TradingTips.com |
- The Numbers Behind Risk That Do (and Don’t) Add Up
- Insider Activity: Retractable Technologies (RVP)
- Three Warren Buffett Holdings Worth Buying Now
- Unusual Options Activity: Twitter (TWTR)
| The Numbers Behind Risk That Do (and Don’t) Add Up Posted: 25 Oct 2019 10:25 AM PDT SPONSORED CONTENT Cannabis Investing For Beginners Have you found yourself watching instead of profiting from the cannabis industry? Well, it's time to get serious. The U.S. cannabis market is set to become a $1 trillion dollar industry in less than a decade. Meaning right now, you are missing out on what could be the most historic, moneymaking era on Wall Street. This market is still in its infancy, but it's poised for RAPID growth with the potential to turn small, pennies-per-share companies today into billion-dollar goliaths – seemingly overnight. As leading pot players continue to chew away at legal barriers, now is the perfect time to go "all in" on this red-hot industry. Maybe you've considered investing before, but thought it was out of reach… a rich man's game with a lot of complex steps to get started. But the real truth is, ANYONE can break into the cannabis market and start making cold, hard cash. You don't…
You just need to follow three simple steps to get started… 3 Simple Steps to Buy Marijuana Stocks TodayStep 1: Open a Free Online Brokerage Account (Already have an account? We've identified the 3 best cannabis stocks to buy right now) If you've never bought stocks before, the first thing you need to do is open an online brokerage account. Don't worry. They're free to open and simple to use. This account lets you buy and sell marijuana stocks easily. Some brokerages, like Robinhood.com, allow you to purchase many, but not all marijuana stocks with no fees. Other online brokerages, like TD Ameritrade.com and etrade.com, let you buy every single marijuana company, but charge a small fee when you buy and sell shares. Step 2: Find Your First Marijuana Stock to Invest In Once your account is open, the next step is figuring out what cannabis stock to invest in first. With over 144 different public companies to invest in, this industry is BOOMING with stocks with big-cash potential. But that doesn't mean that all stocks are created equal. For every under-the-radar winner, there are three penny stock scams just waiting to take advantage of this exciting market. That's why we suggest attending an online Cannabis Investor's Masterclass to help get you started. This beginner's guide makes uncovering winning cannabis stocks a whole lot easier. Now, you don't have to watch a Cannabis Investor's Masterclass to start investing stocks. But chances are you'll be blindly walking into the market, throwing darts with your eyes closed hoping to hit a bullseye if you don't. Step 3: Start Reaping the Rewards of a Marijuana Stock Investor Once you've got the ticker symbol in hand, it's time to take action! Simply enter your ticker, and how many shares you want to purchase, into your preferred platform and you are off to the races. But your journey doesn't stop there. Before you can start reaping rewards of being a marijuana stock investor, you have to build a smart portfolio. Remember, there are over 100 different cannabis companies trading in the market today. With dozens more coming online every year. But every pot stock out there will NOT be a home run. For every success story, plenty fizzle out… robbing investors of thousands, sometimes even millions of dollars. That's why the most important step is to have an industry expert on your side willing and able to set the record straight. To be there with you every step of the way so you can conquer this soon-to-be trillion-dollar industry together. Recently, one of the world's most successful cannabis investors partnered with the National Institute for Cannabis Investors to offer just that. After helping investors make $2.2 billion in less than two years, cannabis venture capitalist and IPO expert, Danny Brody is distilling his insider secrets into a free online Masterclass for the first time ever. Tailored for students of all skill levels, this industry titan teaches the same unconventional techniques he used to create his own cannabis empire. Invest just a few minutes of your time, and you'll learn:
Just click the button below to get started.  |
| Insider Activity: Retractable Technologies (RVP) Posted: 25 Oct 2019 03:00 AM PDT
CEO adds to stake near 52-week highs. Thomas Shaw, President and CEO of Retractable Technologies (RVP), added 1,500 shares to his stake recently. Shaw owns over 18.7 million shares of the company, making the increase in his total holdings a modest one. Shaw is a frequent buyer of shares in small lots—likely just enough to ensure the small-cap company's shares don't move wildly, and he has been buying shares as they have continued to move higher in the past few months. Retractable Technologies, a designer and manufacturer of safety syringes and other medical products for the healthcare industry, has seen shares advance 85 percent in the past year, and currently trade near 52-week highs. Action to take: The company is currently just shy of making a profit, but has seen double-digit revenue growth. And with over $0.25 per share in net cash on the books, investors can get a great balance sheet for the time being. Insiders, led by Shaw, own 72 percent of shares outstanding, so a long-term investor will likely have a management team whose interests align with their own. Shares are currently around $1.36, and look attractive here as a play on the inexpensive healthcare sector as a whole. Investors may want to leave some cash aside to add to their stake on a pullback, and use limit orders to ensure they don't move the price too much higher. There are no options trades for speculators to make.  |
| Three Warren Buffett Holdings Worth Buying Now Posted: 25 Oct 2019 03:00 AM PDT
Follow the world's greatest investor with these names. While investors often follow Warren Buffett into new holdings that his investment company, Berkshire Hathaway (BRK-A) discloses, astute investors can get better returns than the Oracle of Omaha with a little patience. That's because the market doesn't move in a straight line—and by buying stocks in the Buffett portfolio that are out of favor, or even lower than where Buffett bought, smart investors can get better returns going forward. We've found three holdings worth buying now. Buffett Stock Holding #1: Bank of New York Mellon (BK) Shares of bank giant Bank of New York Mellon (BK) —one of many banks in the Berkshire Hathaway portfolio—are trading down over the past few years. And they're trading at a steep discount to the peak they once traded at back in 2001, when shares topped $60. What makes this bank a potential buy now? For starters, despite some fear about the banking system, the big banks are doing just fine in today's environment. Bank of New York Mellon has sported a fat 24 percent profit margin, a nice chunk of change for the banking industry as a whole. Right now, the company is trading at just 12 times earnings, and shares have lagged the stock market by 10 percent in the past year. That's a nice undervaluation relative to the overall market that will return in time. The bank trades just a bit over 1.1 times book value—a bit expensive for a smaller bank whose valuation is dependent on a book of loans, but reasonably priced for a big bank that earns fees from other operations outside traditional bank lending such as consulting on public offerings and other investment bank services. Overall, it's one of the better-managed, better-valued banks in the space, and on a valuation basis, shares look more attractive than when Buffett first started buying this position—which may explain why he continues to add to this stake just about quarterly! Investors should follow along given the valuation here, with an eye towards buying up to $47.50. Shares pay a 2.6 percent dividend. Buffett Stock Holding #2: Apple (AAPL) Over the past few years, Buffett has built Apple (AAPL) into his largest stock position in Berkshire, more than twice the size of his second largest holding. That's a far cry from the days when Buffett famously shunned technology and technology-related companies. Yet Buffett hasn't changed, so much as times have changed, and what constitutes a value stock has changed with it. Apple may look traditionally expensive as 20 times earnings. And shares trade at all-time highs, with a total company valuation in excess of $1 trillion dollars. But looking forward, Apple has the technological prowess and branding power that will allow it to continue to lead the industry for consumer technology for decades to come. It's that understanding of value that has pushed Apple to one of the largest holdings for the company. Over the past year, Apple has announced a slew of initiatives to take things to the next level. The company is looking beyond hardware and into software and the end-user experience to make it better. That's a higher-margin proposition than manufacturing a new version of the iPhone every year, and the company is likely to continue gushing insane amounts of cash as a result. Shares of Apple are a buy up to $245, where they yield around 1.25 percent. Buffett Stock Holding #3: Kraft Heinz (KHC) Rounding out the top buys in Buffett's portfolio now, we come to Kraft Heinz (KHC), a position where Buffett has admitted he overpaid. But with a share price down over 50 percent in the past year, you don't have to. The company's decision to write down the value of the merger between the two food giants into one super-giant in the past year have been the principal factor weighing on shares. But with insiders at 3G Capital buying up the shares that the fund is selling, and with a valuation pushing the dividend close to 6 percent, this is one Buffett position where today's investors can get a far better deal. Buffett has also stated that he intends to hold his position for now, and that he isn't adding to his stake here. Historically, Buffett has tended to hold some positions of this nature until they turn around, meaning that today's investors will have a clear exit sign for this position once the money's been made. Final Thoughts Markets are dynamic, and a great investment can still go down before it delivers profits. Or a company may improve its operations and outlook faster than shares can price them in. Looking at companies already vetted by history's greatest investor, we can find some values hidden in plain sight in some of today's big-cap stocks.  |
| Unusual Options Activity: Twitter (TWTR) Posted: 25 Oct 2019 03:00 AM PDT
Traders bet on further weakness following earnings miss. A variety of put options on Twitter (TWTR) saw soaring volume following the company's massive earnings miss, which sent shares down by twenty percent. Of the numerous contracts with heavy volume, the December 20th $26 put options saw a 40-fold increase, from 101 contracts to over 3,900. The option, with a cost of just $0.23, is a bet that would move in-the-money in the 56 days until expiration if shares fell another 18 percent—a little bit less than the post-earnings drop. The $26 strike price also represents a 52-week low for shares, so for the option to truly make money by expiration, shares would need to break to new lows. Action to take: With blood in the water following the earnings miss, shares may trend lower. However, investors may be able to get into this put option trade a bit more cheaply in the next few days. A company that drops by 20 percent following earnings, even if heading lower, may first give back some of that drop. Rather than pay $0.23, try and get in around $0.15—and then look to get out with a double or triple. Investors should hold off on buying shares until they drop under $27.50—and even then, they may want to wait until the next earnings report or news about potential regulatory issues in the social media space, to determine if the company is on the right track again or not.  |
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