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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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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/.

©2019 InvestorPlace Media, LLC


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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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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/.

©2019 InvestorPlace Media, LLC


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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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NetApp Earnings: NTAP Stock Sinks on Q4 Earnings Miss NetApp Earnings: NTAP Stock Sinks on Q4 Earnings Miss

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NetApp (NASDAQ:NTAP) unveiled its latest quarterly earnings results late today, bringing in a profit that missed what Wall Street called for, while the company’s forecast left something to be desired, sending NTAP stock down more than 6% after the bell Wednesday.

NetApp EarningsThe cloud data services and cloud data management business said that for its fourth quarter of its fiscal 2019, it brought in a profit of $396 million, or $1.59 per share. On an adjusted basis after considering stock-based compensation, restructuring charges and other effects, the company brought in earnings of $1.22 per share.

NetApp’s earnings were below the Wall Street consensus estimate, which called for adjusted earnings of $1.26 per share, according to data compiled by FactSet. The company also posted revenue of $1.59 billion, down from the $1.64 billion from the year-ago quarter and missing the Wall Street outlook of $1.64 billion, according to data compiled by FactSet.

The company said it sees its first quarter as bringing in adjusted earnings of 78 cents to 86 cents per share on sales of $1.32 billion to $1.47 billion. Wall Street sees NetApp bringing in adjusted earnings of $1.05 per share on sales of $1.49 billion, according to FactSet.

The business also increased its divided by 20% for the first quarter.

NTAP stock is sinking roughly 6.4% after the bell following the company’s underwhelming quarterly earnings results. Shares had been sliding roughly 4.1% during regular trading hours as NetApp geared up to report for its period.

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Ctrip Earnings: CTRP Stock Surges as Q1 Sales Surge 21% Y2Y Ctrip Earnings: CTRP Stock Surges as Q1 Sales Surge 21% Y2Y

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Ctrip (NASDAQ:CTRP) unveiled its latest quarterly earnings results late today, bringing in a profit that increased year-over-year, while sales were also up, surging more than 20%, helping CTRP stock increase after hours Wednesday.

Ctrip EarningsThe Chinese provider of travel services said that it posted net revenue of RMB8.2 billion (US$1.2 billion) for its first quarter of its fiscal 2019, marking a 21% increase when compared to the same period a year ago. The company added that income from operations were up by 50% when compared to the year-ago quarter, reaching RMB885 million (US$132 million).

Excluding share-based compensation charges, Ctrip’s income from operations was up 42% year-over-year to RMB1.4 billion (US$204 million) during the period. The company also experienced sustained robust growth momentum from its international businesses.

The Skyscanner direct booking program also had strong momentum as it achieved roughly 250% growth in bookings when compared to the first quarter of 2019. The growth rate of the international hotel business and international air business (excluding the Skyscanner business) during the period more than double when compared to the China outbound traffic growth in the same period.

Revenue generated from international business tallied up to roughly 35% of total revenue.

CTRP stock is up about 4.6% after the bell today following the company’s quarterly earnings results. Shares had been sliding about 0.6% during regular trading hours as Ctrip geared up to report for its first three-month period of the fiscal year.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/ctrip-earnings-ctrp-stock-3/.

©2019 InvestorPlace Media, LLC

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06. Electric Keyboards review|
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10. WiFi Routers review|

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Corporate Greed at Its Worst

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How one analyst saw red flags at Teva long before the recent headlines … and helped subscribers bank 100%+ returns from it

Lies … greed … collusion …

Today’s Digest includes a cautionary tale of corporate greed at its worst. Deceit and manipulation so severe, that the involved companies are now embroiled in multiple lawsuits.

But it’s also a story of how one man saw red flags with the company at the center of the storm long in advance … and showed his subscribers how to bet against its share price.

They’re now sitting on 131% gains … with a small position still open just in case the company in question goes to $0 … which is a possibility, and would make subscribers huge returns.

So, while our sympathies go out to those individuals who have been burned by the corporate greed we’re about to discuss, there’s at least partial redemption in knowing that some investors not only sidestepped the danger, but profited from it.

Let’s dig in …

 

***”This is an organized effort to conspire and fix prices — a highly illegal violation of antitrust laws.

It was a little more than a week ago when Connecticut attorney General William Tong made that comment, claiming 20 drug companies “systematically” divided up the market for generic drugs to avoid competing with one another.

As part of the lawsuit brought against the companies, there’s the charge that pharmaceutical executives conspired to either prevent prices from dropping, or even conspired to raise them.

One company in particular is in the center of the storm …

Teva Pharmaceuticals.

“Apparently unsatisfied with the status quo of ‘fair share’ and the mere avoidance of price erosion, Teva and its co-conspirators embarked on one of the most egregious and damaging price-fixing conspiracies in the history of the United States,” the complaint said.

Just how damaging were these price increases among the colluding companies?

A few examples … Between 2013 and 2014, the cost of a bottle of doxycycline exploded 8,281% from $20 to more than $1,800. A bottle of asthma medication, albuterol sulfate, shot up more than 4,000%, from $11 to $434. And Pravastatin, a popular cholesterol drug, rose more than 500%, from $27 a bottle to $196.

During a 19-month period beginning in summer 2013, Teva allegedly increased prices on roughly 112 different generic drugs. And on at least 86 of those increases, it colluded with some drug companies it referenced as “high quality” competitors.

Charges allege that the defendants knew their conduct was unlawful. Therefore, they usually decided to communicate in person or by phone “in an attempt to avoid creating a written record of their illegal conduct.”

***Long before this collusion news hit headlines, Eric Fry was seeing red flags with Teva

Eric is probably the most successful investor you’ve never heard of. In 2016, some of the world’s best money managers and stock pickers participated in an annual investing contest. Leon Cooperman, David Einhorn, Bill Ackman … Eric beat them all, winning by posting a one-year, contest gain of 150%.

These days, we’re thrilled that Eric shares his ideas with subscribers through his newsletter, The Speculator.

It was around a year ago that Eric wrote about the challenges facing Teva. He noted falling generic drug prices, the looming loss of a major revenue stream as Teva’s multiple sclerosis drug faced new generic competition, Amazon’s entrance into the pharmaceutical business, and Teva’s debt load.

Here’s how Eric described that last challenge:

Teva’s debt load is nothing short of titanic. In absolute terms, the company’s net debt totals $29 billion — up from just $3 billion three years ago.

For added perspective, this mountain of debt totals more than nine times the company’s annual gross earnings (EBITDA). That’s a very big number. In fact, it is so big, it could be life-threatening.

Teva amassed most of its debt load when it launched an ill-timed $40.5 billion buyout of Allergan PLC’s generics business in August 2016. Generic drug prices have been falling ever since, making the repayment of this debt burden even more burdensome.

So, on one hand, Teva had suddenly been saddled with massive new debt. What was the state of its revenue position in terms of handling that debt?

Here again, things looked bad. The main reason? The entrance of Amazon into the pharmaceutical market.

Here’s how Eric explained it:

Now that Amazon has decided to make a push into the pharmaceutical business, we should expect the company to do what it usually does: lower prices, improve the customer experience, grab market share and undermine the profitability of established competitors.

Amazon’s foray into the pharmaceutical business may not make any immediate visible impact. But this “category killer” company is likely to make a long-term impact.

“Alexa, please refill my generic drug prescriptions,” is a phrase that could become very costly to a company like Teva down the road.


***Given the challenges facing Teva, Eric recommended subscribers bet against the company

Eric originally made this call last summer, but re-introduced the trade at InvestorPlace last fall on October 5th. The trade bounced around for about a month. But in early November, Teva began falling … fast.

So, on December 20th, Eric told his subscribers to take gains on their position. But here’s what Eric did differently — and it’s something that often separates good investors from great investors …

Eric recommended only selling one-quarter of the investment.

Now, keep in mind, the gains on the trade at that time were 75%. I don’t know about you, but I’d have a hard time stopping myself from selling the entire position with those kinds of returns on the table. Remember, it had been less than three months.

***But Eric believed the contagion had further to spread, and so he made the bold call to hold

Now, when the market roared back in early 2019, Teva’s stock climbed with it. And for some weeks, it appeared Eric’s call was working against him. Even though he’d locked in 75% gains on a portion of the investment, three-quarters of the remaining position — still open — was losing value.

But as February turned, the stock began falling again. The selloff continued after Teva reported its fourth-quarter and full-year results on Feb. 13. The key issue behind this sell-off was the company’s soft guidance for 2019.

Nearly every day Teva’s share price was dropping, but Eric continued to hold.

Finally, the collusion news hit headlines on May 13th, and Teva plummeted 16%. Eric decided it was finally time to sell again. Another quarter — this time locking in gains of 134% on the sold position.

Over the next two days, investors continued to flee the stock, and Eric decided to take advantage. On May 15th, he sent subscribers another notice to sell their third quarter, locking in a gain of 162% on that portion.

That brings us to this week …

As of market prices on Monday, the blended percentage gain on all of Eric’s closed and open positions is now 131%.

Compare that to the 75% gain an investor would have walked away with had he decided to pull the trigger on the entire Teva position back in December. But again, the foresight and discipline Eric showed is often what separates the good from the great.

Here’s how the entire trade looks …

 

By the way, we put this trade on your radar in our February 15th Digest, noting that Eric still believed the trade had more room to run.

Eric recommended paying up to $5.50. Given that entry price, an investor who acted in February would have pocketed a quick 100% gain when Eric recommended subscribers sell at $11 last week.


***Now, you’ll notice Eric and subscribers still hold a final, quarter position in Teva. Why?

Well, as Eric told me Monday, “there is a very real risk that the company falls to zero, which is why I’m maintaining the remaining 25% of the position.”

If that happens, it will be a staggering fall from grace for the generic drug maker.

Pulling back, there are those innocent individuals who were harmed as Teva jacked up medication prices hundreds and thousands of percent. And there are those innocent investors who saw their money vanish as the market woke up to the massive fraud from Teva managers and fled the stock. Again, our sympathies extend to both groups.

As for Eric’s subscribers, we’ll see what the future holds for this remaining quarter share. But if Eric is right — as he has been nearly every step of the way so far — additional declines in shares could be coming.

With all due respect to those affected by the greed, congratulations to Eric and his subscribers for making a tough call, yet getting it right. We’ll keep up updated as the Teva drama plays out.

Have a good evening,

Jeff Remsburg

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Vipshop Earnings: VIPS Stock Soars on Q1 Earnings Beat Vipshop Earnings: VIPS Stock Soars on Q1 Earnings Beat

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Vipshop (NYSE:VIPS) reported its quarterly earnings results late on Wednesday, amassing a profit that came in ahead of what analysts called for, while sales surged when compared to the year-ago quarter, playing a role in lifting VIPS stock after hours.

Vipshop EarningsThe China-based e-commerce business said that for its first quarter of its fiscal 2019, it brought in non-GAAP net income attributable to Vipshop’s shareholders that increased to RMB1.19 ($0.18) per ADS. Analysts were calling for the company to earn 15 cents per share.

The business’ revenue tallied up to RMB21.3 billion ($3.2 billion), marking a 7.3% increase when compared to its year-ago quarter, thanks in part to its growth in the number of total active customers. Analysts were calling for Vipshop to bring in sales of $2.97 billion.

“During this quarter, our total active customers grew by 14% year over year, which was the result of enhanced loyalty from existing customers and accelerated growth in the number of new customers. Going forward, we will continue to expand our market share in the discount apparel segment, further strengthening our leading position in China,” said CEO Eric Shen.

VIPS stock is soaring roughly 6.6% after the bell Wednesday thanks to a positive performance from the company on both the earnings front, as well as on its revenue for its first three months of the new fiscal year. Shares had been falling about 5.1% during regular trading hours today.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/vipshop-earnings-vips-stock/.

©2019 InvestorPlace Media, LLC

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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0

L Brands Earnings: LB Stock Soars on Q1 EPS, Sales Beat L Brands Earnings: LB Stock Soars on Q1 EPS, Sales Beat

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L Brands (NYSE:LB) reported its quarterly earnings results, bringing in a profit and revenue that came in well ahead of what analysts called for, playing a role in lifting LB stock after hours.

L Brands EarningsThe Victoria’s Secret parent company announced that for its first quarter of its fiscal 2019, it brought in earnings of 14 cents per share, topping the break-even figure that Wall Street called for. This amounted to net income of $40.3 million, which fell from the $47.5 million, or 17 cents per share, from the year-ago quarter.

Wall Street called for L Brands to bring in earnings at the break-even mark, according to a survey of analysts conducted by Refinitiv. Revenue tallied up to $2.628 billion, slightly higher than its net sales of $2.625 billion from the year-ago quarter, while also topping the Wall Street consensus estimate of $2.56 billion, according to data from Refinitiv.

The company’s same-store sales were flat, which was an improvement over the Wall Street consensus guidance of they sliding 1.3% year-over-year. L Brands added that it has raised its full-year forecast for 2019 as it now sees its earnings to be in the range of $2.30 to $2.60 per share, ahead of the Wall Street outlook of earnings of $2.20 to $2.60 per share.

LB stock is soaring about 13.2% after the bell following the company’s strong quarterly earnings results Wednesday. Shares had been sliding 5.2% ahead of L Brands’ financial figures.

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0

If Nio Stock Has Disappointed You, Read This

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As far as newly minted stocks go, China’s electric car maker Nio (NYSE:NIO) is off to a miserable start. Nio stock, currently trading near $4.00, is now down more than 30% from its September IPO price. Perhaps the startup isn’t the next Tesla (NASDAQ:TSLA) after all.

If Nio Stock Has Disappointed You, Read This

Source: Shutterstock

Or maybe it is and investors only now remember one doesn’t simply turn a multi-billion dollar enterprise into a profitable success overnight.

That is actually the case here, to be clear. As we’ve seen far too often within just the past several months, investors are willing to dive head-first into a euphoric initial public offering based on a story, ignoring the fact that it’s a sales pitch. Only afterwards do those pesky fundamentals start to matter, deflating puffed-up public offerings. Nio is the real deal, though. Even analysts expect big things soon.

The period between the public offering and validation, however, could be a rough one.

Been There, Done That

More than a few recent public offerings have turned out punitive for early believers.

GoPro (NASDAQ:GPRO), for instance, now trades 70% lower than its 2014 IPO price. As it turns out, nobody disputes the company makes the world’s best action cameras. It just so happens that most consumers don’t care to own one.

Snap (NYSE:SNAP) is presently valued about one-third less than its public-offering price (and 60% less than its post-IPO high) not because it’s a poor social networking platform, but simply because consumers don’t need another one other than Facebook.

Demand or marketability aren’t the problem here, however. Electric carmaker Nio is, more than anything else, a name that went public too soon.

Founded in 2014 and initially owned by Tencent Holdings (OTCMKTS:TCEHY), Hillhouse Capital and founder and CEO Bin Li just to name a few, the company was largely designed to recreate what Tesla had done to date — but do it better, and do it in China. While at the time of its September IPO, it had only made a few hundred vehicles, by the end of last year the company made almost 13,000 of its one-and-only ES8. The company clearly did something productive with the $1 billion it raised in that initial round of fund-raising.

Nio and the early buyers of Nio stock still learned a quick lesson the hard way, however. That is, its vehicles may be just as marketable as Tesla’s, and nobody doubts the company can scale up (existing automaker JAC, in fact, has agreed to manufacture all the Nio-branded EVs the company wants), but Tesla had something back in 2010 that Nio didn’t have last year — something new (at the time) to tout that made a lot of sense (electric vehicles), addressing a market that nobody else was competing in (at the time), and making a pitch nobody else could make at the time.

What Nio should have done is demonstrate a clear path to profitability first, and then asked for more money, positioning itself as the un-Tesla. With nothing new or novel to excite them, investors quickly lost interest.

Welcome to the game.

Looking Ahead for Nio Stock

Nio may still lack the scale Tesla has at this time, but Nio is being built from the ground up to become and remain profitable. Indeed, it’s being careful almost to fault. It’s still unclear that’s the case for Tesla, which would be a great talking point that so far’s been underutilized.

And for what it’s worth, given China’s aim of becoming the world leader in electric vehicles, it would be naive to think Nio isn’t going to get all the help it needs as well to become a global alternative to Tesla… here, there, and everywhere else. Rival BYD, which is technically the world’s biggest EV maker, certainly gets such support.

It’s just not going to all fall in place tomorrow.

It may start to happen in earnest next year, though, and even more so the year after that.

Analysts — analysts in the U.S. — forecast a top line of $720 million this year, which will grow to $2.2 billion next year, and continue to grow at this clip into 2021. By 2022, Nio should be in the black.


Click to Enlarge

They’re just guesses, to be fair, but they’re guesses from professionals that get paid to keep their finger on the pulse of their respective markets and look past the near-term noise. As a group, they’re usually in the ballpark.

Bottom Line on NIO

The trick, as previously noted, is getting through the volatile period between now and then.

Don’t sweat it if you’re kicking the proverbial tires and struggling to find anything to get excited about. The chart’s current action isn’t a reflection of the company, nor is the rhetoric surrounding it, but it’s rough all the same. There’s still a myriad of the usual post-IPO kinks to work out. Fair or not, traders are still in control of Nio stock, and without any clear-cut bullish history to tout — the result of going public a tad too early — there simply aren’t enough fans and followers on the same page to change the current direction of the Nio stock price.

This is just part of that clumsy transition from being a new stock to an established company. Not unlike one’s teenage years, they’re going to be awkward.

Give it time, though. It’ll turn out fine. Remember, Facebook (NASDAQ:FB) was a train wreck coming out of its 2012 IPO, getting more than chopped in half within a few months. Five years later, it’s up nearly 500% from its public-offering value.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley.

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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.

Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all.


Top 10 problems you may need in life:

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|