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October 20 Earnings: General Electric - Higher Industrial OutputShares of General Electric have come under pressure in the last year due to management's uncertain theme regarding the company's future after GE Capital spin-off. The spin-off aided the company's focus on its core industrial business providing core products and services to fast growing industries. Following higher industrial output numbers and an overall increase in demand from the aerospace and military, GE should be turning around. Strong demand for its software and its focus on Internet solutions should boost margins in the coming years. I believe General Electric will cruise through this quarter, however guidance will remain shifty. I'm starting General Electric with a $28.00 PT for the post-earnings move with a tight stop at $22.00
NYSE:GELong
by TraderDanER
October 19 Earnings: Verizon Communications: Recovery TimeThe company has been under immense pressure overcoming spectrum crunch and stiff competition in a saturated market. Verizon's purchase of Yahoo!'s services will allow the company to boost its online offerings and penetrate a new market. The company's new prepaid offering will aid revenue streams as well. Weaknesses in the company is impact from Hurricane season with decreased services output. A further weakness is the still saturated market with stiff competition forcing lower prices. I believe the company's turnaround phase is in full effect and the company should report a solid beat. I'm starting Verizon with a $52.50 PT for the post-earnings move.
NYSE:VZLong
by TraderDanER
October 18 Earnings: United Airlines-Hurricanes, Expenses & FuelUnited Airlines has its second largest hub in Houston, Texas where 7,400 flights were canceled over the course of the Hurricane. The company expects PRASM to decrease 3.5% to 4% due to impact from the Hurricane. Slightly higher fuel prices should impact YoY comparisons even if an overall edge is still present. I believe the company's higher expenses, catastrophe PRASM loss and high YoY comparison will hurt the quarter. I'm starting United Airlines with a $58 PT for the post earnings move.
UShort
by TraderDanER
October 17 Earnings: Johnson&Johnson- Generic Competition GaloreJohnson & Johnson has been on an impressive intra-quarterly run with solid performance across major segments. Strengths in the company's performance are to be driven by: -Imbruvica and Darzalex should continue to perform well. Meaningful improvement from Stelara and Xarelto. -New product launches like Tremfy (approved in the US late 2017 for plaque psoriasis) -Revenue contribution from Swiss biotech Actelion, which J&J bought in June. -Medical devices segment is expected to continue its strong growth trajectory with new product launches. Weaknesses for the quarter are expected to be: -Key arthritis drug Remicade to remain under pressure from generic competition. -Invokana hurting from higher managed care discounting. -Sluggish FDA review requiring more information before approving new drug treatments. -Lawsuit from Pfizer to be clarified during the conference call. Overall, I believe high expenses and generic competition will overcome the positives for the quarter. I'm starting Johnson&Johnson with a $130 PT for the post earnings move with a tight but flexible 2.5% stop.
NYSE:JNJShort
by TraderDanER
October 16 Earnings: Netflix - Seasonal Correction & CompetitionNetflix has been on a strong growth trajectory over the past 5 years, posting solid subscriber growth. I expect that to continue into the foreseeable future, but believe seasonality will kick in. Wall Street expects the company to report 4.4M new subscribers for the quarter. 3.65M subscribers in the international markets and 0.75M in the domestic market. I believe seasonality and competitive launches will underwhelm growth and guidance in the current quarter. Companies like Amazon, Apple and Pay-TV Stocks like Time Warner have begun to take back some market share. Notably, the strength of Game of Thrones on HBO and others has drawn consumers. The company's high content costs and international expansion should continue and dampen seasonal profits. I'm starting Netflix with a $160 PT for the post-earnings move with a tight 10% move stop adjusted accordingly.
NASDAQ:NFLXShort
by TraderDanER
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October 3 Earnings: Lennar - The Luxury Housing God Lennar has had an impressive performance record with a recovering economy and housing market. The company's continued effort on Real Estate development and Financing is fueling sales growth. Earnings should get a boost from cost cutting and operational efficiency efforts. Sales, however, are expected to dampen in the quarter with 120 homes deliveries postponed due to hurricanes. Rising construction, labor and land costs are expected to damped earnings luster. I believe the company will provide healthy guidance and beat expectations. I'm starting Lennar with a $60.00 Price Target heading into 2018.
NYSE:LENLong
by TraderDanER
October 10 Earnings: Barracuda - The Security Growth Story Barracuda Networks has been on a stellar trend since they revamped their storage and SMB offerings in 2015. The company's share price has gained over 250% since lows. Barracuda's latest offering, Barracuda Sentinel, is helping boost subscribers to over 335K as of its latest release. The company is expected to grow 2018 sales over 7% and 2019 at over 9%, with conservative estimates. Cloud Security services are expected to grow at over 25% CAGR through 2022, allowing Barracuda to capitalize on subscriber growth. Email Security, the company's strong suit is expected to grow around 7% through 2020, retaining consumers. The number 1 risk is competition. The market is an incredibly dense one with the likes of: Proofpoint $PFPT Cisco Systems $CSCO Microsoft $MSFT Symantec $SYMC Mimecast $MIME Among others, all expected to grow security and cloud offering in double digits through FY 2019. I believe the reward outweighs the risk for the to-be-reported quarter and start Barracuda with a $30.00 PT. PT is 2-3 months, allowing for greater price flexibility.
CLong
by TraderDanER
October 11 Earnings: Delta Airlines - Fuel, Fuel, FuelAll major airlines have enjoyed solid financial upbeat since Oil $USOIL has remained under $50/barrel. Delta Airlines has subsequently hiked their dividend throughout the quarter and increased share buybacks. The company is also committed to paying down debt while financial conditions allow for it. The ITIA's latest data reports a Load Factor of 84.7% - Optimistic readings for airlines. Traffic growth remains high at 6.8% as more people take to the skies and shipping increases. I believe this quarter will be bullish for airlines following the summer season. I'm starting Delta Airlines with a $55.00 PT for the post-earnings price action.
NYSE:DALLong
by TraderDanER
October 5 Earnings: Costco- Will eCommerce Ware Off Competition?Costco reports on Thursday, October 5th after the closing bell. Heading into earnings, the company has a fairly straight forward R/R portfolio: - Costco enjoys being a major retailer in the US with a wide array of products in multiple markets. - The company's eCommerce capabilities are picking up steam and contributing meaningfully to revenue. eCommerce global expansion is aiding sales growth. - Costco's membership club is expanding and drawing in customers in the US and globally. - The overall market is a fierce competitive one, with giants like Wal-Mart $WMT and Target $TGT, among others, fighting for every consumer. - Consumer spending, although picking up from highs, remains at a sluggish growth rate, hurting industry prospects. I believe the pros will outweigh the cons for the expected quarter and Costco will beat expectations. Starting Costco with a $178.00 Price Target for the post-earnings price action.
NASDAQ:COSTLong
by TraderDanER
Portfolio Position: Kroger Company (NYSE:KR)Kroger operates over 2,790 retail food stores alongside pharmacies, fine jewelry, health clinics and food production facilities. The company's share price has suffered in the past 2 years on behalf of rising concern of stiff competition and recently on the news of Amazon buying Whole Foods, being seen by analysts as having the most to lose from the tech behemoth's foray into the mass market supermarket grocery industry. Favorable Factors Impacting Kroger: Individual Royalties Kroger has faced off competition with smart pricing performance to enhance their competitive edge and works on expanding stores and facilities to penetrate new markets. Acquisition Synergies The company has worked to grow inorganically through strategic acquisitions that fit their grocery and in-store pharmacies, like their recent ModernHEALTH acquisiton. Foreign Currency Kroger should benefit from the recent descent in the value of the USD creating a better imports environment and reducing purchasing power for the US Consumer. Low Inflation Besides boosting assets prices vs. consumer goods prices, forces retail companies to favor cash hording instead of capital investment. Kroger has seen this effect as stagnant product price growth has limited its natural growth factors and lowered investment. Oil Prices The historically low price of oil throughout 2016 and 2017 has been good for retail companies with lower delivery and transportation costs and higher spending by the US Consumer, who look to spend the money saved at the pump with lower gasoline prices. This factor has favorably influenced Kroger's sales and, with oil prices expected to remain relatively low, will remain a favorable condition in the years to come. Investment Risks: Competition Kroger's number 1 risk is competition. With Amazon's $AMZN recent acquisition of Whole Foods there is worry that customers will be drawn away. This is evident by recent reports of traffic monitoring firms, yet I believe these fears are overdone and pricing will remain the major driver and not brand recognition. The company's strong eCommerce capabilities will battle Amazon's Whole Foods. Pricing Pressure The company's efforts to compete by lowering prices hurt their bottom line, shrinking 2016 EPS over 30% and 2017 EPS over 11%. Although management has committed to cutting costs and boosting operational efficiency, it's hard to see significant upside until eCommerce maturation. Conclusion: I believe the company is way undervalued at current levels. While you wait, the company pays an easily sustainable $0.125/quarter dividend, amounting to a 2.43% annual yield. I'm starting the company with a $30 price target into Q2 2018 with a Strong Buy. Ultimately down the line, I believe Kroger will conservatively be trading over $45/share. For the full article: seekingalpha.com
NYSE:KRLong
by TraderDanER
XRPUSD MARKET ANALYSISDowntrend seems very strong in the XRPUSD pair. After brief attempts to reverse a couple of days, bulls keep dominating the market. However, price is sitting on support right now. If you are holding XRP mid-term, a break of support should lead to a short position until trend reverses. If you are looking forward to go long, a reversal and break trough the next resistance level could lead to 57% profit or 24% loss Indicators show trend is far from a reversal though.
KRAKEN:XRPUSD
by WaineNZeddmo
LTCUSD MARKET CONDITIONSDespite LTCUSD is currently showing a H&S pattern, LTC has lately proven to be a safe heaven when BTCUSD pair is heading south. Under current BTC expectations, a divergence observed in the 2H chart suggest a change in the pattern. This could lead us to range market conditions or bullish divergence. Also, on the 1H chart, price is over MA20, MA50, MA100 and MA20 about to cross over MA50. Stop-buy orders can be placed over current resistance level with immediate target at 44, and considering the next resistance level in the 45-48 area. Stop-loss at 40.9 will define Risk/Reward Ratio of 2. Of course these days market is very volatile due to Segwit. Check indicators before placing your order
BITFINEX:LTCUSDLong
by WaineNZeddmo