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Long Term investment Idea Zydus WellnessZydus Wellness is a company with strong Market share about (90%+) in Sugar substitute products. Sugar-Free is synonymous with Sugar substitute. The other brands associated with the Company are Complan, Glucon-D, Everyuth, Nycil, Sugarlite, Nutralite, SugarFree D’lite etc. CMP of the share is 1481.65. Negatives of the company are High valuation (P.E. = 31.6), Declining cash flow and Mutual Funds decreasing stake. Positives of the company are Zero promoter pledge, no debt, improving annual net profit, improving quarterly net profit, and FIIs are increasing stake. Entry in the stock can be taken in Two parts 1st after closing above 1486. 2nd after closing above 1537. Target will be1580. After closing above 1580. The long term target in the stock will be 1641 and 1712. The stock is a long term investment idea. The stop loss in the stock can be maintained at a closing below 1372.
NSE:ZYDUSWELLLong
by Happy_Candles_Investment
Alibaba set to break long down trendFor various reasons, the Chinese tech giant Alibaba has been in a downtrend since October 2020. The company has had many headwinds, most of them related to the regulatory environment in China. Most of those issues now seem to be resolving, and I think BABA will be one of the better performers in the coming year. The China Credit Impulse A major leading indicator for China stocks is Bloomberg's "China Credit Impulse" index. As the following chart from MacroMicro shows, the credit impulse's last peak more or less coincided with the last peak in Alibaba in October 2020: As you can also see from the chart, the credit impulse now seems to have bottomed and is improving, a bullish sign for China stocks and for Alibaba in particular. Whereas the US and most other developed nations have been raising interest rates, China is actually in a rate-cutting cycle. Key policy rates in China have only been cut by about 15 basis points, so I don't want to make it sound like they're cutting rates drastically, but they're certainly not raising them, and there's no sign yet that they intend to do so. That makes China potentially a safe haven from rising rates in the US and other developed markets. countryeconomy.com US Delisting Risk For the last couple years, the US has been making noise about delisting China ADRs (the depository shares that China companies use to trade on US exchanges. The SEC has been demanding that Chinese companies comply with US accounting regulations, and the Chinese government has been making it impossible for these companies to do so. At the same time, China enacted a crackdown on big tech companies. The crackdown included steep penalties imposed on Alibaba, including a $2.8 billion fine for monopolistic behavior. The Chinese government also disappeared Alibaba's founder, Jack Ma, for three months. This is "the big one" for Alibaba, but the problem recently seems to be headed toward a resolution. Jack Ma eventually reappeared in Hong Kong and has dutifully been doing as he's told, including restructuring Ant Group and selling off media companies to address the Chinese government's monopoly concerns. Last week, the Chinese government signaled through state media that the tech crackdown should be over soon, and that the Chinese regulatory commission will support companies in complying with US accounting requirements so that ADRs can remain listed in the US: www.cnbc.com While this isn't yet a done deal, it looks really promising and could lead to a large rally in China stocks if and when it gets across the finish line. Zero Tolerance Covid Policy China has had a policy of zero tolerance for Covid, which means the whole country goes into lockdown every time a Covid outbreak happens. This one is not as big a deal for Alibaba, because it's an ecommerce company and thus potentially a beneficiary from people staying home. But I suspect that if China ended this zero tolerance policy, the entire China stock market would rally, including Alibaba. There have, indeed, been rumors that China may end the policy, as reported by the LA Times: www.latimes.com China has a pretty high vaccination rate overall, but they've used the somewhat less effective Sinovac vaccine, and the elderly population surprisingly has been less willing to get vaccinated than younger people, so death rates in the current outbreak have been pretty high. This may make it difficult to end the zero tolerance policy, but they have to end it sometime, so we'll see. Alibaba Valuation and Buybacks Alibaba's got something like an 8% free cash flow yield, which makes it a pretty incredible value for a big tech stock. EV/EBITDA is about 10x, which is mid-range for China's consumer discretionary sector and way below US tech firms of comparable size. The valuation makes BABA hard to resist. They could flush half their capital down the toilet and still be a better value than a lot of US tech. And the signs are that they plan to deploy their capital well rather than poorly. Yesterday Alibaba announced that it will increase its buyback program from $15 billion to $25 billion, which means it will opportunistically take advantage of low share prices to efficiently return capital to shareholders. That's called good capital allocation, and it's one of the things I look for in an investment. It's a really good sign for Alibaba here. Technicals As you can see from the chart, Alibaba has been in a long downtrend. It looks ready to attempt a breakout from that downtrend, however. I'm adding on any pullback to the 112-116 range and looking for a test of that downtrend line probably within a couple weeks.
Editors' picks
NYSE:BABALong
by ChristopherCarrollSmith
31
CTS - #TeslaDisclaimer This analysis is designed to provide information that CTS believes to be accurate on the subject matter, but is shared with the understanding that the author is NOT offering individualized advice tailored to any specific portfolio or the particular needs of any individual. The author of the analysis specifically disclaims any responsibility for any personal or other loss or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this analysis.
NASDAQ:TSLALong
by CaliforniaTS
AMZN the no-brainer stock.In today’s post, I will be covering Amazon($AMZN). I am sure you all have heard of the company due to do its reign in e-commerce. However, that is just a drop in the bin. I believe that cloud computing, AWS, is the main driver of its net income. I will not get into specifics but they are powering big-name players like; Netflix, Twitch, Facebook, LinkedIn, Twitter, etc. Along with their e-commerce and cloud computing, they offer one of the best streaming services that will soon be broadcasting global events such as NFL, Premier League, and more. Additionally, they own a large market share in gaming and audiobooks through Twitch and Audible. Did I forget to mention they own Whole Foods, an outlet for retail distribution? They are revolutionizing everything they do while providing low prices to consumers, one of the main reasons I think they will not be broken up. However, today’s headline, “Biden Weighs New Executive Order Restraining Big Business” (WSJ), brings some skepticism. Regulation in various facets is their biggest headwind. Nonetheless, even if they are broken up, you would still want to own the previously mentioned businesses in isolation. As seen in the image, the company has been trading in a range from 2900-3500 (Red/Blue horizontals) for about a year now, while the rest of Mega-Cap Tech (Microsoft, Apple, Google, Facebook) has steadily made all near all-time highs. I think it is on the verge of a technical breakout (breaking out of the previous trading range) as they continue firing on all cylinders and growing the business vertically and horizontally. In the world of finance, I often do not like to make decisions in isolation. That being said the conjugation of all previous factors provides a decent investment thesis. It is currently around $1. 74T. I think it will, sooner than later, cross the $2 trillion market cap, (+12%) that competitors Microsoft and Apple smashed. Could you imagine a world without Amazon? It wouldn’t be better in my opinion and I do not see that changing in the near future. In the long run, the companies growth will slow and the company will transition away from reinvestment to shareholder distribution (dividend). Con: Regulation + Tech Drawdown + Treasury Rate Increases Pro: Businesses + Technical + Smart Money
NASDAQ:AMZNLong
by howdydany
Multichoice retracement is in orderThe company announced a partnership with Netflix and Amazon Video. Seems like another HBO content deal. They also announced the introduction of a 'new' platform. The support service is terrible and the various streaming platforms seem broken at best. Recently the company has experienced continued declines in the number of DStv Premium and Compact Plus subscribers in South Africa. I guess this is there response, lets see how streamers repond to 'new' products in the coming months. A retracement is in order, at the very least.
JSE:MCGShort
by serioussam81
LONG FACEBOOK: 7% PULLBACK & SOLID FUNDAMENTALSWanted to make this post as FB as opened up a chance for a lower risk entry point. FB has pulled back 6% which is the first time in months that it has given any $ away to the market - hence i recommend buying and holing until 1$20. Trading strategy I suggest buying in a pyramid, and adding more long FB if it continues to fall e.g. 1@114 2@111 3@10 6 etc As FB is such a strong stock in terms of net income and revenue (grew 250% yoy in april) and holds a monopoly in the social media market. Volatility - Vols have been trading higher for FB in recent days, with Implieds trading much higher (26% vs 14%) than HV possibly inferring that the market is expecting further pull backs BUT the above trading strategy is built for a scenario like this (and actually is more profitable is FB continues to fall) - One thing to note is that it isnt really shocking for FB Imp Vol to be trading higher, since price falls = higher vols in general - and i may add that implieds are still only trading at the 40th percentile , i consider 80th to be extreme/ worrying so we have some cushion before we get to that. - Finally FB risk reversals are trading at +0.8, meaning in the options market we are seeing more demand for calls at these levels - this is a bullish bias for the spot stock market also as it is an indicator of overall sentiment. Volume - FB volume has spiked predictably, as we would expect in a falling market, but it still trades about the average so i think Supply/Demand is balanced so it is safe to enter. -I would like to see volume trade below average in the coming days to help give us a bullish push but i am not worried if not - infact i would prefer some further downside since FB hasnt given us much for months. Technicals - We have a nice support handle at 113, 110, 108 - clear re-entry points for me. FB ATR is trading below average which is good meaning price volatility isnt too stochastic, and this is just a controlled pullback. - It also looks like FB is just filling the earnings gap it created in April. The actual candles formed have traded about the median, with equal wick/ range lengths higher/lower, which also suggests this downside doesnt have too much momentum, as i would expect to see the price close at the lows if this was the case. - Also as you can see FB is trading at the -2SD level on the 4h, which historically is a good level of support and another + for entry. We have also just crossed the 60 day VWMA meaning that FB is trading at a cheap price which is good for entry and a higher probability trade.
NASDAQ:METALong
by QuantumLogicTrading