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- Profit From Weathering a Storm
- Oil Inventories Drop Further Than Expected
- Unusual Options Activity: Advanced Micro Devices (AMD)
- Spruce Point Warns on Church & Dwight
- Insider Activity: Coty Inc (COTY)
| Profit From Weathering a Storm Posted: 06 Sep 2019 10:57 AM PDT SPONSORED CONTENT Ex-forklift Operator Joins "Billionaire's Playground" Thanks to This Stock Flipping Formula – Here's HowTom Gentile has no formal education and used to make only $8,000 a year. But three months ago, he completed construction on his newest home overlooking the ocean in New Zealand. It's just down the road from Peter Thiel's mansion. (Peter Thiel, by the way, is the co-founder of Paypal. He's worth $2.5 billion.) Jack Ma – who owns Alibaba and is worth $34 billion – is thinking about buying the property on the north side of Tom's estate. Legendary investor Julian Robertson and Hollywood director James Cameron also own property in the area. People are calling this stretch of coastline the "Billionaire's Playground." And right smack in the middle of this billionaire's playground is Tom's house, where he lives four months a year.
But today he lives a life most of us can only dream about. Mr. Gentile has written over a half-dozen books and is the co-founder of one of the largest financial training companies in the world – serving more than 400,000 people in 50 countries. It is so successful, in fact, one of the top financial firms in the U.S paid $20 million to learn his methods. And during a recent day at the beach, he recorded a video explaining – in extreme detail – exactly how he's built his fortune. What's his secret? It's a method he calls “Flipping Stocks.” As he explains in the video, his unique approach allows anyone the opportunity to make thousands of dollars a month from home. It doesn't matter if you're a total beginner. And it takes less than one hour of work a week. In fact, many of his students are doing much better:
Could you follow in their footsteps? Take a few moments to watch his video and see for yourself.  | |||
| Oil Inventories Drop Further Than Expected Posted: 06 Sep 2019 03:00 AM PDT
Inventory drop nearly double than expected. EIA petroleum estimates for the week indicated a 4.8 million barrel drop in crude oil inventories. This was nearly double the estimate for a 2.5 million barrel drop. Gasoline dropped 2.4 million barrels, about 1 million barrels more than expected, and more than last week's decline of 2.1 million barrels. Distillates, which were expected to increase, also dropped 2.5 million barrels. Overall, the data shows robust demand for oil at current prices in the mid-$50 range. Over the past three months, the weekly data has shown a 60.2 million barrel decline, indicating that the summer driving season in North America is alive and well, despite some fears to the contrary and some weekly data that seemed to buck the trend. Oil demand is seasonally likely to start declining in the coming weeks, and inventories may build again. Action to take: Oil is likely in a $45-65 range, mostly trading in the $50 range. Later in the year, we may get a different picture as OPEC meets and sets their production quotas. For the time being, oil and gasoline are relatively cheap compared to recent years, and investors may want to look at starting or adding to positions in major integrated oil companies here. Firms like ExxonMobil (XOM) are near five-year lows, and shares look attractive on a dividend basis below $70.
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| Unusual Options Activity: Advanced Micro Devices (AMD) Posted: 06 Sep 2019 03:00 AM PDT
Put option buying bets on decline. The October 4th $26 put options on Advanced Micro Devices (AMD) saw over 10,400 contracts trading—a 41-fold increase over the prior open interest of 250 contracts. With 28 days left to go and with shares around $32, the bet is that shares will decline nearly 19 percent. At just $0.15 for the option, or $15 for the full contract, the trade may simply be a hedge following the strong rally this week on the announcement of new trade talks. Advanced Micro Devices is an industry-leading name in the semiconductor space with computing and graphics processing technologies. Shares are up 9 percent in the past year and trade at 30 times forward earnings. The company next reports earnings in late October, after these October 4th options expire. Action to take: The company is a volatile one, but is well positioned to benefit from a permanent resolution to trade issues. While valuation is a bit high, it's not high enough to see the kind of pullback suggested by this option trade, at least before earnings. Speculators betting on a pullback in shares would be better off with a January 2020 $25 call. While more expensive a trade at $1.12 or $112 per contract, it could offer a better return if the company misses on earnings and sees shares drop in late October.
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| Spruce Point Warns on Church & Dwight Posted: 06 Sep 2019 03:00 AM PDT
Consumer goods company faces significant downside. A research note released by Spruce Point warns that Church & Dwight (CHD) may see 35-50 percent downside in the coming months. That's based on the deteriorating retail environment for CHD products, recent leveraged acquisitions made at a premium leading to rising debt, and the company's aggressive financial accounting practices. The research note includes the growth of the company's goodwill on its balance sheet, an accounting item that has gotten companies like Kraft Heinz into trouble this year. Church & Dwight is best known for Trojan brand prophylactics, Arm & Hammer baking soda, and other consumer goods products. Its recent acquisitions include Flawless and Waterpik. Shares are up 39 percent in the past year, against a 2 percent gain for the S&P 500 index. Shares trade at 28 times forward earnings, a premium to most consumer brands companies. Action to take: There is certainly overvaluation in shares, but to get to a 35-50 percent drop, bigger issues would have to be revealed, such as a bigger drop in consumer sentiment. At present, the company's debt looks manageable, but the growth of goodwill on the balance sheet from recent acquisitions is a concern. Overall, we suggest shareholders avoid shares of the company, unless shares can be bought in the low $50 range near its 52-week low. Speculators looking for a market hedge may want to consider buying put options. The January 2020 $70 puts look like a good candidate on a risk/reward basis, costing traders less than $2.00 or $200 per contract to bet on a drop in shares.
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| Insider Activity: Coty Inc (COTY) Posted: 06 Sep 2019 03:00 AM PDT
Directors make multi-million dollar buy. Multiple insiders are making a buy at cosmetic company Coty (COTY). On September 4th, director Robert Singer bought 35,000 shares, a $325,000 purchase that increased his stake in the firm by nearly 15 percent. And director Peter Harf bought just over 1,050,000 shares, shelling out $9.98 million to do so, increasing his stake by 10 percent. Data for the past three years indicate that insiders have been buyers in that time, with their volume spiking this year. Coty is a beauty and cosmetics company that licenses brands such as Burberry, Hugo Boss, Calvin Klein, Gucci, and Tiffany among others and sells them through various retailers and e-commerce platforms. Shares have dropped 23 percent in the past year and the company reported a sizeable loss in the most recent quarter. Action to take: With insiders owning over 41 percent of shares of the company, this is one place where investors may want to take note, as management's interest is highly aligned with theirs. Shares look attractive under $10, as they offer a 5.3 percent dividend yield to wait. This isn’t the first cosmetics company to see large insider buying in recent months. Speculators may want to consider the January 2020 $10 call, which trades for around $0.75, or $75 per contract. If shares went back to their old high of $15 by January, the option would be worth $5, for a near six-fold return.
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