There are many trading strategies that people come up with that it can become quite overwhelming to know which one actually works best. Here's one that we know is good.
Here's this week's list of stocks to watch as well as some market analysis to help you trade this week.
PACCAR has a long track record of creating shareholder value throughout many business cycles. The company has delivered 81 consecutive years of positive earnings and has not missed a dividend since 1941. Not surprisingly, they have managed to maintain profitability throughout the COVID-19 lockdown and have a rock-solid balance sheet.
Keep reading to find out what makes PCAR a great long-term hold.
Last week was the week where we finally saw a real pull back in the market. We warned about it in our watchlist last week and on twitter as the market was getting way too ahead of itself. Now, we are mostly sitting on hands waiting for the market to pick a direction and present opportunities. Here is this week's watchlist.
Here is this week's watchlist.
When analyzing a stock you plan to invest in, it is crucial to look at its balance sheet to see its current financial health. A balance sheet shows a snapshot of a company's assets and liabilities at the particular date shown on the balance sheet. It is also referred to as the statement of financial position. To beginners, balance sheets may seem complicated if you don't know what to look for. That's why we are breaking it all down in this post.
Relative valuation is done by simply comparing companies in the same industry by using metrics/ratios such as P/E ratio or P/B ratio. It is one of the most common methods of valuation as it is by far the easiest.
Here is this week's watchlist.
Undervalued Stock to Watch: Branch-less Bank Stock Versabank Set For Steady Growth. Does it Deserve a Spot In Your Portfolio?
VersaBank is a schedule I chartered bank in Canada with a branch-less business model. Its ticker is VB.TO on the TSX and VRRKF on the pink sheets. The company offers its services to businesses in specific niches rather than catering to individual people. VersaBank was founded in 1979 and is headquartered in London, Canada. They offer point-of-sale consumer financing, commercial mortgages, public sector financing, deposits, as well as innovative cyber security solutions for financial institutions through their subsidiary DRT Cyber.
Here are some stocks to watch for this week.
What is it about penny stocks that lures new or young investors? They are volatile, mostly unprofitable and regularly dilute shares in order to raise new capital.
What is an engulfing candlestick? There are two types: the bullish engulfing, and the bearish engulfing candle. A bullish engulfing candle can indicate a change in momentum to the upside. The opposite is true for a bearish engulfing candle. The pattern is made up of 2 candlesticks, where the most recent candle's body fully engulfs the body of the previous candle.
In this report, we will be taking a look at eBay, the well-known online marketplace.
Here are some of the stocks we are watching this week.
In stock trading, a "short squeeze" is when a stock goes up significantly in a short period of time due to short sellers covering their short positions. When traders take a short position, they have a negative share position. To close their position entirely, they need to buy back shares in the amount that they are negative. If this happens all at once with many short sellers, it will create lots of buying which is known as a short squeeze.
A Canadian REIT With a 9% Dividend Yield - SmartCentres REIT (SRU.UN.TO) - Research Report - July 08, 2020
You may have seen these penguins in a plaza in a suburban area if you live in Canada. SmartCentres (ticker SRU.UN) is a REIT that started as a ‘shopping centre’ but has ventured into a ‘city centre’ and has strategically placed 166 properties around Canada. If you are unsure of what a REIT is, you can read a basic introduction by clicking here. "SmartCentres" are built at major intersections which allows for easy access for transit. The company currently has diversified joint-venture partnerships with Walmart, Revera, Penguin Pickup, JADCO, Greenwin, CentreCourt – just to name a few.
Companies need capital in order to run their operations. Because of this, they raise money either through equity (issuing shares) or through debt financing (bonds/loans). However, raising money isn't free. There is a cost of issuing debt, and a theoretical cost of issuing equity. WACC is a weighted average of cost of debt and equity. It is an important calculation for valuing stocks because a company's WACC is often used as a discount rate for valuation.
If you do some searching for dividend stocks, you may find stocks that have dividend yields of 15% or more. To a beginner investor, stocks like this may seem like a bargain. However, it is often the case that the dividends for these high yielding companies are unsustainable and only high because the price of the stock has dropped due to poor fundamentals. There are a few ways to check if a dividend is safe, and this post will teach you just that.
Would you rather receive $100 one year from now? Or would you want to receive it today? The correct answer of course is today. That's because money loses value over time due to inflation and the opportunity cost of investing it. Well, the point of DCF analysis is to forecast future free cash flows of an investment/company and then discount them back into the present in order to find out what the future money is worth today (present value). If the present value of the future free cash flows are greater than the current cost of the investment, then it is considered a good/undervalued investment.
How valuable is the stock INMD? This post will offer InMode Ltd.’s fundamentals and catalysts to see if this stock is worth investing in. InMode Ltd. is a provider of minimal and non-invasive radio-frequency technology. Its innovative technology strives to improve surgical procedures. These commercialized products are used by plastic surgeons, gynecologists, dermatologists, and more. One of its FDA approved technologies is called Radiofrequency Assisted Lipolysis (RFAL). This technology contours the face and body without scarring. It allows for larger volumes to be treated with significant shrinkage of skin.
UPDATED: September 2, 2020. Richard's Packaging Income Fund: A Safe & Reliable Canadian Stock That Has Benefited from COVID-19
Richards Packaging Income Fund is a packaging company that has generated an average compounded annual return of 22% for the past 16 years. It manufactures and distributes packaging and related products in Canada and the US. It serves approximately regional cosmetic, healthcare, food, beverage, and other companies. The company was founded in 1912 and is headquartered in Mississauga, Canada.
Many people trade off of relative strength or relative weakness. This means buying the strongest stocks and/or shorting the weakest. This post will focus on stocks that held their gains through last week's dip.
Earlier today, the Federal Reserve cut interest rates by 50 basis points. The Fed rate meeting was scheduled for March 18th, but they couldn't wait until then to cut rates, one of the reasons why this is an "emergency cut". The other reason being that 50 basis points is a lot for a rate cut. This is the first emergency cut since the financial crisis of 2007-2008.