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Why Sprint Stock Isn’t a Gamble That’s Worth Taking

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Sprint (NYSE:S) continues to remain in limbo. Amid a merger in jeopardy and a disappointing earnings report, Sprint stock had fallen even as that of its buyer-in-waiting, T-Mobile (NASDAQ:TMUS), steadily rises. Sprint stock spiked higher on Monday as the Federal Communications Commission (FCC) appeared to green light the merger.

Why Sprint Stock Isn't a Gamble That's Worth Taking

Source: Shutterstock

However, with the Department of Justice (DOJ) set to block the union, Sprint has again begun to fall. Worse, given the known state of Sprint’s 5G network, one has to wonder if it can remain a viable entity without the help of T-Mobile. Given these conditions, Sprint stock offers no viable investment options for shareholders.

FCC, DOJ on Opposing Sides

Sprint stock surged higher by almost 19% in Monday trading as FCC Chairman Ajit Pai gave his approval to the merger. Before this announcement, S stock traded more than 20% below the price T-Mobile guaranteed to Sprint shareholders if the deal took place. With FCC approval, much of that gap had closed.

However, the stock fell back by more than 3% in Wednesday trading as antitrust staffers at the DOJ recommended blocking the deal. Now, political appointees within the DOJ must decide whether to file a suit to block the agreement. Most expect a final decision within a month. Whatever happens, it brings further uncertainty to a deal seen as both controversial and inevitable.

Expect Some Kind of Merger

Investors need to understand that a merger will occur whether or not a merger occurs. The government can allow T-Mobile to buy Sprint’s assets. It can also let Sprint decline. If Sprint folds, some or all of the remaining 5G players could buy Sprint’s assets in the bankruptcy process. As my colleague Dana Blankenhorn suggests, they could also face better-heeled players such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) or Amazon (NASDAQ:AMZN) buying Sprint’s assets. Hence, few in the telco industry will win if the DOJ blocks the deal.

Our own James Brumley spells out this case in greater detail. I agree with him that regulators know that the market may end up with only three 5G players regardless of their decision on the merger. Still, predicting if and when a deal occurs remains the challenge.

Sprint Stock Is Not an Investment

As a result, Sprint stock has ceased to serve as an investment. Both the numbers and management’s illustration of the network leave investors with few reasons to choose S stock over AT&T (NYSE:T) or Verizon (NYSE:VZ). CEO Michael Combes even declined to answer a question as to whether the company can offer nationwide coverage if the T-Mobile merger does not occur.

By itself, this makes Sprint’s 5G less valuable than that of its three direct peers. That bodes poorly for a company with $28.27 billion in book value and $36.28 billion in long-term debt.

In fairness, the stocks of AT&T and Verizon also face their challenges. Due to the cost of a 5G buildout and other factors, both companies face heavy debt loads. In AT&T’s case, a move into media content has placed further pressure on that equity. As a result, both stocks support low multiples.

However, one can still classify those companies as investments. Lower stock prices have given both AT&T and Verizon some of the highest dividend yields in the S&P 500. Sprint cannot afford a payout at all. Moreover, both AT&T and Verizon have increased their payouts every year for decades. 5G will probably finance these dividend increases in the future. Hence, even if these equities remain somewhat depressed, they can still deliver shareholder return.

A Deal Is the Only Hope for Sprint Stock

The merger has become the only known possibility for Sprint stock to deliver further significant upside. Since holders of S stock will receive 0.10256 shares of T-Mobile stock, this translates into a purchase price of about $7.85 per share as of the time of this writing. With the current Sprint stock price of around $7 per share, that represents a premium of almost 12%. Without the deal, traders will probably watch Sprint become the Sears Holdings (OTCMKTS:SHLDQ) of the wireless industry as it gradually bleeds out.

In the end, we do not know what regulators will do. Hence, I mostly agree with my colleague Vince Martin that Sprint stock has become a gamble. However, I see this as a poor gamble, as we do not know when government regulators will make their final decision.

The Bottom Line on Sprint Stock

Sprint stock offers little hope for investor returns outside of the formal approval of the T-Mobile merger. Given its financial condition, Sprint will struggle to build a nationwide 5G network without some help. Hence, a takeover of some kind will likely occur regardless of what regulators may think.

This leaves holders of Sprint stock with only gambling instead of investing options. They either bet on government approval, or they witness an almost-certain drop into penny-stock status. With the FCC and DOJ at cross purposes, what will happen is anyone’s guess.

People who want to gamble might have better luck (and certainly more fun) at a blackjack table. Those who wish to invest will likely see higher returns in the equities of AT&T, Verizon or that of their prospective suitor.

As of this writing, Will Healy did not hold a position in any of the aforementioned securities. You can follow Will on Twitter at @HealyWriting.

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The most controversial prediction of 2019

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The uncensored truth about where our country’s been… and where it’s headed  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
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2019-05-23 01:09:29



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01. Espresso Machines review|
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06. Electric Keyboards review|
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3 Stocks to Buy for Safety in the Trade War — ROKU, CMG, CYBR

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Are you looking for stocks to buy, but yearning for protection from the trade war? A trio of long stock positions in Roku (NASDAQ:ROKU), Chipotle (NYSE:CMG) and CyberArk (NASDAQ:CYBR), which offer diversity and the common thread of bear-bucking relative strength, may be the answer. Let me explain.

To say the least, the trade war between China and the U.S. has been a tiring undercurrent in the realm of investing. And there’s no telling what’s next between the two countries. Nor do we really know what impact this economic tangle may have on a broad mix of publicly-traded stocks ranging from Apple (NASDAQ:AAPL) to 3M (NYSE:MMM) to Starbucks (NASDAQ:SBUX).

The good news is there are still many stocks to buy with less risk tied to any future trade deals or even continued escalation between the world’s two largest economies. Roku, Chipotle and CyberArk fit this mold.

And of benefit to bullish investors, ROKU, CMG and CYBR are also leading the way higher through the market’s daily headline-driven cheers and jeers tied to the trade war. What’s more, these 3 stocks are poised for continued success off and on the price charts and look like prime stocks to buy today.

Roku (ROKU)


Click to Enlarge

ROKU is the first of our stocks to buy. Roku is the market’s largest over-the-top streaming content provider. And if the company’s recent all-around, solid-looking earnings and sales beat and very bullish reaction from Wall Street are any indication, investors haven’t seen anything yet.

Bottom line, with a market capitalization that’s still just under $10 billion, it’s not hard to understand the huge upside potential in this market-leading growth stock. Furthermore and on the price chart, it’s equally easy to see, in a universe of stocks to buy, why ROKU remains compelling.

With shares narrowly breaking out of a small flat base of several days in duration as of Tuesday’s close, ROKU is in position for buying right now. I’d set an initial stop-loss at $77. The exit is slightly beneath the congestion pattern and prior highs

There’s a bit of trend-line and Fibonacci risk in-between $88 to $95. But with the psychologically appealing $100 level just a stone’s throw away and a growth stock known for its volatility, $103 to $105 looks about right for taking initial profits.

Chipotle (CMG)


Click to Enlarge

The second of our stocks to buy is CMG. For a company which makes healthy eating fast, easy and affordable, it’s amazing how Wall Street continues to pooh-pooh Chipotle’s business wherewithal. In fact, the current analyst consensus is a hold on shares with a median target roughly 6% below the current price.

But that bearish view may be missing the big picture as CMG stock continues to move successfully past its well-publicized health scares which rocked shares for a couple years. As well, other investors are rightfully buying shares right now.

Following a late April earnings beat and seven plus weeks of trading in a constructive, mostly lateral basing pattern, CMG stock broke out Monday.

Currently, with shares less than 7% from their 2015 all-time-highs and a period where Chipotle enjoyed a sizzling romance with Wall Street, getting in front of a sell-side community known for changing its tune makes CMG a stock to buy today.

For Chipotle positioning I’d recommend investors wait for shares to re-cross the pattern breakout of $721.42. This amounts to a second attempt style entry which allows for an additional layer of price confirmation and reduced chance of buying a false breakout.

For containing risk, an initial stop-loss within congestion but below the key $700 level which also cuts exposure down to about 3% looks like a smart way to position long in Chipotle stock.

CyberArk (CYBR)


Click to Enlarge

The third in our list of stocks to buy is Israel-based CyberArk. The security software outfit has been a top growth stock in 2019 with shares hitting fresh all-time-highs and quickly approaching a double in price.

And there’s reasons for investors to be excited given the company’s standout quarterly results earlier this month and relative insulation from the trade war between China and U.S. Now there’s additional evidence on the price chart for making CYBR a stock to buy today.

In Wednesday’s session shares of CyberArk are trading at fresh highs after breaking out of a short and irregular two-plus week pullback pattern. With today’s reaction also pushing above last week’s volatile earnings-driven aftermath beset by profit-taking, the move to fresh highs is impressive.

Still, CYBR is volatile and those swings shouldn’t be discounted after what’s been a very friendly trend and admittedly, a stochastics set-up which appears to be cautioning against bullish bets.

My recommendation for this sort of situation is to buy shares and hope for the best. That’s not to say investors should leave this stock to buy open to increased risks of failure. Instead, when purchasing CYBR make sure to use CyberArk’s options market to contain exposure using any number of limited and reduced risk strategies which fit your expectations.

Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

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01. Espresso Machines review|
02. Gaming Keyboards review|
03. Gaming Headsets review|
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05. Cordless Drills review|
06. Electric Keyboards review|
07. Gaming Mouse review|
08. Gaming Monitors review|
09. Gaming Laptops review|
10. WiFi Routers review|

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EUR / USD h4 vs USD / JPY h4 vs EUR / JPY. Comprehensive analysis of movement options from May 23, 2019. Analysis of APLs

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A comprehensive analysis of the options for the development of the movement from May 23, 2019 currency instruments EUR / USD h4 vs USD / JPY h4 vs EUR / JPY in the Minuette operating scale (H4 time frame)

Minuette operational scale (h4)

____________________

Euro vs US Dollar

The movement of the single European currency EUR / USD from May 23, 2019 will be determined by the direction of the breakdown of the range:

-> resistance level of 1.1175 (reaction line RL23.6 Minuette operational scale forks);

-> support level of 1.1160 (the initial line of the SSL Minuette operational scale forks).

Accordingly, in the case of the breakdown of the resistance level of 1.1175 (RL23.6 Minuette), we will have an upward movement of this instrument to the boundaries of the 1/2 Median Line channel (1.1190 <-> 1.1205 <-> 1.1220) and the equilibrium zone (1.1220 <-> 1.1245 <-> 1.1265) Minuette operational scale fork.

Thus, the downward movement of the EUR / USD pair will become possible with the breakdown of the support level of 1.1160 (the initial SSL line of the Minuette operational scale), whose goals will be -> the initial SSL line Minuette (1.1150) <-> 1/2 Median Line Minuette channel (1.1141 <-> 1.1120 <-> 1.1100).

The marking options for the EUR / USD movements are shown in the animated graphic.

yvJ4MRD_00rKNOOcn31dtBt-Y7eRXRseYvXNijub

____________________

US dollar vs Japanese yen

Further development of the USD / JPY movement from May 23, 2019 will be determined by testing the resistance level of 110.50 by 1/2 Median Line of the Minuette operational scale fork.

If USD / JPY remains below the level of 110.50 (1/2 Median Line Minuette), then there will be an actual development of the downward movement of the exchange instrument to the boundaries of the equilibrium zone (110.10 <-> 109.70 <-> 109.25) Minuette operational scale fork.

On the other hand, when the level of resistance 110.50 (1/2 Median Line Minuette) breakdown, then there will be an upward movement of the instrument which will be directed to the boundaries of the equilibrium zone (110.70 <-> 111.20 <-> 111.70) Minuette operational scale fork.

The marking options for the USD / JPY movements can be seen at the animated graphic.

koobe6OlMR7NXzHSGCaEiOKTqegTQLDSM0zSF6mX

____________________

Euro vs Japanese Yen

As of May 23, 2019, the development of the EUR / JPY cross-tool movement will occur, which will depend on the testing of the resistance level of 123.40 (upper boundary ISL61.8 of the Minuette operational scale fork).

In case of a repeated breakdown of this resistance level – 123.40 (ISL61.8 Minuette) – the upward movement of the cross instrument will be directed to the 1/2 Median Line Minuette (123.70) and the equilibrium zone (124.30 <-> 125.00 <-> 125.6) of the Minuette operational scale fork.

However, if the EUR / JPY price remains below the upper boundary of the ISL61.8 (123.40) equilibrium zone of the Minuette operational scale fork, then the movement of this instrument will be directed towards the targets -> Median Line of the Minuette (123.10) <-> ISL38.2 Minuette (122.7) <-> initial SSL line (122.25) Minuette operational scale fork.

The marking options for the movements of the cross-instrument EUR / JPY are presented in the animated graphic.

jNGKHZXsgRcQNCbWXbzphDurMIIkwamW0U5uktl3

The material has been provided by InstaForex Company – www.instaforex.com
2019-05-23 01:16:56



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01. Espresso Machines review|
02. Gaming Keyboards review|
03. Gaming Headsets review|
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Urban Outfitters Clothing Rental Service: 7 Things We Know Urban Outfitters Clothing Rental Service: 7 Things We Know

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<br /> Urban Outfitters Clothing Rental Service: 7 Things We Know Urban Outfitters Clothing Rental Service: 7 Things We Know | InvestorPlace


The retailer now has 245 stores across the world

Urban Outfitters (NASDAQ:URBN) announced that the company is rolling out a clothing rental service, which will come out later this year.

Urban Outfitters Clothing Rental

Source: Shutterstock

Here are seven things to know about the service:

  • The service will be rolled out this summer and it will be called Nuuly.
  • Chief digital officer David Hayne, who is the son of one of the founders, will run the new service.
  • He expects the Urban Outfitters service will attract 50,000 subscribers and rake in more than $50 million in revenue in its first year of business.
  • A shopper can rent up to six items at a time for $88 per month from the company’s family of brands, which include Anthropologie and Free People.
  • The service will also offer other options in clothing from the likes of Levis, Reebok and Fila, as some of these are sold in Urban Outfitters stores.
  • The business said the service will give customers the option to infuse “freshness and variety into their wardrobes,” per a statement in the company’s press release. Shoppers who like certain items have the option of purchasing them.
  • Urban Outfitters said that the goal of the service is to diversify its revenue streams, not replace sales.

“We certainly don’t think the customers are just going to stop purchasing,” Hayne told the Wall Street Journal. “Purchases make sense for things you know you’re going to use often; rental makes sense for things you would like to try.”

URBN stock is down 9.2% on Wednesday.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/urban-outfitters-clothing-rental/.

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Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all.

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02. Gaming Keyboards review|
03. Gaming Headsets review|
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07. Gaming Mouse review|
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10. WiFi Routers review|

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BRL, Ibovespa at Risk From Brazil-China Investment Negotiations

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TALKING POINTS – BRL, IBOVESPA FUTURES, BOLSONARO, GLOBAL GROWTH

  • Brazil Vice President Hamilton Mourao to meet with high-level officials, Xi Jinping
  • This is part of a diplomatic effort to fortify relationship after Bolsonaro’s comments
  • Weaker demand out of China, slow pension reform progress weighs on Brazil econ

See our free guide to learn how to use economic news in your trading strategy!

BRAZIL-CHINA RELATIONS

BRL and the benchmark Ibovespa equity index will be closely watching the five-day negotiations between Brazilian Vice President Hamilton Mourao and high-level Chinese officials. Hamilton is expected to meet with General Secretary of the Communist Party of China Xi Jinping. Brazil-China relations have somewhat deteriorated ever since Jair Bolsonaro became President.

“The Chinese can buy in Brazil, but they can’t buy Brazil”, said Bolsonaro. Most of his appointees have a military background, and as such, are hesitant to have close ties with a country that potentially poses a security threat. This comes against the backdrop of greater scrutiny over potential security threats posed by Chinese tech giant Huawei.

Both China and Brazil are major players in the emerging market association known as BRICS – Brazil, Russia, India, China and South Africa. China is also Brazil’s largest trading partner and the biggest consumer of Brazilian iron ore. Brazil may also soon replace the US as China’s biggest client of imported soybean products due to Beijing’s tariff imposition on US-based soybean crops.

Brazil-China tensions have already somewhat softened after officials in Sao Paulo stated that they will no longer seek WTO intervention on China’s policies on sugar tariffs. The concession was likely a gesture of good faith ahead of this week’s talks and may provide a more favorable backdrop to investment negotiations.

However, the small boon granted from the US-China trade war is outweighed by the cost associated with the economic conflict. As an emerging market economy, Brazilian assets are particularly sensitive to changes in global risk appetite. This reaction will only be amplified as the government attempts to open up Brazil’s economy to the world, making it more in sync – or vulnerable – to changes in global demand.

BRAZIL ECONOMY OUTLOOK

A few days ago, the Brazilian Economy Ministry cut the country’s GDP forecast for 2019 from 1.6 percent to 2.2 percent. Some of this has to do with the slow progress and uncertain outlook on Bolsonaro’s market-disrupting pension reforms and the implications they have domestic growth prospects. Pessimism over the outcome has led to slower economic activity and reduced the appeal of the Brazilian Real.

USDBRL at its Highest Point Since October 2018 – Daily Chart

Chart Showing USD/BRL

The Ibovespa has been showing some improvement, with futures retesting support after previously breaking through it. While Brazilian markets have been primarily driven by the progress on pension reforms, this market move may have less to do with the structural plans and more with the central bank. If economic data continues to underperform, it may prompt monetary authorities to adjust to a more dovish stance.

Ibovespa Futures Retesting Support

Chart Showing Ibovespa futures

The prospect of cheaper credit may therefore be the leading cause behind the rally in the Ibovespa. Looking ahead, US-China trade relations will persist as a global fundamental headwind and will continue to pressure Brazilian exports. Looking ahead, negotiations between China and Brazil will be crucial to see if a stronger relationship will lead to greater investment that could help lift up Brazilian economic activity.

FX TRADING RESOURCES

— Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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01. Espresso Machines review|
02. Gaming Keyboards review|
03. Gaming Headsets review|
04. Virtual Reality Headsets review|
05. Cordless Drills review|
06. Electric Keyboards review|
07. Gaming Mouse review|
08. Gaming Monitors review|
09. Gaming Laptops review|
10. WiFi Routers review|

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Fears About Baidu (BIDU) Stock Have Proven to Be Justified

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The bottom is falling out for Baidu (NASDAQ:BIDU). Baidu stock fell by almost one-quarter on Friday and Monday. Excluding a very brief dip in 2015, BIDU stock now sits at its lowest level in almost six years.

Can Baidu Stock Rally 40% This Year to $250? Here's What To Focus On

Source: Shutterstock

The near-term catalyst has been BIDU’s disappointing first-quarter report issued on Thursday afternoon. But there’s more weighing on BIDU stock than just a single earnings report. As I wrote earlier this year, there have been significant concerns about the health of its business for a long time.

Its Q1 results and, perhaps more importantly, its Q2 guidance, suggest those concerns are quite realistic. And so I wouldn’t recommend that investors try and time the bottom of BIDU stock just yet.

Baidu’s Earnings

On the surface, Baidu’s earnings look modestly disappointing,  but they don’t seem bad enough to drive such a steep fall. Adjusted earnings per share of 41 cents did miss analysts’ consensus estimate by $0.16. But its revenue growth in Chinese yuan rose 15%, in-line with the consensus outlook,  and its sales actually grew 21%, excluding the divestiture of a number of its businesses last year.

The earnings miss sounds disappointing, but the overall numbers don’t seem terribly out of line. The company’s revenue is still growing. BIDU had warned that its profits would drop in the first half of the year, partly due to higher spending on its search business.

But looking more closely, two factors drove Baidu’s top-line growth. The first was its ownership of iQiyi (NASDAQ:IQ), the so-called Netflix (NASDAQ:NFLX) of China. Baidu still owns roughly two-thirds of iQiyi, so IQ’s results and its growth are reflected in Baidu’s consolidated numbers.

But Baidu’s online marketing revenue, the key part of its wholly-owned business,  increased just 3%. And Baidu spent an enormous sum on marketing in the quarter. SG&A, which includes marketing expenses, rose a stunning 93% year-over-year. Some of that increase was due to BIDU’s efforts to support iQiyi’s growth. But the operating income of Baidu’s core operations plunged a stunning 67% year-over-year.

Outside of iQiyi, then, Baidu essentially bought, at an expensive price, what little revenue growth it could muster. And Q2 isn’t going to be much better. Baidu guided for consolidated revenue to rise just 1% to 6% excluding divestitures, representing a significant slowdown.

The Baidu Stock Price Plunge

So the reaction to the earnings report does make some sense. Baidu’s stake in IQ accounts for roughly 20% of its market cap; IQ shares have fallen on BIDU’s results. BIDU’s legacy business seems to have a significant top-line growth problem. And its increased spending is causing its profits to not only decline, but to decline sharply. BIDU stock simply has a very different fundamental profile after its earnings than it did previously.

Beyond the numbers, the results confirm the fears that have dogged Baidu stock for some time. Its desktop search business is being displaced by greater use of apps, which bypass browsers and Baidu altogether. (That is also a concern for Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), to which Baidu is often compared, though Alphabet has done a better job of holding onto its business.) Baidu has added some self-inflicted wounds, including a scandal surrounding medical search results back in 2016 and complaints about its news results earlier this year.

BIDU managed to come out the other side of the 2016 scandal. But its Q2 guidance, in particular, suggests a deceleration of growth to levels not seen since 2016-2017. That, in turn, implies that Baidu’s brand in China has taken another hit from which it may not be as easy to recover.

Outside of search, Baidu hasn’t proven it can win. Its income from equity investments (which does not include iQiyi) declined 57% in Q1. Its efforts in artificial intelligence and the cloud don’t appear to be moving the needle much. If Search starts to fade, it’s not clear that BIDU will have an answer.

Baidu Stock Doesn’t Look Cheap Enough

Baidu stock looks awfully cheap on the surface. The company closed Q1 with over $18 billion in cash, excluding the funds held by iQiyi. Its stake in IQ is worth close to $10 billion. Combined, those assets support over half of the current market capitalization of BIDU stock.

Based on those assets and analysts’ 2019 consensus EPS estimate,  it appears that Baidu stock is trading at a single-digit multiple to the profits of its core business. But it’s worth noting that those EPS estimates are going to come down, and potentially sharply, in the wake of the Q1 results. BIDU stock may look cheap, but there’s a wealth of evidence at the moment which suggests that it should be cheap.

Meanwhile, the trade war still hangs over all Chinese stocks. But Baidu stock has badly lagged even its peers recentl. Big Chinese names like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and Tencent (OTCMKTS:TCEHY) all posted solid earnings reports last week, and their shares have risen so far this year. What happens to BIDU stock if and when investors’ views on China deteriorate?

The response by Baidu stock over the last two sessions is not an overreaction, or a panic, or a case of investors not paying attention. There have been real concerns about BIDU stock for some time now, and those concerns seem supported by both its Q1 results and its Q2 guidance. So it’s not surprising that Baidu stock has fallen so hard. And it wouldn’t be a surprise if BIDU keeps falling.

As of this writing, Vince Martin has no positions in any securities mentioned.

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Dressbarn Stores Closing 2019: 7 Things for Shoppers to Know Dressbarn Stores Closing 2019: 7 Things for Shoppers to Know

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<br /> Dressbarn Stores Closing 2019: 7 Things for Shoppers to Know Dressbarn Stores Closing 2019: 7 Things for Shoppers to Know | InvestorPlace


ASNA stock is down about 6.4% on Wednesday

Dressbarn parent company Ascena Retail Group (NASDAQ:ASNA) announced that it is shuttering the doors of hundreds of its subsidiary’s stores.

Dressbarn Stores ClosingHere are seven things to know about the Mahwah, New Jersey-based company’s move:

  • Retail operations are winding down for the business, which will lead to it shuttering the doors of its 650 stores.
  • Dressbarn has been around since 1962, founded by Elliot and Roslyn Jaffe, who created the business to help women who were entering the workforce and seeking fashion if they were on a budget.
  • It started as a single store in Stamford, Connecticut that eventually became a nationwide chain.
  • “For more than 50 years, Dressbarn has served women’s fashion needs, and we thank all of our dedicated associates for their commitment to Dressbarn and our valued customers,” Steven Taylor, CFO of Dressbarn, said in a statement.
  • Taylor also mentioned that it was a difficult, yet necessary decision for the business as the company has not been operating a level of profitability that is acceptable in today’s retail environment.
  • The company has roughly 6,800 associated and it will work to help employees through the transition and maintain existing relationships with vendors, suppliers, as well as stakeholders, Taylor added.
  • Dressbarn will reveal plans for when it will close individual locations during the wind-down process, which will include store closing sales.

ASNA stock is down about 6.4% on Wednesday following the news.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/dressbarn-stores-closing-ascena-retail-asna/.

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RSI Offers Bearish Signal Following FOMC Minutes

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Gold Price Talking Points

The recent decline in the price of gold appears to have stalled following the Federal Reserve Minutes, but fresh developments in the Relative Strength Index (RSI) offer a bearish signal as the oscillator threatens the upward trend carried over from the previous month.

Gold Price Forecast: RSI Offers Bearish Signal Following FOMC Minutes

Image of daily change for gold prices

Gold holds above the monthly-low ($1266) as the Federal Open Market Committee (FOMC) Minutes spur a limited reaction, but the wait-and-see approach for monetary policy may continue to drag on the price for bullion as the central bank shows little to no interest in altering the forward-guidance for monetary policy.

It seems as though the FOMC will stick to the sidelines at the next interest rate decision on June 19 as the committee insists that ‘the first-quarter softness in household spending was likely to prove temporary,’ and the central bank appears to be in no rush to abandon the hiking-cycle as ‘a few participants noted that if the economy evolved as they expected, the Committee would likely need to firm the stance of monetary policy to sustain the economic expansion and keep inflation at levels consistent with the Committee’s objective.’

Moreover, the FOMC may do little to offset the ongoing shift in U.S. trade policy as the central bank notes that the ‘prospects for a sharp slowdown in global economic growth, particularly in China and Europe, had diminished,’ and Fed officials may continue to emphasize that ‘their monetary policy decisions would continue to depend on their assessments of the economic outlook and risks to the outlook, as informed by a wide range of data’ as the economy shows no signs of an imminent recession.

Image of fed fund futures

With that said, it remains to be seen if Chairman Jerome Powell & Co. will continue to project a longer-run interest rate of 2.50% to 2.75% as Fed Fund Futures still reflect a greater than 60% probability for a December rate-cut, and more of the same from the FOMC may produce headwinds for gold as it dampens bets for a change in regime.

Keep in mind, there appears to be a broader shift in market behavior as the price for bullion snaps the opening range for 2019, and the precious metal may continue to give back the advance from the 2018-low ($1160) as a head-and-shoulders formation remains in play.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

Gold Price Daily Chart

Image of gold daily chart

  • The broader outlook for gold remains mired by the head-and-shoulders formation amid the break of neckline support, with the Relative Strength Index (RSI) highlighting a similar dynamic as it tracks the bearish trends from earlier this year.
  • Downside targets are coming back on the radar following the failed attempt to break/close above the Fibonacci overlap around $1298 (23.6% retracement) to $1302 (50% retracement), with RSI also highlighting a bearish signal as the oscillator threatens the upward trend carried over from the previous month.
  • In turn, lack of momentum to push back above the $1279 (38.2% retracement) pivot keeps the $1260 (23.6% expansion) region on the radar, with the next area of interest coming in around $1249 (50% retracement) to $1250 (38.2% retracement).

For more in-depth analysis, check out the 2Q 2019 Forecast for Gold

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other markets the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

— Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.



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The ban on chipmakers selling to Huawei is having ramifications felt far and wide. Even as the U.S. government decided to delay imposing the restrictions by 90 days, that’s not stopping Wall Street analysts from handing out downgrades and urging clients to adjust their portfolios.




DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this report. The past performance of any trading system or methodology is not necessarily indicative of future results. All trades, patterns, charts, systems, etc., discussed in this report are for illustrative purposes only and not to be construed as specific advisory recommendations.Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. 
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2019-05-22 22:56:42



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10. WiFi Routers review|

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