Category Archives: Stocks

by | March 12, 2014 · 2:11 pm

China fears

Japan`s Nikkei fell -2,6% today, as investors locked in some profits as caution over Chinese demand continued to hurt commodity stocks. Nikkei ended at 14,830,39 points. It`s all down in Europe too. Gold is up +1,22%.

Gold

Shanghai copper fell by its 5% daily limit and London copper hit a 44-month low. Investors eyes are on mining stocks now because the world’s top user of copper (China) could unlock copper from financing deals and unleash more selling.

Credit Agricole said in a note that it looks bad, and that copper prices continue to be hit by China growth worries. Ukraine tensions have intensified with diplomatic efforts yielding no success and that makes investors nervous.

The U.S markets will open up in a negative territory today, putting the S&P 500 on track for a third day of declines. All this because of the China fear. Not all the investors are selling stocks. Some of them are always looking for bulls.

Take a look at Oxigene Inc (OXGN:O) today. That stock surged 145% before the opening bell, trading at $5,93. They have declared a contract with shareholders to purchase an aggregate of almost $12 million of units at a price of $2,05.

The share faced its lowest price of $2,09 during the latest trading session. The trading volume with the big jump is 8,54 million shares, compared with the average of 586,076 shares. The company`s market cap is $27,75 billion with 11,47 million shares outstanding.

Reports today:

 

10:30 AM ET Crude Oil Inventories
01:01 AM ET 10-y Bond Auction

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | March 10, 2014 · 2:17 pm

Risky business

Copper is in red territory today, town -2,03%, followed by Crude oil (brent), which is down -0,80%. Gold and silver is up. Asia is trading down today. Hang Seng is down -1,75%, Shanghai is down -2,86%, while Nikkei closed down 1% at 15,120,14.

Asian markets tumbled today. People are worried about the Ukraine crises and some are disappointed about the surprisingly weak Chinese trade data released today. All this, despite the surprisingly good news from the U.S on friday. Nonfarm payrolls was better than expected.

The commodity-sensitive Australian and Canadian dollars suffered today, as copper of which China is a major consumer, reached a four-year low in Shanghai. Australian and Canadian dollars lost half a percent against a steady U.S dollar. The Chinese yuan opened down 0,5%.

Groupon Inc (Nadaq:GRPN), is still the market leader in the daily deal voucher sales, but the stock is declining while this stocks seems to be a risky stock. Most of the Groupon`s customers are often struggling merchant partner who can`t afford to pay.

In worst case, if many of them go bankrupt, then Groupon will lose a lot of money. In addition; Groupon will pay back the customers if the merchant fails, and unused vouchers has increased to $725 million.

Merchants need to offer discounts of 50%, and share 50% of the rest with Groupon. As you know, this is a risky business. Merchants do not earn money and have no control if too many vouchers are issued.

Groupon say they are «the morst effective local advertiser tool» available for marketers, but I think that the shoppers are the winners here. Mainly because the shoppers are one-time shoppers looking for good deal, better called «coupon hunters», which is not loyal repeated customers.

This can be a ticking bomb, and the stock is now trading at $8,60. The stock will open down today -0,58%. The stock is down -67,16% from the top, and so far this year the stock is down -26,90%. Groupon shows us that not everything in the social space is rosy.

Revenue growth and user growth is the king in the stock market.

Groupon logo

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | March 4, 2014 · 12:12 pm

Stocks rebound

We are in a positive territory again. Stocks up and commodities down. Gold is down -0,81% to 1,339,30. Copper is down -0,41 to 317,45. Crude Oil (Brent) is down -1,27% to 109,79. But Silver is up +0,17 to 21,27.

 

What Putin and Russia did was expensive to Russia. The Russian stock exchange (MICEX) plummeted after Putin declared the right to invade Ukraine. MICEX fell $58,4 bln from friday to monday, but are trading up again today.

 

The cost of the Winter Olympic games was $51 billion, held in the southern city of Sochi. In other words; the decision to invade Ukraine was more expensive for Russia than the whole Winter Olympic games.

 

Now, Russian President Vladimir Putin has ordered troops to turn back to the base and stop all military exercises. That is music in the investors ears, wich is now less nervous and the stock market is turning up again.

 

CAC 40 is up +1,34%. FTSE 100 is up 1,08%. DAX is up 1,03% and FTSE MIB is up +1,71%. Warren Buffet say war is a buying opportunity, because money in it self will lose value. Other investors say commodities like gold is a safe-heaven bet.

 

Tesla (TSLA) don`t care about wars. Trading up +2,13% yesterday and seems to continue up today. Tesla is up +619,3% (1 YR). So far in 2014, Tesla is up 70,1%. What a great company. It seems like the new safe-heaven is Tesla!

money2

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

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by | March 3, 2014 · 2:28 pm

AT&T in Europe

AT&T (American Telephone & Telegraph) in planning to start business in Europe. AT&T (NYSE:T) Inc is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. The company is founded by Alexander Graham Bell in 1876.

100px-AT&T_logo.svg

AT&T is the second largest provider of mobile telephony and the largest provider of fixed telephony in the United States. They also provides broadband subscription television services. The company is the third largest company in Texas, but the largest non-oil company.

 

ExxonMobil and ConocoPhillips is the two that is bigger than AT&T and as you know they are in the oil industry. As of May 2013, AT&T is the 21st largest company in the world by market value. It is the 13th largest non-oil company.

 

As of 2014, AT&T is also the 20th largest mobile telecom operator in the world. They have over 107,9 million mobile customers. As you may know, this is a big company, planning to expand in Europe.

 

The stock price reached a top in Jul, 16, 1999, trading at 59,188. Now, 15 years later, the stock price is trading at 31,93. The stock has declined for a long time now, and while the S&P 500 hits new all-time highs, AT&T is near 52-week lows. Down -9,2% in 2014.

 

Some investors say that T will not make you rich as an investor overnight, but it can be a great stock in a longer term. T offers a fair valuation. They have a solid dividend yield and a mild earnings growth. They have two unites: wireless and wire line.

 

Some speculators say that this company is near the bottom as the P/E ratio reached single digits and dividend yield passed 5,75%. P/E ratio is 9,61 and the downside should be limited, but we have to keep an eye on the earnings.

 

The British telecom giant Vodafone (VOD) reported disappointing results in the third quarter ended December 31, 2013. It was worse than investors expected. It seems like Vodafone don`t have the ability to grow revenue in Europe, but the stock is doing it better than AT&T.

 

AT&T announced that the company will not make an offer for Vodafone, but they are looking for a large acquisition in Europe because they experience the same as Vodafone does in Europe; limited growth in the United States. The reason why AT&T is careful in acquiring Vodafone is their poor performance in Europe.

 

They are all selling the same products; SMS, MMS, phone calls and online access. You can`t say you have a better SMS than your competitors. They`re all the same, which means it all comes down to one thing: price, and that is good for the customers.

 

Some of the operators are just selling online access and gives you SMS and MMS and all your phone calls for free. You pay only one amount, no matter how much you call or send SMS. But that amount is much bigger than online operators like Skype and WhatsApp.

 

Skype is for free and WhatsApp costs 1 dollar after 12 months. If you go for those free solutions, you still need the wireless company and that is where they will earn money in the future: Online business.

 

 

Reports today:

 

08:30 AM ET Motor Vehicle Sales
08:30 AM ET Personal Income and Outlays
08:58 AM ET PMI Manufacturing Index
10:00 AM ET ISM Mfg Index
10:00:00 Constructiono Spending

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | February 28, 2014 · 2:02 pm

EL Cars

It seems like Tesla (TSLA) is on the way to change one of America`s most beloved industries – Automotive. This is not only good for Tesla themselves, but SolarCity (SCTY) will profit from it too. You probably know Tesla`s Superchargers.

tesla

Not everyone knows that Tesla`s superchargers is powered by a combination of electric grid, solar, and batteries. The batteries are being used to store excess solar energy and offset the costs of buying energy from the grid.

 

SolarCity is working on a new project called DemandLogic battery storage systems. They have tested the battery systems (provided by Tesla) in some people`s homes to complement their solar panels.

 

The intention is to bypass peak rate charges and store or sell any excess energy, ultimately providing a lower energy bill. Just like the superchargers. You can just imagine how it will be in the future as the technology matures.

solarcity-lg

A joint venture by Elon Musk and SolarCity could be a great company to make a better world! SolarCity is up 51,6% in 2014, while Tesla is up 67,9% in 2014. Tesla is up 625,1% (1 YR). SolarCity is up 375,6% (! YR). Great!

 

Reports today:

 

08:30 AM ET GDP
09:45 AM ET Chicago PMI
09:55 AM ET Consumer Sentiment
10:00 AM ET Pending Home Sales Index

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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