Stocks

Legacy airlines are facing new competitors on transatlantic routes

By The Economist online... Even for a global industry like aviation, Primera Air’s business model seems remarkably cosmopolitan. The Icelandic-owned budget airline is headquartered in Latvia, but mainly operates low-cost flights from Denmark and Sweden to sunny places in the Mediterranean. This summer, it will begin long-haul flights from Britain and France to America. The company bears more than a passing resemblance to Norwegian Air Shuttle, another nominally Scandinavian airline with global aspirations. More than two-thirds of Norwegian’s capacity by passenger-km now bypasses its home country, and the rapid growth of its long-haul operations are proving to be a serious challenge for legacy carriers such as British Airways. And its tentacles are spreading around the world. This autumn, the carrier will begin operating domestic Argentinian flights, 12,000km away from its home base. Low-cost airlines are not new. Ryanair, founded in the 1980s, has grown to become Europe’s biggest and cheapest airline. But low-cost carriers like it have generally stuck
Read More

Crypto Plays Set to Squeeze Overconfident Shorts

Bitcoin set off 'buy' signals on Wednesday after breaking psychological support at $10,000, dropping to a seven-week low at $9,231 and then closing back above the big round number. This price action made perfect sense from a structural standpoint, with the breakdown attracting a large supply of weak-handed short sellers hoping to capitalize on a momentum-fueled decline. The turnaround unfolded at a harmonic target, raising the odds for a bounce between $13,000 and $14,000. Blockchain stock plays followed suit, dumping to multi-week lows and bouncing strongly into the closing bell. They are adding to gains on Thursday morning, with bitcoin lifting more than 15% overnight. Dip buyers not already positioned should watch key price levels for short-term signals that could generate windfall profits. Just keep in mind that these volatile instruments amplify the destructive impact of drawdowns, so it is important to keep position size small and place stops to limit losses. (See also: Is the Bitcoin Price Bubble Bursting?) Bitcoin surged higher
Read More

Why driverless cars may mean jams tomorrow

By The Economist online.... THE most distractingly unrealistic feature of most science fiction—by some margin—is how the great soaring cities of the future never seem to struggle with traffic. Whatever dystopias lie ahead, futurists seem confident we can sort out congestion. If hope that technology will fix traffic springs eternal, history suggests something different. Transport innovation, from railways to cars, reshaped cities and drove economic advance. But it also brought crowded commutes. Now, as tech firms and carmakers aim to roll out fleets of driverless cars, it is worth asking: might this time be different? Alas, artificial intelligence (AI) is unlikely to succeed where steel rails and internal-combustion engines failed. More’s the pity. In America alone, traffic congestion brings economic losses estimated in the hundreds of billions of dollars each year. Such costs will rise unless existing transport systems receive badly needed investment. For example, fixing New York’s beleaguered, overcrowded
Read More

Crypto Stocks Plummet as Currencies Sell Off

Cryptocurrencies experienced a sharp sell-off over the past couple of days following reports that China and South Korea were cracking down on trading activity. According to Bloomberg, Chinese regulators are targeting online platforms and mobile apps that offer exchange-like services. South Korean regulators also attempted to tighten control over cryptocurrency, according to The Wall Street Journal, but there has been a widespread backlash among its citizens. The sell-off prompted many crypto-related stocks to move sharply lower over the past couple of sessions, including Riot Blockchain, Inc., which is trading about 20% lower over the past two days. While some crypto-related stocks are more focused on blockchain technology, the sell-off has affected all areas of the market. The positive news is that there seems to have been a modest rebound and a reduction in price declines in recent hours. (See also: Is the Cryptocurrency Bubble More Like Housing or Dotcom?) Riot Blockchain and other crypto-related stocks moved
Read More

Will GE Stock Break Down From Its 52-Week Lows?

General Electric Company shares have fallen more than 7% over the past two days amid plans to break up the firm and reports that it had more than $11 billion in charges stemming from its insurance portfolio and new tax laws. The market's confidence in the company has been shaken to the core, and analysts are concerned that the current share price may be greater than the sum of parts in a breakup scenario. JPMorgan indicated that its $16 price target is increasingly difficult to justify, while Cowen & Co. believes that the stock's breakup value would be just $11 to $15 per share. Other investors and analysts are more confident in the value of a breakup, including Nelson Peltz's Trian Fund Management, which is widely seen as pushing for a breakup. Analysts at Ned Davis Research also believe that the separate businesses would perform well due to their sector leadership. (See also: Why GE's Stock Rebound Will
Read More

Goldman Stock Slumps on Disappointing Trading Results

The Goldman Sachs Group, Inc., the investment banking giant and component of the Dow Jones Industrial Average, reported better-than-expected earnings before the opening bell on Wednesday, Jan. 17. The stock reached as high as $262.50 in pre-market trading, but gains could not be sustained. Investment banking activities were a plus, but a difficult trading environment for bonds and foreign exchange disappointed. The stock closed last Tuesday at $258.46, up 1.5% year to date and in bull market territory at 23.3% above its 52-week low of $209.62 set on May 31. The stock set its 52-week intraday high of $262.14 on Dec. 22. Thus, the stock lags the Dow 30 gain of 4.3% year to date. Goldman Sachs Bank ended the third quarter of 2017 with $158 billion of assets on its balance sheet, and its real estate loan exposures are well managed versus risk-based capital. (See also: How Goldman Sachs Makes Its Money.) Goldman Sachs, the benchmark for investment banking, is reasonably
Read More

Bank of America Recovery Appears to Be Stalling

Bank of America Corporation, the third largest of the four "too big to fail" money center banks, reported quarterly earnings before the opening bell on Wednesday, Jan. 17. Results were mixed and included a $2.9 billion write-off due to the tax law. The stock did not manage to set a new 52-week high during pre-market trading. All four "too big to fail" money center banks have now reported fourth quarter earnings. Each bank reported write-offs related to the new tax law, but they see positive benefits in the long term from the low 21% corporate tax rate. Investors beware: these benefits may now be priced into future earnings. Bank of America stock closed Tuesday at $31.24, up 5.8% year to date and in bull market territory at 41.9% above its 52-week low of $22.01 set a year ago today. The stock set its multi-year intraday high of $31.79 on Jan. 16, 2018.  Bank of America ended the third quarter of
Read More

The rise and fall of Bitcoin

By The Economist online.... THE great Sir Isaac Newton may have revolutionised our knowledge of the world but he still had his blind spots. He was sucked into the great mania of his day, the South Sea Bubble (pictured) and lost a lot of money. “I can calculate the motion of heavenly bodies but not the madness of people,” he ruefully reflected. In retrospect, he should have pondered the popular saying that was used to define his law of gravity: “What goes up, must come down.” Investors in Bitcoin are learning this old truth. The price of the cryptocurrency peaked last month at somewhere over $19,000 (there is a very wide spread, a problem in itself) but, at the time of writing (around 11am GMT), some exchanges now show a price below $10,000. Perhaps the best way of understanding Bitcoin is through a model of how bubbles operate. The classic model,
Read More

3 Ways to Trade Cybersecurity in 2018

Looking back on 2017, it is apparent that the need for enhanced cybersecurity is growing and that the industry is ripe for innovative solutions. The persistent barrage of news stories of hacked accounts and servers, stolen personal information, ransom for stolen files, and the increasing number of threats from overseas underscore a solid case for investment. As you'll read in this article, several charts confirm the thesis that now could be an ideal time to buy. (For related reading, check out: 13 Ways to Invest in Cybersecurity.) ETFMG Prime Cyber Security ETF With the rise in popularity of exchange-traded products, it is now possible for retail investors to gain exposure to nearly every niche market segment. In the case of cybersecurity, the fund of choice is the ETFMG Prime Cyber Security ETF. The fund comprises 45 holdings and has net assets of approximately $1.2 billion. With an expense ratio of 0.60%, it could be a cost-effective solution for those
Read More

UnitedHealth Beats on Earnings; Stock Sets All-Time High

UnitedHealth Group Incorporated is a diversified health care insurance company and a component of the Dow Jones Industrial Average. The company reported earnings before the opening bell on Tuesday, Jan. 16, beating analysts' estimates and raising its yearly outlook. UnitedHealth also reported that it has left most of the exchanges related to the Affordable Care Act. The stock closed last Friday at $228.64, up 3.7% year to date and in bull market territory at 46.5% above its 52-week low of $156.09 set on Jan. 18, 2017. The stock set its all-time intraday high of $234.78 at noon on Jan. 16, 2018. (See also: How UnitedHealth Group Makes its Money.) Healthcare insurer UnitedHealth is overvalued with a P/E ratio of 25.35 and a dividend yield of just 1.31%. ...read more Read more here: UnitedHealth Beats on Earnings; Stock Sets All-Time High Category: UNH
Read More
Loading...
%d bloggers like this: