-capitalization tech stocks, as measured by the NASDAQ 100. Amazon.com (NASDAQ:AMZN) has returned 472%. The 179% return in Tencent Holdings (OTCMKTS:TCEHY) is more than double the increase in BABA shares. Yet it's hard to argue that Alibaba as a business has been a disappointment. It's clearly, as many hoped five years ago, the dominant e-commerce player in China. Revenue for fiscal year 2019 (ending March) was more than seven-times higher than it was in fiscal 2014. Sales have grown an average of 48% over that period, including a 51% increase in FY19. Margins have compressed somewhat, but adjusted net income still has risen 230%. Alibaba has done its job, but it doesn't feel like it's been rewarded enough. The question is when, or if that will change. Recent trading suggests it might take quite a bit of time. Alibaba Stock Slumps After EarningsThe reaction to Alibaba earnings last week seems to highlight the problem for BABA. By any measure, Q4 earnings were close to spectacular. Both profits and revenue crushed analyst expectations. Dana Blankenhorn wrote that the report "blast[ed] away the bears". Luce Emerson said the quarter was "stellar." Those analyses all seem dead on. Yet the BABA stock price increased just 1.5% after the release. In the five sessions since, it's dropped over 10%. Shares are down 20% just since May 3rd. The obvious culprit is fear of a trade war and what it might do to the Chinese economy. But that's not the only explanation. Alibaba's chief e-commerce rival, JD.com (NASDAQ:JD), has seen its shares drop just 11% since the third of this month, with a strong earnings report of its own. Even Tencent shares are down less than 17%. One might think given its scale, its massive user base — 654 million customers last year — and its clear dominance in e-commerce, Alibaba stock might have some insulation from those broader fears. Yet it's underperforming other publicly traded Chinese companies. The Long-Term Problem for BABA StockBut, again, this isn't a one-time issue. Alibaba simply hasn't been that impressive an equity over time. Basically, investors have had one good year. That was 2017, when the BABA stock price skyrocketed 96%. Shares are now below where they traded before the beginning of 2018. One issue may be that some investors simply see too many risks with Alibaba stock. Indeed, I'm one of them, as I've written in the past. The Chinese economy still looks worrisome and remains Communist-controlled. A steadily weakening yuan certainly hasn't helped BABA or other China plays of late. Alibaba's accounting is opaque, to say the least. The VIE structure means U.S. investors don't actually own shares of Alibaba, but a Cayman Islands-listed entity. Those risks may be short-sighted as some bulls argue. But they also mean that every time the market gets nervous, BABA stock is going to sell off. The trading action of the last week isn't anything new. Alibaba shares, 2017 aside, simply haven't been able to maintain a consistent rally. How to Play BABAWhat's interesting about the long-running problem is that bulls very well could — and likely do — see it as a good thing. Continual pressure on the share price might cause short-term frustration. However, it also presents repeated buying opportunities. After all, there's a case that Alibaba stock is going to rise eventually as long as it keeps performing. And is it really that impossible to believe that BABA could at some point pass the likes of Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) and become the world's most valuable company? That's the uber-bull case for BABA: dominant share in the world's largest market means it could become the world's biggest company at some point. But even if Alibaba can get there, it's going to take some time, and quite a bit of patience. The risks here are real, and it's clear at this point that BABA stock is going to react to external factors as much as, if not more than its own performance. Put another way, if BABA stock can't gain after this type of earnings report, it's difficult to see what catalyst there might be. As of this writing, Vince Martin has no positions in any securities mentioned. Can you get rich from fx trading? 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Why Buy Apple Stock When Alphabet Is So Much More Attractive? Posted: 25 May 2019 10:19 AM PDT Hits: 9 Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two of the four largest U.S. companies by market cap. Apple stock has taken a much larger hit than GOOGL stock during the May trade-war sell-off. However, long-term investors looking to buy the Apple dip should consider taking a close look at GOOGL stock first. At first glance, there are several reasons why an investor looking to buy the dip might choose Apple stock. AAPL is down 11% in May compared to only a 1.8% pullback from Google. However, year-to-date, Apple is still up 18% overall compared to only a 10% gain from Alphabet stock. In fact, Alphabet stock price has actually lagged the S&P 500 so far in 2019. Still, from a pure valuation perspective, Apple looks like the better buy. Apple's forward earnings multiple is a relatively low 14.3 compared to Alphabet's 21.3. In fact, Apple has a lower forward earnings multiple than Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) or Microsoft (NASDAQ: MSFT) as well. Finally, Apple stock has one of the most pristine balance sheets on Wall Street. In addition to its cash pile of $225 billion, the company is committed to putting the cash to use. AAPL stock pays a 1.6% dividend. The company just authorized an additional $75 billion in buybacks. Management has also said it is committed to becoming "net cash neutral" over time. At the same time, GOOGL stock has no dividend and has only $12.5 committed to repurchases under its current buyback program. Apple Is Shrinking, Alphabet Is GrowingWhile Apple seems like a better value based on today's numbers, investing is about the future. In the most recent quarter, Apple's revenue was down 4.5% and net income was down 0.5% compared to a year ago. Alphabet, meanwhile, reported 17% revenue growth in the first quarter. Excluding a one-time fine by the European Commission, operating income was up 26% to $8.31 billion. Google stock was punished following its Q1 report because revenue growth was its slowest in three years, and its expenses continue to rise. Investors certainly shouldn't ignore those potential issues, as well as the possibility for additional regulation. But they should also not miss the forest for the trees. Apple bulls say the company will overcome an increasingly saturated smartphone market and return to growth in time. The plan is to shrink the iPhone refresh period and improving monetization of its existing customers. However, Google is already growing at a double-digit pace. More importantly, it does not derive the majority of its revenue from selling devices in a saturated market. Former Kase Capital Management hedge fund manager Whitney Tilson says he disagrees with his investing idol Warren Buffett when it comes to Apple versus Google. "My money – unlike my investing hero, Warren Buffett – is on Alphabet significantly outperforming Apple in the long run because it has a better business model, is growing much faster, and is likely to continue doing so," Tilson says. Alphabet Stock Is Safer Than Apple StockTech investors should consider why they like tech in the first place before buying the May dip. Apple is a great company. Apple is a safe, solid long-term investment. But tech investors aren't typically looking for a blue chip company with a nice dividend yield and relatively stable earnings. That's why investors don't typically lump Microsoft in with discussions of the FANG stocks. Investors looking for a defensive tech bet in a diversified portfolio can sleep well at night owning Apple. However, Tilson says investors looking for better performance over the long-haul have a better choice staring them in the face. "To be clear, both are insanely great companies and I think Apple's stock will also do well going forward – just not as well as Alphabet's," Tilson says. The Alphabet stock price will continue to benefit from several long-term secular trends. The digital transformation of the advertising and retail businesses are the biggest. The company also has several "wild card" growth projects under its wing, including its Google Cloud and Waymo autonomous vehicle technology subsidiaries. Technology investors looking for stable capital returns at the expense of growth should buy AAPL stock. Investors looking for massive growth numbers and a sky-high valuation should buy NFLX stock. But long-term investors looking for the best value-growth combo should consider GOOGL stock as a core holding. As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. Can you get rich from fx trading? 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Retire rich with just 3 Stocks Posted: 25 May 2019 09:42 AM PDT Hits: 11
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| 3 Big Stock Charts for Friday: Alaska Air Group, Comcast and Moody’s Posted: 25 May 2019 09:41 AM PDT Hits: 16 The bulls finally started fighting back late in the day, but it didn't matter. Even coming up off the intraday day low of 2,805.49, the S&P 500's close of 2,822.24 was still 1.19% worse than Wednesday's last trade. Bank of America (NYSE:BAC) inflicted the most net damage, falling 2.5% for no particular reason other than it's a high-profile name that could easily fold if investors continue to broadly see stocks as liabilities. Advanced Micro Devices (NASDAQ:AMD) technically lost more ground though, off 3.8% simply by being a top tech name. Technology stocks are being seen as the most vulnerable group as trade tensions between China and the United States escalate. There were some winners, believe it or not, though not many. Top among that small group was L Brands (NYSE:LB). Shares of the parent company of Victoria's Secret and Bath & Body Works rallied 12.8% in response to a surprisingly promising first-quarter report. None of those tickers are promising trade prospects headed into Friday's action though … too volatile to be predictable. Take a look at the stock charts of Moody's (NYSE:MCO), Comcast (NASDAQ:CMCSA) and Alaska Air Group (NYSE:ALK) instead. Here's why. Alaska Air Group (ALK)Alaska Air Group shares have been all over the place since the middle of last year. While the 2017 and early 2018 selloff has been quelled, several recovery efforts in the meantime have also been quelled. In fact, ALK slipped to new 52-week lows in March, teasing of another prolonged downtrend. That disaster has so far been avoided, but Alaska Air is hardly back in an uptrend. Thanks to yesterday's action though — and specifically, the placement of yesterday's bar — this is a name to put back on your radar.
Moody's (MCO)The past couple of weeks haven't just been unusually volatile for Moody's. They've been volatile in an unusual way. The swings have been rather extreme, not just big changes in the day-to-day closes, but entire low-to-high ranges that haven't overlapped much with the prior day's range. That's often a sign of more indecision than it seems there is on the surface. That indecision appears to have finally resulted in something of a death blow yesterday, although there's still one narrow escape path the bulls could take if they're willing to stick together.
Comcast (CMCSA)Finally, it may not have fallen off the edge of the cliff just yet, but Comcast shares have defined exactly where that edge is. And, they did so right after touching what was the most logical place for the stock to make a major peak. If the bears can just get one or two more licks in, the already vulnerable CMCSA chart could topple in a big way.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. http://platform.twitter.com/widgets.js Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all. Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all.
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