Tag Archives: NFLX

Tuesdays Vital Data: Tesla Inc (TSLA), United States Steel Corp. (X) and Netflix, Inc. (NFLX)

U.S. stock futures are trading broadly lower this morning. Rising bond yields and a strengthening dollar are to blame, once again. The Treasury Department will auction $28 billion of 2-year notes, $35 billion of 5-year notes and $29 billion of 7-year notes this week. The influx of new treasurys is driving prices lower and lifting yields, sending stocks tumbling.

stock market todayHeading into the open, Dow Jones Industrial Average futures are down 0.65%, S&P 500 futures have fallen 0.59% and Nasdaq-100 futures are lower by 0.55%.

Turning to the options pits, volume was brisk on Friday. Overall, about 25.4 million calls and 21.3 million puts changed hands at the end of last week. The CBOE single-session equity put/call volume ratio fell to a one-month low of 0.52. The 10-day moving average dipped to a one-week low of 0.69.

Taking a closer look at yesterday’s options activity, Tesla Inc (NASDAQ:TSLA) saw mixed activity on Friday after reports surfaced the company had produced 300,000 vehicles. Meanwhile, United States Steel Corporation (NYSE:X) options volume surged after President Trump said he was considering steel import tariffs. Finally, Netflix, Inc. (NASDAQ:NFLX) call volume lingered a day after the company received a price-target bump and bullish research note.

Tuesday’s Vital Options Data: Tesla Inc. (TSLA), United States Steel Corp. (X) and Netflix, Inc. (NFLX)investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-300×132.png 300w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-200×88.png 200w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-400×176.png 400w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-116×51.png 116w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-100×44.png 100w,https://investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-114×50.png 114w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-78×34.png 78w, investorplace.com/wp-content/uploads/2018/02/02-20-2018-Top-Ten-Options-170×75.png 170w” sizes=”(max-width: 570px) 100vw, 570px” />

Tesla Inc. (TSLA)

Hitting the 300,000-vehicle production mark should have been a point of celebration for Tesla stock investors. Bloomberg’s Tesla production tracker reported the milestone this weekend. However, production issues for the Model 3 have undermined the revelry.

Specifically, consumers who preordered the Model 3 may be in for a bit of a shock, as the $7,500 electric vehicle tax credit begins to phase out after Tesla sells 200,000 vehicles. Some competitors, like Chevy with it’s Bolt, are reporting defections from the waiting list to take advantage of the tax credit. However, Chevy is also nearing the EV sales cap.

Worried that more defections could be on the way, TSLA stock options traders expressed concern on Friday. Volume on TSLA rose to over 253,000 contracts, with calls only eking out 54% of the day’s take. Pessimism is growing thick on Tesla heading into March, with the front-month put/call open interest ratio rising to 1.20. Look for this ratio to trend higher as this story develops.

United States Steel Corporation (X)

Last week, the U.S. Commerce Department recommended tariffs on steel and aluminum imports, sending steel stocks like U.S. Steel soaring. President Donald Trump has said he is considering the tariffs, after signing similar tariffs in the solar industry last month.

While X stock rallied nearly 15% on the news, options traders weren’t nearly as enthusiastic. Volume rocketed to 245,000 contracts on X stock, nearly six times U.S. Steel’s daily average. Calls, however, only made up 64% of the day’s take — a figure that should have been higher given X stock’s rally.

Furthermore, much of this call activity may have been profit taking. X’s March put/call OI ratio rose to 0.90 after Friday’s activity. In other words, despite added call volume, puts were added at a faster pace, suggesting many of those call trades were closeouts.

Netflix, Inc. (NFLX)

On Thursday, GBH Insights reiterated it’s “highly attractive” rating on Netflix stock and lifted its price target to $310 from $255. According to GBH, the new target reflects stronger-than-expected subscriber additions for the rest of the year. NFLX stock rose more than 5% on Thursday, but lost about half that gain on Friday.

Still, NFLX options traders have remained bullish. Volume on Friday came in at 203,000 contracts, with calls making up 64% of the day’s take — a relatively high percentage historically for NFLX.

Looking out to March, we find that the put/call OI ratio is in flux. The reading has fallen in recent weeks to 0.70, down from near-term highs north of 0.90. However, this ratio is still in the middle of NFLX’s annual range, indicating complacency toward the shares.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Hot Start to 2018 Pushes Markets Higher

U.S. equities pushed confidently higher on Tuesday, the first trading day of the new year, resulting in the best kickoff for the tech-heavy Nasdaq since 2013. Bitcoin was hot. Gold well bid. But bonds were slammed, pushing up yields, in a possible sign that inflation and economic growth expectations are rising and will put further pressure on the fixed-income market.

In the end, the Dow Jones Industrial Average gained 0.4%, the S&P 500 gained 0.8%, the Nasdaq Composite gained 1.5% and the Russell 2000 gained 0.9%. Treasury bonds declined, the dollar weakened again, gold gained 0.5% for its eighth consecutive gain and crude oil lost 0.1% after a run of strength.

Energy stocks led the way, in what could be possible sector rotation as crude oil tests above the $60-a-barrel threshold for the first time since 2015. Utilities were the laggards on yield pressure, falling 0.9%.

Netflix, Inc. (NASDAQ:NFLX) gained 4.8% after being upgraded by analysts at Macquarie noting changing consumer preferences to ad-free television and the impact of a second round of price increases. Citigroup analysts believe there is a 40% chance the company is acquired by Apple Inc. (NASDAQ:AAPL).

Nordstrom, Inc. (NYSE:JWN) gained 3.7% on an upgrade at JPMorgan on expected tailwinds from stock market gains and tax cut stimulus. On the downside, Sirius XM Holdings Inc. (NASDAQ:SIRI) lost 2.9% on a downgrade from JPMorgan on increased royalty costs.

On the economic front, the Market U.S. Manufacturing PMI came in slightly better than the flash reading, indicating the strong pace of factory activity in 11 months. Job growth was at the strongest since September 2014. And Eurozone activity increased to its best level since the survey began in June 1997.


With the books closed on 2017, the die has been cast: It was a record year, with stocks rising on a total return basis in each and every month for the first time in history.

For now, the consensus on Wall Street is that the uptrend will continue.

Goldman Sachs is looking for “rational exuberance” in 2018 on a combination of strong GDP growth, low and slowly rising interest rates, and profit growth driven by the recently passed GOP tax cut legislation. JPMorgan says investors should “Eat, drink, and be merry” in the new year on higher consumer spending and an even tighter labor market.

But others, including Societe Generale and Bank of America Merrill Lynch, are sounding the alarm. The former is looking for the S&P 500 to drop to 2,000 by the end of 2018, a loss of 26% in what would be a bear market decline.

The latter, courtesy of strategist Michael Hartnett, fears a 1987/1994/1998-style “flash crash” within the next three months caused by rising interest rates.

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Checking in with seasonality, the folks at the Almanac Trader note that January has had a volatile reputation since 2000, with 10 of the last 18 years featuring nasty declines starting with the 5.1% pullback that kicked off the dot-com collapse. January 2009 featured a 8.6% loss that was the worst January on record going back to 1930.

Mid-term election year performances were also tepid, as shown above. SentimenTrader notes that options traders are betting heavily on a spike in volatility in the coming weeks. And these folks tend to be right at extremes.  

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

Anthony Mirhaydari is the founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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Bitcoin Feels the Pain as Stocks Inch Higher

Stocks moved slightly higher on Thursday in a quiet holiday session. Bitcoin provided a dose of excitement, however, with prices falling back below $14,000 in the wake of reports of a possible regulatory crackdown in South Korea — including requiring exchanges to verify user identities to fight money laundering activity — and work of another “hard fork” before the end of the year.

In the end, the Dow Jones Industrial Average gained 0.3%, the S&P 500 gained 0.2%, the Nasdaq Composite gained 0.2% and the Russell 2000 gained 0.3%. Treasury bonds declined, the dollar fell, gold gained 0.4% and crude oil added 0.5%.

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Defensive telecom stocks led the way with a 0.5% gain while consumer staples were the laggards, down 0.2%. Netflix, Inc. (NASDAQ:NFLX) gained 3.5% in an attempt to push back up and over its 50-day moving average. Altria (NYSE:MO) fell 1.6%. When Netflix and cigarettes are the height of the action, you know Wall Street is mostly shut down.


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The overbought situation just keeps getting more and more ridiculous, with the weekly RSI indicator hitting levels not seen since the late 1950s as risk and worry fade away; replaced by ebullience and extreme confidence.

There is evidence that some areas of the market are braced for a possible changing of the tide come January, with the yield curve collapsing to its flattest levels since 2007, utility stocks rolling over, and the Nasdaq suffering mid-day sell-offs as traders exit crowded big-cap tech stock positions.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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Alphabet Inc Stock Will Continue to Rise… After a Brief Pause

Did you know that Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) went skidding into the end of 2017? Some investors may not have noticed the underperformance in Google stock, as it stumbled up to and through the holiday trading periods. On Dec. 18, Alphabet stock leaped to new all-time highs, before declining for eight straight days to end the year.

That’s a pretty notable losing streak, although it flew mostly under the radar. It also shouldn’t take away from the stellar 2017 GOOGL enjoyed, climbing 33%. Jump over to 2018 and Google stock has spent its time rallying. Through Thursday, GOOGL shares were up 5.5% in the new year.

In fact, most of the FANG stocks have been hot, with Facebook Inc (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) all starting the year off with a rally too.

So, what do we make of Google stock?

Like FB, and unlike NFLX and AMZN, GOOGL stock trades with a reasonable valuation given its earnings and revenue growth.

A Closer Look at GOOGL Stock

At first glance, Google stock appears expensive, trading at about 36 times its trailing earnings. However, its forward price-to-earnings (P/E) ratio is considerably lower, at 26. Analysts expect $41.56 in earnings per share for 2018, up ~29% year-over-year (YoY).

I don’t really like to look too far into the future. Because of Alphabet’s consistency, though, I couldn’t help but peak at 2019 estimates. Analysts forecast earnings per share of $48.64, up 17% YoY. In other words, Alphabet stock trades at just 22.5 times 2019 earnings estimates. Even though there’s a risk that these estimates are too high, I think it’s a real possibility that they’re too low.

In either case, we have a stock that’s growing earnings in the high-teens to low-20% range for the foreseeable future. Add in the fact that revenue will grow about 22% this year and 20% in 2018 and it’s hard to be bearish on GOOGL stock.

I also couldn’t help but take a look at the search giant’s cash flow. Operating cash flow (OCF) over the trailing 12 months sits at just over $36 billion. That’s more than one-third higher than where it sat at calendar-year-end 2015. It’s roughly double where it stood four years ago.

Likewise, the company’s trailing free-cash flow hit $27.50 billion, up more than 60% over the past 18 months. The impact of Ruth Porat, who joined Alphabet as CFO in 2015, should not be overlooked.

Google Stock Valuation

One thing I’ve never understood is the blue-chip mantra. Some investors tell me that buying Procter & Gamble Co (NYSE:PG) or Johnson & Johnson (NYSE:JNJ) is a sound choice, but they argue that buying a company like Alphabet or Facebook is foolish, as these stocks are too expensive.

They contend that PG, JNJ and others are blue-chip stocks with long histories of dividend payouts and an elite brand name. I don’t argue with any of that. However, is Google not considered to have one of the most powerful brands in the entire world? Further, is its forward P/E ratio of 26 and earnings growth of 20% not reasonable — even desirable — when compared to PG’s forward P/E ratio of 20 and earnings growth of 7%?

I don’t mean this a put-down of blue-chip stocks. Rather, it’s to point out other companies — absent a long history of dividends — deserve some premium for their brands too. Google fits that bill in my opinion, helping to justify its valuation.

Trading Alphabet Stock

As for the stock, we’ve got a relatively clean breakout. It’s important how it reacts now. In early December, Google stock had the perfect decline down to support, which held steady. After a big move over $1,090 to hit new all-time highs, Google stock is pulling back. While it’s still over this level, it’s unclear whether it will hold now or retreat.

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Click to Enlarge

Based on how it looks — because of that upper trend-line resistance — a pullback is looking more and more likely. Make no mistake, though, that’s actually healthy price action. While bullish traders can try to eek out a bit more on the upside, a longer-term swing looks more appropriate.

Aggressive buyers can step in now and add on a decline. More conservative investors can hope for a pullback and begin accumulating Google stock cheaper.

This is a great company and a stock that’s clearly looking to push higher. Don’t try to get too cute regarding when to buy.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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Yum! Brands, Inc. Is Transforming Into a High-Growth Company Again

It is an exciting time at Yum! Brands, Inc. (NYSE:YUM).

That may seem weird to say. The fast-food giant behind KFC, Pizza Hut and Taco Bell is often written off as less exciting than the likes of hyper-growth tech companies like Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL).

But here’s a fun fact: YUM’s projected earnings growth over the next several years (14.6%) isn’t that much lower than Facebook’s (17.4%).

How is that possible? YUM is innovating, adapting and transforming like never before. More specifically, the company is fully embracing a revolutionary transformation of its business model, which could handsomely reward long-term shareholders.

So whats the takeaway?

Buy and hold YUM stock. This one is going up in the long term.

Re-Franchising Efforts Are Paying Off

Late last year, YUM announced a massive business transformation plan which management believes will dramatically improve profitability.

In short, YUM is turning into a “pure-play” franchisor. The company is re-franchising essentially all of its locations (98%, to be exact, up from 77% franchise ownership in 2015). Yes, that kills revenues, but this revenue slicing is like getting rid of all the unwanted fat. Through re-franchising, YUM plans to create a business with low costs, few capital investments needs, small lease obligations, big margins, lots of free cash flow and huge earnings.

This transformation is already paying off.

YUM is currently at 95% franchise ownership. The huge re-franchising over the past 12 months has allowed for tremendous cost savings. Company restaurant expenses are down 10% year to date. General and administrative expenses are down 9% year to date. Operating margins are up 410 basis points at KFC, 600 basis points at Pizza Hut and 340 basis points at Taco Bell.

Consequently, even though YUM revenues year to date are down 4%, operating profits are up 33%.

Meanwhile, capital expenditures are at only $228 million year to date, versus $292 million through the first nine months of 2016. Capex is expected to be just $325 million this year, a near-25% reduction year over year.

The most exciting part of this transformation plan is that the best is yet to come. The G&A expense rate is expected to drop to 1.7% by 2019, versus 2.5% in 2015. Capex is expected to fall to $100 million by 2019.

With all those costs coming out of the system, the net result will be lots of profits and lots of cash flow. Most that cash flow will be returned to shareholders via dividends and buybacks, which will, in turn, fuel earnings growth and increase shareholder value (management expects to return between $6.5 and $7 billion to shareholders from 2017 to 2019).

Meanwhile, YUM’s brands are actually performing quite well, likely due to management’s ability to focus on same-store sales growth (as opposed to volatile China numbers). For the first time in multiple quarters, same-store sales growth was positive last quarter at KFC, Pizza Hut and Taco Bell. Moreover, system sales growth hit 6% for the second consecutive quarter, showing that the company has the ability to accelerate system sales growth to 7% in the near future.

Put it all together, and you have a company with an accelerating top-line growth narrative and a really big margin growth narrative. Why sell a stock with such strong growth drivers?

Valuation Is Still Reasonable

You don’t, unless valuation is a concern.

But it isn’t here. YUM is looking at greater than $3.75 in earnings per share by fiscal 2019. Historically, YUM stock has traded around 28 times trailing earnings. Given that YUM, in 2019, will have higher profit margins and more predictable cash flows than the YUM of the past 5 years, its almost a guarantee that 2019 YUM will warrant at least a 28 trailing-earnings multiple.

Throw a 28 mulitple on $3.75 earnings, and you get a 2-year forward price target of $105. Discount that by 10% per year and you arrive at a current fair value of about $87.

And that is without tax reform.

Bottom Line on YUM Stock

This is a big-moat company successfully undergoing a massive transformation, which will dramatically boost profitability and cash flows.

You don’t sell that story unless the stock is overvalued.

But YUM stock remains reasonably valued. Consequently, I think this is a name you buy and hold for the long term.

As of this writing, Luke Lango was long YUM, FB, AMZN, NFLX, and GOOG.

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money trading

In a brief press announcement Tuesday, Fiat Chrysler Automobiles NV (NYSE: FCAU) said it would be showing its new 2019 Jeep Cherokee mid-size SUV at the Detroit Auto Show in January.

Last week the company introduced a new 2018 Jeep Wrangler and most observers expect to see a new 2019 Ram 1500 pickup in Detroit.

With its new of the new Cherokee, Fiat Chrysler included four new photos and a very brief bit of text:

The most capable mid-size sport-utility vehicle (SUV) boasts a new, authentic and more premium design, along with even more fuel-efficient powertrain options. Additional images and complete vehicle information will be available January 16, 2018, at the North American International Auto Show in Detroit.

The Detroit Free Press talked to the head of Fiat Chrysler’s Jeep and Ram divisions, Mike Manley:

Cherokee for me is really important for the brand as well because it enters the biggest SUV segment in the world, and we’ll build on the progress that we made with today’s Cherokee and we launch that in the first half next year as well, so 2018 will be a very important year for the brand.

money trading: Prima BioMed Ltd(PBMD)

Advisors’ Opinion:

  • [By Monica Gerson]

    Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

    Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

  • [By Monica Gerson]

    Prima Biomed (NASDAQ: PBMD) shares dipped 38.59% to touch a new 52-week low of $1.44 after the company reported top-line analysis of CVac Phase 2 trial.

money trading: Netflix, Inc.(NFLX)

Advisors’ Opinion:

  • [By Kumar Abhishek]

    Netflix Inc(NASDAQ:NFLX)stock is retesting its 50-day simple moving average support line. The 50 day SMA has been acting as a strong support level for Netflix Inc stock over the past three months. PreviouslyNFLX stock had bounced back after testing the 50-day moving average towards the end of March. However, after hitting a new all-time high of $148.29 on March 30th, the stock gave up some of its gains, falling below the 20-day moving average support line, before finding support from 50-day moving average again. Given the strong support from 50-day SMA, Netflix Inc stock is likelyto bounce back going into its Q1 earnings. Netflix Inc is expected to release its Q1 report on 17th April. Netflix stock is in the middle of a major bullish trend, gaining around70% since the rally began at the end of July 2016. However, in the last two months, NFLX shares have been trading sideways due to the threat of increased competition from Amazon (NASDAQ:AMZN).

  • [By Douglas A. McIntyre]

    The Grand Tour represents two risks for Amazon. One is that it ups the original programming price wars, which reflectinvestments by Netflix (NASDAQ: NFLX), movie studios, and cable channels. When it released earnings, Netflix managementsaid it would spend $6 billion on programs in the next year. It is not certain that these investments are better than content licensed from other sources.

  • [By Peter Graham]

    Large cap Netflix, Inc (NASDAQ: NFLX) reported Q2 2017 earnings after the Monday market close with Wall Street, as usual, rewarding (or punishing) the stock based on quarterly subscriber movement rather than its actual earnings. This time around, analysts’ estimated there would be 3.2 million new subscribers; but Netflix easily beat those estimates with the shareholder letter noting:

  • [By Sreekanth Anasa]

    Disney CEO, Bob Iger at the earnings call gave more details about the company’s streaming plans. Iger stated thatDisney-content direct-to-consumer offering is coming in the latter part of 2019 and will be priced substantially cheaper than the streaming giant Netflix (NASDAQ:NFLX) but alsoacknowledged it will have much less content than Netflix at first. The entertainment giant has a lot to do before it comes anywhere close to challenging Netflix. With Disney planning to producecontent that will stream exclusively on the service, it has a lot of things going for its offering. Disney’s streaming service has a great chance of being successful with blockbuster films coupled with original content and predatory pricing. However, the success could come at the cost of its cable and satellite television providers as cord cutting could gain more pace by the time Disney’sdirect-to-consumer service is out, which as of now is scheduled for late 2019.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Tuesday was Netflix, Inc. (NASDAQ: NFLX) which traded down 4% at $150.99. The stocks 52-week range is $84.50 to $166.87. Volume was about 6.5 million versus the daily average of 6.2 million shares.


    Originally published Nov. 17 at 3:41 p.m. EDT

    The consideration of the contrary has been a theme all week. And here in ” Don’t Run With the Crowd: Embrace the Contrary.”   Miami madness (of a real estate kind)   Mark Grant is scared by our currency’s strength.   Danielle on scenarios.   Boockvar to subscriber Bad Golfer!   JC Penney ( JCP) short puts–a 100% win. (Shorting options frequently ends differently!)   Just say no to closed-end muni-bond funds.   DRYS is all wet.   Could iPhone manufacturing be coming back home?   On inflation breakevens–a picture that speaks volumes.   The market moved higher from the “get go”–in large measure it seems to be a response to the better economic data this morning.   At 3 p.m. stocks were near the day’s highs.   I shorted The Cisco Kid last night. Sticking with this short rental. I added to my ProShares UltraShort S&P500 ETF ( SDS) long (growing ever larger). My net short exposure–is now between small and medium-sized at the close. The U.S. dollar, as discussed above, continued to rip higher against the euro. I am concerned. Mark Grant is concerned. The market is not concerned. The price of crude oil (down $0.20) settled lower after yesterday’s robust gains. Gold fell $9 as it continues to break down–closing in on $1,200. Ag commodities: wheat up $0.07, corn up $0.04, soybeans up $0.05 and oats up $0.02. Lumber up $7 following the big housing number this morning. Bonds schmeissed … iShares Barclays 2

money trading: Chunghwa Telecom Co., Ltd.(CHT)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Friday, telecommunications services shares fell by 0.99 percent. Meanwhile, top losers in the sector included Chunghwa Telecom Co., Ltd (ADR) (NYSE: CHT), down 3 percent, and Shenandoah Telecommunications Company (NASDAQ: SHEN), down 4 percent.

money trading: Snyder's-Lance, Inc.(LNCE)

Advisors’ Opinion:

  • [By Monica Gerson]

    Snyder’s-Lance Inc (NASDAQ: LNCE) is estimated to report its quarterly earnings at $0.23 per share on revenue of $470.33 million.

    Examworks Group, Inc. (NYSE: EXAM) is projected to post its quarterly earnings at $0.08 per share on revenue of $217.47 million.

money trading: Aluminum Corporation of China Ltd(ACH)

Advisors’ Opinion:

  • [By Lisa Levin]

    Wednesday afternoon, the basic materials shares climbed by 1.09 percent. Meanwhile, top gainers in the sector included Olympic Steel, Inc. (NASDAQ: ZEUS), up 7 percent, and Aluminum Corp. of China Limited (ADR) (NYSE: ACH), up 7 percent.

money trading: Century Aluminum Company(CENX)

Advisors’ Opinion:

  • [By Craig Jones]

    JPMorgan’s analyst Michael Gambardella downgraded Century Aluminum Co (NASDAQ: CENX) from Overweight to Neutral and reduced its price target from $22 to $14.50, citing alumina cost headwinds as the main reason for the downgrade.

investment risk

Equities investors in Asia tempered their risk appetite on Wednesday, tracking declines in the U.S., as geopolitical concerns continued to weigh on markets.

British Prime Minister Theresa Mays announcement of a general election in June, aimed at shoring up her mandate to take Britain out of the EU, added to already simmering market worries around North Korea, Syria and Russia.

Declines in the region were led by China, with the Shanghai Composite Index
SHCOMP, -1.04%
down 1% at a two-month low, and putting the decline since Friday at more than 3%.

investment risk: Nam Tai Electronics Inc.(NTE)

Advisors’ Opinion:

  • [By Roberto Pedone]

    Another stock that’s starting to move within range of triggering a big breakout trade is Nam Tai Electronics (NTE), which is an electronics manufacturing and design services provider to a select group of the world’s leading OEMs of telecommunications and consumer electronic products. This stock has been destroyed by the sellers so far in 2013, with shares off sharply by 41%.

    If you look at the chart for Nam Tai Electronics, you’ll notice that this stock has been uptrending for the last month and change, with shares moving higher from its low of $6.05 to its recent high of $8.38 a share. During that uptrend, shares of NTE have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NTE within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in NTE if it manages to break out above some key near-term overhead resistance levels at $8.38 to $8.79 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 647,483 shares. If that breakout triggers soon, then NTE will set up to re-fill some of its previous gap down zone from April that started near $11.50 a share. If this stock gets into that gap with volume, then the upside is tremendous and we could easily see NTE hit $11 to $12 a share.

    Traders can look to buy NTE off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $7.42 a share, or below more key support at $7.22 a share. One can also buy NTE off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

investment risk: Diplomat Pharmacy, Inc.(DPLO)

Advisors’ Opinion:

  • [By Paul Ausick]

    Diplomat Pharmacy Inc. (NYSE: DPLO) dropped 7.4% Monday, posting a new 52-week low of $12.25 after closing at $13.23 on Friday. The stock’s 52-week high is $38.94. The specialty pharmacy company said this morning that revenues and adjusted EBITDA for 2016 will come in at or near the low end of the company’s previously announced range.

  • [By Lisa Levin]

    Shares of Diplomat Pharmacy Inc (NYSE: DPLO) were down 23 percent to $14.71. Diplomat Pharmacy agreed to buy LDI Integrated Pharmacy Services. Baird downgraded Diplomat Pharmacy from Outperform to Neutral.

investment risk: Tupperware Brands Corporation(TUP)

Advisors’ Opinion:

  • [By George Budwell, Rich Smith, and Neha Chamaria]

    Keeping with this theme, our Foolish contributors think that Pfizer (NYSE:PFE),Sherwin-Williams (NYSE:SHW), andTupperware Brands (NYSE:TUP)are three large-cap dividend stocks that prove beyond a doubt that boring is beautiful when it comes to creating wealth.

  • [By Seth McNew]

    Shares ofTupperware Brands(NYSE:TUP), the classic food-storage brand that has evolved to becomemore than meets the eye, spiked as much as 12% today, after the company reported better-than-expected Q1 earnings and set positive guidance for 2017.

investment risk: Stamps.com Inc.(STMP)

Advisors’ Opinion:

  • [By Lee Jackson]

    These companies also reported insider selling last week: Aetna Inc. (NYSE: AET), Cullen/Frost Bankers Inc. (NYSE: CFR), Rockwell Automation Inc. (NYSE: ROK), Stamps.com (NASDAQ: STMP) and Western Alliance Bancorporation (NYSE: WAL).

  • [By Lisa Levin]

    Stamps.com Inc. (NASDAQ: STMP) shares shot up 31 percent to $198.75 as the company posted upbeat Q2 results and raised its FY17 outlook.

    Shares of Solaredge Technologies Inc (NASDAQ: SEDG) got a boost, shooting up 21 percent to $27.56 after the company posted stronger-than-expected quarterly results.

  • [By Joe Tenebruso]

    Stamps.com (NASDAQ:STMP) reported sharply higher sales and earnings in the fourth quarter, as the shipping solutions company has become the platform of choice for a steadily growing number of online businesses.

investment risk: Netflix, Inc.(NFLX)

Advisors’ Opinion:

  • [By Matt Hogan]

    It has been widely reported that T-Mobile US Inc. (NASDAQ: TMUS) had been in merger talks with Sprint Corp. (NYSE: S), a competitor that is majority owned by Softbank. However, these talks are now on hold as Sprint is negotiating potential deals with two of the largest cable companies in the United States; Comcast Corporation (NASDAQ: CMCSA) and Charter Communications, Inc. (NASDAQ: CHTR). These cable companies are under pressure having lost subscribers due to services like Netflix, Inc. (NASDAQ: NFLX), which recently blew away its second quarter growth estimates.

  • [By Peter Graham]

    A long term performance chart shows Pandora Mediapeaking in 2014 and now back to breakeven while large cap Sirius XM Radio has been a steady performerand InternetTV/entertainment stock Netflix, Inc (NASDAQ: NFLX) has been a homerun:

  • [By Peter Graham]

    A long term performance chart shows Pandora Mediapeaking in 2014 before heading back to where it started while other streaming media stocks such as large cap satellite radio stockSirius XM Radio Inc (NASDAQ: SIRI) has performed better and InternetTV stock Netflix, Inc (NASDAQ: NFLX) has been a homerun:

  • [By Michael A. Robinson]

    Tech Wealth Gem No. 3
    The First Trust Cloud Computing ETF (Nasdaq: SKYY) is after a massive market. According to Statista.com, cloud computing has grown at a 16% yearly clip in the past five years. And Gartner Group says that $111 billion in tech spending was earmarked for the cloud in 2016 – a number that will hit $216 billion by 2020. Its holdings include Amazon, NetApp Inc. (Nasdaq: NTAP), and Netflix.com Inc. (Nasdaq: NFLX). Trading at just $38, SKYY has a 0.6% expense ratio. Last year, the fund gained nearly 20%; it’s up 7.4% since we first looked at it earlier this year, and it’s averaged profits of 15.4% over the past five years.

  • [By Matthew Briar]

    How does the old saying go? The enemy of my enemy is my friend? Not that there was ever any animosity among the players in the arena, but there’s no denying that two heads — two experienced heads — are better than one for any organization that’s trying to beat Netflix, Inc. (NASDAQ:NFLX) at its own game. That’s why Viva Entertainment Group Inc (OTCMKTS:OTTV) CEO Johnny Falcones wanted Thomas Ashley, founder of competing over-the-top television venue FlixFling, on the OTTV Board of Directors… he knows exactly what Viva Entertainment Group is trying to do, and he knows a thing or two about how to do it.

    The product is called Viva Middleware, which in simplest terms is a turn-key technology that allows anyone to get into the over-the-top (OTT) business with their own customized over-the-top television service. Live broadcasts, on-demand, music channels and original programming are all possible. This means they can customize the product locally or regionally, or thematically, like an all-sports or an all sci-fi venue. The possibilities are endless, which is in stark contrast to Netflix’s “what you get is what you get” approach.

    The product is technically still in beta mode, though it is ready for “prime time,” so to speak. On December 13th, at the Riviera Hotel in South Beach Miami, OTTV will be hosting a launch party to debut its Viva OTT platform. Not only will the event give guests a chance to see and use the over-the-top television platform, they’ll be dazzled by performances by Soleil J and Jorge Moreno.

    That said, it’s important to note that Viva Entertainment Group already has clients. In August the company announced it was entering a joint venture with Oi2 Media to create an OTT product catering to a specific segment of the nation’s demographic.

    Oi2 Media is the United States’ biggest distributor of Latino-centric digital content, offering both music and television. It’s not just a Netflix-like service Oi2 and Viva will

An 'Instant Income' Trade From The Disney-Fox Deal

While decorating for Christmas, I noticed how many of our decorations have been around for years. Some of my favorite ornaments are the oldest, like the ones celebrating “Our First Christmas Together” and “Baby’s First Christmas.”

These are irreplaceable. Then, there are the more recent additions, decorations that are often based on the latest characters being marketed to my kids. (Although, I will say that some of these new decorations still feel old, like our “Frozen” ornaments. Even though it feels like we’ve already watched it 400 times, that movie was only released four years ago.)

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There are also old characters that are new again: Rudolph and Frosty the Snowman have been reaching new audiences every year for decades as younger generations of children discover these classics.

This year, there are more new characters. Disney introduced new characters in its latest major theatrical release, “Coco.” Then, there are the old characters from Star Wars, another Disney franchise.

In fact, I’ve recently realized that a lot of the decorations around the house and on the tree are based on Disney films.

Disney seems to have mastered the art of making both “new” and “old” exciting in its movies — an ability that I also see showing up in its business model.

Disney Expands Its Kingdom
Last week, The Walt Disney Company (NYSE: DIS) announced that it had reached a deal to acquire 21st Century Fox’s entertainment and sports assets for $52.4 billion. (Not included in the deal: Fox News, the Fox broadcast network and sports network FS1, which will all be retained by existing Fox shareholders.)

This marks a significant turnaround for Disney, which has been struggling for a few years.

Following the stock’s peak in July 2015, shares have mostly traded in a sideways range. One reason for that lackluster performance has been the sports channel ESPN, which has struggled in recent years and weighed down the stock.

As more and more consumers turn to streaming services like Hulu and Netflix (Nasdaq: NFLX) instead of paying for expensive cable and satellite television subscriptions, ESPN has been losing its audience.

That exodus of cord-cutters is a big piece of why Disney decided to launch its own streaming service, slated to be available in 2019. Once that service goes live, it will be the exclusive home for all of Disney’s content.

Marvel. Star Wars. Pixar.

Disney already has a library filled with classics and blockbusters. And thanks to this recent deal with Fox, you can also add the X-Men franchise into the mix, along with things like the Alien and Die Hard movies, and more family-oriented stuff like “Ice Age” and “Alvin and the Chipmunks.”

In addition to nearly every major film series, the deal also gives Disney access to a large library of TV shows as it tries to launch a streaming competitor to Netflix. Fox’s TV properties — “The Simpsons,” “Modern Family,” “It’s Always Sunny in Philadelphia,” just to name a few — make that service even more appealing to potential subscribers.

Disney, of course, has a library teeming with classic characters. So does Fox. The combined company could have interesting new movies, especially for fans of action heroes.

For example, Hugh Jackman, who plays Wolverine in the X-Men franchise, noted the possibilities, saying, “It’s interesting because for the whole 17 years I kept thinking that would be so great, like I would love to see, particularly, Iron Man and the Hulk and Wolverine together.”

I’ll admit that, personally, I didn’t see why that would be so great, so I asked my resident 7-year-old, who got pretty excited about the whole thing and immediately started incorporating all three characters into the game he was playing. That’s one reason I think this deal will be important for Disney.

The market seems to agree with Hugh Jackman and 7-year-olds. Disney has been trading higher on the news, which is unusual, as the stock of companies buying other companies tends to decline.

Because of the market’s optimism about the deal, I am bullish on DIS in the short term. However, I want to wait and see what the Justice Department thinks of the deal before forming an opinion about the long term.

How I’m Trading This Merger — Without Buying Any Stock
If you’re interested in catching some of the potential upside, you can always buy shares of DIS.

But I found a better trade… One that will guarantee I collect $450 in a little over a month. And all without buying a single share of the stock. This trade uses a high-income, short-term put option on DIS.

I understand not everyone is comfortable selling options, but you shouldn’t let that fear or nervousness keep you from taking advantage of this tool. Because that’s what options are — a tool for traders. They can be as risky or conservative as you want them to be. It all depends on the strategy you’re using.

My strategy is one of the safest around. In fact, I’m making a guarantee to new subscribers to show how low-risk options can be:

If you follow along with my trades and don’t make money at least 90% of the time… I’ll work for you for free. That’s how confident I am.

I recently released a special report that will tell you everything you need to know, including how my readers are making about $568 a week from selling options. There’s even a list of three questions to ask yourself to help determine if you’re ready to trade options. Simply follow this link to check it out.

Best Low Price Stocks To Own For 2018

There are numerous trading techniques to consider for each and every options trade, so Fred Oltarsh at Options Strategy Network details five of the ones he considers extremely vital for trying to put the percentages in the trader’s favor.

The key to trading options contracts successfully (individual stocks and futures as well) is to put the percentages in your favor. This involves numerous trading techniques discussed in the Options Strategy Network options guide. Briefly, one should consider the following factors for each and every trade: 1) liquidity or the cost to initiate and liquidate the position, 2) implied volatility or the relative value of the particular option one is trading, 3) having a pre-designated point of liquidation, 4) risk/reward ratio after commissions and slippage and 5) diversification of strategies and trades.

Each analysis described above increases the likelihood of success of an individual trade. Examining the liquidity of the market that one is about to trade is the first step to increasing levels of productivity. If one is buying a stock for a long-term hold, the implications of liquidity are not as great for that trader as for the trader who intends to buy and sell stock frequently. If one is day trading, whether stocks or options, even a bid/ask spread of a penny on a low priced stock, has an impact on the bottom line. The best way to analyze it is to quickly determine the difference of the bid/ask spread as a percentage of the value of the instrument traded. Then determine what that value is per one thousand dollars invested. If the number sounds high, it’s probably worth staying away from that trade.

Best Low Price Stocks To Own For 2018: Energy Focus, Inc.(EFOI)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of Energy Focus Inc (NASDAQ: EFOI) were down 40 percent to $7.95 after the company reported weaker-than-expected Q4 results.

    Omega Protein Corporation (NYSE: OME) was down, falling around 20 percent to $17.47 after the company reported weaker-than-expected results for its fourth quarter.

  • [By Peter Graham]

    Meanwhile, small cap Energy Focus Inc (NASDAQ: EFOI) calls itself an industry-leading innovator of energy-efficient LED lighting technology that aims to be the trusted leader in LED lighting retrofit. As the creator of the first, and so far, only UL-verified low-flicker LED products on the U.S. market, Energy Focus products provide extensive energy and maintenance savings, and aesthetics, safety, health and sustainability benefits over conventional lighting. Customers include national, state and local U.S. government agencies (thanks to numerous research and development projects for the DOE and DARPA) as well as Fortune 500 companies, the U.S. Navy and many others.

Best Low Price Stocks To Own For 2018: Vanguard Short-Term Government ETF(VGSH)

Advisors’ Opinion:

  • [By Donald van Deventer]

    Shorter-duration Treasury Exchange-Traded Funds: (SHY), (SHV), (IEI), (BIL), (TUZ), (FIVZ), (DTUL), (VGSH), (DTUS), (DFVS), (DFVL), (SST), (ISTB), (TBZ).

Best Low Price Stocks To Own For 2018: Prestige Brand Holdings Inc.(PBH)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Castor believes the cash has disappeared into working capital, which has grown from 23% to more than 50% since 2008. Comparable company PrestigeBrand (PBH) uses 11%; Unilever(UL) and Colgate-Palmolive(CL) far less.

Best Low Price Stocks To Own For 2018: Netflix, Inc.(NFLX)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows Pandora Mediapeaking in 2014 and now back to breakeven while large cap Sirius XM Radio has been a steady performerand InternetTV/entertainment stock Netflix, Inc (NASDAQ: NFLX) has been a homerun:

  • [By Ben Levisohn]

    Netflix (NFLX) soared to the top of the S&P 500 today after Deutsche Bank upgraded its stock ahead of its earnings on Jan. 18.

    Getty Images

    Netflixgained 3.5% to $133.70 today, while the S&P 500 rose 0.2% to 2,274.64.

    MarketWatch’s Tomi Kilgore has the goods on the Deutsche Bank upgrade:

    Analyst Bryan Kraft raised his rating to hold, three months after starting coverage with a sell rating. He raised his stock price target to $110, but that was still 15% below Thursday’s closing price of $129.18, from $92. Kraft said when he initiated coverage of Netflix, he believed the company had “an attractive business model,” but the stock was priced two years ahead of the fundamentals, and that a sale of the company was “highly unlikely.” His new rating and price target is based on a higher subscriber trajectory internationally, a lower tax rate and the belief that fourth-quarter results will beat guidance for international subscribers.

    Netflix’s market capitalization rose to $57.4 billion today from $$55.4 billion yesterday. It reported net income of $123 million on sales of $6.8 billion in 2015.

  • [By Lee Jackson]

    Netflix Inc. (NASDAQ: NFLX) also had the man at the top selling some shares last week. Founder and CEO Reed Hastings gave up 87,297 shares of the company at $126.72 apiece. The total for the trade was posted at $$11,062,456. The consensus price target for the streaming content and entertainment giant is $124.10. The shares closed above that level on Friday at $125.59.

  • [By Jack Delaney]

    According to an Aug. 26, 2017, Rolling Stone report, Netflix Inc. (Nasdaq: NFLX) created a line of cannabis tied to the streaming service’s exclusive TV series.


    Apple, Comcast (CMCSA) , Netflix (NFLX) and Alphabet are just some of the tech names in Jim Cramer’s Action Alerts PLUS portfolio. Get his insights on the biggest names in tech here.

  • [By Demitrios Kalogeropoulos]

    Meanwhile, GoPro (NASDAQ:GPRO) and Netflix (NASDAQ:NFLX)were two of the biggest individual stock movers on the day.

    GoPro bears pile on

    Shares of GoPro fell nearly 8% after analysts at Goldman Sachs reduced their price target to $6 per share while downgrading the action-camera specialist to a sell ranking from hold. The company faces core challenges to its operations ahead, analyst Simona Jankowski argued. A buildup of inventory following a brutal holiday season sales quarter is only the most immediate of these hurdles.

Best Low Price Stocks To Own For 2018: Eagle Bancorp, Inc.(EGBN)

Advisors’ Opinion:

  • [By Lisa Levin]

    On Monday, the financial sector proved to be a source of strength for the market. Leading the sector was strength from Eagle Bancorp, Inc. (NASDAQ: EGBN) and BankUnited (NYSE: BKU).

  • [By Paul Ausick]

    Eagle Bancorp Inc. (NASDAQ: EGBN) dropped 28% Friday to post a new 52-week low of $47.65 after closing at $66.15 on Thursday. The stock’s 52-week high is $69.80. Volume of around 3.6 million was more than three times the daily average. The bank holding company had no specific news Friday.

Best Low Price Stocks To Own For 2018: Itron Inc.(ITRI)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of Silver Spring Networks Inc (NYSE: SSNI) got a boost, shooting up 24 percent to $16.11. Itron, Inc. (NASDAQ: ITRI) announced plans to acquire Silver Spring Networks for $16.25 per share.

If We’re Picking Favorites, I Choose Walt Disney Co

If we are picking favorites, I choose Walt Disney Co (NYSE:DIS).

The company has the best amusement parks in the world. It is also behind the best movies in the world, including every good superhero and animated film. Disney is also responsible for distributing the best sports content in the world, both live and recorded.

But Walt Disney stock hasn’t been the best stock in the world. Far from it. While the S&P 500 has rallied nearly 20% over the past year, DIS stock has risen less than 5%.

Why? Cord-cutting. As people cut the cord on cable, Disney’s channels (like ESPN, ABC and Disney Channel) are losing subscribers. Advertising and subscription revenues are going down. Disney’s Media Networks segment, which is responsible for just under half of Disney’s operating profits, is getting killed.

But these are all near-term issues. Between ESPN, Pixar, Marvel and LucasArts, Disney is behind the best and most in-demand content in the world. The company just currently finds itself on the wrong side of shifting media consumption behavior.

Starting in 2018, though, Disney will start adjusting to this shift with the launch of its ESPN Plus platform. In 2019, Disney will be entirely on the right side of this shift with the launch of its own Disney-branded Netflix, Inc. (NASDAQ:NFLX) style service.

Despite these huge growth catalysts on the horizon, Walt Disney stock continues to trade at a discount to its trailing five-year average valuation. That makes no sense, especially considering the market is trading at a huge premium to its trailing five-year average valuation.

Consequently, now looks like the time to load up on Walt Disney stock, while it’s still cheap ahead of major growth catalysts which should propel shares markedly higher.

Expect Big Things From Disney in 2019

I am particularly bullish on the Disney-branded streaming service set to launch in 2019.

To understand why, let’s take a look at Pixar’s latest big hit, Coco. Coco was not only exceptionally well-received by consumers (a record 9.0 rating on IMDb), but also raked in $71 million in its five-day Thanksgiving debut. That is the fourth biggest five-day Thanksgiving debut ever.

In fact, Disney is responsible for 14 of the top 18 Thanksgiving openings ever, including 10 of the top 11.

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Moreover, Coco was a Pixar original, meaning it was an original story line with new characters and not just a new story line on recycled characters. Pixar originals have actually done quite well recently, bringing in roughly the same amount of box office revenue as sequels.

Put it all together, and it’s easy to see that Pixar makes some of the most compelling content in the world, both through sequels and originals.

That is just one part of Disney’s robust content portfolio. There is also the whole Marvel Cinematic Universe, all the Star Wars movies, all of the live-action films like Beauty and the Beast and so much more.

All together, DIS is responsible for the top three grossing films in 2016, three of the top four grossing films in 2015, and two of the top four grossing films in 2014.

Now, Disney is going to take all those popular movies and wrap them into one Netflix-style offering that will be priced substantially lower than Netflix.

The writing is already on the wall. Disney’s streaming service, complete with the most compelling content portfolio at a compelling price, will have huge demand.

Bottom Line on Walt Disney Stock

Disney is behind the best amusement parks, sports content, and thematic content in the world.

At same point, all those valuable assets will roll into Walt Disney stock heading materially higher.

I think that happens over the next one to two years as Disney fixes its cord-cutting problem by transforming into a formidable Netflix competitor. Loading up now at a discount seems like the best strategy.

As of this writing, Luke Lango was long DIS and NFLX.