Is Aphria Stock (TSX:APHA) (NYSE:APHA) A Solid Value Buying in May?

The cannabis sector has gone through its fair share of difficulties over the past year, but some stocks have managed to garner interest among investors all the same in recent days. The stock in question is Aphria Inc (TSX:APHA) (NYSE:APHA). There had been a lot of optimism around the sector in the past, but over the past year or so, a range of issues damage the cannabis space significantly.

Key Analysis

Oversupply, slow rollout of stores and the continued presence of the black market are some of the factors. However, over the past month, Aphria has enjoyed a rally, and it is important to figure out if it is the top cannabis stock at this point.

While the Aphria stock is down 54% this year up until April 23, it should be noted that it has gained 28% over the past month and remains one of the five major cannabis producer stocks on the TSX. Its performances in the fiscal third quarter are possibly the reason behind the rally in recent weeks.

Revenues for the quarter soared to as much as $144.4 million, and that reflected a year on year rise of 96%. The sequential rise stood at 20%. While it made a loss of $9.6 million in the prior-year period, Aphria generated a net income of $8.7 million in Q3 2020.

Last but not least, investors should also consider the fact that at the end of the third quarter, the company had $551.1 million in cash and cash equivalents. It will help Aphria in navigating the current period of uncertainty effectively and also allow it to make strategic acquisitions if the opportunity arises.

While the present state of affairs at Aphria is promising for the stock, investors might be looking for a bump in the whole sector. However, the sale of cannabis has soared since March due to the lockdowns, and that is a major positive for Aphria. Many markets in Europe are also set to open, and that is another positive for the company.

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.

IPPR Stock Remains An Impressive Pick in The Cannabis Sector

The cannabis industry has been struggling, especially in 2020, due to the market sell-off and the ever-persistent woes within the industry. The COVID-19, however, might be able to help the industry, as more and more states may legalize the substance. With the financial crisis due to the pandemic, states could legalize the industry in order to generate significant tax revenues from the same, gradually giving way to legalization at the federal level. In such a case, the cannabis stock of some companies might be worth a buy. Innovative Industrial Properties Inc (NYSE:IIPR) is one such stock.

What to Expect Now?

The company provides long-term triple-net lease to state-licensed operators in states where cannabis is already legal. As per 2019 Q4 reports, IIP owns 51 properties- spread across 15 states – of which 98.9% is under the lease (based on square footage). These properties are mostly industrial while some other retail. IIP continues to remain one of the very few companies delivering profits and even paying dividends to its shareholders.

The company 2019’s results were also very impressive, with its revenue up by 202% year-over-year to 44.7 million dollars. The major contributor to this increase was the acquisitions made by the company. The company’s net income amounted to 22.1 million dollars- up by 293%- while the EPS stood at 2.03 dollars per share, showing an increase of 171%. The company’s dividend yield was approximately 5%.

As per the regulations, a retail estate investment trust in return for getting special treatment in tax is required to pay at least 90% of the taxable income generated each year as dividends. This implies that till the time IIP remains profitable, investors would receive their dividends.

As cannabis remains illegal at the federal level, companies within the industry find it difficult to raise finance from the financial institutions. IIP’s lease-buyback transaction gives cannabis companies cash for their growth. Thus, federal legalization might bring down profits of IIP.  The analysts, however, expect the company to show a growth of over 44% in the next year.

Is OrganiGram Stock A Good Buy in the CBD Industry?

The coronavirus pandemic has had a massively negative impact on a range of industries, and the cannabis industry was not completely unscathed from it either. However, things could be changing soon. In a new development, it has emerged that Organigram Holdings (TSX:OGI) (NASDAQ:OGI) has decided to bring back its employees to work.

Major Analysis

The company published an update on Thursday last week with regards to this matter. The company stated that it is going to get its employees back to work in phases in light of the fact that the coronavirus crisis has eased in New Brunswick, its native province.

According to OrganiGram, a total of 50 employees are going to return to work at its offices in Moncton. Depending on the safety and general health guidelines provided by the authorities, the company is going to take a call on the next phases. Additionally, the company’s business needs are also going to be a factor in the entire process.

However, it goes without saying that the announcement from OrganiGram has come as a positive for the industry at large. It remains to be seen if other producers in Canada take such steps.

The provincial authorities in Canada have handled the coronavirus pandemic quite effectively, and that has apparently given OrganiGram the confidence to start bringing back its employees. The company, however, added that the standard safety precautions that have now become the norm throughout the world are going to be implemented. Measures like social distancing, regular cleaning, and sanitization of surfaces are going to be followed.

Many cannabis companies, including OrganiGram, had gone through difficulties in recent months despite the fact that cannabis dispensaries had stayed open during the crisis. The industry had been in trouble even before the crisis due to a range of issues starting from oversupply to a slow rollout of stores in Canada.

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.

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.

Stock Trading Software

Any software which serves as an assistance to a user in analyzing and trading of stocks is known as a stock trading software. While some brokerage firms give the provision of trading software to their customers to manage their accounts but third-party trading software can also be purchased for better increments or improvements to the already provided software.

Application Programming Interfaces (APIs) and Electronic Communication Networks (ECNs) have given the stock trading software immense popularity and their usage is multiplying each day. There are several kinds of stock trading software but stated below are the key common features provided by such software-

  • Placing Trades-

One can place trades via trading software. Market orders, limit orders and some other orders of advanced type can be placed from trading software.

  • Technical Analysis-

There is a possibility of inclusion of interactive chart trading capabilities which further include both chart patterns and technical indicators.

  • Fundamental Analysis-

For the simplification of the work of their users, many trading software gives their users the right to extract fundamental knowledge such as analyst ratings, financial statements, and some other specific tools.

  • Programmatic Trading-

Advanced software reduces the task of the user by executing the trading systems programmatically instead of using manual commands for the same. This helps the users to analyze their work better because the software also provides the back-testing function.

  • Paper Trading-

This is for the ones who are not yet ready to enter the stock market. Some software provides paper trading to their users. This helps the customers to check how well they are capable of performing in the real stock exchange.

Before actually opting for stock trading software, it is important for the trader to check what their requirement is and also evaluate the kind of software that suits their needs. Also, one should decide on such software after seeing their financial status because all these things make the work easy but require money. Investing in stocks is putting money on stake and someone with limited finances should either not go for any software or choose software which requires minimal investment.

Many active traders’ common choice is for automated trading systems and for this purpose they could choose different and up to date trading software which does maximum work rather than just placing trades. The basic fundamental of every trader should be to maximize their profits and choose the software accordingly.

The best trading software to choose from are-

  • StocksToTrade

This software is most appropriate for penny stock traders.

  • Townsend RealTick

It is the best software for market data.

  • Profit.ly

This software is very well suited for all those who love day trading, i.e. day traders.

  • Eye in the Sky Trade Planning

For the ones who want accurate technical analysis, this is the finest software for them.

  • Jigsaw Trading

It is one of the top-rated software for decision support.

  • TurboTax Prep.

If anyone wants a software for tax preparation, this is the software one needs to download.

  • Stock Vision- Power Scan

This is best suited for the ones looking for screener software.

  • Worden Telecharts- TC2000
    Certainly, this software is excellent for the ones who require charting software.

How to get into stocks?

Getting into stocks can be compared to starting gambling for any new person at least. Stock market trading is full of jeopardy and uncertainty. Money can double in two days and one can even lose everything within no time. It is good to start with a less amount of money so that even if that is lost, one does not lose much. Let us have a look at the ways by which one can get into stocks. These are a few ways by which one can successfully enter the stock market and emerge victoriously.

  • The stock aspirant should always check his/her financial condition before investing. A person whose financial status is healthy and if it is permissible for the person to invest in another business only then one should put the money at stake. If one is in debt and the amount is hefty then it would be foolishness to dive into this very deep pool of stock exchange.
  • Having a well-maintained cash reserve is very necessary because investing less is only testing; actual trading is done when the investment is more. One needs to save enough money before trading so that the losses if one incurs them, do not affect the economic stability of that person.
  • Opening a retirement account may help the investor because then long-term investments are easy to make. These accounts are profitable to make and also sheltered from taxes, so double profit.
  • Low-cost online brokerage accounts are best to open when someone is in the initial stage of stock trading. Less amount of money is spent on the accounts and one can earn better profits. Once the person becomes successful in trading, anytime better and high-profile accounts can be opened.
  • Before starting with stocks, the stock aspirants can try their hand at mutual funds or Exchange Traded Funds (ETFs). Mutual funds offer better opportunities for a newbie. Once the person has mastered the trade of mutual funds, he/she can switch to stock trading for better profits.
  • When the investors choose index funds, they can trade in mutual funds better because then the tension is reduced up to a certain extent.
  • While investing one should step by step increase the amount of money invested by averaging the cost of the dollar. This can help in protecting against losses because the money invested gradually is not lost all in once and gives the investor time to recover the losses if incurred.
  • Taking some training before actually starting trading in the stock exchange is quite necessary. There are several online chat rooms, journals, and tutorials, both highly and moderately priced available on the web. Investors can choose as per their own discretion. This prepares the person for all sorts of situations that may be faced in the real world.
  • When someone finally enters in the stock market, one should grow gradually. Individual stock investments need to be made wisely so the investors should give themselves some time before making these depositions. When slowly and steadily the buyers invest in individual stocks, this can bring back fair profits.
  • Investments should be diverse and all the money should not be piled up at the same place. The investors can secure their money by investing in several types to stocks, funds, etc. Even in the case of stocks, the buyers should keep changing companies from time to time as per their progress.

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.

Motley Fool Stock Picks

Motley Fool is the best option for the people willing to get better stock returns by paying a nominal amount for getting the best stock picks. There are a series of 12 stocks per month which can give you best returns over the investment. The stock advisor picks have a proven record for outpacing the performance. It is not an interactive platform but a list of stocks having a good scope in the coming future. There will be a list of recommendations of the blue-chip winners across the board.

Motley Fool Stock picks are the best for buy-and-hold investors and the people who look for the reliable stock picks to invest. It is obvious to get transparent views for the new investors or the active people on the stock list. The most important stocks from the big listing are given through this stock. It doesn’t cover penny stock investments but you could check the low-rated stocks on the major stock exchanges to make an appropriate move. Moreover, there is no technical analysis done for the stocks. Online stock trading requires the right approach to pick out the right stocks from a list of many of them available. Fool’s Stock Advisory service can give twelve spot-on stock picks per month. There have been many examples depicting a growth of 392% with the stock pick returns. The package can be purchased for only $19 a month and the stock picks could really help you to grow your money.

Motley Fool Stock Advisor

This is the best plan for the newcomers who wish to enter into the stock world by getting information about the stock picks available. Your research can become easy by looking at the 12 stocks chosen by the experts. The stocks illustrated on Fool Stock list will have stocks having higher trade volumes and the right price. There will be no technical analysis presented for the investors but the fundamental analysis will be illustrated well. The financial statements, overall health, and competitors would be given by the application. Investment education is necessary for the stock analysts and this advisor platform has much to offer you at a reasonable fee.

We’ll focus on Favorites, Performance, Research and Community, which is where the bulk of important information is located. Everything can be viewed as per the different sections available on the website. You can collect and track your favorites and link your brokerage account to get buy/sell the recommendations on the stocks owned by you. The performance section is the data-rich portion of the website. You will get the stocks broken down into different categories. The list is updated on every Thursday where you’ll get the fresh list of stocks as well as the historical data.

There is in-depth research available for the stocks chosen by you. You will get trending and innovative topics on the web. The stock advisor research reports will help you to know about the companies and analyze them in an appropriate way. There are discussion boards focusing on the recommended stocks, earnings reports, latest news and comments on the recent articles. The website uses an intuitive user interface for getting the information immediately after signing up for stock advisor. The cost of a stock advisor is $99 annually or $19 a month.

Wall Street Survivor

Wall Street Survivor is an online stock trading platform to try the stock trading without paying off any charges. This fantasy stock trading platform gives realistic paper-trading experience and educates the investor in the best way. It works for demystification investing and personal financing through comprehensive education and interactive sessions. The concepts need to be broken into easy and understandable training for the most promising results. There are the best courses having a scope to learn the stock market virtually. Wall Street Survivor program helps in learning the stock trading concept in the most rewarding way to manage finances. There are many personal investment courses designed to teach the basics to set up stable finances with proper stock management strategies.

The aim of Wall Street Survivor is to give the right platform for practicing stock trading and participation in cash prizes. The concept of this platform is to keep discipline and practice with the fake money first before creeping into the world of real trading.

Opening an Account

Wall Street Survivor account is easy and quick to open. There will be only a few questions to answer and it even allows anonymous accounts. If you don’t want to get spammed, it will be required to get uncheck the boxes asking you for the same. The next steps will ask you if you are interested to take up their ‘special offers’ and if you don’t want them, click on ‘no thanks’ option. The website supports itself from the advertisements and you’ll get many of them in the account opening process.

After opening the account, you can log into the platform with $100,000 virtual money in it. You can buy stocks or ETF virtually on the stocks on major stock exchanges (NASDAQ, AMEX or NYSE). The platform allows you to look for the stock symbols easily. The usual information about stocks with their last price, bid, open, volume, P/E ratio, Earnings per share and other important details are given with the real-time quotations for a fantasy trading experience. There is a ‘Stock Talk’ section for each stock in which the members can post their comments about that particular stock. It is just like commenting on a particular blog post. There is a sense of community for the interactive experience of the stock analysts. The details about each stock are illustrated for making the right decisions for trading. These tools have the potential to invest in the most successful plan for investment. There is charting for each stock with many options you would expect from the charting platform.

To conclude, Wall Street Survivor is an appropriate platform for learning. This virtual trading software with the community feel has made it easy to come across the interactive sessions. The advertisements will be a bit of problem for the viewers but ultimately, the website will be good to make money and learn the right techniques of trading. The virtual learning experience gives a full feeling of real-time understanding of the trading methodologies and concepts.

ADRS

A flexible certificate which is issued by a depository bank in the United States is referred to as an American Depositary Receipt (ADR). This certificate characterizes a specific number of shares or can be issued for a single share also and even for making an investment in the stocks of any foreign company. Just like stocks, ADRs also trade on the U.S. stock exchange market.

One of the main advantages of ADRs is that one can trade on many stocks internationally also, because of which there is a dual benefit on both sides. Some of the international companies which are otherwise not unlocked to doing commerce on the United States market can also trade via ADRs.

ADRs are traded only in the denomination of American dollar. This makes the trader’s tension free in terms of trading because they do not have to deal in different currencies. ADRs deal in New York Stock Exchange (NYSE), NASDAQ, and American Stock Exchange (AMEX) and also via Over-the-Counter (OTC) contracts. United States’ stock market gets another plus point because any overseas trade is only made when the country shares the full financial report about the companies and their stocks.

ADRs are categorized as follows-

  • Sponsored ADRs

The foreign companies that get issued ADRs from American banks have to pay all the costs of the ADR and with this, they also get complete control over their transactions. An authorized contract is made between both the teams and the bank handles all the dealings. Such American Depositary Receipts are called Sponsored ADRs. Furthermore, the foreign companies should totally meet the terms set by the U.S. Securities and Exchange Commission (SEC) and also the procedures of American accounting.

  • Unsponsored ADRs-

Such ADRs are not for any foreign companies directly. These can be issued by banks to those foreign companies which have already obtained sponsored ADRs from any other bank. These ADRs can have different dividends. A foreign company can have only one sponsored ADR and various unsponsored ADRs.

The major difference between these two ADRs is that where the sponsored ADRs can trade via all transactions and on all major stock exchanges of the U.S., unsponsored ADRs can only trade through the Over-the-Counter (OTC) trades. Also, sponsored ADRs are generally registered and licensed with voting rights.

There is another classification stage of ADRs where these are sorted amongst various levels. These are stated as follows-

  • LEVEL 1

Not all foreign companies can trade with this type of ADR and some of the companies do not even meet the criteria to trade in this ADR. Such ADRs are not utilized to raise capital but they can be used to set up their trading existence. Also, these only trade via Over-the-Counter dealings. These are also more speculative than all other ADRs. Investors who take risks are the ones who typically deal here. Their cheap cost is the basic reason of attraction for many traders to make an investment in these.

  • LEVEL 2

These ADRs are also not employed in raising capitals but have the potency to create their trading presence. These are overall better than the Level 1 ADRs because they have better requirements from the Securities and Exchange Commission and also get superior trading volume and greater visibility.

  • LEVEL 3

These are the best because they along with establishing their trading presence also give foreign issuers an opportunity to raise capitals. These ADRs have to be completely reported to the Securities and Exchange Commission and this accounts for their greater transparency.

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.

Pre-Market Trading

Pre-market trading is defined as the buying and selling in the share market before the regular trading session begins. It starts from 04:00 am in the morning and has its peak time between 08:00 am and 09:30 am and it closes at 09:30 am from when the regular trading session starts. Examining the main points, strategies and effectiveness of the market is usually the main purpose of professionals fulfilled in this session. Also, this market is used by stock aspirants who are looking for better options and stocks in the hope of earning gains.

This trading is for the ones who have the patience to tolerate the delays and volatility of the prices. If there are pros of trading in the pre-market sessions, they definitely come with some cons too. It has very limited stocks to choose from and sometimes, even the quotes for several stocks are unavailable. Contrary to this, some companies make various important proclamations in such sessions. People can take the maximum benefit of such news in a session where less competition and better opportunities are there. Generally, the stocks of big and well-established companies get their trades in the pre-market session very easily. The reason is that people trust these companies and there are very rare chances that their prices will show any sort of fluctuation.

Pre-market trading bears the real fruit for a trader who knows all the tricks and has the tact of dealing in this industry. A trader experienced in the field of stock market trading is the right person to deal in this session. One has to stay all through active and alert during such sessions because different brokers open at different times in the pre-market. Looking for the best can take some time because one account may open at 04:00 am and another at 08:00 am. Therefore, constantly looking for better options is the best way to earn profits in pre-market trading.

Mentioned below are some sample stocks that can be traded in the pre-market sessions

  • MICRON TECHNOLOGY, INC. (NASDAQ: MU)

Dealing in the field of the semiconductor memory industry, this company was founded forty years back on 5 October 1978. It produces and markets all sorts of computer memory and computer data storage devices. Its headquarters are located in Boise, Idaho, United States. Sanjay Mehrotra is the current President and CEO of the company with David Zinsner as the Senior VP and CFO.

  • MCCORMICK & COMPANY, INC. (NYSE: MKC)

This is a food and processing company which has two business units namely Consumer and Flavor Solutions. It deals in the production, marketing, and distribution of all kinds of spices, seasonings, condiments, etc. 130 years ago, in 1889, Willoughby M. McCormick laid the foundation of this company in Baltimore, Maryland, United States and is presently headquartered in Hunt Valley, Maryland, United States. Lawrence E. Kurzius (Chairman, President, and CEO) and Mike Smith (EVP and CFO) are the current key people of this company.

Warrior trading review

Warrior trading was once a blog initiated by Ross Cameron in 2012. The mission of the blog is to create 50K freedom traders who aim at living their life independently by 2020. The company has over 5000 premium members with 500K active traders at the moment. This is a very good platform for active day traders requiring trading education. Warrior Pro service offers group-wise trader mentoring. It is the best option for people looking to work on their personal terms and seeking supplemental income. There are a large number of traders on the warring trading platform. The website provides structured training methods with extensive educative techniques for trading. However, the trading strategies discussed are mainly short-term and unsuitable for investors with lower risk tolerance.

Warrior Trading was nominated for Best Educator in 2016, 17 and 18 at Benzinga Fintech Awards. Warrior Trading’s position is the education industry leader and if you’re thinking about getting the best-paid education and mentoring services, Warrior Trading could be the best option you’ll be looking for.

Warrior Trading is an investment research platform focusing on imparting educational resources, chat rooms, stock market stimulators, and potential day traders. There are various courses like group mentoring, online courses, webinars and other resources designed to make you the perfect short-term trader. Warrior trading might be an option for supplemental income for the people doing any business or job as it would be a way to work on your own terms.

There are valuable guidance and education for teaching the traders about the pattern of trading. The style of successful trading can be learned with Warrior Trading through a chatroom discussion area during the market hours. It includes swing trading, scalping, and short-term day trading. The basics to advanced level techniques can be developed by using your own trading plan on trading successful formulas used by the expert traders. The courses offered by Warrior Trading require upfront cash to learn investment in the right way. You need to pay a regular fee to continue the use of Warrior Trading services after the initial learning phase is over. There is fair price included for checking out the webinars, online workshops and e-books.

Product offerings

The quality and extensiveness of the trading courses are the major benefits of the content of the trading courses. The course section has featured videos and teaching material with the downloadable transcripts. Once you are confident about the mastering of material, there is a quiz available to check out your knowledge. The material is created by the mentors and experienced traders having expertise in short-term marketing swings.

Starter Course: The starter course of Warrior trading gives an opportunity to learn to trade at your own pace. You will be able to check the online community and sophisticated tools, such as real-time trading stimulator. There are several topics included with fundamental and technical analysis.

Warrior Pro: There is a specialized 90-days trading educational plan to match the needs of traders having different experience levels. There are new learning programs aimed at getting the traders to move towards the expert path. This will include the Warrior Starter program features and access to masterclass courses, group mentoring sessions, chat rooms and scanner settings.

Tim Grittani

Tim Grittani is famous for the creation of the trading course Trading Tickers. It is a perfect study having a feat of turning $1500 into over 6 million dollars in three years. Grittani is termed as one of the famous ‘millionaire students’ written by Timothy Sykes. Grittani made used of the small accounts teaching himself to trade and found penny stocks through Tim Sykes study material. He shortlisted OTC stocks that were victims of pump-and-dump schemes. At present, Grittani has moved towards NASDAQ stocks from the OTC stocks.

Grittani shares all the trades on the trading journal website (profile name: kroyrunner) which is run by Tim Sykes, his mentor. There are no audited brokerage records given but he gives the winning and losing trades to his YouTube channel. Grittani is considered to be a transparent teacher in the industry.

Course

Tim’s trading philosophy is ‘trade the ticker, not the company’ and all the strategies defined by Tim are on the basis of this quote by Nate Michaud. The pace of every trader might vary in this case and they might take several hours in building their psychology for the personal trading journey. Tim’s suggestions can give you an idea to trade strategically but live trading will illustrate the actual mode to do the same.

Tim’s trading pattern makes him a unique trader. There are hundreds of trading courses available on the web and some of them would be stock promotions for the new traders. The trading pattern by Tim will revolve around OTC pump-and-dump schemes and tracking down the promoters to find out the ways to determine the long and short version. Tim can help you to walk through his methods for promotion of the trading concepts by a throwaway email or Google AdWords promotion.

After compilation of a large list of penny stock promoters, Tim tests each of them by checking their past records. The technical trading strategy is very clear: Look for the volume of the stocks traded, look to enter with the block trades and never trust a promotor for buying the stocks of their recommendation.

The trading of penny stocks will include most breakout strategies. Penny stocks are worth trading only when they are illiquid and trading in a particular range. Tim’s trading strategy is based on the penny stock breakout trading (trading and fading with the breakout).

Multi-day breakouts

This is a setup established by tip which includes a stock breaking out of a long-term ranging, consolidating for a few days and breaking off aggressively towards the upside level. The tips used are:

  • Buying into the strength at the breakout period of the stock.
  • Waiting for dips for the establishment of full position.
  • Dipping below the breakout level and not comprehending it as a failed breakout. It happens often in the OTC market.
  • Stop losses taken as an intraday support level.

When you hear about Tim Sykes, a lot of trading motivation comes inside and you will be prepared to see a rich figure. Grittani is no less than a dream seller and his specialization in OTC stocks is worth your understanding.

How to invest in marijuana stocks?

Marijuana stocks are the best way to get started for a penny stock investor. If you have not invested in penny stocks till date, this could be a great opportunity for you to explore. Marijuana stocks are super-hot stocks right now. The growth of legalized pot in various states of the US and Canada for medical and recreational use has led the investors to focus on the stocks.

If you’re interested to invest in marijuana penny stocks but don’t know the right way to begin, here is the full information about them. This sector is in trend right now due to legalization of pot in various forms. Some projects are new but require market capitalization to increase the annual marijuana stocks towards a much higher level. The marijuana market is expected to grow up to $150 billion or more after a decade, or so. As the sector is hot, the stocks could be hard to handle at times. The investors new to the marijuana world need to know what all to look and what to ignore while buying these stocks.

Marijuana Industry Basics

Marijuana have always been in trend for recreational purposes as a drug. In the present time, there are medications formulated by the use of marijuana and these trends have made it as a baseline for the stocks to grow. The dynamics are changing on the rapid basis and medical marijuana has become legalized in 30+ countries on global basis. The trend of recreational basis is common only in a few nations but the US and Canadian permissions have given a hint for the number to grow. Hemp was legalized at the national level in many US states in December 2018.

Tetrahydrocannabinol (THC) is the primary chemical responsible for causing the ‘high factor’ for the consumers. The chemical ingredient cannabinol (CBD) is not as psychoactive as THC and have been quite useful in the medical researches to control the problems like epilepsy, insomnia, and inflammation.

There are many products made from marijuana, like CBD oils, edibles, concentrates used in creams, lotions and vaping, beverages, flower, and many other forms. The marijuana industry stocks are involved in manufacturing and marketing of these products.

Investing in marijuana stocks

After getting the basics about marijuana industry, it is important to note the important elements of the industry. There are majorly three types of companies which could be considered in the investment of marijuana stocks:

  1. Marijuana growing companies: These companies are associated with the cultivation of marijuana in the indoor facilities and the greenhouses.
  2. Providers of ancillary products and services: These companies provide key services or products to the marijuana industry, like lighting systems, packaging, distribution, consultation, hydroponics etc.
  3. Biotech and Pharmaceutical companies: There are companies taking the medical use of marijuana for its benefit in the therapeutic industry. The medical use of marijuana is carried forward by many companies all over the globe and drugs are being manufactured for the treatment of chronic diseases.