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Are Wal-Mart Shares Overbought at Current Levels?

 

Are Wal-Mart Shares Overbought at Current Levels?

By Justin Kuepper | November 17, 2017 — 10:30 AM EST

Wal-Mart Stores, Inc. (WMT​) shares soared more than 10% on Thursday after the company reported better-than-expected third quarter financial results. Revenue rose 4.2% to $123.2 billion – beating consensus estimates by $2.2 billion – and earnings per share of $1.00 beat consensus estimates by three cents per share. Comparable sales increased 2.7% during the quarter compared with consensus estimates calling for just a 1.9% gain.

The most significant developments were in the company’s e-commerce division. Digital sales increased 50%, and gross merchandise volume rose 54% during the quarter. Early analyst reactions have been favorable across the board, and investors are starting to see how the traditional retailer can compete against rising online threats like Amazon.com, Inc. (AMZN​). The fundamental case for Wal-Mart has certainly become a lot stronger. (See also: Wal-Mart Shares Jump on Strong U.S. Sales Growth.)

Technical chart showing the performance of Wal-Mart Stores, Inc. (WMT) stock

From a technical perspective, the stock broke through trendline and R1 resistance levels at $91.78 and R2 resistance levels at $96.25 to new all-time highs. The relative strength index (RSI​) moved into overbought territory with a reading of 81.31, but the moving average convergence divergence (MACD​) experienced a bullish crossover that could suggest a new uptrend. Overall, traders should maintain a bullish bias on the stock.

Traders should watch for some consolidation above R2 support at $96.25 before a further move higher as the RSI moderates to more neutral levels. A breakdown from these levels could lead the stock to retest R1 and trendline support at $91.87, but the favorable third quarter financial results suggest that R2 support should hold. Traders should maintain a bullish bias on Wal-Mart stock over the intermediate term and a neutral outlook over the short term due to consolidation. (For more, check out: Wal-Mart to See Best Year in 3 Decades: Susquehanna.)

Stock charts courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

Published at Fri, 17 Nov 2017 15:30:00 +0000

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Buffalo Wild Wings soars 25% on takeover talk

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5 stunning stats about the fast food industry
5 stunning stats about the fast food industry

 Buffalo Wild Wings soars 25% on takeover talk

  @lamonicabuzz

Fast food chain Arby’s likes to tout in TV ads that it “has the meats.” It’s even introduced venison to the menu. But if Wall Street rumors are to be believed, the company behind Arby’s may soon own a chain famous for something more common — chicken.

Roark Capital, the majority owner of Arby’s, Carl’s Jr and Moe’s Southwest Grill, is reportedly looking to buy Buffalo Wild Wings(BWLD) for $2.3 billion. Shares of the chicken wing and sports bar franchise surged nearly 25% Tuesday on the news.

Spokespeople for Buffalo Wild Wings and Roark Capital, which also has big stakes in Auntie Anne’s, Carvel and Jimmy John’s, were not immediately available for comment.

But Buffalo Wild Wings, known as B-Dubs to its fans, has been struggling due to rising food costs and slumping sales. That could make it vulnerable to a takeover. The stock is still down more than 5% in 2017 — despite Tuesday’s big pop.

Longtime CEO Sally Smith announced in June that she would retire at the end of the year after investors elected three candidates to the company’s board who were backed by activist shareholder firm Marcato Capital. Marcato owns about a 6% stake in Buffalo Wild Wings.

Still, there have been some recent signs of a turnaround at Buffalo Wild Wings.

Shares soared after its most recent earnings report in October. Sales of so-called boneless chicken wings helped boost profits. One of the problems that Buffalo Wild Wings was facing was a spike in the price it paid suppliers for its namesake wings.

By offering cheaper boneless wings, which are really just breast meat cut to look more like wings, Buffalo Wild Wings was able to boost profit margins.

There are still concerns that ratings declines for National Football League games this season are hurting sales though. Papa John’s, the pizza partner of the NFL, has already blamed the National Anthem protests by some players for weak sales.

Same-store sales, which measure the performance at the company’s locations open at least a year, fell 2.3% from a year ago at the company-owned restaurants and were down 3.2% at franchise-run locations.

Buffalo Wild Wings CFO Alexander Ware said during the company’s conference call last month that he expected similar sales declines in the fourth quarter on Thursday nights, Sundays and Monday nights when the NFL plays its games.

So Buffalo Wild Wings may still be a company that, like a defensive back struggling to cover a star wide receiver, gets a lot of penalty flags from Wall Street.

For that reason, several analysts think that Buffalo Wild Wings would be wise to say yes to any deal from Roark.

“We believe Roark’s extensive restaurant experience could aid Buffalo Wild Wing’s turnaround and cash in-hand is difficult to turn down unless investors believe a recovery is already well underway,” said BTIG’s Peter Saleh in a report Tuesday.

Morgan Stanley analyst John Glass added in a report that a deal makes sense since it would give the investors at Marcato a chance to quickly cash in on their investment.

Of course, it remains to be seen whether a takeover actually happens or not.

But a Buffalo Wild Wings acquisition would just be the latest deal in what’s been an incredibly busy year for restaurant mergers. Private equity firms and other investment companies have been hungry for deals.

Oak Hill Capital bought Checkers. Golden Gate Capital ate up Bob Evans Restaurants. And Krispy Kreme owner JAB acquired Panera.

Publicly traded restaurant chains appear eager to grow as well. Burger King parent Restaurant Brands(QSR) scooped up Popeyes Louisiana Kitchen this year while Olive Garden owner Darden(DRI) gobbled up Cheddar’s Scratch Kitchen.

 

Published at Tue, 14 Nov 2017 18:20:54 +0000

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Wall Street heads lower, tax plan doubts weigh

 

Wall Street heads lower, tax plan doubts weigh

(Reuters) – Wall Street was set to open marginally lower on Tuesday as worries about Republican tax plans and the economy’s ability to deal with more rises in interest rates weighed on the mood among investors.

Shares in Home Depot held steady while those in off-price retailer TJX dipped after quarterly reports that bore the impact of a violent U.S. hurricane season.

Buffalo Wild Wings surged 26 percent after a report that the restaurant chain had received a takeover bid at about $2.3 billion from private equity Roark Capital Group.

With the quarterly earnings season winding down, the market has halted after its rally to record highs last week.

Investors were waiting for any signs of compromise on U.S. tax policy after Senate Republicans unveiled a plan last week that would cut corporate taxes a year later than a rival House of Representatives’ bill.

“You’re at the end of the earnings season, economic data is all distorted because of the hurricanes, I don’t think there is going to be any clear picture until we get a firm yes or no for the tax bill,” Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“We’ll see a bit of back-and-forth, the market’s got to breathe.”

At 8:32 a.m. ET, Dow e-minis were down 38 points, or 0.16 percent, with 27,263 contracts changing hands.

S&P 500 e-minis were down 5 points, or 0.19 percent, with 176,095 contracts traded.

Nasdaq 100 e-minis were down 5.25 points, or 0.08 percent, on volume of 29,520 contracts.

A Labor Department report showed producer prices increased 0.4 percent in October, after similar gains in September. Economists polled by Reuters had a expected a 0.1 percent rise.

In the 12 months through October, the producer price index jumped 2.8 percent, the largest rise since February 2012.

St. Louis Fed President James Bullard said on Tuesday the Fed should keep its benchmark interest rate at current levels until there is an upswing in inflation.

Investors are concerned that a tightening gap between short and long-term U.S. government bond yields suggests the Federal Reserve may be in danger of hiking rates too much and killing longer term inflation and growth.

Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva

 

Published at Tue, 14 Nov 2017 14:01:48 +0000

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Buy Kohl’s Ahead of Holiday Season: Baird Upgrades

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Buy Kohl’s Ahead of Holiday Season: Baird Upgrades

By Shoshanna Delventhal | November 13, 2017 — 6:44 PM EST

Shares of department store chain Kohl’s Corp. (KSS) spiked last week on a bullish note from a team of analysts on the Street who see the company as well positioned for the upcoming holiday season. While the retailer initially sank Thursday after posting mixed earnings results in the the third quarter, Baird thinks the stock is a buy thanks to an improving product portfolio and strong loyalty position. (See also: Amazon Could Take $60B in Apparel Retail: Fitch.)

In Q3, Kohl’s reported a slight revenue surprise, indicating that store traffic and sales picked up in late October after a lull in September. Chief Executive Officer Kevin Mansell attributed a gross margin decline to higher shipping costs associated with a boost in online orders, stating that he is “super confident” that the company is set up for a strong year-end finish.

Encouraging Numbers

Following the earnings report, Baird analyst Mark Altschwager upgraded KSS to outperform from neutral. With a price target of $47, he expects the retail stock to gain about 12.6% over the next 12 months.

Cost savings and inventory reduction initiatives should provide strong near-term visibility into KSS’s free cash flow, according to Altschwager. The analyst noted that even if his thesis is wrong, he still views the stock as favorable due to its 5% or higher dividend yield, buybacks and takeout speculation protecting downside. “Looking ahead, we believe a more pragmatic growth outlook from management, aggressive actions on the cost front, and momentum with traffic and omnichannel initiatives result in better risk/reward for shares,” added the Baird analyst.

Trading down 4.6% on Tuesday at $41.08, KSS reflects an approximate 12.1% decline year-to-date (YTD) versus the S&P 500’s 15.5% increase over the same period. (See also: Kohl’s Dips as New Partner Under Armour Prospers.)

 

Published at Mon, 13 Nov 2017 23:44:00 +0000

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GE’s Shrinking Cash Flow Signals Stock’s Tragic Decline

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The ticker and logo for General Electric Co. is displayed on a screen at the post where it’s traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2016. REUTERS/Brendan McDermid

GE’s Shrinking Cash Flow Signals Stock’s Tragic Decline

By Mark Kolakowski | November 9, 2017 — 1:30 PM EST

New CEO John Flannery of embattled General Electric Co. (GE) is expected to announce a significant cut to the company’s robust 4.8% dividend, Barron’s reports. This announcement may come either at a major presentation to shareholders scheduled for Monday, November 13, or sometime in advance of that meeting. In any case, investors who focus on free cash flow rather than earnings already are anticipating this move.

The very thought that GE plans cut its dividend is symbolic of the tragic decline of what, once, was one of America’s greatest corporations, founded by legendary inventor Thomas Edison. GE also is the only stock to remain in the Dow Jones Industrial Average (DJIA) from its inception in 1896 to today. But after outperforming the market for much of the 1980s and 1990s, GE’s stock has fallen by nearly two-thirds from its 2000 highs as the conglomerate struggles to restructure. During that period, the stock market soared and left GE’s shares behind.

While there have been many signs of GE’s decline, an often overlooked one on Wall Street is GE’s worsening cash flow.

Watch Cash Flow

In 1975, publisher Herbert S. Bailey wrote a parody of Edgar Allan Poe’s famed poem, “The Raven,” entitling his effort “Quoth the Banker, ‘Watch Cash Flow.'” It soon became required reading in many business school accounting and finance courses. The point is that businesses must pay their operating expenses, their creditors, and their dividends in the form of real, hard cash. The upshot of various accounting conventions is that reported earnings do not necessarily equal the net cash generated by the business in the same period of time. Earnings according to Generally Accepted Accounting Principles (GAAP) may be higher or lower. In the case of GE, earnings are paltry, and free cash flow has been negative in recent quarters.

Operating cash flow represents the cash produced by a company’s normal business operations. Deduct capital expenditures, and the result is free cash flow. Free cash flow, in turn, finances the payment of interest and principal to creditors, and dividends to shareholders. If free cash flow is insufficient, the company must draw down cash holdings, borrow, or issue more stock to make up the deficit. GE is in such a deficit position.

Source: Barron’s

GE’s Cash Crunch

For a detailed look at GE’s cash flow problem, statements provided by Morningstar Inc. are instructive. During the most recent trailing twelve months (TTM), GE generated operating cash flow of $5.147 billion and spent $7.161 billion on capital investments, leaving it with a deficit of $2.014 billion in free cash flow. By contrast, net income available to common shareholders was a positive $7.089 billion, also per Morningstar.

Meanwhile, the company spent $26.686 billion on debt service, and $8.612 billion on dividends. This increased the total cash flow deficit to $37.312 billion. How did the company fill this yawning gap?

GE raised $9.651 from new issues of debt, drew down its cash balances by $15.096 billion (a 27% reduction), and produced the remaining $12.565 billion through a variety of investing and financing activities, including the sale of assets. CEO Flannery has announced that he plans to sell an additional $20 billion of assets in the next year or two, per Reuters.

While slashing the dividend is an obvious and necessary move to address the cash flow gap, this alone is insufficient to fix problem, as Cowen Inc. (COWN) indicates in a research note quoted in another Barron’s article. Curtailing capital investments, for example, may jeopardize future growth. GE’s problems also may stem from the fact, that the company may not be investing wisely, as noted below. (For more, see also: How Stock Investors Can Profit Big From Spinoffs.)

Competing Irrationally

GE is a complex industrial and financial conglomerate with a crazy quilt of transactions between divisions, adding to the difficulty of analyzing its various businesses, according to Stephen Tusa, an analyst with JPMorgan Chase & Co. (JPM), as interviewed by Barron’s. Meanwhile, the industrial side of GE generates a significant portion of its revenue from long-term contracts. Under various accounting conventions, such as the percentage of completion method, the company recognizes revenue either before or after cash payments actually are received from the customer. The ongoing cash flow deficit relative to earnings suggests that accounting conventions are driving the recognition of revenue, on balance, before cash is being received.

Worse yet, Tusa says, GE “is competing irrationally, giving away content and terms that underprice the risk,” per Barron’s. The company enters into many complex contracts involving the sale of both equipment and services, and often with durations of 18 to 24 months, Tusa indicates. Based on his analysis, they tend to bid aggressively on these contracts, underestimating the costs, and thus forcing writeoffs down the road. “That’s a big reason their cash flow has been so weak relative to their earnings,” he tells Barron’s. Additionally, Tusa suggests that “they are making capital allocation decisions with bad or optimistic data.”

The Takeaway

“The best companies in my sector reinvest excess free cash into acquisitions to drive growth,” Tusa comments to Barron’s. Meanwhile, GE is forced to do the opposite, selling off businesses to raise cash. “If you’re not generating free cash, there’s a lack of resources for that,” he continues. The result: “lower growth and lower-quality earnings,” Tusa concludes. (For more, see also: 9 Stocks Outperforming by Investing in Growth: Goldman.)

 

Published at Thu, 09 Nov 2017 18:30:00 +0000

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Nvidia Stock Goes Parabolic Into the Gaming Cloud

Nvidia Stock Goes Parabolic Into the Gaming Cloud

By Richard Suttmeier | November 9, 2017 — 8:45 AM EST

If you want to own Nvidia Corporation (NVDA​), you need to know how trade a momentum stock. A momentum stock typically has an elevated P/E ratio, a paltry dividend yield and extremely overbought momentum (12 x 3 x 3 weekly slow stochastic).

Nvidia stock closed Wednesday at $209.16, up 96% year to date and in bull market territory at 213.3% above its post-election low of $66.76 set on Nov. 16, 2016. The stock set its all-time intraday high of $212.90 on Nov. 7. Here’s my analysis and recommended exit strategy given the stock’s strong but parabolic technical momentum. (See also: Why Nvidia’s Stock Faces a Growth Crisis.)

Nvidia is the third largest component of the iShares PHLX Semiconductor ETF (SOXX​), which has 30 components and mirrors the Philadelphia Semiconductor Index (SOX). The SOX has been the strongest group of stocks so far in 2017, with a gain of 45.7% year to date, but the index is experiencing an “inflating parabolic bubble” that is approaching its March 2000 all-time high of 1,362.10. The momentum reading for the SOX is 97.16 on a scale of 0 to 100, where the overbought threshold is 80, and a reading above 90 indicates an “inflating parabolic bubble.”

Analysts expect Nvidia to post earnings per share between 94 cents and $1.02 when the company reports results after the closing bell on Thursday. Value buyers have no interest in this stock, as its P/E ratio is 60.50 with a dividend yield of just 0.27%. Nvidia provides computer chips for gaming and artificial intelligence applications, which is all the rage these days. The company is well positioned for growth, so traders should look for guidance in the self-driving and machine learning applications, as well as growth in Nvidia’s data center business.

The weekly chart for Nvidia

Technical chart showing the performance of Nvidia Corporation (NVDA) stock

Courtesy of MetaStock Xenith

The weekly chart for Nvidia is positive but extremely overbought, with the stock above its five-week modified moving average of $193.62. The 12 x 3 x 3 weekly slow stochastic reading is projected to rise to 92.89 this week, up from 90.87 on Nov. 3, well above the overbought threshold of 80 and well above 90, which I consider an indication that the stock’s price action is an “inflating parabolic bubble.”

If you are long a stock that appears to be in an inflating bubble, you should always have an exit strategy. My choice is to use a weekly close below the five-week modified moving average as the sell-stop trigger. This average will be rising each week as the stock continues to trade higher.

Given this chart, my trading strategy is to buy weakness to my quarterly and semiannual value level of $175.77 and $129.45, respectively, and to reduce holdings on strength to my monthly and weekly risky levels of $215.52 and $220.73, respectively. (For additional reading, check out: Artificial Intelligence to Drive Nvidia’s Q3 Earnings.)

 

Published at Thu, 09 Nov 2017 13:45:00 +0000

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Asia stocks pause at peaks, ponder U.S. tax muddle

A man looks at a stock quotation board outside a brokerage in Tokyo, Japan, April 18, 2016. REUTERS/Toru Hanai

Asia stocks pause at peaks, ponder U.S. tax muddle

SYDNEY (Reuters) – Asian shares paused at decade peaks and the dollar dipped on Wednesday amid concerns Republican plans for major U.S. tax cuts were running into headwinds even before the Senate releases its own version of the proposals.

A man walks past an electronic stock quotation board outside a brokerage in Tokyo, Japan, September 22, 2017. REUTERS/Toru Hanai

Investors were also keeping a wary eye on Saudi Arabia’s sweeping anti-graft purge and an escalation of tensions with Iran, though oil prices did ease from their highs.

Dealers said EMini futures for the S&P 500 ESc1 slipped 0.2 percent on a report by the Washington Post that Senate Republican leaders were considering a one-year delay in the implementation of a corporate tax cut, a centerpiece of the House plan.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.05 percent having hit its highest since November 2007 on Tuesday.

Japan’s Nikkei .N225 fell 0.4 percent, though that followed a jump to its best close since 1992.

The main event in Asia will be Chinese trade figures for October which will give a read on the state of global trade and on whether Chinese demand for commodities is holding up.

China’s exports are seen rising 7.2 percent on a year ago, with imports up a solid 16 percent.

Investors will also keep an eye on President Donald Trump as he wraps up his visit to Seoul on Wednesday and then head to China, where he is expected to press a reluctant President Xi Jinping to tighten the screws further on Pyongyang over the reclusive state’s belligerent pursuit of nuclear weapons.

In the currency market, trading was described as a “random walk” by analysts at Citi with no clear trends to follow.

The dollar was a slim 0.1 percent lower at 94.826 .DXY against a basket of currencies, having again failed to clear resistance around 95.150.

It was 0.2 percent lower on the yen at 113.76 JPY=, but well within the 112.96/114.74 range of the past 12 sessions.

The euro touched a four-month trough at $1.1552 overnight in the wake of disappointing German industrial data, but quickly steadied in Asia to around $1.1597 EUR=.

Wall Street had taken a breather on Tuesday after again making record peaks. The Dow .DJI ended up 0.04 percent, while the S&P 500 .SPX lost 0.02 percent and the Nasdaq .IXIC 0.27 percent.

The S&P 500 financial index .SPSY led decliners with a 1.33 percent fall, in part on concerns a flattening yield curve would crimp profits at banks that borrow short to lend long.

The U.S. yield curve has flattened sharply in the last couple of weeks, with the gap between two- and 10-year yields shrinking to just 68 basis points, the smallest since 2007.

The move largely reflects wagers the Fed is determined to hike in December, pushing up short-term yields. Such a move was likely to ensure inflation stays lower for longer, thus pulling down longer-dated yields and flattening the curve.

Flatter curves are sometimes harbingers of slower economic growth, but can also signal excessive risk taking as investors lend for longer and longer in search of better returns.

Oil markets were dominated by Saudi Crown Prince Mohammed bin Salman’s move to shore up his power base with the arrest of royals, ministers and investors, which an official described as part of “phase one” of a crackdown.

Tensions also escalated between OPEC members Saudi Arabia and Iran, which analysts said did more to rattle the oil market than the prince’s purge.

After reaching a two-and-a-half year top on Monday, Brent crude futures LCOc1 had pulled back a touch to $63.69 a barrel. U.S. crude CLc1 was off 14 cents at $57.06.

Editing by Shri Navaratnam

Our Standards:The Thomson Reuters Trust Principles.

 

Published at Wed, 08 Nov 2017 01:08:26 +0000

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Snapchat launches redesign as growth disappoints Wall Street

Snapchat launches redesign as growth disappoints Wall Street

(Reuters) – Snap Inc (SNAP.N) is redesigning its disappearing-message app Snapchat in an attempt to reach a broader audience, going back to the drawing board after being clobbered by Wall Street for another quarter of slowing user growth.

A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson

The Venice, California-based firm, which had the hottest debut of any tech stock in years in March, reported revenue and user growth for the third quarter well below Wall Street expectations as it struggles to compete with Facebook Inc’s (FB.O) Instagram.

The disappointing financials and announcement of the redesign sent shares down as much as 20 percent in after-hours trading. They rebounded partially to $12.57, still well below the initial public offering price of $17 in March.

Snap’s user growth in the last three months was about half what investment analysts expected. Daily active users rose to 178 million in the third quarter from 173 million in the second quarter. Analysts had expected 181.8 million, according to research firm FactSet.

Chief Executive Evan Spiegel said the company was launching the redesign after hearing for years that Snapchat was difficult to understand or hard to use.

“We are going to make it easier to discover the vast quantity of content on our platform that goes undiscovered or unseen every day,” Spiegel, 27, said in written remarks prepared for a call with investment analysts.

He said that there was a “strong likelihood” the redesign would be disruptive in the short term, but that Snap was willing to take the risk for long-term gain.

Such a radical change so soon after an IPO is unusual. But Snap is not the only social media company looking to revive growth by changing its look. Microblogging service Twitter Inc (TWTR.N) said on Tuesday it would roll out 280-character tweets to users across the world, double the length of its iconic 140-character tweets.

Asked on the analyst call what the redesign would look like, Spiegel offered no details but said the company had been studying the evolution of mobile content feeds such as Twitter streams and the Facebook News Feed.

“There’s a really exciting opportunity here for another evolution,” he said.

REVENUE MISS

Revenue, the bulk of which comes from advertisements, rose to $207.9 million from $128.2 million. Analysts on average were expecting revenue of $236.9 million.

Snap’s average revenue per user rose to $1.17 in the latest quarter, from 84 cents a year earlier, but missed analysts’ average estimate of $1.30.

Snap Chief Strategy Officer Imran Khan said revenue was affected by a shift toward a software-based auction system for selling ads – a method employed by Facebook and Alphabet Inc’s (GOOGL.O) Google – which has driven down the average price.

The auction system hit revenue in the short term but “builds the foundation for long-term scalable revenue,” Khan said in written remarks.

The amount of ads in Snapchat compared to non-ad content, known as “ad load,” remains very low, Spiegel said.

Snap recorded a $39.9 million charge in the quarter related to inventory of its hardware product “Spectacles.” The company said it “misjudged strong early demand” and ended up buying more of the product than it could sell.

Snap’s Spectacles, at $129.99 a pair, are sunglasses with a video camera on one corner. They allow users to take 10-second videos with the press of a button on the frame, which are then saved to users’ Snapchat account.

INVESTORS SOUR

In its third earnings report since the company went public in March with a $3.4 billion valuation, Snap posted a net loss of $443.2 million, or 36 cents per share, compared with a loss of $124.2 million, or 15 cents per share, a year earlier.

Wall Street had expected a loss of 32 cents per share, on average, according to Thomson Reuters I/B/E/S.

Snapchat, popular among millennials for the bunny faces and floral tiaras that people can add to pictures, allows users to chat through a series of disappearing photos and videos. Users can also post images and videos as “stories” – ephemeral posts that can be viewed in chronological order and that disappear after 24 hours.

Investors’ view of Snap has soured since its IPO.

Before the quarterly release, Snap’s share price was already down 39 percent from its close on March 2, its first day of trading on the New York Stock Exchange. Facebook’s shares were up 32 percent over that time.

Facebook’s Instagram said in September that it had 500 million daily active users.

As of June, Instagram Stories – a replica of Snapchat’s synonymous feature – had 250 million daily users, up from 200 million in April, according to the company.

Reporting by David Ingram in San Francisco and Pushkala Aripaka in Bengaluru; Additional reporting by Laharee Chatterjee in Bengaluru; Editing by Savio D’Souza and Bill Rigby

 

Published at Tue, 07 Nov 2017 23:29:39 +0000

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Priceline Stock Breaks Down From Head and Shoulders

 

Priceline Stock Breaks Down From Head and Shoulders

By Justin Kuepper | November 7, 2017 — 10:58 AM EST

The Priceline Group Inc. (PCLN​) shares fell more than 10% on Tuesday after the company reported third quarter financial results. While the company exceeded expectations for the quarter, fourth quarter guidance came in well below expectations. Management expects earnings per share of $13.40 to $14.00 per share during the fourth quarter, which is lower than the consensus estimate of $15.56 per share, while revenue is expected to be $870 million to $910 million, versus a consensus of $1 billion.

Third quarter revenue jumped 20.1% to $4.43 billion – beating consensus estimates by $90 million – while net income of $35.22 beat consensus estimates by 97 cents per share. Gross travel bookings also increased by 18%, which was higher than the 11% to 16% that analysts were expecting. Room nights jumped 18.6%; car rental days rose 5.5%; and airline tickets fell 11.8% – largely positive results for the quarter. (See also: How Priceline Group Makes Money.)

Technical chart showing the performance of The Priceline Group Inc. (PCLN) stock

From a technical perspective, the stock broke through all major near-term support levels, including the 50-day moving average, 200-day moving average and all pivot point supports, to levels last seen earlier this year. The stock also broke down from a head and shoulders (H&S) pattern, which could signal a longer-term decline. The relative strength index (RSI​) fell to oversold levels of 21.43, but the moving average convergence divergence (MACD​) experienced a sharp move lower.

Traders should watch for some consolidation at trendline support levels of around $1,650.00 per share or a move lower to support levels of around $1,500.00 from late last year. The MACD and H&S pattern suggest that a longer-term downtrend is coming, but the oversold RSI could mean that there is some consolidation before a sharp move lower. Traders will also be keeping an eye on whether these adverse fundamental trends become a long-term problem. (For more, see: Trade Priceline and TripAdvisor Stocks on Guidance.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

 

Published at Tue, 07 Nov 2017 15:58:00 +0000

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Top And Bottom Performing Stocks For Week #45

Finance Photo

Top And Bottom Performing Stocks For Week #45

by THE MOLE

It is Sunday afternoon and that means we get to review the performance of last week’s historical top and bottom stock symbols in the S&P 500. As you may recall these symbols are the result of parsing a database containing over 50 years worth of statistical performance data. The idea is to extract the prospective top ten winners and losers of the coming week purely based on historical statistics. The result is then sorted by liquidity and any symbol that is scheduled to report earnings or pass ex-dividend is being excluded.

How To Trade Along

Although being no guarantor of success, the long and short candidates posted here each week are intended to perform along their respective historical bias. One way of trading along would be to simply create a small one-week portfolio by buying the long candidates and selling the short candidates on Monday morning shortly after the open. There are no official stops or targets and all transactions are reversed Friday afternoon right before the bell.

For anyone who wants to keep track I have created a new WP category that allows you to pull all pertinent posts up to date. Eventually I’ll be putting together a summary spreadsheet once we have accumulated sufficient stats.

Results For Week # 44

Last week we were less fortunate and ended up with small loss of -1.45%. Again, this is a respective change in percent combined, it does not represent a -1.45% loss in total profits. Of course it could be if you would have deployed your entire trading capital equally across last week’s symbols (i.e. 5% each). If it was only 10% then it would be a loss of 0.15%, excluding commissions and other trading cost.

Long Profits: INTC=4.37, CSCO=0.12, KO=-0.22, MRK=-3.74, ORCL=-1.38, BMY=3.8, CLF=-3.49, CSX=-2.34, LSCC=0.68, BSX=-2.25

Long Profits Total: -4.45

Short Profits: PBCT=2.27, HCN=-1.47, AEM=2.88, CVA=3.13, USPH=2.5, SJT=-0.26, PBT=-2.17, KTCC=-4.65, UTL=0.86, SPA=-0.09

Short Profits Total: 3.0

Combined Profits Total: -1.45

 

Published at Sun, 05 Nov 2017 12:28:56 +0000

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Bezos Sells $1.1 Billion Worth of Amazon Stock

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Bezos Sells $1.1 Billion Worth of Amazon Stock

By Shoshanna Delventhal | November 6, 2017 — 5:06 PM EST

Jeff Bezos, the founder and CEO of e-commerce and cloud computing giant Amazon.com Inc. (AMZN), became the world’s richest person last month after shares of the retail titan jumped above $1,100 a share. (See also: Amazon Will Be Top Retailer, Tech Co. by 2025: MKM.)

The sale was made public in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, indicating that the CEO sold 1 million shares for $1,097,803,365. As Bezos’ near $95 billion dollars of wealth is largely tied up in Amazon stock, the company founder has been periodically selling shares to convert his holding into cash. In May, the tech executive sold about $940 million worth of stock.

A Big Check for Philanthropy, or Space?

It is not clear how Bezos plans to spend his rapidly growing wealth. The CEO does not operate a philanthropic initiative on the scale of Microsoft Corp.’s (MSFT) Bill Gates or Facebook Inc.’s (FB) Mark Zuckerberg. In June, the Amazon CEO asked his followers for ideas about a philanthropy strategy “that is the opposite of how I mostly send my time—working on the long term.” He wrote that he wants to make an impact “right now.”

Alternatively, Bezos could use his mounting wealth to continue funding his aerospace manufacturing and spaceflight service company Blue Origin LLC. In April, the entrepreneur and investor said he plans to funnel about $1 billion annually into his commercial space venture. Although Blue Origin has yet to complete its first mission, its ultimate goal is to send tourists to the edge of space on a suborbital rocket called the New Shepherd. CEO Bob Smith recently said that he expects the first manned flight to launch by April 2019.

After the recent sell-off, which represented 1.3% of Bezos’ Amazon stake, the company’s founder still personally owns an approximate 16.4% of his 23-year-old company. (See also: Bezos: Amazon Needs Its Own ‘Game of Thrones’.)

 

Published at Mon, 06 Nov 2017 22:06:00 +0000

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Arista to Grab Market Share From Cisco: Davidson

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Arista to Grab Market Share From Cisco: Davidson

By Shoshanna Delventhal | November 6, 2017 — 6:55 PM EST

Shares of software-driven cloud networking company Arista Networks Inc. (ANET) continue to increase this week after spiking 12% on Friday following its blowout quarterly earnings report. Trading up 2.5% on Monday afternoon at $206.49, ANET reflects a whopping 113.4% gain year-to-date (YTD) versus the S&P 500’s 15.8% rally over the same period.

Following the earnings beat, in which current quarter guidance also exceeded forecasts, one team of Street analysts foresees further upside in shares as Arista steals market share away from legacy networking leader Cisco Systems Inc. (CSCO). (See also: Arista Poised to Grab 400G Market: Morgan Stanley.)

Acceleration of Cloud Adoption

D.A. Davidson analyst Mark Kelleher lifted his rating on shares of Arista to buy from neutral. Founded in Santa Clara, Calif. by a team of ex-Cisco executives, the tech firm has benefited from the rapid adoption of cloud computing, noted the analyst.

“With new router products now in the market and the move to large cloud data centers accelerating, we believe the company is poised for years of strong growth and market share gains at Cisco Systems’ expense,” wrote Kelleher. The analyst lifted his 12-month price target from $180 to $224, reflecting an approximate 8.5% upside.

Also this week, analysts at Needham released a research note deeming results “impressive” despite lower-than-expected sales results for hyperscale customers such as cloud computing operator Microsoft Corp. (MSFT). After posting over 50% growth in sales to Microsoft and others in the past three quarters, Arista said its purchases were delayed due to the extra time needed to comply with a court-ordered redesign of its gear tied to its long-running legal battle with Cisco.

While remaining bullish overall, maintaining a buy rating on ANET and raising his price target from $175 to $217, Needham analyst Alex Henderson indicated that he is still “concerned by valuation and looming comparisons.” (See also: Buy Arista, Equinix on Cloud Dominance: Berenberg.)

 

Published at Mon, 06 Nov 2017 23:55:00 +0000

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MSCI blocks new stocks lacking voting rights from some indexes

 

MSCI blocks new stocks lacking voting rights from some indexes

NEW YORK (Reuters) – MSCI Inc will temporarily ban new companies that deny equal voting rights to shareholders from two market indexes, intensifying a debate over who should police perceived lapses in corporate governance.

The index provider will no longer add shares of stocks to its ACWI IMI and U.S. Investable Market 2500 Indexes if the company restricts which topics an investors can vote on or treats their vote as less valuable than those of a privileged insider, such as the company’s founder.

The ban will apply until the index provider consults with investors on how and whether to apply a “one share, one vote” principle across its equity benchmarks. Stocks currently in the indexes will not be affected by the ban.

Snap Inc, which owns the messaging app Snapchat, made waves when it went public in a $3.4 billion offering in March with a class of common stock granting no voting rights, and it was later excluded from some market indexes.

But a move to ban Snap and companies like it from its benchmarks would put MSCI at odds with its biggest client, BlackRock Inc. The world’s largest asset manager with nearly $6 trillion, BlackRock offers funds that track indexes, and it has said that excluding companies could hurt its investors’ returns.

MSCI in June proposed a plan to exclude Snap and companies like it, and invited feedback.

On Thursday they said the “majority” of the institutional investors they consulted supported excluding shares that do not offer equal voting rights.

“Many international institutional investors highlighted that they now consider the ‘one share, one vote’ principle part of their definition of common equity for publicly listed companies,” MSCI said in a statement.

“At the same time, a minority of participants were strongly against the exclusion of non-voting shares from equity benchmarks and expressed concerns that this would result in equity benchmarks that less clearly represent the overall opportunity set. These participants often argued that it should be the role of regulators or stock exchanges rather than index providers, such as MSCI, to address the issue of unequal voting structures, including non-voting shares.”

FTSE Russell and S&P Dow Jones Indices LLC said in July they would exclude Snap and companies with similar structures from certain stock indexes, citing concerns over their lack of voting rights.

Snap declined to comment. A BlackRock spokesman pointed a reporter to its comments on the topic last month.

Reporting by Trevor Hunnicutt; Additional reporting by David Ingram; Editing by Susan Thomas

 

Published at Fri, 03 Nov 2017 19:49:53 +0000

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Alibaba Price Targets Raised After Earnings Jump

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Alibaba Price Targets Raised After Earnings Jump

By Daniel Liberto | November 3, 2017 — 7:09 AM EDT

Investor analysts across the globe predicted that Alibaba’s (BABA) spectacular share price rally has much further to run after the Chinese ecommerce giant posted a huge surge in quarterly profits and raised its already optimistic full-year revenue guidance.

Alibaba registered an 83 percent rise in operating profit to Rmb16.58 billion ($2.5 billion) in the three months to September after better-than-expected demand from online shoppers lifted sales by 61 percent. Analysts were left flabbergasted by these figures and projections that full-year revenues, boosted by the company’s drive to woo more customers by enlisting half a million mom-and-pop shops, should now come in at between 49 percent and 53 percent.

Alibaba, which also expects to benefit from the consolidation of loss-making logistics business Cainiao, previously guided for growth of between 45 percent and 49 percent.

Analysts Raise Price Targets

Alibaba’s impressive performance and confident outlook led analysts at Japan-based Daiwa Securities, Swiss-based Credit Suisse, Canada-based RBC Capital Markets and U.S.-based Suntrust to immediately raise their price targets on the stock. Daiwa was particularly bullish, lifting its target price from $200 a share to $240 a share — 30 percent above the company’s current share price of $185. In a note sent to clients, and reported on by Barron’s, Daiwa added that it expects robust growth at Tmall, Alibaba’s platform for businesses selling to consumers, to continue.

Mark Mahaney, an analyst at RBC Capital Markets, also offered a glowing assessment of China’s biggest company’s prospects. Mahaney said the results prove that Alibaba offers the best way to invest in China’s economic growth and surging trend toward online shopping, according to Bloomberg. As a result, he raised his price target for the stock to $220, representing 19 percent upside on Thursday’s closing price.

Meanwhile, Credit Suisse and Suntrust raised their price targets on the stock to $226 and $210, respectively, according to Barron’s. (See also: China Will Overtake the U.S. in AI: Alphabet Chairman.)

James Cordwell, a London-based analyst at Atlantic Equities LLP, is also impressed by Alibaba’s growth prospects, but warned that it might not be sustainable, particularly if the Chinese economy weakens. (See also: China Is Slowing: Here Are the Investing Implications.)

“They have multiple drivers of growth though, namely core e-commerce, impressive international expansion and cloud business,” Cordell said, according to Bloomberg. “It will become more difficult for Alibaba to sustain this kind of growth, which is dependent on a Chinese economy that has been very strong.”

 

Published at Fri, 03 Nov 2017 11:09:00 +0000

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Tesla Stock Holds Key Level as Earnings Loom

 

Tesla Stock Holds Key Level as Earnings Loom

By Richard Suttmeier | November 1, 2017 — 11:05 AM EDT

Tesla, Inc. (TSLA​) is the iconic manufacturer of luxury all-electric automobiles. Telsa is a strong momentum stock that stalled in mid-September as manufacturing issues surfaced that are delaying deliveries its Model 3 sedan.

Tesla stock has been trading above a “golden cross” on its daily chart since Feb. 1, when it closed at $249.24. A “golden cross” occurs when a stock’s 50-day simple moving average (SMA) rises above its 200-day SMA and indicates that higher prices lie ahead. The stock held its 200-day SMA of $318.15 at its low on Friday and Monday. (See also: Tesla: 6 Secrets You Didn’t Know.)

Tesla closed Tuesday at $331.53, up 55.1% year to date, and the stock is in bull market territory at 86.1% above its post-election low of $178.19 set on Nov. 14. The stock set its all-time intraday high of $389.61 on Sept. 18 and is in correction territory since then, currently 14.9% below this high.

Analysts expect Tesla to lose $2.27 to $2.54 per share when the company reports earnings after the closing bell on Wednesday. Some analysts have suggested that investors should not focus on earnings, as production bottlenecks for the Model 3 sedan should end soon. Owning a Tesla is a dream for many car buyers, and they are willing to wait until it’s their turn to get behind the wheel.

The weekly chart for Tesla

Technical chart showing the performance of Tesla, Inc. (TSLA) stockCourtesy of MetaStock Xenith

The weekly chart for Tesla is negative, with the stock below its five-week modified moving average of $342.25. The 200-week simple moving average or the “reversion to the mean” is $241.36, last tested during the week of Dec. 23, when the average was $196.77. The 12 x 3 x 3 weekly slow stochastic reading is projected to decline to 40.19 this week, down from 48.72 on Oct. 27.

Given this chart, my trading strategy is to buy weakness to my semiannual and quarterly value levels of $313.87 and $289.80, respectively, and reduce holdings on strength to my monthly risky level of $393.97. (For additional reading, check out: Tesla’s Trampled Stock Shows Bullish Signs as Earnings Near.)

 

Published at Wed, 01 Nov 2017 15:05:00 +0000

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Asia shares mount 10-year top on strong economy, oil gains

Asia shares mount 10-year top on strong economy, oil gains

TOKYO (Reuters) – Asian shares scaled a 10-year high on Wednesday on the back of solid economic growth globally, while oil prices extended a bull run on hopes that major producers will maintain their output cuts.

A man looks at a stock quotation board outside a brokerage in Tokyo, Japan, April 18, 2016. REUTERS/Toru Hanai

European shares are expected to rise, with spread-betters looking at a higher opening of 0.4 percent in France’s CAC and 0.3 percent in Britain’s FTSE.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, led by a 1.3 percent jump in South Korea. Japan’s Nikkei soared 1.9 percent.

Investors are focused on the progress of a U.S. tax-cut plan being developed by President Donald Trump and fellow Republicans and on Trump’s announcement of the next head of the Federal Reserve. The White House said he will reveal his Fed pick on Thursday.[nL2N1N50Y2]

“Hopes of U.S. tax cuts, a slight easing in U.S. long-term bond yields since late last month and a rise in oil prices are all positive for Asian shares,” said Yukino Yamada, senior strategist at Daiwa Securities.

“Last month, there were major inflows to high-tech shares in Korea and Taiwan. And GDP of these countries were also strong, showing the strength is spreading to the entire economy, not just within the high-tech sector,” she added.

South Korea’s economic growth accelerated to its fastest growth in seven years last quarter while growth in Taiwan during the same period was the strongest in 2-1/2 years. [nL4N1M21FA]

The advance reading of U.S. GDP for July-Sept also showed healthy growth of 3.0 percent, well above the average of just above 2.0 percent since the financial crisis in 2008-09.

Wall Street’s three major indexes ticked up on Tuesday to end October with their biggest monthly gains since February.

The tax legislation had been expected on Wednesday, but sources said Republicans in the U.S. House of Representatives will delay the release for a day as lawmakers try to overcome differences involving the treatment of retirement savings accounts and state and local taxes.[nL2N1N60JZ]

“If the negotiation gets derailed, that would have a negative impact on markets so we need to be careful,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Trump’s decision on the Fed chair is upstaging the start of its two-day policy meeting in Washington on Tuesday, although it is widely expected to leave interest rates unchanged in its statement on Wednesday.

Trump is likely to pick Fed Governor Jerome Powell, who is seen as more dovish on interest rates and thus relatively stock market friendly, sources have told Reuters. [nL2N1N50Y2]

Expectations that Powell will lead the Fed have helped to drive down U.S. bond yields and the dollar this week.

The dollar’s index against a basket of six major currencies stood at 94.71 from last week’s three-month peak of 95.15.

The euro was little moved at $1.1628, though it kept some distance from its three-month low of $1.1574 touched on Friday after the European Central Bank’s stance was perceived to be more dovish than expected.

The dollar fetched 113.94 yen, up slightly on the day but off Friday’s high of 114.45 yen.

The biggest mover in early Wednesday trade was the New Zealand dollar, which jumped 0.8 percent to $0.6899 after the country’s jobless rate sank more than expected to a nine-year low of 4.6 percent. [nL4N1N677C]

Bitcoin hit another record high on Tuesday after CME Group Inc, the world’s largest derivatives exchange operator, said on Tuesday it will launch a futures contract for bitcoin later this year, marking a major step in the digital currency’s path toward legitimacy. [nL4N1N65PG]

It last traded at $6,395, down 0.6 percent compared to Tuesday’s high of $6,449.78.

Oil prices extended a rally which began in early October, largely driven by hopes that oil producing countries will agree to extend an output cut at their meeting at the end of this month.

Brent crude futures hit a two-year high of $61.41 per barrel on Tuesday and stood at $61.17 per barrel in Asia trade on Wednesday, up 0.4 percent.

U.S. crude futures held at $54.65 per barrel, up 0.5 percent on the day, staying near its eight-month high of $54.85 hit on Tuesday.

The spread between the two contracts reached $6.99 on Tuesday, hitting the widest in more than two years, due to worries about supply disruption from Kurdistan.

“Oil prices may have risen a bit too much already on expectations of the production cut extension. I would say Brent is likely to ease below $60 early next year,” said Tatsufumi Okoshi, senior commodity economist at Nomura Securities.

Editing by Kim Coghill

 

Published at Wed, 01 Nov 2017 07:05:57 +0000

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Top And Bottom Performing Stocks For Week #44

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Top And Bottom Performing Stocks For Week #44

by THE MOLE

It is Sunday afternoon and that means we get to review the performance of last week’s historical top and bottom stock symbols in the S&P 500. As you may recall these symbols are the result of parsing a database containing over 50 years worth of statistical performance data. The idea is to extract the prospective top ten winners and losers of the coming week purely based on historical statistics. The result is then sorted by liquidity and any symbol that is scheduled to report earnings or pass ex-dividend is being excluded.

How To Trade Along

Although being no guarantor of success, the long and short candidates posted here each week are intended to perform along their respective historical bias. One way of trading along would be to simply create a small one-week portfolio by buying the long candidates and selling the short candidates on Monday morning shortly after the open. There are no official stops or targets and all transactions are reversed Friday afternoon right before the bell.

Results For Week # 43

Alright, so this week the longs got it on the chin but for some strange reason although being an up week the shorts pulled it out for a juicy total of 30.28%. Again, this is a respective log return (percentage of change) combined, it does not represent a 30.28% gain in total profits. Of course it could be if you would have deployed your entire trading capital equally across last week’s symbols (i.e. 5% each). If it was only 10% then it would be a gain of 3.03%, excluding commissions and other trading cost. And even that would be a nice chunk of change for one week’s of work.

Long Profits: TWX=-2.99, FTR=1.47, BBBY=-5.4, PDLI=-12.86, BRO=0.73, STE=1.71, MTX=0.9, STBA=2.17, EXPO=3.25, ENZ=3.21

Long Profits Total: -7.81

Short Profits: GE=12.76, PFE=2.25, MRO=0.86, RAD=11.8, NKE=-5.47, ABT=1.69, HL=4.8, WMT=-0.83, CVS=9.81, MYL=0.42

Short Profits Total: 38.09

Combined Profits Total: 30.28

 

Published at Sun, 29 Oct 2017 13:17:56 +0000

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Can Amazon Earnings Push Shares Back Above $1,000?

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Can Amazon Earnings Push Shares Back Above $1,000?

By Colin Cieszynski | October 26, 2017 — 2:33 PM EDT

Tonight is like the Super Bowl for technology sector earnings, with Amazon.com, Inc. (AMZN​), Google parent Alphabet Inc. (GOOG), Intel Corporation (INTC) and Microsoft Corporation (MSFT) all scheduled to report results after the close. Out of this group, Amazon’s results could attract particular attention from traders.

Amazon’s price chart shows that the shares have tended to stage significant moves following the company’s earnings releases, depending on the direction and size of the surprise. After a big miss last quarter, Amazon shares sold off, and they have spent the past three months trending sideways and underperforming broader U.S. indices. This comes as a big change after the shares outperformed the market through the first half of 2016. (See also: How Wal-Mart Is Beating Amazon At Its Own Game.)

This earnings report comes at a critical time for the shares and could have a big influence on sentiment heading toward the key holiday selling season. The huge number of layoffs and store closures across the traditional retail sector this year indicates that the online shopping sector, led by Amazon, has continued to do extremely well overall, but expectations are now extremely high as well.

Beyond the results and guidance numbers, traders may look for color from the company related to the Whole Foods acquisition, President Trump’s moves toward expanding the use of drones in U.S. airspace and other initiatives like the company’s desire for Prime customers to allow delivery people access to their homes. (See also: Amazon Can Now Deliver to Unattended Homes.)

For the past three months, Amazon shares have been range bound between $930 and $1,025. The stock recently established a higher low near $960 and has been trading closer to $975 heading into the report. Before the previous earnings report, the shares were trading closer to $1,075, so expectations are not quite as high this time around.

Street estimates vary, with Bloomberg.com indicating an average earnings per share expectation around $0.04 and NASDAQ.com indicating an average around $0.13. Sales results and guidance may also have a significant impact on trading. A positive result could send the shares back up through $1,000, while a negative result could send the shares back toward a retest of the channel bottom. (For more, see: Amazon Set for ‘Spectacular Collapse’.)

 

Published at Thu, 26 Oct 2017 18:33:00 +0000

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Top 4 Aetna Shareholders

 

Top 4 Aetna Shareholders

By Mrinalini Krishna | October 26, 2017 — 6:13 PM EDT

Health insurance provider Aetna Inc. (AET), evolved from Aetna Life Insurance Company that came into being in 1853. It made its first million dollars in annual income in 1865, and since then has grown to rake in $63 billion in revenues for 2016. The company commands a $59 billion market capitalization as of close on October 26, 2017, a jump of almost $6 billion within the last 20 minutes of the trading session, as Aetna shares rose on the news of a possible acquisition by CVS Health (CVS).

Here are the top institutional shareholders of the company as of June 29, 2017.

1. Blackrock Inc.

Blackrock is Aetna’s largest shareholder. It owned 29 million shares or 8.8% in the company. Blackrock is an investment management company. It manages more than $5.7 trillion of assets for institutional investors, including corporations, publicly owned companies, unions, insurance companies, mutual funds, pension plans, government investors, charities, and banks.

2. The Vanguard Group

With 22 million shares or 6.69% in the company, The Vanguard Group, Inc. is Aetna’s next largest shareholder. Vanguard is one of the largest investment management companies in the world, and it manages hundreds of mutual funds and ETFs. As of December 2016, Vanguard had more than $4 trillion in assets under management (AUM) and serviced more than 20 million investors.

3. T.Rowe Price Associates

T. Rowe Price Associates is a financial services company that offers asset management products like mutual funds, ETFs and retirement savings vehicles. It manages more than $947 billion in assets, and owns 21 million shares or 6.5% in Aetna.

4. Capital World Investors

Capital World Investors is an investment management company that offers a range of products, including mutual funds, individual retirement accounts, college savings plans and employee-sponsored retirement plans. Capital World Investors oversees the popular American Funds family of mutual funds. Capital World Investments was the fourth-largest holder of Aetna stock, with 20.7 million shares or 6.25% stake in the company.

 

Published at Thu, 26 Oct 2017 22:13:00 +0000

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Not Out Of The Woods Yet

Not Out Of The Woods Yet

by THE MOLE

Equities started to look slightly promising during yesterday’s sessions but the modest gains were reversed overnight and a new spike low has now been formed. Fortunately our ISL was well picked having missed this little stop run unscathed. Thus far that is as we are far from being out of the woods here. As a matter of fact I believe that as of right now the odds of success for our little lottery long ticket have dropped to 25% at best. Let me tell you why:

2017-10-25_spoos_update

I usually place my ISL below round numbers which is why I recommended anywhere below 2560, which in the end turned out to be prescient. Quite frankly I do not like the current formation at all as this could very easily resolve downward and that very rapidly. The first two hours of the session should provide us with valuable clues and I hope you Zero subs are watching that one carefully.

2017-10-25_zero

Speaking of which, here it is and in particular the smoothed hourly panel (on the left) is starting to look quite droopy. Participation yesterday was miserable, the Zero Lite (on the right) was stuck within a +/-0.2 signal range. FYI – anything below a 0.5 signal (bullish or bearish) is miserable and a signal > 1.0 (or < -1.0) is starting to be supportive of the current direction. By the way, if you’re not a member then I strongly recommend you sign up now. You can thank me later after you avoided several bear or bull traps. Better yet – pass on the word

2017-10-25_UVOL

Now UVOL was fairly solid yesterday but wasn’t enough to produce sufficient distance between the Monday’s spike low and yesterday’s close.

2017-10-25_VIX

Not to be the guy who told you that he ‘told you so’ but this may be a good time to remind you guys why I proposed you to load up on a bit of downside protection in the form of LT puts a bit over a week ago. Did you guys follow suit?

2017-10-25_crude_entry

Okay, we’ve got ourselves a brand spanking new entry and it’s (drum rolls…. oh nooo!!) crude. Yes, crude, the beaten dog’s ugly cousin. Sorry guys but I just can’t help myself here given the current formation on the daily panel. What I also like is that it’s holding up fairly well given the recent climb in the USDX. So long here or if you’re smarter than me (very likely) on a little retest lower with a stop below 50.58.

I’ve got another good one for my intrepid subs:

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Published at Wed, 25 Oct 2017 13:30:31 +0000

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