Category Archive: Finance
5 Capital Allocation Principles & Their Impact On Intrinsic Value
One of the most important responsibilities of a company’s management team is capital allocation – the decision of where to deploy the firm’s excess capital. As shareholders, it is our job to ensure that management is making intelligent decisions for capital allocation, as it can have a profound effect on our long-term investment returns. Case-in-point: some of the most […]
Pruning The Golden Tree: How To Leverage The Gold Rally
Over the past week or so, gold and associated assets have rallied quite nicely. The $1237 price area is a good place to book partial profits on positions bought in my $1220 – $1200 buy zone. Gold feels quite solid here. The five and ten day moving averages have turned up. The 14,7,7 Stochastics oscillator […]
Import Prices Dip As Expected, Export Prices Unexpectedly Dip: GDP And Forex Analysis
The BLS’ Import and Export Price Report for June shows Import and Exports prices both declined 0.2% from May. Econoday economists called import prices correctly but expected export prices would be flat. Month-Over-Month Changes I reordered the charts in the BLS report to highlight what’s important for GDP purposes. Imports subtract from GDP while exports add to GDP. With […]
E What To Bet On During Options Expiration
Market Outlook This is July options expiration week and Jeff Hirsch in a recent Almanac Trader article talked about how since 1982, the Friday of options expiration week has a bearish bias for DJIA declining 18 times in 35 years with two unchanged years, 1991 and 1995. On Friday the average loss is a significant […]
Is The New FANG-Themed ETF Well Timed?
The FANG stocks (Facebook (FB – Free Report) , Amazon.com (AMZN – Free Report) , Netflix (NFLX – Free Report) and Alphabet have been investors’ darlings this year, returning more than 20%. But these were beaten down lately on overvaluation concerns. The dip could offer a solid buying opportunity for these fast-growing companies.
Daily Channel Resistance And Apex Of Triangle Time CITs
Markets reversed right off the 10.45 1st hourly APEX of triangle time CIT this morning. We should close Up for the day. The 75 week FC cycle had a 67% chance of seeing a sharp decline and a 33% chance we saw none. So far, we are seeing the Low odds 33%.
Gridlock In Washington And The Impact On Equity Markets
Gridlock in Washington (with the utter failure to pass any kind of new healthcare reform) is the theme, so far, in 2017… with Republicans unable to agree to support their party’s latest bill, which is now completely dead, and Democrats simply obstructing everything in sight. It looks like everyone is tired and unable to do […]
The Cheapest Dividend Achiever: American Equity Investment Life
The Dividend Achievers are a group of solid dividend stocks with 10+ years of consecutive dividend increases. 200+ shareholder-friendly companies present many potential investment opportunities. However, not all of these businesses will make a compelling investment at any given time. Some will be overvalued, while others will be undervalued. American Equity Investment Life Holding Company (AEL) […]
FANG Stocks Soar To New Record High As NFLX Spikes 14% (To 101x Fwd P/E)
As goes Netflix, so goes ‘Murica… Nasdaq remains the only major index in the green today and there’s one big fat ugly cash-burning reason. Netflix is up 14% – tearing the faces off of every short-seller (6.2% of float short)… And NFLX has single-handedly ripped FANG stocks to a new record high – dismissing the ‘tech wreck’ […]
Q2 2017 Earnings Preview: The Expected Winners And Losers Might Surprise You
The big banks (JPM, C, WFC, GS, BAC) kicked off earnings season on a high note when they reported on Friday, all beating on the bottom-line, and only Wells Fargo missing on the top-line. Overall the Estimize community is expecting another strong earnings season, but a pull back from Q1. S&P 500 EPS is anticipated […]
