2016 August

26 Aug: How will US stock market react to a possible near term rate hike

Stock market and rate hikes How will US stock market react to a possible near term rate hike?The much anticipated speed of FED chairman Janel Yellen at Jackson Hole may provide some clues about how close is the FED to actually raise interest rates.If this happens economic theory implies that this is bad news for stocks as rate hikes lower the stocks valuation using a DCF approach.For now US stock market does not make any strong moves as we are still in summer mode.Maybe from September we will see more volatility which is both good and bad for stock trading.

24 Aug: 3 stock market actions on daily basis

Stock market decisions on a daily basis 3 stock market actions on daily basis for all stocks are buy,sell or hold. Each is different and reflects financial news and opinion about financial markets.Buy is when you are bullish,sell when you are bearish or a stock has reached your target goal and buy if you think a trend will continue. Also almost every day reports and news come out.Have a strong reason to make any decision and arguments to either buy,sell or hold any stock.Stock market is volatile but as always return comes with risk.

23 Aug: Best Buy Co stock gains almost 19% as strong earnings are reported

Best Buy Co., Inc. (BBY) gains almost 19% today and recent trading is at $38.87 per share.The electronics retailer reported better than expected sales and earnings outlook for third quarter, source Yahoo finance. It would be nice buying the stock at its close yesterday.But earnings are so unpredictable for the stock market.One good alternative for earnings season is the options straddle strategy if there is volatility as today.This stock market investing is not working always and is not suitable for every investor as risk tolerance needs to be evaluated.

22 Aug: Stock market prediction of falling at a specific level is too dangerous

Stock market prediction If we could make stock market prediction with great accuracy then we could buy or sell stocks and make money easily.But this is not the case. We read this article The stage is set for the next 10% plunge in stocks in Yahoo finance.While there are good arguments it is impossible to predict the stock market movement in near term and maybe long term.So be always prudent and skeptical when reading such financial and investing articles about stock investing. We simply cannot have the luxury of making any prediction for the stock market with accuracy.

17 Aug: Twitter a Stock That Does Not Meet Its Business Expectations

Stock market and Twitter Will the stock market make a correction?If it does then Twitter may be a good option to sell the stock or buy some put options. Twitter, TWTR is currently trading at $20.86 per share with 13.73 – 31.87 52 week range. What is wrong with this very promising micro-blogging and business idea? Why does Twitter stock cannot meet its business, marketing and financial expectations?Judging a company by its stock performance is often interesting. Twitter has a very large audience like Facebook but the main problem is that the twitter cannot fully take advantage of its members and make money with it.Net income for the last 3 years is negative, although it has a slight improvement diminishing losses. Both profit margin and operating margin are negative and so does return on equity. Growth estimates of the company versus the industry are very promising but these are just…

12 Aug: Building a Diversified Stock Portfolio to Beat the Market During August

A Diversified Stock Portfolio To Beat The Market During August? Choosing stocks to beat the market during August and summer. A diversified portfolio made on Investopedia stock simulator. So it is a demo portfolio.What is the relevant benchmark? Not easy to answer but could be defined. As we are in early August the stock market may take a break from high volatility. The idea to build a well diversified portfolio is not a new one. The challenge to beat the market in one month period is rather interesting. What are the pros and cons of this portfolio made with specific role to beat the stock market during August? The pros of the portfolio Not one stock is more than 10% of overall capital to invest, which is $0.5 million. 25 stocks in total represent an adequate number so as to diversify. Both large cap,small cap stocks are bought. Various sectors…

06 Aug: An interesting article about stock market performance during the Olympics

Stock market and Olympics An interesting article about stock market performance during the Olympics. The main conclusion is that host countries tend to win during the Olympics.It could be just a random effect though.Stock market behaves a lot of times in a random way.But it is worth looking for stocks and sectors that could benefit from such a big sports events,like media,beverages,tourism.

05 Aug: PDL Biopharma stock falls today almost 19%

Not a good day for PDL BioPharma (PDLI). The stock is falling today to $2.87 although it rebounds now to $3.01 as the company announced yesterday lower than estimates revenue for second quarter,plus the board of directors decided to eliminate its quarterly cash dividend. Source : Thestreet.com , source Finviz. Stock market is often unpredictable. Especially when it comes to earnings.The stock had a nice dividend yield of 5.75% until yesterday.We think that selling pressure is due to the elimination of the dividend as a major fact.

03 Aug: Sell stocks in August and go for vacations

Stock market in August Sell stocks in August and go for vacations?As they say sell in May and go away?Well not so simple.We think that August indeed maybe a tough investing month for stock market.The reason is decreased liquidity due to summer vacations.But this does not mean sell all stocks or sell.On the contrary opportunities for buying stocks at good levels will exist.But it makes sense to not invest any money in August or just rebalance your stock portfolio and wait for September.

02 Aug: What to do if your stock is currently a loss of money

Stock market behavioral finance What to do if your stock is currently a loss of money?. The answer is not simple.You have the following stock market options : Sell the stock Keep the stock Sell if you think fundamentals are no more any good Keep the stock if you think general conditions of the stock and stock market will get better Another great reason to sell a stock if it is not profitable is when it reaches your defined stop loss.Any great stock if it loses lets say 30% of the price when was bought will take a lot of time to recover losses.But if it is a long term buy and hold stock pick then even at this loss it could be worth holding it, mainly if it has good fundamental features.