• 25 Sep
    Not all related stocks are created equal, and HRL proves it

    Not all related stocks are created equal, and HRL proves it

    One of the regular themes of my posts for the last several months, as well as the trades I’ve been placing since the late winter and early spring months of this year, has been the need to focus on making my investment approach more conservative. That flies in the face of a lot of analysts and experts More →

  • 24 Sep
    Ford Motor Company (F) has an interesting value argument; is it worth the risk?

    Ford Motor Company (F) has an interesting value argument; is it worth the risk?

    Nothing has kept the market more on edge this year than trade tensions and the threat of a trade war between the U.S. and its trade partners. Things only seem to get more intense this week, as the Trump administration is set to impose new 10% tariffs on $200 billion of Chinese goods on Monday. China is promising to retaliate with its own set of 5% to 10% duties on $60 billion of U.S. goods. This second set of U.S. tariffs will cover about half of the total goods China sells to the U.S., with President Trump saying that he’s ready to impose another $267 billion worth of tariffs that would cover pretty much everything else China imports to the U.S. 

    All of this is in addition to tariffs the U.S. is also imposing on its other most important trading partners, including steel and aluminum on the European Union and auto-related tariffs on Mexico and Canada. Even the recent agreement between the U.S. and Mexico to rework their two sides of the long-standing NAFTA agreement have yet to remove tariffs on that country, and Canada is still yet to agree to join its neighbors back at the drawing board. U.S. and international businesses seem to finally be showing some of the effects tariffs have been expected to impose in the form of higher costs, although to what extent that effect will continue remains to be seen.

    For some investors, automotive stocks may seem like a risky place to put their money in the current geopolitical climate; and I think it’s true that if you’re willing to make an investment in this space, you have to be willing to accept that the prices of most of the stocks in the industry are likely to remain under pressure for as long as trade tensions remain in force. The industry is down more than 16% since early January, with the largest portion of that drop – about 10% – coming in just the last three months. If the industry is under so much pressure, and there doesn’t seem to be much relief in sight in the near future, why not stay away from the industry altogether?



    To be an effective value investor, I’ve found that you have to be willing to move against the grain of the broad market; to me, that means that when everybody else says “stay away” from a certain industry the smarter thing is to actually go ahead and take a long look. If you want to find some of the best bargains in the marketplace at any given time, you’re going to be more likely to find them in deeply discounted stocks in depressed industries. That’s one of the biggest reasons that I think Ford Motor Company (F) could be an interesting stock to think about right now.

    Over the last few weeks, I’ve seen a few reports that have suggested that, as extended as the current bull market is, it could still continue to go even higher. One interesting argument points out that while the market has recovered all of the losses its incurred at the beginning of the year, the length of that recovery created a technical pattern of consolidation that could see the S&P 500 push well above 3,000 by the end of the year. Another one follows a similar train of thought to point out that most of the stocks that have been pushing the market higher lately haven’t been the traditional high-flyers that were already trading at or near all-time highs; instead, they’ve been stocks in out-of-favor industries; think financial stocks like Citigroup (C) and JP Morgan (JPM), or industrial stocks like Caterpillar (CAT). That’s what amounts to a broad market rotation from growth stocks into value, which means that the best, and highest-probability investments are likely to come from stocks that right now are trading at significant discounts.

    I do think it’s true that auto stocks are starting to show some of the effects of tariffs, and I think you’ll agree that is the case. Another element that I think plays into the favor of the auto industry, however is the fact that even if the economy does actually turn negative, the Trump administration – which has been saying all along that its trade policy is intended to help U.S. industries like steel and autos in the long run – is likely to fall back on the “too big to fail” logic that the last two presidential administrations used during the Great Recession ten years ago to bail out Ford, GM and Chrysler Motors. A bailout may not be necessary this time around – the fundamentals for Ford in particular are far better than they were ten years ago – but the “too big to fail” logic is likely to mean the long-term risk in any of the big three auto companies is actually pretty low.



    Fundamental and Value Profile

    Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment. F’s current market cap is $38.6 billion.

    • Earnings and Sales Growth: Over the last twelve months, earnings decreased by almost 52% while sales were mostly flat, declining by only about 2%. That’s a trend that has forced the company to adjust its production strategy, as it has announced plans to cut production of all sedans in the U.S. except the Ford Mustang, and to see shift its focus to SUVs, crossover vehicles and pickup trucks by 2022. The company operates with a narrow margin profile that saw Net Income at 4.2% of Revenues over the last twelve months, and decreased to only about 2.7% in the last quarter. I’m reading that contraction as an indication of the effect of rising materials costs, which is attributable, at least in part to tariffs and the threat they could persist for the foreseeable future.
    • Free Cash Flow: F’s free cash flow is quite healthy, at more than $9.1 billion over the last twelve months. That translates to a Free Cash Flow Yield of 23.5%, which is extremely attractive.
    • Debt to Equity: F has a debt/equity ratio of 2.8. High debt/equity ratios aren’t unusual for automotive stocks, however it should be noted that F’s debt/equity is the highest among the Big Three auto companies. The company’s balance sheet demonstrates their operating profits are sufficient to service their debt, with healthy liquidity to make up any potential difference if that changes.
    • Dividend: F pays an annual dividend of $.60 per share, which translates to a very impressive yield of more than 6% per year; the fat dividend is a compelling argument for why F could be a good place to park a portion of your investing capital and simply draw passive income while you wait for the stock’s price to increase.
    • Price/Book Ratio: there are a lot of ways to measure how much a stock should be worth; but one of the simplest methods that I like uses the stock’s Book Value, which for F is $9.18 per share and translates to a Price/Book ratio of 1.07 at the stock’s current price. Their historical average Price/Book ratio is 2.12, which suggests the stock is trading right now at a discount of more than 97%, and that puts the stock’s long-term target at about $19.46 per share, which is far above the stock’s 52-week high around $13, and a level the stock hasn’t approached since 2013. If you prefer to work with a more conservative target, the stock is also trading about 60% below its historical Price/Cash Flow ratio, which provides a target price a little below $16 per share.



    Technical Profile

    Here’s a look at the stock’s latest technical chart.

     

    • Current Price Action/Trends and Pivots: The red diagonal line measures the length of the stock’s downward trend from January of this year to its low, reached just a few trading days ago at around $9 per share; it also informs the Fibonacci trend retracement lines shown on the right side of the chart. The stock appears to be staging a short-term bullish reversal right now, but is very near to resistance from recent pivot highs right around $10 per share, with additional resistance not far away from that point at $10.85 as shown by the 38.2% retracement line. In order to develop any kind of sustainable bullish trend, the stock would need to break above that second resistance level.
    • Near-term Keys: The strength of the stock’s downward trend this year makes placing any kind of short-term bullish trade on F extremely speculative right now; the only signal that a short-term trader should look for to justify any kind of momentum or swing-based trade with call options, or by buying the stock is a rally to at least $11 per share. A break below $9 would mark a re-confirmation of the downward trend’s overriding strength and could be taken as a good signal to short the stock or work with put options. If, on the other hand, you don’t mind the idea of buying a stock with a very good balance sheet, a fat dividend, and a terrific long-term value proposition, and you’re willing to tolerate some near-term price volatility, the bargain opportunity looks very attractive right now.


  • 21 Sep
    Among Food stocks, PPC’s no turkey

    Among Food stocks, PPC’s no turkey

    For the last few months, I’ve made defensive investing in the stock market a fairly regular theme of my daily posts. And while it isn’t unusual for me to cite concerns about trade tensions between the U.S. and its trading partners, that is just one reason that I think it’s smart to think about ways you can find value in the stock market right now. My biggest reason is far simpler: as we move into historically unprecedented territory for the bull market that began in 2009, I think you have to be more attuned than ever to the reality that no upward trend lasts forever. The elements that can force the market to finally turn and move even more than the 11% or 12% we saw in the early part of this year are hard to predict, because there isn’t really any one catalyst or set of catalysts that has set previous bear markets charging downhill. In 2000, it was the “dot-com bust”; in 2007, it was a financial crisis triggered by overaggressive lending policies.

    What will be the straw that breaks the back of this particular bull market? That’s really anybody’s guess. It’s easy to point a finger at President Trump, simply because many of his ideas – about trade, taxes, and even interest rates – fly in the face of conventional wisdom, and he doesn’t seem to care what you or I, or anybody else really thinks about it. His behavior is disruptive and forces change, which is really the one thing the markets abhor more than anything else in the short term. The truth is that an extended trade war could be a big driver to a reversal of current economic strength in the U.S. economy, but it isn’t a given that it will. Gradually rising interest rates could also set the stage for a bubble-like burst – if the economy begins to show signs of accelerating growth that forces the Fed to change the pace and size of its current policy. Again, it’s a possibility, but not a given.

    As uncertainties keep rising, expect the market to stay volatile. That means big short-term swings from high to low as investors keep trying to read the changing winds of market and political news. That also means that a lot of stocks that dominate headlines and media attention could be at risk in the short to intermediate term of extended price declines, which is another reason I think it’s smart to pay attention right now to stocks that tend to be less cyclic in nature and that are usually pretty resilient when economic trouble raises its head. The Consumer Staples industry is a good place to look, and Pilgrim’s Pride Corporation (PPC) is an interesting stock to keep an eye on.



    Fundamental and Value Profile

    Pilgrim’s Pride Corporation is a retail feed store. It is a producer and seller of chicken with operations in the United States, Mexico and Puerto Rico. It is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. It offers a range of products to its customers through national and international distribution channels. Its fresh chicken products consist of refrigerated (non-frozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. Its prepared chicken products include ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, some of which are either breaded or non-breaded and either marinated or non-marinated. As of December 25, 2016, the Company marketed its portfolio of fresh, prepared and value-added chicken products across the United States, Mexico and in approximately 80 other countries. PPC’s current market cap is $4.7 billion.

    • Earnings and Sales Growth: Over the last twelve months, earnings decreased by more than 43% while revenues posted an increase of almost 26%. That’s typically a sign the company is becoming less efficient, and the truth is that PPC has been under pressure from rising material costs, such as feed, and in interest expense. The company also operates with a pretty narrow margin profile, which isn’t unusual in the Foods industry. Net Income over the last year was 5.3% of Revenues, and decreased in the last quarter to about 3.65%. Not all of the news is bad: export volumes and revenues, from Mexico as well as Europe are expected to increase into next year, along with volume in the U.S., and the company is positioning itself to benefit from expanding its products into wider-margin areas including prepared foods.
    • Free Cash Flow: PPC’s free cash flow is quite healthy, at more than $472 million over the last twelve months. That translates to a Free Cash Flow Yield of 10%, which is pretty attractive.
    • Debt to Equity: PPC has a debt/equity ratio of 1.26, which is higher than I normally prefer to see, but is also not unusual for food stocks. The company’s balance sheet demonstrates their operating profits are more than adequate to service their debt.
    • Dividend: PPC does not pay an annual dividend.
    • Price/Book Ratio: there are a lot of ways to measure how much a stock should be worth; but one of the simplest methods that I like uses the stock’s Book Value, which for PPC is $8.25 per share and translates to a Price/Book ratio of 2.28 at the stock’s current price. Their historical average Price/Book ratio is 4.3, which suggests the stock is trading right now at a discount of nearly 88%, and that puts the stock’s long-term target at about $35.50 per share. That is just a couple of dollars per share away from the stock’s 52-week high, reached in November of last year before the stock began its current downward trend.



    Technical Profile

    Here’s a look at the stock’s latest technical chart.

     

    • Current Price Action/Trends and Pivots: The red diagonal line measures the length of the stock’s downward trend from December 2017 to its low in August of this year; it also informs the Fibonacci trend retracement lines shown on the right side of the chart. Since finding that bottom at around $16, the stock has hovered in a narrow range between $16 on the low side and $19 on the high side. That marks a consolidation range that could provide a catalyst for a sizable trend reversal – but the stock would need to break above that resistance at $19 first, and probably get to about $21 to make that trend reversal sustainable.
    • Near-term Keys: This is an interesting stock because its price activity over the last few years doesn’t really indicate much in the way of downside that the stock hasn’t already seen. It could, of course, break below $16 and test even lower ranges that date as far back as 2013, when the stock was below $10; but given the size of the decrease the stock has already seen since December of last year, and the generally positive fundamental strength the company demonstrates, that seems unlikely. The long-term value proposition is excellent, and so if you’re looking for a straightforward value play, and are willing to work with a long-term perspective, this could be an excellent stock to consider. If you’re a short-term trader, don’t consider buying the stock for any kind of momentum or swing-based move until the stock breaks resistance at around $19; the best signal point would likely be at around $21 based on the stock’s current price levels. At that point, there could be a good opportunity to buy the stock or to start working with call options with an eye on the $25 price level as indicated by the 38.2% retracement line.


  • 20 Sep
    Want to get defensive? D is an undervalued Utility stock you should pay attention to

    Want to get defensive? D is an undervalued Utility stock you should pay attention to

    A basic tenet of economic and market analysis asserts that the longer a bull market lasts, the more likely it becomes to experience a significant reversal. It may seem strange to some to be writing about a potential downturn when most reports indicate that the U.S. economy continues to be healthy and strong; but one of the early indications that a significant shift from expansion to contraction, and consequent bearish conditions in the financials market often comes when risks begin to increase and appear in unexpected areas.

    One of those risks comes from the simple, extremely extended state of the current market and U.S. economy, which is now well into its ninth year and beginning to move into historically unprecedented territory. No bull market lasts forever; it will inevitably shift to the bearish side just as bearish markets will eventually, and inevitably swing back to the upside. Another potential risk that most did not anticipate before the beginning of 2018 was the threat of global trade war; and yet the Trump administration announced a new set of $200 billion worth in tariffs against China. And while the government continues to negotiate with Canada and the European Union, it is also true that tariffs against those governments and Mexico persist as the U.S. maintains its hard line. The effects of tariffs against those countries, and the retaliatory tariffs they have imposed on the U.S., still hasn’t been seen, but that doesn’t mean the threat isn’t real, only that it could take longer to become apparent.



    A smart investor takes steps to stay engaged in the market while bullish conditions persist, while at the same time looking for ways to minimize risk exposure. One method is to focus on industries whose businesses aren’t subject to the same cyclicality most pockets of the economy experience. One of those industries is the Electric Utilities industry, where the largest and most-established companies continue to maintain healthy revenue streams even when the economy suffers. The industry has been one of the strongest performers in the market of late, increasing about 15% from a February bottom and staging what is now an intermediate upward trend from that point.

    One of the largest players in the industry is Dominion Energy Inc. (D), a company that has followed that broader trend to an increase of about 12% over the same period. The really interesting part of this stock’s story is that despite its bullish performance so far this year, the stock remains significantly undervalued, offering a sizable value-oriented opportunity over the long term on a high-dividend stock with a solid financial base.



    Fundamental and Value Profile

    Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity. D’s current market cap is $46.2 billion.

    • Earnings and Sales Growth: Over the last twelve months, earnings increased by more than 23% while revenues posted an increase of almost 10%. In the last quarter, earnings declined 24% versus the quarter prior, while revenues dropped about 11%. The company operates with an impressive margin profile, with Net Income running at about 22.5% of Revenues for the last twelve months, and 14.5% in the last quarter.
    • Free Cash Flow: D’s free cash flow has been negative for more than four years, but has been increasing steadily since mid-2016, when it bottomed at more than -$2 billion to its current level at about $110 million in the last quarter. That’s a positive increase of nearly $1.9 billion, or 95% in the last two years. Negative free cash flow generally isn’t a positive, but it also hasn’t been unusual for the industry in the last few years. The more important point is the upward direction D’s free cash flow trend.
    • Debt to Equity: D has a debt/equity ratio of 1.6, which is higher than I normally prefer to see, but is also not unusual for utility stocks. The company’s balance sheet demonstrates their operating profits are more than adequate to service their debt.
    • Dividend: D pays an annual dividend of $3.34 per share, which translates to an annual yield of about 4.72% at the stock’s current price. That’s better than the average yield of the S&P 500 or even of 30-year Treasury notes, which investors also like to gravitate to when they perceive greater risk in the marketplace.
    • Price/Book Ratio: there are a lot of ways to measure how much a stock should be worth; but one of the simplest methods that I like uses the stock’s Book Value, which for D is $30.65 per share and translates to a Price/Book ratio of 2.3 at the stock’s current price. Their historical average Price/Book ratio is 3.36, which suggests the stock is trading right now at a discount of about 46%, and that puts the stock’s long-term target at nearly $103 per share. That is well above the stock’s all-time high, reached earlier this year a bit above $85 per share, but is also makes that high – which translates to a long-term upside opportunity of more than 20%.



    Technical Profile

    Here’s a look at the stock’s latest technical chart.

     

    • Current Price Action/Trends and Pivots: The red diagonal line measures the length of the stock’s downward trend from December 2017 to its low in June of this year; it also informs the Fibonacci trend retracement lines shown on the right side of the chart. Since finding that bottom at around $61.50, the stock has increased about 15%. Since August, the stock has moved into a narrow, sideways range that technical traders like to consider a consolidation range. Support is around $70, and resistance is about $72.50.
    • Near-term Keys: The thing about a narrow trading range such as that maintained right now by D is that it makes defining technical signal points pretty easy. A break above $72.50 could mark an interesting opportunity to buy the stock or to work with call options for a short-term bullish trade, while a drop below $70 could provide a good opportunity for a bearish trade by shorting the stock or working with put options. If you like the stock’s value proposition right now, the sideways range also provides a good opportunity to take a long position and take advantage of the passive income offered by its healthy dividend yield.


  • 19 Sep
    Retail stocks are up – but there’s a good reason why DDS isn’t following suit

    Retail stocks are up – but there’s a good reason why DDS isn’t following suit

    Perhaps it’s an indication of over-exuberance that the market has lately seemed to just shrug off the latest global trade news. It could also be that investors have come to accept tariff threats and trade tensions as “the new normal.” Either way, it is interesting that while the Trump administration imposed a new set of tariffs on China, the market today decided to use the fact that the tariffs were set at a lower-than-expected 10% instead of the 25% that many had feared as a catalyst to drive higher. More →

  • 18 Sep
    MU could be the best bargain in the stock market right now – but be careful!

    MU could be the best bargain in the stock market right now – but be careful!

    Over the last month or so, market fears and uncertainty have centered primarily around global trade. In July and August, one of the most affected pockets of the economy was the tech sector, with particular bearishness bearing down on semiconductor stocks. As measured by the iShares Semiconductor ETF (SOXX), that industry is down about 5.5% since peaking in early June. More →

  • 17 Sep
    Trade fears mean BWA is STILL a screaming buy

    Trade fears mean BWA is STILL a screaming buy

    The Trump administration’s aggressive trade policies with its partners have had global markets on edge for months. And even as headway is being made with Mexico, and pressure is intensifying on Canada to sign the agreement to redo NAFTA by the end of the month, and talks continue with the European Union, concerns and worries persist in particular over how quickly any kind of deal can or will be made with China, America’s largest trade partner. Those concerns have kept pressure on global markets, which also means that stocks in industries that are the most directly impacted by tariffs have experienced the greatest volatility. Stocks in the auto industry, or related to it, for example are among the ones that have seen the biggest swings in price.

    BorgWarner Inc. (BWA) is a good example. While the stock is down about 13.3% year-to-date, it’s actually down a little over 28% since reaching an all-time high in mid-January. I first wrote about this stock a month ago, with the stock at practically the same price it is at right now. That is one of the things that makes the stock interesting right now; while trade war fears have persisted since early spring, the stock has stabilized since July in the mid-$40 range. That has opened an interesting technical opportunity on a fundamentally very solid stock, since the longer the stabilization range holds, the more likely it is to break out of it and rally back to the upside.

    BWA’s fundamental profile is better than many of its brethren in the Auto Components industry, with good cash flow, conservative debt levels and operating margins that have actually improved over the last year despite increasing price pressures. Those pressures include exposure to foreign trade risk, but that is an element that up to this point has yet to be actually be felt. It is true that the stock isn’t immune to the potential long-term effects of trade conflict, but it is also true that most of those effects for now are inferred. If Canada yields as many seem to expect to pressure from the U.S. and from Mexico to join their agreement, look for the market to respond positively, with momentum swinging in favor of the Trump administration versus the E.U. and China. Either way, at its current prices, BWA offers an incredibly attractive value proposition right now.



    Fundamental and Value Profile

    BorgWarner Inc. is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains. The Drivetrain segment’s products include transmission components and systems, all-wheel drive (AWD) torque transfer systems and rotating electrical devices. The Company’s products are manufactured and sold across the world, primarily to original equipment manufacturers (OEMs) of light vehicles (passenger cars, sport-utility vehicles (SUVs), vans and light trucks). The Company’s products are also sold to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications. BWA’s current market cap is $9.4 billion.

    • Earnings and Sales Growth: Over the last twelve months, earnings increased by almost 23% while revenues posted an increase of nearly 14%. In the last quarter, the increase in earnings was more modest at a little over 7%, while sales declined by 3.24%. The company operates with a narrow margin profile, with Net Income running at only about 5% of Revenues for the last twelve months; however this measurement nearly doubled to 10% in the last quarter.
    • Free Cash Flow: BWA’s free cash flow is healthy, at a more than $515 million. While the number declined since the beginning of the year, it has increased since late 2015 from only about $150 million.
    • Debt to Equity: BWA has a debt/equity ratio of .52. This number reflects the company’s manageable debt levels. The company’s balance sheet indicates operating profits are sufficient to service the debt they have.
    • Dividend: BWA pays an annual dividend of $.68 per share, which translates to an annual yield of about 1.5% at the stock’s current price.
    • Price/Book Ratio: there are a lot of ways to measure how much a stock should be worth; but one of the simplest methods that I like uses the stock’s Book Value, which for BWA is $19.41 per share and translates to a Price/Book ratio of 2.31 at the stock’s current price. Their historical average Price/Book ratio is 2.96. That suggests the stock is trading right now at a discount of a little over 28%, and that puts the stock’s long-term target above $57 per share. Additionally, the stock is currently trading more than 78% below its historical Price/Cash Flow ratio. The stock’s all-time high was reached in mid-January of this year at around $58, which means projecting a 75% increase in the stock may be speculative, especially under current market conditions; however it also suggests there is a good argument for the stock to retest its highs, especially if the broader market can maintain its long-term upward bullish strength.



    Technical Profile

    Here’s a look at the stock’s latest technical chart.

     

    • Current Price Action/Trends and Pivots: The red diagonal line measures the length of the stock’s downward trend from mid-April to its bottom in July of this year; it also informs the Fibonacci trend retracement lines shown on the right side of the chart. The stock found major support, and the end of its downward trend around $42 in early July, and has used that price area as a pivot low support point on multiple occasions since then. The top end of its range since then is around $46 per share, and the stock would need to break above that level to stage a legitimate trend reversal, with incremental resistance points around $48 and $50.
    • Near-term Keys: If you’re a short-term trader looking for a good opportunity with this stock, a good signal to buy the stock or to work with call options would come if the stock breaks above $46 per share. The stock’s current support at around $42 per share also marks an important signal point for a potential bearish set up, as a break below that point would be a good time to consider shorting the stock or working with put options. If you’re willing to work with a long-term time horizon, and you don’t mind the potential volatility that could come with continued market uncertainty and trade concerns, its current price also offers an excellent starting point for a long-term, value-based opportunity.


  • 14 Sep
    Jim Cramer is calling BP “the cheapest oil major” – but these two U.S. stocks look a LOT better

    Jim Cramer is calling BP “the cheapest oil major” – but these two U.S. stocks look a LOT better

    To some people, Mad Money host Jim Cramer is an investing guru. And he certainly draws a fair amount of attention; not only does he host his own show on CNBC every weeknight, but he is also a regular on the station during the early pre-market and opening hours of each trading day, holding forth on his view of current events and their effect on the market. More →

  • 13 Sep
    SKX: 38% decline since April just makes the stock more interesting

    SKX: 38% decline since April just makes the stock more interesting

    If you pay much attention to market news, most of the focus revolves around the segments of the economy that are performing the best right now. It’s a classic “follow the herd” mentality that can actually work pretty when the economy is healthy and growing, but it also has its drawbacks. More →

  • 12 Sep
    Is MAN a good value in the current economy?

    Is MAN a good value in the current economy?

    Over the last several years, one of the biggest benchmarks the Fed has used to evaluate the need to raise, lower or maintain their interest rate policy has been the employment rate. Every month, the market seems to hold its breath as a new set of unemployment and salary data is made available and everybody gets to wonder what the information means for the current economic climate and, therefore for interest rates. More →

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