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- The Three Tips Investment Beginners Really Need to Know
- Unusual Options Activity: Foot Locker (FL)
- Insider Activity: Interface Inc (TILE)
- Emerson Electric Upgraded by RBC
- WedBush Upgrades Bed Bath & Beyond (BBBY)
| The Three Tips Investment Beginners Really Need to Know Posted: 01 Oct 2019 02:45 PM PDT SPONSORED CONTENT Gold Expert's Newest Prediction Could Send $7 Stock SoaringDear Reader, Something strange is happening in the financial system… And according to the Wall Street Journal, it's causing some investors –- including the world’s biggest banks – to move massive amounts of cash out of the banking system. What exactly is going on and what does it mean for your money? I recently met up with widely-followed hard asset expert Bill Shaw at his firm’s east-coast headquarters. Over the past two decades, Mr. Shaw’s firm has grown from tiny startup into a publishing powerhouse – serving more than a million readers in more than 150 countries. Since 1999, the firm owes its legendary status as a trusted source of financial research to its eerily-accurate track record of often-controversial financial predictions, including:
And the bankruptcy of Freddie and Fannie. Recently, Bill revealed a brand-new prediction that has caught many by surprise. He explained, “I’m not the kind of guy who gives in to hype and big predictions… that’s why I’ve waited nearly a decade — to make sure the timing is right for the biggest prediction of my career.“ He went on to explain that over the next few years, he sees a massive bull market developing in a sector of the economy that, over the years, has been completely ignored by nearly every investor in America. The hard-asset expert said: “Events happening around the world are about to come together at just the right time to create a perfect storm, causing some of the world’s biggest investors to dump cash and stocks – and pile into this long-hated asset. In fact, it’s already begun.” After dedicating hours to painstaking examination, ensuring he considered every possible angle, Mr. Shaw has put together a free presentation to explain exactly what he sees coming… and the best way for Americans prepare. Go here to see all the details. Regards, Brian Mansfield P.S: I should warn you – some may be surprised by Mr. Shaw’s massive prediction. The fact is, even if he’s only half right, the world’s financial system could look very different in the next few years.  |
| Unusual Options Activity: Foot Locker (FL) Posted: 01 Oct 2019 03:00 AM PDT
Traders bet on a rally in shares this month. The October 19th $44.50 call options on Foot Locker (FL) saw nearly 2,000 contracts trade against a prior open interest of 147, for a 13-fold surge in volume. With shares trading around $42.70, shares need to rally at least 4 percent for the option to move in-the-money. The company next reports earnings in late November, so the move higher will have to occur without that particular catalyst. Shares of the mall-based retailer of athletic apparel have already started to move higher thanks to the strong earnings report from Nike last week, which continues to grow despite numerous controversies. Unlike Nike, shares of Foot Locker are still well below their 52-week high of $68 per share and could likely head higher. Shares of Foot Locker trade at 9 times earnings and yield 3.6 percent. Action to take: With the strong earnings we've seen in the space recently, shares are likely to move higher. Investors can buy share up to $43 and lock in a great yield here. Speculators could look at the October $44.50 calls, or give themselves more time for earnings to play out, particularly with the fourth-quarter holiday season, which is usually where retail operations post their best numbers for the year. The better bet looks like the January 2020 $50 calls, which will give traders a chance for those trends to play out more favorably.
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| Insider Activity: Interface Inc (TILE) Posted: 01 Oct 2019 03:00 AM PDT
Director makes $675,000 buy. Christopher Kennedy, a director at Interface Inc. (TILE), picked up 49,000 shares of the company, increasing his holdings by 55 percent. The total cost came to just under $675,000, and the director now owns over 136,000 shares. Insiders have been inactive at the company since late 2017, with this marking the first buy at the company. Insiders have previously been net sellers of shares two years ago, at prices 25-35 percent higher than where shares currently trade. Interface is a modular flooring company, which designs, produces and sells modular carpet worldwide, both for commercial and residential spaces. The company also provides related installation and maintenance services. Shares have fallen 35 percent in the past year. Action to take: Shares trade at 8 times forward earnings, and the company has been growing its earnings and revenue by 43 percent and 26 percent, respectively. Combined with the drop in price, and shares of flooring-related companies look like an attractive bet on continued strength in the real estate market. Investors should consider shares up to $15, where they can collect a 1.8 percent dividend. Speculators have a somewhat limited number of options trades, but the April 2020 $15 calls offer the best opportunity for a move higher in shares following the insider buy, with time for the trade to play out.
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| Emerson Electric Upgraded by RBC Posted: 01 Oct 2019 03:00 AM PDT
Firm sees potential breakup moving shares higher. Royal Bank of Canada raised its rating on Emerson Electric (EMR), to outperform from perform, citing the value of the company in a breakup. The move comes as the current CEO is retiring and several activist investors are moving in on shares to unlock value, and a breakup would be the fastest way to do so. RBC also raised its price target on shares from $65 to $77, 15 percent higher than the current price, $67. Currently, Emerson receives about two-thirds of its sales from automation solution, and one-third of its sales from commercial and residential solutions. A breakup of those businesses into two could create some investor interest, although industrial names have been a struggling sector of the market lately. Action to take: Shares trade at 17 times earnings, a bit pricey compared to some of the other opportunities out there, but still under the average for the S&P 500 index. The company's history of long-term dividend growth makes for a good long-term holding for buyers under $68 per share, although that history may change if the company is broken up. Speculators who expect some kind of move in the next few months should look at the March 2020 $75 calls, which could surge on any favorable breakup plan, and only cost $1.25, or $125 per contract to bet on a big move higher in the next six months.
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| WedBush Upgrades Bed Bath & Beyond (BBBY) Posted: 01 Oct 2019 03:00 AM PDT
Retail's revamped board of directors making effective changes. WedBush upgraded shares of Bed Bath & Beyond (BBBY), from neutral to outperform. The research firm also upgraded its 12-month price target to $16 from $14. With shares trading around $10.50, that suggests at least 50 percent upside for shares of the big box retailer. The analysis justifying the upgrade cited improved governance following some changes among the board of directors, as well as guidance to streamline stores and make them less cluttered ahead of the holiday season. The upgrade comes ahead of earnings from the company on Wednesday, and that earnings may not only stabilize, but grow over the next two years as these changes develop. In the past few months, the company has reduced corporate staff, eliminated the COO role, and is working to cut its inventory by $1 billion. Action to take: Shares are still 50 percent below their 52-week high, and yield just under 7 percent following the upgrade. They're an interesting turnaround play, but with the early work done so far, it's one that could continue to play out well for shareholders. Shares are a buy up to $11. Speculators may want to look at the January 2020 $15 call options. While they may not trade in-the-money after earnings this week, they can provide a leveraged move ahead of earnings—and if the share price goes down, the options will limit the loss compared to owning shares.
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