Category: Education

The US and China have been negotiating for months, bring the Equity Markets along for the ride in hopes that a deal will be made.  But it’s not only the Equity Markets hoping for a deal.  The biggest economy in Europe is also hoping for a deal.

Germany is only expected to grow at a rate of 0.5% this year, according to the latest economic forecasts by the European Commission. It will be the second-worst economy across the EU in terms of growth, just behind Italy.

Germany’s industrial crisis is worsening, the economy is at risk of recession and a raft of mounting troubles mean the chance of a near-term turnaround are fading.

Trade tensions, weaker demand abroad and the travails of the car industry have built up over the past year to take a toll on the engine of Europe’s economy. They’ve dragged manufacturing into its deepest slump in seven years, and some of the nation’s biggest corporate names from BASF SE to Daimler AG and Continental AG have had to come to terms with a new reality for business.

As one of the world’s biggest exporters, Germany is paying a high price for the slowdown in global trade. The economy is forecast to grow the least in six years in 2019. 

The question for Germany is how bad the downturn, once expected to be temporary, will become.

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This year the DAX has bounced off of the monthly demand at 10400 and no has been hovering in the monthly supply at 12400.  However, the bullish monthly candle looks like the DAX once to go higher, which in turn will means breaching the monthly supply zone. 

Thus, I will be watching for any signs of weakness for a potential reversal if and only if price closes below the major support/resistance level at 12200.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers frozen potatoes, sweet potatoes, and appetizers under the Lamb Weston brand name, as well as various customer labels. It serves retail and foodservice customers; grocery, mass, club, and specialty retailers; and businesses, independent restaurants, regional chain restaurants, and convenience stores, as well as educational institutions.

I have never heard of Lamb Weston Holdings until yesterday. Yesterday they reported their fourth quarter earnings and the stock fell after they announced slower sales for the fiscal year of 2020.

“For fiscal 2020, we believe the overall operating environment will continue to be generally favorable,” Tom Werner, president and CEO said in a press release. “While we expect that increased spending to upgrade enterprise-wide information systems will temper earnings growth this year, we believe that these near-term investments to improve operating efficiencies, and our continued focus on executing on our strategies, will have us well-positioned to generate sustainable top- and bottom-line growth and create value for our shareholders over the long term.”

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Needless to say, the chart suggests price is going down to the weekly demand at $50.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Curaleaf Holdings, Inc. operates as an integrated medical and wellness cannabis operator in the United States. It cultivates, processes, markets, and/or dispenses a range of cannabis products, such as vape oils and concentrates.

Yesterday, the United States Food and Drug Administration (FDA) issued a warning letter to Curaleaf for illegally selling cannabidiol (CBD) induced product online to treat various ailments such as cancer, Alzheimer’s disease, etc.

While the news shook the weak hands out, those who held on saw their return for that day only down 5% after being down 14%.

Seaport analyst Brett Hundley views the FDA letter as a “non-event” for the company and believes the stock sell-off is premature. The analyst reiterates a Buy rating on Curaleaf stock, with a price target of $11.00, which implies nearly 50% upside from current levels.  Hundley commented, “We view any weakness in CURLF shares as near-term buying opportunities for investors.

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An FDA warning letter also known as a FDA Form 483 is issued to manufacturers or other organizations that has violated some rule in a federally regulated activity.  However, a Form 483 doesn’t mean the end of the world, just formalizes their observation in order for the manufacturer to address the issue(s) found, usually within 15 days.

So Brett Hundley might be right…the FDA letter being a “non-event.”  However, the chart suggests to wait for price fall a bit more, to the daily demand at $5.75 before going long.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Snap has been on a tear since Feb. 5^th, when they reported their fourth quarter earnings. During the earnings call, Snap posted a narrower-than –expected loss, communicated that the number of daily active users (DAUs) have stabilized and their Collection Ads, which enable a business to showcase four products in a single Snap, drove over twice the return on ad spend versus Q4 2018.

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Yesterday, Snap Inc. shares spiked in after-hours trading when they reported adding 13 million DAU in the quarter for a total of 203 million DAUs.  Snap is still reported a net loss, but it’s less than a year ago and they beat the Wall Street’s estimates.  Thus, it’s all about the DAUs at this stage because they more eyeballs the can keep engaged, the more ad revenue they will generate.

Spiegel said in prepared remarks that the company is “seeing early positive results following the rollout of our new Android application.” Snap saw more than 10 percent increase in the retention rate of people who open Snapchat for the first time, and on the majority of Android devices with new users, Snapchatters are sending 7 percent more Snaps compared to the old version, “which we believe is an important leading indicator of their long-term retention,” Spiegel added.

Citing a redesign of the Snapchat app, which was controversial among users, as well as the Android rebuild, the CEO said, “Following last year’s substantial product evolution we believe that we are now better positioned for long-term success. Today, more than 75 percent of the 13–34-year-old population in the United States is active on Snapcaht, making us larger than services like Facebook and Instagram among this audience, and demonstrating the broad-based appeal of our service.”

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However, the chart suggests that the run up this year may soon reverse at the daily supply at $17.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.