Louis' Blog Archive
November 16, 2019
Did you know that, for one day, Volkswagen was “the world’s priciest firm” in the stock market? On October 28, 2008, the stock soared more than 93% on news that Porsche had acquired a 74% ownership in Volkswagen. Volkswagen shares didn’t surge because it was a fundamentally sound company with years of significant upside ahead, but because it had been heavily shorted.
Following the announcement, short sellers were forced to pay up to 1,005 euros, as there was less than 6% of the voting stock still available in the market. Very briefly, the company’s market cap soared to 296 billion euros, or $370 billion in U.S. dollars, which was more than Exxon Mobil’s $343 billion market cap.
November 15, 2019
I’d like to go on the record about energy stocks right now because there’s some news going on that might, on the surface, sound bullish for the sector. However, it’s really only good news for a very limited number, as we’ll see.
I’m talking about the upcoming IPO of Saudi Arabia’s state-owned oil & gas operation, Saudi Aramco, which was just announced for December. Ahead of the long-awaited IPO, Saudi Aramco has been cutting production since mid-2018. Due to the laws of supply and demand, this gives a nice lift to oil prices. (That’s especially true when, as rumor has it, the Saudis are about to pressure the restof OPEC for more cuts next month.)
November 14, 2019
What an interesting fourth quarter it’s been so far! While the stock market has hit new record high after record high, the leadership behind the rally is different. What do I mean by that? This time it’s not growth stocks, but value stocks leading the charge.
November 12, 2019
Put the U.S.-China trade war to the side, folks, because we’ve got a new war in town. The “Streaming Wars” have officially begun after The Walt Disney (DIS) made its move with the launch of Disney Plus this morning.
Unfortunately, there’s been widespread difficulties in accessing any of the promised content!
November 11, 2019
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 94 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
November 9, 2019
Square (SQ) sits right at the corner of just about every major trend of the modern age. So perhaps its no surprise that the payment-processing company turned in some great revenue figures in its third-quarter report on Wednesday evening:
Wall Street analysts had been expecting third-quarter revenues of $597 million, which would itself have been a nice uptick from $431 million in the year-ago quarter. Instead, Square blew this away with actual revenues of $1.3 billion.
November 8, 2019
We’ve officially entered the most wonderful time of year. I’m not talking about the upcoming Thanksgiving holiday, a time for friends, family, food and football. No, I’m talking about open enrollment season!
Well, maybe this isn’t very wonderful for employees given the boring presentations (there’s just no way to make a conversation about premiums and deductibles interesting), but it’s one health insurance companies sure look forward to.
November 7, 2019
Did you know that there is an “awareness” for each month? For example, in November, we have Alzheimer’s Disease Awareness Month, Diabetes Awareness Month and Lung Cancer Awareness Month – just to name a few.
Now, while these topics are very important and should be recognized, today I want to talk about something that was on the calendar for last month: National Cybersecurity Awareness. That’s right, cybersecurity has had such a huge impact on the U.S. that it now has an entire month dedicated to it.
November 5, 2019
In Monday evening’s earnings report, rideshare company Uber Technologies (UBER) beat on both the top line and the bottom line. Specifically, revenues rang in at $3.8 billion for the third quarter, whereas Wall Street analysts had expected $3.6 billion, and net losses came in at -$0.68 per share versus -$0.82 expected.
So why is UBER stock down 9% after the report?
November 4, 2019
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 119 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.