10/22/2021
Company: Chevron Corporation
Ticker: CVX
Price: $109.61
52 week high: $113.11
52 week low: $65.16
About the company:
Chevron Corporation is an American multinational energy corporation. It is the second largest oil company in America. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries.
Category: Energy industry company
CEO: Michael K. Wirth
Competitors: Exxon Mobil, Shell & BP
Bulls say:
Chevron has one of the largest balance sheets and some historically good financial ratios. Management has consistently stated that it can continue to pay dividends while preserving the priority capital budget. Management says that it will not be able to finance its future growth over the next five years by borrowing more than a billion. Chevron’s net debt ratio is still considerably more than satisfactory for the industry in the worst-case scenario. There is no logical justification for advocating dividend reduction from a financial perspective unless an analyst is ready to predict a long-term disaster.
Bears say:
One clear knock against Chevron is that it is dragging its feet as the world looks to move beyond oil and natural gas. That's a legitimate complaint, Chevron is simply tiptoeing into the clean energy waters, while others, like BP and Shell, look like they are jumping in with both feet. If it does not speed up, the others will have a big head start and brighter future outlook.
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10/22/2021
Term of the day - Underlying Asset
10/21/2021
The stock market rally was mixed Thursday, but the S&P 500 hit a record high while growth stocks led despite rising Treasury yields. Tesla (TSLA) neared a buy point Thursday and several stocks flashed buy signals. But the day's big mover was the S**C merger partner for Donald Trump's new social media venture.
Dow Jones futures lost 0.1% vs. fair value. S&P 500 futures fell 0.25%. Nasdaq 100 futures sank 0.6%. Intel stock is a Dow Jones, S&P 500 and Nasdaq member. Facebook and Google stock are S&P 500 and Nasdaq titans.
Snap earnings came in far above third-quarter estimates. But revenue just missed. The Snapchat parent also guided low for Q4 revenue. Recent Apple (AAPL) privacy changes are taking a toll on Snap's advertising business.
Snap stock plummeted 21%, signaling a plunge below the 50-day and 200-day lines and a possible five-month low. Snap stock had been trying to set up again after several head fakes in the past several months.
After being barred from many social media sites, former Former President Donald Trump has formed his own. Trump Media & Technology Group will go public via a S**C merger with Digital World Acquisition (DWAC). Trump Media & Technology will have a social media site named Truth Social, as well a subscription-based video-on-demand service, TMTG+.
DWAC stock shot up 357% to 45.50. Well over 400 million DWAC shares traded in Thursday's session. DWAC stock rose sharply in extended trade as its social media rivals Snap, Facebook and Twitter sold off.
10/21/2021
Company: Energy Transfer LP
Ticker: ETI
Price: $9.99
52 week high: $11.55
52 week low: $4.98
About the company:
Energy Transfer Operating, L.P. owns and operates a diversified portfolio of energy assets. The Company offers natural gas midstream and liquid, crude oil, and refined products, as well as provides transportation and storage services. Energy Transfer Operating serves clients worldwide.
Category: Gas industry company
CEO: Kelcy L. Warren
Competitors: Global Partners, Targa Resources, IEnova, Spectra Energy Partners, Magellan Midstream Partners, Plains All American Pipeline and Enbridge
Bulls say:
Energy Transfer continues to be a deep value prospect for long-term investors. The cash cow is healthy and is trading at cheap levels that should draw in investors. Long-term, this should make for one of the best opportunities on the market.
Bears say:
Even though the energy sector is on the run, this company has not outperformed amongst its competitors in the short term. It remains a long-term prospect, but short term it could see itself lagging in the industry run.
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10/21/2021
Term of the day - White-Collar Crime
10/21/2021
Billionaire hedge fund manager Paul Tudor Jones believes inflation is here to stay, posing a major threat to the U.S. markets and economy.
"I think to me the No. 1 issue facing Main Street investors is inflation, and it's pretty clear to me that inflation is not transitory," Jones said Wednesday on CNBC's "Squawk Box." "It's probably the single biggest threat to certainly financial markets and I think to society just in general."
Jones said the trillions of dollars in fiscal and monetary stimulus is the impetus for inflation to run hotter for longer. To rescue the economy from the Covid-19 pandemic, the Federal Reserve has added more than $4 trillion to its balance sheet through its open-ended quantitative easing program, while the U.S. government has unleashed over $5 trillion in fiscal stimulus.
"Inflation can be much worse than what we fear. We have the demand side of the equation ... and that is $3.5 trillion greater than what it normally would have ... just sitting in liquid deposits," Jones said. "They can go into stocks, or crypto, or real state, or be consumed, so that's a huge amount of dry powder just sitting waiting to be utilized at some point, which is why inflation is not going away."
The longtime trader said price pressures will continue to rise in the coming months. Inflation ran at a fresh 30-year high in September amid supply chain disruptions and extraordinarily strong demand.
The core personal consumption expenditures price index, which is the Fed's preferred measure of inflation, increased 0.3% in August and was up 3.6% from a year ago.
10/20/2021
Company: Kinder Morgan, Inc.
Ticker: KMII
Price: $18.46
52 week high: $19.29
52 week low: $11.45
About the company:
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals. Kinder Morgan owns an interest in or operates approximately 85,000 miles of pipelines and 152 terminals.
Category: Energy Infrastructure Company
CEO: Steven J. Kean
Competitors: Sempra Energy, Enbridge, Plains GP Holdings, Enterprise Products Partners and SemGroup
Bulls say:
Being a leading North American midstream energy player, Kinder Morgan has the largest natural gas transportation network in the continent. The company’s natural gas pipeline assets, spreading across roughly 70,000 miles, are responsible for transporting roughly 40% of U.S. natural gas consumption & exports volumes. KMI also trades at a dividend yield of 6.1%. All these factors make it a good buy stock.
Bears say:
Bears are asleep as of now as the energy sector is on the run and this company is outperforming amongst its competitors.
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10/20/2021
Term of the day - Wire Fraud
10/20/2021
Dow Jones futures tilted lower Tuesday night, along with S&P 500 futures and Nasdaq futures, with Treasury yields continuing to climb overnight after big gains Tuesday. The stock market rally continued to move toward record highs Tuesday despite rising interest rates. Apple (AAPL) helped lead the broad advance, while Bitcoin neared record highs as a Bitcoin futures ETF debuted.
NFLX stock fell slightly despite Netflix subscriber growth and guidance beating forecasts. ISRG stock dipped after the robotic-surgical systems maker narrowly topped views.
Meanwhile, Tesla (TSLA) is on tap late Wednesday after it reported record third-quarter deliveries earlier this month. TSLA stock fell 0.7% to 864.27 on Tuesday, snapping a six-session win streak. The EV giant is nearing record highs, extended from earlier buy points as it works on its ninth straight weekly gain.
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10/19/2021
Company: Analog Devices, Inc.
Ticker: ADI
Price: $172.04
52 week high: $178.84
52 week low: $115.64
About the company:
Analog Devices, Inc., also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Category: Semiconductor manufacturing
company
CEO: Vincent Roche
Competitors: IDT, KLA-Tencor Corp, NXP Semiconductors, Fairchild Semiconductor and Texas Instruments
Bulls say:
Sales of electric vehicles (EVs) are expected to take off remarkably in the future. With the EV, come the battery products and battery management systems. Analog Devices has set its sights on making the most of this fast-growing opportunity through product development moves and a crucial acquisition, which could substantially boost its revenue in the long run.
Bears say:
The Analog Devices stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Bears are asleep as the EV industry will certainly be big in the future.
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10/19/2021
Term of the day - Yield Curve
10/19/2021
Stocks rebounded on Monday after opening lower, as investors bet on a continuation of strong earnings reports from major companies. Tesla and Netflix gained ahead of third-quarter reports this week.
The S&P 500 rose 0.3% to 4,486.46, while the Dow Jones Industrial Average fell 36.15 points, or 0.1%, to 35,258.61. The Nasdaq Composite gained 0.8% to 15,021.81.
A number of big names are set to report in the week ahead, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon and IBM are among the other names on deck for the week.
Strong results from the first week of earnings, including from the largest banks, have pushed the major averages to within striking distance of their all-time highs. The Dow is nearly 1% from its record high, while the S&P 500 and Nasdaq Composite are 1.3% and about 2.5% below their records respectively.