IRBT has become exceptionally oversold. When IRBT announced Q4 results the other day, it sent the stock down nearly 30%, despite strong quarterly growth and profits. Sales in the Christmas season were up 54% to $327 million, beating expectations. While its GAAP profits of 16 cents a share were down 67% year over year, it’s…
DetailsOver the last week, the DOW swung thousands of points. The DOW was down 5.2% for the week. However, now the market is showing clear signs of recovery. Matt Maley, equity strategist at Miller Tabak noted that the Russell 2000 small cap index could be well-positioned going forward, as it appears to be holding up…
DetailsI’m sure you’ve seen the news that Amazon wants to jump into the transport business that FedEx and UPS are already in. However, “The complex global delivery networks of FedEx (and UPS) are highly difficult to replicate,” Cowen analysts noted last week, which means the sell off in UPS and FDX may have been nothing…
DetailsAfter closing a significant amount of winners, we have run into some losses. But that’ll happen when the market swings thousands of points in both directions for a week. We still expect for all of our positions to work out, as first hoped. Today, as we wait to see what happens next in the market,…
DetailsWe have been long overdue for a correction. After a 10,735-point run on the Dow Jones Industrials in just over a year, the index plunged more than 1,500 points in two days, wiping out $1 trillion of value. Why did the market fall so fast – 800 points in 10 minutes? The culprit is computerized…
DetailsThis is the most bizarre market I’ve ever seen in 20 years. We just lost 2,000 points in days. Then, we turned around and gained 800 of it back. That’s incredible market resiliency. As stocks just begin to recover, there’s one oversold stock I like a great deal. Right now, U.S. oil production is explosive.…
DetailsThe U.S. economy is growing at a healthy clip. In January 2018, employers added 200,000 jobs, as compared to analysts’ projections for 180,000. This now marks the 88th straight month of jobs gains, and leaves the unemployment rate unchanged at 4.1% — a 17-year low. Employers added 36,000 construction jobs. Bars and restaurants added 31,000. …
DetailsNot long ago, we recommended buying to open the AT&T February 2018 38 put (at $1.35), and the March 2018 38 put at $1.60. At the moment, they trade at $1.90 and $2.20, respectively. Let’s take the win here. As for new opportunities, let’s wait for confirmation of potential trend change from the market before…
DetailsSometimes, Wall Street ignores the greatest investment opportunities. Look at Halcon Resources Corporation (HK). In June 2017, the stock had just plummeted from a high of $7.46 to a low of $3.69 a share, as oil prices sank from $51.88 to $42.00 a barrel on supply-demand fears. We believed that HK was a buying opportunity. …
DetailsYikes… It’s safe to say the markets have been spooked. After plunging 800 points last week, we’re set for an even lower open today, with Dow futures down another 200+ points on fears of inflationary pressures. Yields on the 10-year Treasury debt hit a four-year high of 2.885, which means higher borrowing costs. And,…
DetailsIn 2005, 450 sheep jumped to their deaths, according to USA Today. One sheep dove. Another followed. All of a sudden, a flock of sheep began jumping off a cliff for no real reason. Shocked shepherds watched as another 1,500 jumped. And many of the sheep unfortunately died. Why did this happen? All of those…
DetailsTuesday was an absolute disaster, as the Dow sank 362 points. But it didn’t take long for it to recover. In fact, just hours after President Trump’s State of the Union, Dow futures were up 206 points thanks to an address full of assertions of a “new tide of optimism.” “Over the last year, we…
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