• Breaking News

    Saturday, May 29, 2021

    Home Unlabelled Stock Market - For those of you worried about inflation, the fear is real. I offered $110k and a tomato card in exchange for 1 Cheeto and was denied.

    Stock Market - For those of you worried about inflation, the fear is real. I offered $110k and a tomato card in exchange for 1 Cheeto and was denied.

    May 29, 2021

    Stock Market - For those of you worried about inflation, the fear is real. I offered $110k and a tomato card in exchange for 1 Cheeto and was denied.

    For those of you worried about inflation, the fear is real. I offered $110k and a tomato card in exchange for 1 Cheeto and was denied.

    Posted: 29 May 2021 05:42 PM PDT

    Hydrogen 'a huge opportunity' to replace fossil fuels, says U.S. energy secretary

    Posted: 29 May 2021 05:57 AM PDT

    Former Wallstreetbets subreddit administrators admit the current WSB subreddit group is heavily censored (source: https://www.insider.com/wallstreetbets-reddit-sub-stock-moderators-want-to-start-new-community-2021-3)

    Posted: 29 May 2021 12:27 PM PDT

    Remember that we're on this rocket together guys! -Repo market loans at all time highs, BTIG getting caught for short selling (my opinion the first snowball in the avalanche to come), GME has its annual meeting in June and AMC has a share recount coming in June as well. JUNE IS GONNA BE HUGE��������

    Posted: 29 May 2021 08:07 PM PDT

    U.S. Senate panel advances EV tax credit of up to $12,500.

    Posted: 29 May 2021 09:45 AM PDT

    Wall Street Week Ahead for the trading week beginning May 31st, 2021

    Posted: 29 May 2021 04:05 AM PDT

    Good Saturday morning to all of you here on r/StockMarket. I hope everyone on this sub made out pretty nicely in the market this past week, and is ready for the new trading week ahead.

    Here is everything you need to know to get you ready for the trading week beginning May 31st, 2021.

    A big jobs report looms in the week ahead, as markets enter the often-weak month of June - (Source)

    May's employment report is the big event in the week ahead, as stocks enter the often weak month of June. Stocks are finishing May with a mixed performance. Big cap indexes like the S&P 500 and Dow notched gains. The S&P rose a half percent, and the Dow rose 1.9%. The small cap Russell 2000 was flat, up 0.1%, and the tech-heavy Nasdaq declined 1.5%.

    June is not historically a strong month for stocks. Bespoke Investment Group points out that over the past 50 years, the Dow has gained just 0.12% in June and has been positive 52% of the time.

    But over the past 20 years, June was far weaker, gaining only 40% of the time. June's performance is tied with September as the worst month of the year, with an average Dow decline of 0.7%, according to Bespoke.

    The economy is front and center in the coming week with the important ISM readings on manufacturing and services sector activity, but the most important measure will be Friday's jobs report. According to Dow Jones, economists expect Friday's employment report to show the creation of about 674,000 jobs in May, after the disappointing 266,000 jobs added in April. That was about a quarter of what economists had expected.

    "You know if we have two months in a row of not delivering on the jobs expectations, the market is going to get nervous," said George Goncalves, head of U.S. macro strategy at MUFG. "Hopefully, we beat it and then that creates a positive buzz, and we go into the Fed meeting and then we're, 'Hey, the economy is still on track.'"

    Big June event

    The Fed meets June 15-16, and already market pros are anticipating it will be the most important event of the month. Fed officials have emphasized that they will keep policy easy as they watch to see signs that the economy is really healing. They also contend that higher inflation readings are temporary, since the data is being compared with a weak period last year.

    Key for the markets is whether the Fed begins to believe that inflation is higher than it expected or that the economy is strengthening enough to progress without so much monetary support. Fed officials have said they would consider discussing tapering back on their quantitative easing bond purchase program if they see signs of improvement, and that would be a first step toward interest rate hikes, not expected until at least 2023.

    If inflation runs too hot, the Fed's main weapon to combat it is to raise interest rates.

    The prospect of higher interest rates makes the stock market nervous, since it would mean higher costs for companies and less liquidity. In theory, higher interest rates also means that investors could potentially choose higher-yielding bond investments over stocks.

    The next big read for the economy is Friday's jobs report, and it looms large as recent inflation readings have come in much hotter than expected. The latest was the personal consumption expenditures price index Friday. It showed core inflation running at 3.1% year over year, the strongest reading for that measure since 1992.

    The Fed's beige book on the economy is expected Wednesday. ISM manufacturing data is expected Tuesday, and ISM services is released Thursday. Fed Chairman Jerome Powell speaks on central banks and climate change at Green Swan 2021 global virtual conference Friday.

    Inflation flare-up

    The Fed has said it would tolerate an average range of inflation around its 2% target until it sees inflation sticking at a higher level. Inflation has been running mostly below 2%, prior to the latest numbers.

    "With the PCE number coming in like every other inflation number over the last six weeks, hotter than expected, the market is inching closer to calling the Fed out on its view that inflation is transitory," said Julian Emanuel, head of equity and derivatives strategy at BTIG.

    Emanuel said the speculative activity around meme stocks this week is a sign of froth and shows a large amount of liquidity in the hands of investors. One of those stocks, AMC, closed off 1.5% on Friday after rallying 116% in the past week, giving it a 2021 gain of 1,200%.

    "The net net on the index level is basically it's a stock market that's moving sideways," Emanuel said. "Our view continues to be that when you look at it longer term, the big picture is this is a bull market that started in March of last year that has further to run. When you look at it in the medium term, the market has every right to be concerned and we do believe they will amp up their concern that the Fed's paying insufficient attention to price stability."

    Emanuel said he studied what happened to stocks when core PCE was above the Fed's 2% target. "The average monthly return for months where the core PCE has been over 2%, going back to 1989 is (a decline) of 1.6%, with a decided bias toward more defensive sectors like health care outperforming and a very pronounced bias for technology of all kinds to underperform," he said.

    Technology stocks, as measured by the S&P information technology sector, gained 1.6% in the past month, and are up 5.9% year to date. The sector is lagging the S&P 500′s 12% gain.

    The top-performing sectors have been cyclical year to date, with energy up 36.2%, financials up 28.5%, materials up 20.1% and industrials up 18.3%. Communications services, which contains some internet growth names, gained 16% since the start of the year. Health care has been outperforming information technology, up 8.6% year to date.

    In the past week, the S&P 500 gained 1.2% to 4,204 and is within 1% of its all-time high. The Dow rose 0.9% to 34,529, and the Nasdaq was up 2% at 13,748.

    Red flag?

    On the edges of the financial markets, market pros are paying attention to signs of a huge surge of liquidity in the financial system. In the past week, institutions have been placing unprecedented amounts of cash with the Fed, nearly a half trillion dollars Thursday.

    "There's way too much liquidity in the system, and it's happening as a result of the Fed's ongoing QE, but also disbursements from the fiscal stimulus," said Goncalves.

    He said the funds from trillions in stimulus, including to state and local governments, have not yet been spent but have found their way into the banking system. At the same time, institutions and individuals continue to move funds into money market funds, now holding about $4.6 trillion.

    Those funds also put pressure on the system, since they put funds in Treasury bills. Goncalves expects the Fed to raise rates on excess reserves if the situation gets worse.

    "There's no precedent for this because it is totally a function of there being just too much money in the system," he said.

    "Institutions are redepositing cash at the Fed because they don't have enough bills or short-term commercial paper. There's not enough fixed income assets to go around," said Goncalves. He said banks also do not want to hold the excess cash since it counts against their leverage ratio, and they would prefer to find other higher-yielding investments.

    What it has done is sparked some speculation that the Fed would taper its QE program sooner than expected, he said.

    This past week saw the following moves in the S&P:

    (CLICK HERE FOR THE FULL S&P TREE MAP FOR THE PAST WEEK!)

    S&P Sectors for this past week:

    (CLICK HERE FOR THE S&P SECTORS FOR THE PAST WEEK!)

    Major Indices for this past week:

    (CLICK HERE FOR THE MAJOR INDICES FOR THE PAST WEEK!)

    Major Futures Markets as of Friday's close:

    (CLICK HERE FOR THE MAJOR FUTURES INDICES AS OF FRIDAY!)

    Economic Calendar for the Week Ahead:

    (CLICK HERE FOR THE FULL ECONOMIC CALENDAR FOR THE WEEK AHEAD!)

    Percentage Changes for the Major Indices, WTD, MTD, QTD, YTD as of Friday's close:

    (CLICK HERE FOR THE CHART!)

    S&P Sectors for the Past Week:

    (CLICK HERE FOR THE CHART!)

    Major Indices Pullback/Correction Levels as of Friday's close:

    (CLICK HERE FOR THE CHART!)

    Major Indices Rally Levels as of Friday's close:

    (CLICK HERE FOR THE CHART!)

    Most Anticipated Earnings Releases for this week:

    (CLICK HERE FOR THE CHART!)

    Here are the upcoming IPO's for this week:

    (CLICK HERE FOR THE CHART!)

    Friday's Stock Analyst Upgrades & Downgrades:

    (CLICK HERE FOR THE CHART LINK #1!)
    (CLICK HERE FOR THE CHART LINK #2!)

    Days After Memorial Day Improving

    Our office will be closed for observance of Memorial Day on Monday, May 31, 2021. U.S stock and bond markets will also be closed. As you spend some quality time off please consider taking time to commemorate those who have paid the ultimate price while serving in the U.S. military. Additionally, consider taking a moment to acknowledge first responders, nurses, doctors, law enforcement, firefighters, essential workers, scientists and everyone else that has tirelessly worked and sacrificed during the COVID-19 pandemic.

    For decades the Stock Trader's Almanac has been tracking and monitoring the market's performance around holidays. The trading day after Memorial Day has a mixed record going back to 1971. Both S&P 500 and NASDAQ have declined more often than risen on the day, but average performance is still modestly positive.

    Since 1986, the frequency of gains has improved, and average performance has also risen however, but S&P 500 declined five straight days after 2015-2019. The second trading day after Memorial Day has more advances than declines, but average performance is negative for NASDAQ. The third day after appears to have the best long- and short-term record combined with solid average performance.

    (CLICK HERE FOR THE CHART!)

    Post-Election-Year June: Third Worst S&P 500 Month

    June has shone brighter on NASDAQ stocks over the last 50 years as a rule ranking sixth with a 0.9% average gain, up 28 of 50 years. This contributes to NASDAQ's "Best Eight Months" which ends in June. June ranks near the bottom on the Dow Jones Industrials just above September since 1950 with an average loss of 0.2%. S&P 500 performs similarly poorly, ranking ninth, but essentially flat (0.1% average gain). Small caps also tend to fare well in June. Russell 2000 has averaged 0.8% in the month since 1979.

    In post-election years since 1953, June still ranks poorly and its average loss for DJIA increases to –1.1% while S&P 500′s modestly positive performance becomes a 0.6% loss. DJIA struggles the most, advancing in just four post-election year Junes (1977, 1985, 1997 and 2017). Russell 2000 fares best, up seven times in ten years with an average gain of 1.2%. NASDAQ lands in the middle, advancing 50% of the time with an average gain of 0.4%.

    (CLICK HERE FOR THE CHART!)

    Checking the Gauges: Economic Surprise Indexes

    In terms of whether economic data is either beating or missing economists' forecasts, it appears conditions may now be a bit better overseas. Driven by some improving COVID-19 trends, the economic backdrop has improved overseas, while high economic expectations have proved to be a more formidable hurdle here in the U.S. This improvement has helped to steady the foundation in many non-U.S. equity markets, and has caused us to improve our outlook for developed non-U.S. stocks. We believe the improving COVID-19 trends in Europe could be particularly sticky as vaccine distribution becomes more widespread.

    For several years now, being underweight European equities, relative to the U.S., has been a winning trade. A sea-change in that thinking could be approaching as value-heavy European indices have gotten some attention with the improvement from value, but a firm, constructive view of European equities may still be some ways off.

    The Citigroup Economic Surprise Index, or CESI, tracks how the economic data fare compared with expectations. The index rises when economic data exceeds Bloomberg consensus estimates and falls when data is below forecasts. As shown in the LPL Chart of the day, economically, global conditions remain rather strong, as evidenced by these indices, which remain above the zero line. This reflects economic data coming in better than expected in several geographic regions. The repair of global trade activity, as supply lines are reconnected, has been notably key in non-U.S. data outcomes.

    (CLICK HERE FOR THE CHART!)

    Looking ahead, we expect now elevated economic expectations, particularly in the U.S., may prove a tougher target. As a result "economic surprises," both in the U.S. and abroad, may fade as we move through the year. However, the overall global growth trajectory is expected to continue to be robust through 2021. Global real GDP contracted 3.3% in 2020, and it is expected to rise to +6.0% in 2021, according to Bloomberg's consensus estimate, before ticking down to +3.4% in 2022.

    "Although high U.S. economic expectations could be tough to beat for the remainder of 2021, we still believe U.S. stocks should make up a material portion of equity portfolios. And even though economic expectations are being more readily exceeded overseas, it is tough to overlook U.S. companies' innovation and profitability advantages." explained LPL Financial Director of Research Marc Zabicki.

    More and More Investors Are Looking For A Correction

    The S&P 500 has been hovering around 0.5% below its record highs this week, but without a true test of those highs, sentiment has not moved very far. The American Association of Individual Investors' weekly reading on bullish sentiment fell from 37% last week down to 36.4%. While that is the second week in a row with an absolute move less than a full percentage point in size, the marginally lower reading does leave bullish sentiment at the lowest level since the end of October.

    (CLICK HERE FOR THE CHART!)

    Bearish sentiment moved by even less, only rising 0.1 percentage points. At 26.4%, it still is below the reading of 27% from the first week of the month. Outside of that reading, that is the highest level since February.

    (CLICK HERE FOR THE CHART!)

    This week's moves left the bull-bear spread little changed at 10. That's down 0.7 points from last week but still above the 9.5 reading from two weeks ago.

    (CLICK HERE FOR THE CHART!)

    Once again, the highest percentage of investors are in the neutral camp at 37.1%. As was the case last week, that makes for the highest level in neutral sentiment since the first week of 2020 when it stood north of 40%.

    (CLICK HERE FOR THE CHART!)

    Pivoting over to sentiment for equity newsletter writers measured in the Investors Intelligence survey, there were some more interesting moves. Bullish and bearish sentiments were not necessarily anything to gawk at similar to the AAII survey. Bullish sentiment has been on the decline with this week's survey showing a 3 percentage point drop to 51.5%, the lowest level since March 10th. Meanwhile, bearish sentiment moderated from 17.2 to 16.8%. That was the same level as the start of the month.

    The percentage of respondents "looking for a correction" was more notable. Rather than simply asking whether or not respondents foresee a correction in the technical sense on the horizon (a 10% decline from a high), Investors Intelligence defines a newsletter writer as "looking for a correction" when they are bullish on a list of stocks but at a lower price point. Coming in at 31.7%, the reading is a few percentage points above the historical average of 27.6% and is in the top quartile of the historical range. In other words, it is an elevated reading albeit far from without precedence. What is more significant is that it has been over a year since this part of the survey has seen these levels.

    (CLICK HERE FOR THE CHART!)

    In the history of the survey dating back to 1963, there have only been eight other times that the percentage of newsletter writers looking for a correction has crossed above 30% for the first time in at least a year. The most recent of these was in April 2009. In the table below we show the S&P 500's performance in the year following those occurrences. As shown, performance has been generally positive across those past instances with average gains over the following weeks and months and moves higher at least 75% of the time one month, three months, and one year out. Additionally, while there were two times, 1982 and 2009, in which the S&P 500 rallied over the following year without looking back, there were another two times, 2001 and 2007, that at the following years' lows, the S&P 500 would end up lower by double-digit percentage points.

    (CLICK HERE FOR THE CHART!)

    STOCK MARKET VIDEO: Stock Market Analysis Video for Week Ending May 28th, 2021

    ([CLICK HERE FOR THE YOUTUBE VIDEO!]())

    (VIDEO NOT YET POSTED.)

    STOCK MARKET VIDEO: ShadowTrader Video Weekly 5.30.21

    ([CLICK HERE FOR THE YOUTUBE VIDEO!]())

    (NONE FOR THIS WEEK.)

    Here are the most notable companies (tickers) reporting earnings in this upcoming trading week ahead-

    • (T.B.A. THIS WEEKEND.)
    (CLICK HERE FOR NEXT WEEK'S MOST NOTABLE EARNINGS RELEASES!)
    (CLICK HERE FOR NEXT WEEK'S HIGHEST VOLATILITY EARNINGS RELEASES!)

    Below are some of the notable companies coming out with earnings releases this upcoming trading week ahead which includes the date/time of release & consensus estimates courtesy of Earnings Whispers:

    Monday 5.31.21 Before Market Open:

    ([CLICK HERE FOR MONDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK!]())

    (NONE. U.S. MARKETS CLOSED IN OBSERVANCE OF MEMORIAL DAY.)

    Monday 5.31.21 After Market Close:

    ([CLICK HERE FOR MONDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK!]())

    (NONE. U.S. MARKETS CLOSED IN OBSERVANCE OF MEMORIAL DAY.)

    Tuesday 6.1.21 Before Market Open:

    (CLICK HERE FOR TUESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Tuesday 6.1.21 After Market Close:

    (CLICK HERE FOR TUESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Wednesday 6.2.21 Before Market Open:

    (CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Wednesday 6.2.21 After Market Close:

    (CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Thursday 6.3.21 Before Market Open:

    (CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Thursday 6.3.21 After Market Close:

    (CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK!)

    Friday 6.4.21 Before Market Open:

    ([CLICK HERE FOR FRIDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK!]())

    (NONE.)

    Friday 6.4.21 After Market Close:

    ([CLICK HERE FOR FRIDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

    (NONE.)

    DISCUSS!

    What are you all watching for in this upcoming trading week?

    (T.B.A. THIS WEEKEND.)

    (T.B.A. THIS WEEKEND.) (T.B.A. THIS WEEKEND.).

    (CLICK HERE FOR THE CHART!)

    I hope you all have a wonderful Memorial Day weekend and a great trading week ahead r/StockMarket.

    submitted by /u/bigbear0083
    [link] [comments]

    56% annual return since Jan 2008 (27% since 1928) -- Automated Leveraged Strategy

    Posted: 29 May 2021 01:58 PM PDT

    Hey everyone, I automated this investment strategy after reading some quant papers about it and thought others might appreciate learning about it! Before the "everyone is a genius in a bull market" - I know. Besides, this strategy has been backtested to 1928. Here's the original quant paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701

    Edit: the source code

    Edit: Hosted version (how to actually run/invest in it).

    Folks the amount of y'all that have messaged me asking for the source code and hosted version is absolutely AMAZING but I can't keep up! Posting the links here for you guys

    ​

    TL;DR

    Returned 56% compounding annually, including ~45% during 2020. Max drawdown a (nerve-wracking) 55.6%. Automatically trades ~1x per quarter, for every "losing trade", it makes 2.3 "winning trades". For comparison with the market, it has a risk-adjusted return (via the Sharpe ratio) of 1.83 vs the S&P ~0.4. Needless to say: this strategy is high risk.

    How it works

    This strategy utilizes 3x leveraged funds. They track the S&P, but each day they leverage 3x, so in a day you get 3x the return of the S&P (whether it goes up or down). These get a bad wrap because of volatility drag (sideways markets or those with rapid price changes eat the gains as the fund re-leverages each day) and their drawdowns, and are consequently mainly recommended only for day-trading (and not for long-term holds). Recommend you do your own research here to make sure you understand the risks.

    Beyond that it's very simple: when the S&P is above its 200 day moving average price, hold UPRO (a 3x leveraged fund). When the S&P is below its 200 day moving average price, rotate to cash.

    Performance

    Quick stats (1928 - 2015):

    - Annual return: 26.8%

    - Sharpe ratio: 0.4 (vs S&P 0.3)

    - Max drawdown: -92.2% (yikes)

    - Avg trades per year: 5

    Quick stats (2009 - 2021):

    - Annual return: 56.16%

    - Sharpe ratio: 1.83 (vs S&P 0.4)

    - Max drawdown: -55.60%

    - Avg trades per year: 4

    How to use this

    Doing it by hand is one way (but perhaps a lot of work and emotional given the riskiness of this strategy).

    If you're looking to get started with this or code it yourself, let me know and I can help you get started, otherwise curious what everyone thinks. Cheers.

    submitted by /u/opalsAndStones
    [link] [comments]

    Apparently these major free brokerages are offering these youtubers 10% of their clients portfolios deposits to get their fan base onto their brokerage?

    Posted: 29 May 2021 01:09 PM PDT

    This youtuber called The Economic Ninja Just released a bomb shell pissed off about major free brokerages giving 10% of their clients deposits and a huge bonus if they get 100 subscribers to join their platform. How can these brokerages stay in business if they are giving these youtubers 10% of their fans deposits to these content creators and facilitate free trading? What is going on here in these free trading platforms? Something smells really really fishy here to me... How can a brokerage just give away 10% of their clients portfolio to the content creators when they are using that money to buy shares and stocks. Are these free brokerages these youtubers are advertising a huge ponzi scheme and your not even buying real shares but fake shares? How can they afford that ontop with free trading? Now i understand why i get these free trading platforms shoved down my throat every time i watch a financial youtubers video. They get HUGE incentives to promote their referal link to get you to sign up. They collect 10% of your hard earned money plus huge bonuses for every 100 subs. How can these brokerages afford this?

    submitted by /u/herrrrrr
    [link] [comments]

    Revisiting Call-write ETFs, like DIVO, QYLD, over this volatile period, some are delivering in Total return space. Yield, is only part of the equation.

    Posted: 29 May 2021 06:24 PM PDT

    Rocket and reading material ready to go!

    Posted: 29 May 2021 05:07 PM PDT

    Most Anticipated Earnings Releases for the week beginning May 31st, 2021

    Posted: 28 May 2021 10:12 PM PDT

    Stock Market 101 eBook

    Posted: 29 May 2021 07:28 PM PDT

    These STOCKS could receive a boost as they are added to the Russell index at the end of June. HIMS, ASTS, SFT, VLDR, RSI, HYLN, MP, Xl, TTCF, RMO, RIDE, LAZR, DNMR, OPEN, LOTZ, CHPT, NKLA, QS, FSR, DKNG, HOFT, PLBY, CLOV

    Posted: 29 May 2021 12:02 PM PDT

    you can see when I started actively trading in the market. looks kinda like my recent portfolio performance too!

    Posted: 29 May 2021 06:11 PM PDT

    Today's Hot Stock Under Review: Advaxis, Inc. (NASDAQ:ADXS), Tencent Music Entertainment Group (NYSE:TME)

    Posted: 29 May 2021 10:00 AM PDT

    Inside Ample, the company bringing battery swapping to the U.S.

    Posted: 29 May 2021 09:53 AM PDT

    Alibaba is making its cloud OS compatible with multiple chip architectures

    Posted: 29 May 2021 09:33 AM PDT

    January regrets #doge

    Posted: 29 May 2021 12:01 PM PDT

    FKWL The Most Undervalued Stock in the Communications Equipment Industry

    Posted: 29 May 2021 06:35 AM PDT

    Franklin Wireless is the most undervalued stock on the market right now. Franklin Wireless is a IOT of things company, providing products such as Server and Cloud Based Management, Mobile Broadband Devices and Tracking Devices.

    Price History:

    Franklin Wireless started gaining attention and increase in volume throughout the year, Peaking at $28.14 per share in December 2020. The price has sub sequentially tanked and is trading at 9.6 USD or due to a recall on its wireless hotspot

    Financials and Growth: Q1 2021

    Revenue : 44.3M (up 185% from Q1 2020) Gross Profit:7.5M (up 150% from Q1 2020)

    Net Income: 3.9M (up 297% from Q1 2020)

    Net income for last 9 months = 18.35m

    Net cash flow for last 9 months = 26.1M Cash

    March 31 cash on hand = 54M

    Market Cap = 111m.

    Half its market cap in pure cash with no long term debt.

    Valuation to its Peers:

    FKWL:

    Revenue growth: 180% YoY

    PE Ratio: 5.06

    NTGR:

    Revenue Growth: 25% YoY

    PE Ratio: 14.23

    INSG:

    Revenue Growth: 43%

    YoY PE Ratio: N/A (losses)

    Discount:

    FKWL is trading at a 65% discount to its peers on a PE standpoint

    When factoring in revenue growth and cash on Hand balance this stock should be trading in the $40s or a market cap of around 500m. (316% increase from current price)

    Float:

    FKWL has a share float of 9M meaning bid/ask spreads are wide and this thing can run on news. Minimal volume is required to get this stock moving.

    No insiders have sold in the past 3 months, and have confidence in the stock.

    JetPack Recall:

    The sell off down from hits high of 28.14 relates to a recall on its Jetpack Hotspot.

    Verizon issued a recall on 2.5m hotspots sold between April 2017 and 2021 due to battery issues.

    20 units out of 2.5m in 4 years had issues where fire or intense heat occurred.

    Effect on the Bottom-line:

    Product recall average return rates are 65% if recalled in first two years.

    Meaning if you bought a product that was recalled 65% of sold products would be returned.

    Most Jetpacks were sold between 2017 and 2018 when the technology was new and it was being pushed by Verizon.

    Meaning they would of either been replaced by 2021 for a newer hotspot with 4/5G capabilities or customers would pass on the recall.

    Recall cost:

    2,500,000 units x .40% = 1,000,000 batteries are to be replaced (think this is on the higher end)

    Battery Cost:

    Batteries are selling for 8-11$ on amazon for the Hotspot, cost directly from supplier would be significantly lower in the $3-$6 range.

    Most of the times when a error like this occurs, the supplier of the faulty equipment is to blame and takes the burden of the costs. (Different company in Korea)

    Estimated Loss on Recall: $3 - $6 million after factoring shipping and not including any costs going to the third party battery supplier

    The Stock has dropped 230 million in market cap for a 3-6million dollar expense. That is one quarter of net income.

    This company has 54m cash on the books and will have no problem burdening these costs.

    The stock has dropped 230m in market cap for a 3-6m one time lose on a outdated product.

    The recall costs will be spread out over the next 2 quarters and will have minimum impact on the long term success of the company.

    If the price is to stay this low, this company is a key acquisition target due to its cash balance, increasing revenues and net profits/cash flow surplus.

    Price Target: I expect the stock to rebound to the $30-$40 range over the next 6 months after the recall is completed. This would still put the stock as undervalued to its peers in a P/E ratio terms and significantly undervalued when comparing to revenue growth.

    GLTA.

    submitted by /u/lFUCK
    [link] [comments]

    I have a portfolio of ~40 stocks. Every 2 weeks I buy more shares in 1 or 2 stocks and sometimes also sell some of the shares I have in a stock or 2. How can I view in eTrade annualized weighted performance of my portfolio??

    Posted: 29 May 2021 10:57 AM PDT

    I have a stock portfolio on eTrade. Every two weeks I take a bit of my pay check and buy a few shares of one or two stocks and sometimes I sell out of part of another stock position to take some profit. I want to compare the annualized performance of my portfolio with the S&P 500 and other indices. eTrade gives me a lot of data like portfolio gain % and an actual dollar $ gain on each investment and overall in my whole portfolio. Which is great.

    The problem is that the overall % gain of my portfolio calculated by eTrade does not account for the time frame. So it's not annualized. A 10% gain over 2 weeks counts the same as a 10% gain over 2 years. On top of that because I am adding a bit of $ every couple weeks (and sometimes selling shares too) I cannot easily calculate the annualized performance myself without a LOT of work.

    So for example: so if I buy 25 shares of stock A on Feb 1, buy 2 shares of stock B and buy 8 shares of stock C on Feb 15, and buy 12 shares of stock D and SELL 5 shares of stock A on March 2 then how do I calculate the average weighted annualized return of my portfolio a year or two later?

    Is there a way to view this information automatically calculated on eTrade? Or does a different trading platform provide this kind of calculation automatically? Or do I just need have to manually calculate this myself on Excel?

    Thank you

    submitted by /u/David-P8383
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    I think Xiaomi has huge long term potential in IoT - tech giant at a market cap of just $85 billion

    Posted: 29 May 2021 07:24 AM PDT

    Xiaomi (HK: 1810) is a mere 11 years old and didn't go public until 2018 - the same year they turned profitable, yet the are a well known brand and already third in global smartphone sales.

    A few days ago the company delivered a pretty wicked earnings report with an adjusted net profit increase of 163%.

    Two days prior I wrote a piece of how their unique 'AIoT' and 'Internet Services' strategy will eventually allow the company to make much larger profits on revenue in the future.

    Xiaomi commands one of the largest product portfolios with smart enabled devices of every category. In the West we don't yet see their smartphones too often - but their robo vacuum cleaners and electric scooters (They own Ninebot and Segway) and other smart home equipment is everywhere. They are basically taking the opposite route of Google and Apple in providing the hardware before the software - which also means they currently have higher costs and lower return on revenue.

    Yet they are already profitable and sit on a cash pile of 5.6 billion. About 60% of their revenue right now is however attributed to their smartphones - which are doing extremely well. Their phones receive high praise (though their Android fork is not liked by all) and offer unbeatable performance for the price. They do well in every price category and own several well known sub brands like Redmi, Poco and Blackshark. As an example Mrwhosetheboss (huge tech YT channel) picked Xiaomi brands for all top 3 spots for his best phones of 2021 out of 22.

    Xiaomi holds the top spot in market share in several emerging markets: India, Russia and most of Eastern Europe and soon South America. In Scandinavia where I live, they just recently entered local carrier stores, began advertising actively and opened a local official webshop. The ban on Huawei left a HUGE gap in the European market for Xiaomi to just freely gobble up and it seems like they are doing it. Xiaomi themselves have been removed from a similar (but much less severe) blacklist by the US government this week as well. They do not pose the same threat as Huawei did, as they do not build infrastructure telecom equipment

    There are rumors of the company designing their own SoCs (chips) in collaboration with OPPO and just last month they invested $10 billion into the Electric vehicle space. They already financially back Xpeng too and I think with the insane growth in the Chinese EV market they really have an opportunity to add even more value to their ecosystem integration.

    The company is founded by Lei Jun and former Vice President of Google China and Zhou Gaungping then Senior Director at Motorola's Beijing R&D Center. All three still lead the company today with Lei Jun as CEO. Xiaomi and their CEO has a huge following in China and a very dedicated loyal fan base.

    The company trades at a P/E of 23 and a share price of 28.6 HKD (~3.69 USD). The price to earnings is pretty typical for a tech stock but I think the benefits in profit of Xiaomi's strategy and investments are yet to be seen. I began buying up a few months ago and just doubled my investment after the earnings report. I will continue to buy in over atleast the next year and truly think this is a case of a company working hard for the future and with the right strategy. I saw the same patterns in Microsoft 6 years ago when Sadya Nedella took over and that position I'm up over 500%.

    Please let me know what you think and if you feel like there is anything you feel like I need to address. I'm really bullish on this company and it helps balance my portfolio with exposure towards Asia. I know Chinese stocks can be effy and at least for me it was also quite the challenge to find a brokage where I could buy them.

    submitted by /u/jesperbj
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    6 Asset lazy portfolio, doubles every 9 years @8.5%/yr, 25% less mkt volatility, since 1995. Covers 95% of World tradeable assets, no cherry �� picking. No stock or macro DD. Pls see 2nd chart, 40% last year, tired of rock n roll. Any best ETFs to implement this? ��

    Posted: 29 May 2021 03:35 PM PDT
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