2 Best Pharma Stocks: AstraZeneca plc (NYSE:AZN), Myers Squibb Co (NYSE:BMY)

The stock markets have been in the middle of a historic turmoil over the past weeks, and stocks across almost all sectors have been pummelled due to rapid selloffs. Corporate earnings have taken a beating, and investors have turned away from stocks despite the announcement of an unprecedented stimulus package from the United States government.

If the crisis continues, then investors would need to go for solid companies that can manage to weather the storm for a considerable period of time. Two companies that might be in a position to do so are the pharmaceutical major Bristol Myers Squibb and AstraZeneca. Hence, it might be worthwhile to take a closer look at both these companies.

AstraZeneca plc (NYSE:AZN)

Over the course of the past 12 months, AstraZeneca plc (NYSE:AZN) has gained 37%, and in 2020 so far, it has recorded gains of 5%. The latter figure is perhaps far more impressive, considering the carnage in the markets. The company’s fundamentals are very strong, and that is possibly the biggest reason behind the resilience displayed by its stock. It got 23 regulatory approvals in 2018, and currently, it was one of the best cancer and diabetes product portfolios.

Moreover, AstraZeneca is also going to produce plenty of late-stage reports over the course of the next two years. This has raised the possibilities of future growth, and the company has projected a 13.7% growth in 2021. It is one of the biggest projected growth rates among big-ticket pharma companies. Moreover, AstraZeneca recently announced that it does not plan to amend its annual projections in light of the coronavirus crisis. The stock is trading at 5.23 times forward sales, and it seems that the market has realized the value of the stock.

Myers Squibb Co (NYSE:BMY)

Trading at only thrice its estimated sales next year, Bristol-Myers Squibb Co (NYSE:BMY) is one of the cheapest stocks from among big-ticket pharmaceutical companies. Despite having delivered wins on the regulatory front in recent times, the stock has recorded a decline of 6% this year so far. The company got approval for its multiple sclerosis product Zeposia and it was also awarded two key approvals for Reblozyl, its blood disorder therapy product.

The main reason behind the decline in the Bristol stock is the declining sales of its product Opvido. That has affected investor sentiment in recent times. Bristol has projected decent growth in 2021, and hence, the Opvido issue might not be as big as investors might be thinking. Hence, Bristol might prove to be a clever play from investors who are looking for value in pharmaceutical stocks.

How Should You Trade HEXO Stock Now?

In recent times, the Canadian cannabis industry has gone through a lot of difficulties, and most of the companies have been suffering. One of the companies that stand out in this regard is HEXO Corp (TSX:HEXO) (NYSE:HEXO). The company seemed to have turned a corner after it signed its largest wholesale supply agreement with Quebec.

Key Analysis

However, that turned out to be a false dawn as other problems cropped up, and the stock is now trading at $0.50 a share. As a result, the Hexo stock is possibly one of the more avoidable cannabis stocks in the market at this point.

Like many of the other companies in the industry, Hexo has also been scaling back its operations due to a lack of cash. For instance, the operations at the Niagara facility, which Hexo took over after the acquisition of Newstrike Brands, have been halted. The company is looking to close it down permanently and eventually sell it. However, that is not all. Hexo has also scaled down its production activities by as much as 33% over the course of the past six months and laid off 200 employees last year. In order to stay afloat, the company has had to make offerings of its stock.

Recently, Hexo raised C$46 million by selling 60 million shares, and those shares came with warrants with an exercise price set at C$0.46. These sorts of machinations from the company have further eroded the value of its stock. In this regard, it is also important to point out that the company has also got a warning from the New York Stock Exchange since its shares had traded for less than $1 for a 30 day trading period. The company has not rectified the situation yet, and unless the share doubles in price, Hexo might need to opt for a reverse split in order to stay listed. Stocks generally perform poorly after a reverse stock split.

Is Tilray Inc (NASDAQ:TLRY) Stock Worth A Buy?

Tilray Inc (NASDAQ:TLRY), which used to be a well-known stock in Wall Street, now has nothing left to impress the investors. The Canada based company had its initial public offering (IPO) in July 2018 at a value of 18 dollars and had managed to up its value to 300 dollars per share by mid-September. The value of the stock now lies in the $2 range post the market meltdown in the previous month. The stock is now seen as a troublesome one.

What to Expect Now?

Despite being a Canadian producer, the management of Tilray had decided to focus entirely on the U.S. and the European markets. They shifted their attention only after a mere six months of sales commencement of adult-use weed in Canada. The international markets surely provide greater potentials than its home country, but this shift seemed rather odd to plenty. The shift in the growth-strategy focus also meant that the company had to lose quite some money in order to develop an infrastructure overseas. This resulted in Tilray losing on its cash pile.

The company had seemingly ended 2018 with healthy figures of the balance of cash and cash equivalents and short-term investments. The figure stood at 517.6 million dollars. Tilray, however, could not do the same in 2019. The company’s cash balance had declined below 97 million dollars by December 31, 2019. This made the company desperate to raise cash through issuing shares worth 90.4 million dollars amidst the COVID-19 pandemic.

To add to the woes, these shares so raised had warrants attached to them exercisable after six months of the issue at a price of 5.95 dollars. Simply put, this would mean further stock sale resulting in dilution of shareholders. This would also cap possible short-term/ near-future gains. With poor financials, Tilray shows no signs of profitability and would not be rather worthy of a buy.

Facebook Stock in Focus Ahead of Earnings Next Week

Social media giant Facebook, Inc. (NASDAQ:FB) is among the most-watched companies in the world, and its quarterly earnings report is naturally highly anticipated among market watchers. The company is going to release the financial results on April 29, and its advertising revenue figure during the coronavirus pandemic is going to be in sharp focus.

Advertising Revenues in Focus

The advertising revenues will give a clear idea of the impact of the coronavirus pandemic on Facebook’s business and also on advertising spending patterns. Investors are obviously going to be focussed on the overall revenues, but it should be noted that advertising revenues constitute almost the entirety of it.

Year on year, change in advertising revenues will provide a clearest possible picture on whether the coronavirus pandemic has affected Facebook’s business. Due to the lockdowns, plenty of retailers have temporarily closed their stores and customers are also staying at home. In such a situation, advertising spends might take a hit. It should be noted that during the conference call for Q4 2019, the social media company had stated that it expects ad revenues to decelerate in Q1 2020. The company had revealed that it expects a ‘low to mid-single-digit percentage point’ when compared to Q4 2019. 

On the other hand, Facebook had projected total expenses of $54 billion to $59 billion for 2020, and while the yearly expenses are generally lower than its projections, this time, it may be different. Due to the coronavirus crisis, the company has had to deploy extra sources and spent more on sales activities.

The impact of potentially lower ad spend on Q1 might not be as big, but the same for the next quarter could be huge. Hence, Facebook’s projections for the second quarter are going to be watched closely by investors as well. Analysts expect revenues to rise 5.8% year on year, and that reflects a pretty telling effect.

Casino stocks Soar as Las Vegas Sands Corp (NYSE:LVS) Bears Revenue Estimates

The lockdowns in most parts of the world, owing to the coronavirus pandemic, have resulted in a massive loss of business in many industries, and one such industry is the casino industry. Some of the biggest casinos have been shut down temporarily, and that has resulted in a massive loss in revenues for some of the leading casino operators. However, things seemed to have taken a turn for the better.

t down temporarily, and that has resulted in a massive loss in revenues for some of the leading casino operators. However, things seemed to have taken a turn for the better.

Solid Earnings

On Thursday, casino stocks rebounded after executives at Las Vegas Sands Corp (NYSE:LVS) revealed that the company could be generating revenues from its casinos located in Asia.

The development resulted in an impressive rally in the Las Vegas Sands stock in the pre-market session as investors piled on to it, and the stock gained as much as 7.6%. However, that is not all. Other major casino stocks rallied as well on the back of the update from Las Vegas Sands. The MGM Resorts International stock soared by 2%, while the Wynn Resorts Ltd stock soared by as much as 5.3%. It goes without saying that the rally in these casino stocks will bring the sector into sharp focus during Friday’s session. Investors could do well to keep an eye on these stocks.

At the conference call for its quarterly earnings on Wednesday, the Las Vegas Sands executive stated that footfalls would rebound far quicker in Asia than in the United States. They said that since people in Asia are far more used to wearing face masks and taking other necessary precautions, the situation in the continent should rebound quickly.

Robert Goldstein, the Chief Operating Officer of Las Vegas Sands, stated that he believes that the recovery is going to be far quicker in Asia and went on to state that he is not as ‘comfortable’ with regards to the situation in Las Vegas. Another executive stated that businesses should improve in the summer and become stronger by the fall.

Bull Flag Pattern

A chart pattern indicating that the market will probably move higher is called a Bull Flag Pattern. There is a bear flag pattern also which shows just the opposite of bull flag pattern. It is a general trend that when one flag pattern is going strong, the other one gets automatically subsided. A trader has to remain very calm and composed because flag patterns need time to completely form the trend lines which show the upper and lower positions of the current status of the market.

Bull signifies the rise in stock prices. The bull patterns help the trader to comprehend the profitability of investing in any stock because this flag pattern brings the real thing in front of the dealers and they are able to make better decisions. Some of the bull flag patterns can also fool a person. It is advisable to patiently react to these flags.

A regular chart reader is a person who has the capability to take the correct decision. The very small and fast flag fluctuations need deep technical analysis so that a trader does not make a foolish mistake because even if these charts show the truth, a newbie can easily be fooled.

If one wants to trade bull flag patterns and make a good amount of money, one can go through the candlestick patterns because these are the best ones when it comes to the ease of their comprehension. There are a few types of flag pattern generally observed in the bullish flag pattern. These are stated as follows-

  • Horizontal Rectangle Flags

When the pattern follows a relatively straight line, it is known as a horizontal rectangle flag. The resistance and support points have negligible variation.

  • Horizontal Rectangle Angled Down Away (Flag Pattern)

When there is a dip in the pattern before it shoots up between the resistance and support points which gives the pattern a flag like a shape, is the horizontal rectangle angled down away pattern. It usually looks s if it is a drooping flag.

  • Bullish Pennants: Symmetrical Triangle

When initially in the pattern, there is a large distance between the resistance and support points which soon minimizes before shooting up again giving the pattern a triangular shape is known as bullish pennants.

The knowledge of these patterns helps the trader to understand everything. These shapes work like analysts for any new trader and help the trader realize the ups and downs of the stock market via these tricky but useful lines.

A very important word in the bull flag pattern trading is patience. Without patience, it can take one down in no time. Patience bears fruit and if any trader will patiently understand and analyze the charts, he/she is sure to get fair gains. Watching for resistance on the bull flag pattern is vital because it can prevent the stock from rallying for a second time. Continuation patterns are considered reliable because they repeat their pattern.

Therefore, bull flag patterns are useful but if studied generously for an ample amount of time. These can give good profits to the one who waits and then takes any action.

Canadian Stock Market

Toronto Stock Exchange (TSX) is based in Toronto, Ontario, Canada. It is ranked as the 9th largest stock exchange in the world in terms of market capitalization. The stock is wholly owned by the subsidiary of the TMX Group for the trading of senior equities. Many high-end business people from Canada and other states are represented on this exchange. There are many conventional securities, split sharing corporations, ETFs, investment funds and trusts included in these stock exchanges. There are a maximum number of mining, oil & gas companies listed on TSX than the other stock exchanges globally.  

TSE is likely to descend from the Broker Association (1982) which was a group formed by Toronto Business persons. The stock market began with 13 listings which have continuously grown until recent times. TSE moved on Bay Street in 1913 and grew to become the third-largest in the North American region. TSE is the Canadian best exchange for the trading of senior-level equities. As of December 2017, TSE had 1501 listed issues (inclusive of structured financial products and ETFs). It is home to five major commercial banks: Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce (CIBC), Toronto Dominion Bank and Bank of Nova Scotia.

TSX has increased to 2166 points which is equivalent to approximately fifteen percent since the starting of 2019. It reached an all-time high value of indexing 16669.40 in April 2019 which has enhanced its status in the world prominent exchanges. TSX (S&P) is the major stock market index tracking the performance of the largest companies by market cap on the Toronto Stock Exchange, Canada. This market has a free float market capitalization weighted index covering about 95 percent of the Canadian equities market. The base value of the index is CAD1000 as of 1975.

Difference between Canadian Stock market and US Stock market

It might appear that the Canadian stock market is similar to the US stock market but there are many differences in the approach of these exchanges. Canada is a different region and there are some things having a difference from the American market. Canadian stock market is much smaller than the US exchanges and the number of stocks is also lesser in comparison to the US market. It trades in Canadian dollars and not the US dollars. The value of the Canadian dollar is lesser than the US dollars and the fluctuations occur on a regular basis.

Canadian economy majorly depends on the natural resources and it is reflected very commonly in the market. There is a monopoly of the mining, oil and gas companies on TSX than any other stock exchange in the world. The Canadian government is different than the American region and it makes a big difference in the market. Taking a recent example of recreational marijuana bill in Canada, there is a big market arising for this segment with the most promising results assured by many companies.

Benefits of investing in Canadian Stock market

Canadian stock market is not only meant for Canadians. It can be quite advantageous for the United States and global investors as well. The major benefits of investing in Canadian market stocks are:

  1. Strong economy: The banking system of Canada is considered to be safe and they have huge balance sheets and a great reputation in the international market. This is a positive signal for the investors to choose the Canadian Stock Exchange listed companies and get ahead with the most rewarding results from the retail, real estate, mining, marijuana, and other sectors.
  2. Different Currency: The trade in a different currency can protect your US dollars. If the US currency loses its value, it might not have an impact on your purchased stocks. There are other opportunities where you can make profits with the changing value of the US the dollar. Canadian stock investments are a way to go ahead with the most promising results.
  3. Commodity-related stocks: The economy of Canada has strong stocks related to natural resources like oil and gas. It is one of the biggest exporters of the minerals in the world and there are many commodity-linked stocks listed on TSE. Commodities could be volatile but there are positive growth opportunities linked with them. You can make intelligent investments if you consider the reliable patterns and understand the seasonal aspect of the stocks.

Investing in the Canadian Stock Market

There are some things to know while investing in the Canadian stock market. There are many brokers linked with TSX. You can choose the most promising stock to make the move. Make sure that you check the brokerage fee and other details before starting your investments. Canadian stocks and bonds can be purchased through different levels and you can choose the most relevant way to make your right selection. Another way to purchase stocks from other exchanges through the US market is called American Depository Receipt.

Canadian Stock Market begins its operations from 9.30 am to 4 pm EST, Monday to Friday. There are pre and post-marketing trading hours offered in the US and the Canadian market has extended its session too. The market is closed on Saturday, Sunday and major holidays.

Canadian Market Trends

The economy of Canada is pretty safe and it has some strong industries with stable monetary policies. It is subjected to change in trends and the other important factors as well. The Canadian market is highly dependable on the commodities and there are variable instances changing the tone of the market. Policies can have a major impact on market trends. For example, the change in recreational marijuana laws is making a big difference in Canadian stocks related to cannabis in any way.

There are many choices for traders to choose Canadian market stocks. The market setup is a bit different from the US trends and hence, there are important aspects to take care before making any investment. There are more than 1500 companies listed on the TSX, including small to large scale segment companies. This is upcoming companies also listed on the stock lists to be included on the stock exchange list for a brighter future.

Momentum Trading

Momentum trading is a technique for buying and selling of the stocks as per the recent trends of the price. In financial markets, the momentum is determined by factors like price change rate and trading volume. The traders move forward with a concept that the asset price moving towards the given direction will continue its movement until there is a loss of strength in the ongoing trend.

How did the concept begin?

Momentum trading has been into operation for centuries. David Ricardo was a well-known British economist and used to practice momentum trading in the late 1700s. The basic fundamental behind this trading is to reduce the losses and get the profits run on. There have been many notions used by the traders for momentum trading and the first notion was formally included in the trading education studies in 1937 by Herbert Jones and Alfred Cowles (renowned economists). It was believed that the assets performing well in one year used to work out well in their following year. This concept was being ignored from the 1930s onwards as the investors started focusing more on the fundamental value of the asset rather than the route of the price movement.

Relative Momentum: There is a comparative study made for the performance of different securities within a particular asset class and the investors give favor to buy the strong performing securities and sell-off the weaker securities.

Absolute Momentum: The behavior of the security price is compared against its former performance of the historical data.

In momentum trading, any of the strategies can be used. More frequently, the momentum trading strategies are mainly dealt with absolute momentum strategies. Momentum can be determined over longer periods or within the day-trading timeframe. The primary step is to determine the direction of the trend in which they want to trade. There might be an entry or selling point required to trade the stocks. There are stop-losses kept above or below the trade entry point to safeguard the investor for bearing undesired losses.

Momentum Indicators

This is a common tool used to determine the momentum of a particular asset. These are graphical devices to show the oscillation in the price movement of a particular asset. This tool is meant to check the velocity of the price movements reaching towards a higher level when new money creeps into the way through new investors. The direction of the momentum can be calculated by Current Price – Previous price. The positive result denotes positive momentum and a negative result signifies the negative momentum. These tools appear as the ROC (Rate-of-Change) indicators which is equivalent to Earlier price/momentum result. The percentage of ROC can be calculated to plot high and low trends on the chart.

Common technical indicator tools

  • Moving Averages: This value can help in identification of the overall price trends and the momentum by leveling the price movements into easily readable visual trends. It is calculated by adding the closing prices over a given number of periods and dividing the result by the total number of periods considered. This average can be simple or exponentially moving to give preference to the recent pricing action.
  • Stochastics: This oscillating value makes a comparison of the current price of the asset with its range within a defined period. In the case of oversold conditions, the reading goes below 20 and it indicates the upward trending momentum. Similarly, when the overbought conditions are reached with a value of over 80, the downward momentum is expected.
  • Relative Strength Index (RSI): It is measured by the strength of the present movement of prices over the recent periods. The major aim is to determine if the current trend is strong enough in comparison to its previous performance.
  • On Balance Volume (OBV): This momentum indicator makes a comparison of trading volume to price. When there is a rise in the trading volume without a price change, it indicates the strong price momentum. Similarly, on the reduction of the volume, the signal is towards the diminishing momentum.
  • Commodity Channel Index (CCI): This momentum indicator makes a comparison of the typical pricing of an asset against its simple moving average and the mean deviation value of the typical price. The aim behind these stocks is to check out the oversold or overbought options. The readings 100+ indicate the overbought conditions and the readings less than 100 indicate the oversold conditions.
  • Moving Average Convergence Divergence (MACD): This tool indicates the comparison of slow or rapidly moving exponential moving price average trend lines on the chart against the single line. It depicts the possible price trend reversal and momentum points. Momentum is considered to be strong with the lines farther apart and slow with the converging lines.
  • Average Directional Index (ADX): This tool aims at the determination of the trending momentum. The strength of the price trend is put over a graph having values of 0 to 100. ADX value below 30 indicates sideways price action or undefined trend and the values over 30 indicate the solid trend in any particular direction.
  • Stochastic Momentum Index (SMI): This tool measures the midpoint of the recent high-low range by providing a notion of the price change in relation to the price range. This gives an idea of the nearby reversal point of the continuation of the current trend.\
  • Building Block: This technique makes the traders divide the existing chart into equal periods (block separation). The blocks are coded in different colors for an upward or downward trend and the third color is used for a sideways trend.

Risks associated with Momentum Trading

Every style of trading is subjected to risks. When the prices follow on a trend, it is estimated to be successful. Traders need to remember that the technical analysis is based on the projections of the probability of the movements of price on the basis of the historical data. The market prices can move in any direction at any time due to any unexpected events, news or market sentiments.

Conclusion

Momentum is the major concept which has proved to be valuable for determining the profitable trading options. Its measurements can be used for short to long term based on different trading strategies. There are many technical tools available for revealing the strength of trends and checking if the trade on a particular asset is worth or not. Traders should be aware of the fact that the momentum projections are calculated on the basis of the previous price trends and actual momentum can change at any moment based on the unforeseen events.

Swing Trading Strategies

Swing trading is a short-term trading style. In this, you can hold stocks for less time, cut quick losses and make small profits. Your rules need to be specific to a shorter time frame and the gains can compound to huge profits over time.

Basic Strategy: Lower gains, Lower losses

The first profit goal should be 5% to 10% and the difference would depend on the holding period of the stocks. Swing trades don’t last for many months and it is more likely for a couple of weeks. You will see the stocks going up and think about selling them too early but the market corrections will also be avoided with it. You might end up too early but purchase the stocks on their recovery.

The quicker profits can be obtained with making rapid moves in buying and selling which is termed as swing trading. Make sure that your selling ideas don’t include losses and the portfolio remains healthy. You can make positive trades and get a lot of money by keeping your losses smaller in comparison to your profits.

Swing Trading Basics

Swing trading is the methodology including ‘one move’ concepts. The major idea is to ensure lesser pain by exiting the trades at the right time. You can book your profits before the market reverses its position and keep your gains aside.

Advantage:

  • Majorly suitable for a person doing a full-time job
  • Comparatively less stressful in comparison to day-trading
  • Trades last only for a few days or weeks and you don’t need to check out your monitor all the time for trading

Disadvantage:

  • High-risk investments
  • Riding trends won’t be possible

Swing Trading Strategies

Stuck in a box

  • Identification of the range market
  • Waiting for the price for breaking down below the Support
  • Waiting for the strong price rejection (above Support), in case of the price dropping below the Support
  • Going to the next open candle with the price breaks below the Support
  • Setting the stop loss 1 ATR below the candle low and trying to make gains before the Resistance

Catching the Wave

This works in making movement in the trending market. The major idea is to make identification of the trend respecting the 50MA. If the market is approaching the moving average rate, then you can wait for the bullish price rejection. After getting the rejection, go on towards the next candle. Set the stop loss 1 ATR below the low value and get profits before the swing gets high.

Fading the movement

Fading here means to ‘go against’. You can get against the momentum and the general movements to talk about this concept.

  • Identification of a strong momentum moving into Resistance taking out to the previous high values
  • The strong price rejection can be checked out
  • Going for next candle and setting the stop loss 1 ATR above the high values
  • Taking profits before the nearest low swing value

These are the major three types of swing trading strategies worked out by investors. The major thing to look for is your trade management skills. Management of your trade with confidence is essential to carry out the processes with confidence and conviction. There are active and passive trade management skills to carry forward the processes. The active trading will include the market reaction watch and making the decision for holding or exiting the trade. Passive trading will make you let the market hit the stop losses or the targeted profits and in between, there would be nothing done at all.

Virtual Stock Exchange

Virtual Stock Exchange, which is commonly referred to as Paper Trading, is a trading method in which new investors are given a chance to trade without actual money and hence realize the actual trading process, its risks and gains without losing any of their assets in real. It can be thought of as a replication of the actual stock market trading. It is basically a game played on the screen or with paper from which one can learn well.

Stock market games have imaginary money which is traded in the form of real money where one comes face to face with the reality of the stock market. These games also help people to judge whether they fit into the world of stock market trading or not. Everyone does not have the guts to handle losses and that is what the game teaches them, that anything can happen anytime if a wise mind is not put into correct usage. A player can devise strategies, fail multiple times without losing anything and when finally, ready, can step out and say hello to the real exchange.

Paper trading accounts give the account holders an opportunity to establish both bull credit spread and a bull debit spread concurrently. This helps them to test the changing of payoff for all positions as and when the market shifts. Other advanced schemes and strategies can be well employed while doing a virtual stock exchange. Leverage, forex, short-selling and derivatives trading are well included amongst the strategies used. Wise and clever usage of these schemes with technical information can transform a newbie into a successful trading wizard before the person even enters the real trading pool. If the trader continues to maintain the same strategies and trades carefully, it means the person has very well emerged victorious and all credit goes to paper trading.

This virtual trading is categorized into two primary categories mentioned as follows-

  • FINANCIAL SIMULATORS

It is very realistic and the users get virtual currency while trading this way. Real trading feed which is delayed by a time span of 15 to 20 minutes is provided to the user and the company provides its own data so as the customers do not use their own. Some companies also imitate data and prices. However, this data is generally random. This trading nearly shows the stock aspirants the real picture and prepares them better for making an entry into the real place.

  • FANTASY SIMULATORS

Trading real-life goods such as movies, television shows or sports which are not actually traded in the stock exchange are the fundamental of fantasy simulators. It is like betting or gambling and has a lesser link to actual trading as compared to financial simulators.

The online games are coded using C, C#, JavaScript, Java, PHP or ASP with a database of either PostgreSQL or MySQL. Some of them are open for all users, while others are protected.

Well, Virtual Stock Exchange is probably the best way by which stock aspirants can comprehend whether or not they are eligible for this share trading or not. Any investor who is thinking of starting trading is always advised to trade virtually because that is the best way to learn many of the aspects of the stock exchange.

BOEING STOCKS

Boeing is a name no one needs to be told about. It is a big multinational company based in the United States. In the field of aerospace and aircraft, this company does everything from designing and manufacturing to selling its goods. The company was founded about 102 years ago by William Boeing on 15 July 1916 in Seattle, Washington, United States. It was then named as Pacific Aero Products Company and got its present name in 1928. Boeing is currently headquartered in Chicago, Illinois, United States and it is named as ‘Boeing International Headquarters’. The present Chairman, President, and CEO are Dennis Muilenburg. As of 1 January 2018, it has a total number of 153,027 employees.

Be it defense aircraft or missiles or satellites or planes, this company makes everything and of the most superior quality. Airplanes, missiles, rotorcraft, satellites, rockets, and comms gearand are some of the most famous aircraft of this company.

It does not have a very clean environmental record and has had cases associated with radioactive pollution of land where nuclear wastes were found.

Are Boeing stocks worthy of making an investment?

Symbol: – NYSE: BA

52 Week Range: – $292.47 – $446.01

Volume: – 4,737,120

Average Volume: – 5,158,950

Forward Dividend and Yield: – 8.22 (2.26%)

The biggest problem that Boeing stocks are undergoing is the plane crash of 737 Max in March this year. Due to this, Airbus being the strongest rival company is posing a very tough competition towards Boeing. Even though the CEO of the company Dennis Muilenburg has issued an apology stating the technical issues that were behind the plane crash. Although the crash happened a long time back, the company is still facing the after effects as the stocks have acquired massive unpopularity. The company needs to bring forth a good and facilitated aircraft to get back on track. The Paris Air show has helped the company restore its reputation to some extent.

If seen with a different point of view, the company is and will remain the leading manufacturer of aircraft. In very less time, the company’s stocks intend to rise following the footsteps of the company. Any person who has complete trust in the company might emerge to be a successful trader because the dividend rate of the stocks is very good. One thing must be kept in mind very important and that is the death of 157 people cannot be forgotten easily and that is the biggest reason people are unable to trust Boeing in the way they used to trust before the crash.

Current financial and production status of the company is (as of 2018)

Boeing produced 806 commercial aircraft, 96 military aircraft, and 2 satellites.

The total revenue was US$101.127 billion and the operating income was US$11.987 billion.

The net income and total assets were US$ 10.460 billion and US$117.359 billion respectively with total equity of US$ 410 million.

Conclusion

Every company has a downfall one time or the other but if the company has the strength to deal with it and rise again, it deserves to be trusted. Boeing is such a company and very soon its stocks will again become a leading choice among the investors.

STOCK SECTORS

The stock market is divided into multiple sectors under the Global Industry Classification Standard (GICS). There are 11 major stock sectors classified under GICS as follows-

  • Energy

Energy sector includes all the companies associated with oil, gas, coal, fuel and energy equipment and supplies. Judging oil and gas companies is very simple as one just needs to see the rate of oil. An uplift in the oil prices means the oil and gas companies are heading strong while the opposite happens in the case of downfall of prices. Mostly, the prices remain stable and so the companies are also stabilized.

  • Health Care

This sector will always remain profitable because medical aids are always required. The companies which produce pharmaceuticals and healthcare equipment along with the companies providing healthcare services are included in this sector. There are several big and well-recognized names associated in this field which have a reputation of selling the best medical products in the market.

  • Utilities

Electricity, gas, and water are our basic utilities and so the companies of this sector are never going to come down because these are the basic amenities on will always need. There are many regional and secure companies related to this sector and it is very safe to invest in the stocks of the utility segment of the stock market.

  • Real Estate

The companies operating malls, apartments, offices and senior living communities come in the category of the real estate sector. This is undoubtedly a very good sector because these companies get their income from the rent payers and the values of properties that usually tend to increase. One has to think less and invest more in this sector.

  • Materials

This sector includes all kinds of material producing companies in the field of metals, chemicals, construction, packaging, and paper. Such companies commonly deal in the supplying of these materials to other companies which further sell their products. One can consider this sector to be the backbone of several other sectors.

  • Financials

This sector includes insurance, real-estate and bank companies. This sector is very closely linked to the stock market. The increase and decrease in the interest rates of banks and other companies help one to judge and evaluate the profit or loss of investing here. This sector is highly profitable but also turns out to be speculative sometimes.

  • Information Technology

The growth in the field of technology is unstoppable and so is this tech sector. It is a sector which can bring massive profits to its investors. All kinds of software, internet, and semiconductor companies are included in this sector. There are big names and this sector has maintained its position of leading stock sector from the past few years.

  • Industrials

Many kinds of industries such as defense, construction, manufacturing, airlines, aerospace, and machinery come under the industrials sector. There are a lot of high profile and solid companies in this sector. It is also a stable sector that tends to give good profits to its investors because most of the companies have a well established financial background due to which the shareholders have to worry less about losses.

  • Telecommunication Services

Companies and online platforms such as websites and applications are all under this sector. The popularity of this sector is widely growing and it is considered to be a game of profit to invest in this sector right now.

  • Consumer Discretionary

This sector has one of the most popular companies under it because people spend much money on the products of these companies. The companies related to apparels, restaurants, retailers, hotels, autos, household products, and media come under this sector. All these companies are linked with the daily life of people which is why it is a good choice to invest in.

  • Consumer Staples

This sector is also somewhat related to the Consumer Discretionary sector because it includes the food, tobacco and beverage companies. Some of these companies also manufacture several products of personal and household use just like Consumer Discretionary. This sector is safe to invest in because all these products are used on a daily basis by all people.

Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) Fails To Impress Markets

Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) released its quarterly results on Thursday, but the stock ended the day at the level at which it had started. It came as a surprising turn of events considering the fact that many cannabis stocks and the wider market recorded gains yesterday.

Key Metrics

The company, which is primarily focussed on the CBD space, posted revenues of $21.5 million in the fiscal first quarter. It was a disappointing performance for the company since it reflected a year on year decline from the $21.7 million it posted in Q1 2019. The revenues declined sequentially as well.

On the other hand, it should also be mentioned that analysts had projected revenues of $20.8 million for the quarter, and the CBD specialist actually managed to beat it. However, CWH managed to reduce its losses to $11.5 million for the quarter from $18.8 million in the previous quarter.

That being said, it is a far cry from the $2.5 million profit that the company had posted in the prior-year period. The net loss per share came in at $0.11 per share, which was worse than analysts’ expectations of $0.06 per share net loss in the quarter.

The better than expected performance on the revenues front came as a pleasant surprise, and CWH credited it’s online direct to consumer platform for it. More importantly, CWH also stated in its press release yesterday that is expected that sales, through its direct to consumer platform, are going to rise further in the first half of this year.

On year on year basis, sales through online channels grew by as much as 30%, and the company would hope that it continues to grow over the coming quarters. Another important factor in CHW’s immediate future is its acquisition of CBD peer Abacus Health. The deal is worth $70 million, and it is believed it is going to be completed either in this quarter or the next one.

Is Cresco Labs Inc (OTCQX:CRLBF) Stock a Good Buy After The News?

Due to the overall slowdown in the cannabis space, some companies had put off construction projects, but Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) is one of the exceptions in this regard. This past Friday it emerged that the company has completed the expansion of its facility located in Brookville in Pennsylvania.

Major Development

It is a major development for Cresco Labs considering the fact that the company will be able to cultivate marijuana and also produce associate products at the facility. Prior to the expansion, the facility only had 22000 square feet of cultivation space but now it stands at as much as 88000 square feet.

However, that is not all. It is important to keep in mind that the company has also made an effort to make the facility an effective manufacturing hub. Cresco has installed both integrated safety systems and new extraction booths in order to boost the manufacturing process. The facility has been earmarked by Cresco to produce marijuana and related products for the entirety of the Pennsylvania market. Investors ought to keep an eye on the development with regards to Cresco, since the expansion could chart a new course for the company.

While this is one of the major recent developments at Cresco, it needs to be remembered that the company had also released its financial results for the fourth quarter of 2019 back in April. The revenues for the period in question were $41.4 million, which reflected a year on year rise of 144% and a sequential rise of 14%. However, the company’s losses in the fourth quarter widened as much as 10 times year on year to hit $45.2 million.

The company did not provide a figure with regards to loss per share, but if the total outstanding shares count is taken into consideration then the loss per share could be around $0.15 per share. While the revenues recorded a considerable jump year on year, it should be noted that Cresco Labs fell short of analysts’ estimates of as much as $49.8 million for the quarter.

Cronos Stock (NASDAQ:CRON) Falls After Earnings: A Good Buying Opportunity?

The cannabis sector has been in trouble for many months now, and some of the biggest companies in the sector have experienced steep declines in their stock prices. Cronos Group (TSX:CRON) (NASDAQ:CRON) has not been able to escape either, and in 2020 so far, the stock has declined by as much as 27%.

Earnings Review

This past Friday, the company announced its financial results for the 1st quarter, and it could be worthwhile for investors to take a closer look at the performance. Here is a quick look at some of the highlights and takeaways from the company’s first-quarter results.

Cronos’ revenues soared by as much as 181% year on year to rise from $3 million in the prior-year period to $8.4 million. That being said, it fell short of analysts’ estimates of $10.7 million. The company’s international operations, which rose by 100% year on year, contributed as much as $6.3 million to the figure. The revenues in its domestic market in the United States came in at $2.2 million, and the disappointing performance has been blamed on coronavirus related drop in sales.

The most surprising bit from the performance was the $75.7 million worth of profits generated by Cronos Group in the quarter. However, it should be noted that the profit had been generated only because of the revaluation of derivative liabilities to the tune of as much as $113.4 million for the quarter. Operating loss stood at $45 million.

One of the most important things to look for in a business in these troubled times is the sort of cash balance it possesses, and in that regard, Cronos is in a strong position. The company reported that it had cash, short term investments and cash equivalents to the tune of $1.3 billion as of March 31 this year. If its rate of cash burn remains the same, Cronos would need to look for fresh capital at some point in late 2021.

The expected growth in the cannabis derivative market in Canada is expected to be a major boost for Cronos. On the other hand, the company’s facility in Israel is expected to produce revenues in the second half of the year, and that is another major positive. However, the second wave of coronavirus infections could prove to be highly damaging to the company.

Curaleaf Stock Gains Momentum At Lower Level

Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) is now firmly established the biggest multi-state cannabis operators in the United States, and it has expanded its footprint to 17 states in the country. As such, it is also one of the better-known stocks in the cannabis space. That being said, the coronavirus pandemic has come as a major blow.

Major Triggers

Several industries are now in crisis, and it is more pronounced for the cannabis industry since many companies were already struggling with the cash crunch. In such a situation, it could be worthwhile to figure out if Curaleaf is worth investing in.

The company posted its financial results for the fiscal year 2019. Revenues grew from $77.1 million to $221 million, and while the growth is impressive, it is Curaleaf’s widening losses that could a cause for worry. Net loss rose by 13% to hit $69.8 million, and SGA (selling, general and administrative) costs jumped to $121 million from $65.3 million.

Cash balance depleted to $42.3 million from $266.6 million in 2018. Investors could hope to get an updated idea of the situation later on in May when Curaleaf announces its Q1 2020 financial results. However, it is almost certain that 2020 is going to be a challenging year for the company.

Curaleaf may have grown at an impressive pace, and with 53 dispensaries under control, the company is now the biggest cannabis operator in the United States. However, such size can prove to be counterproductive in the current environment, and it is believed that leaner operations could well prove to be more efficient. The scale of the operations may have been impressive prior to the coronavirus crisis.

That being said, the company could well manage to become a major player in the long term, and if cannabis is legalized at the federal level in the United States, then the payoff could be huge. Yet, investors also need to keep in mind that Curaleaf is also suffering from a cash crunch, and in order to stay in the game long enough, it would need access to capital. Hence, it could be prudent for investors to stay away from the Curaleaf stock at this point.