Trading Ideas

Today we’ll look at Enbridge Inc. (TSE:ENB) and reflect on its potential as an investment. Specifically, we’ll… …read more […]

As the early numbers start flowing in for Cannabis 2.0 sales, analysts are starting to slash 2020 sales estimates for the category. Cannabis 2.0 refers to Canada’s legalization of cannabis products including vapes, edibles and beverages. Canopy Growth (CGC) was expected to be a leading player in this market launch, but the company still hasn’t been able to scale THC beverages, and the new CEO just took over a couple of weeks ago. The new CEO must now reorganize the business when announcing December results in early February to turn around the never-ending cash burn. Cannabis 2.0 FailureThe Canadian cannabis …read more […]

Rival British American Tobacco’s shares were also down 1%. The profit warning adds to the challenges for new CEO Stefan Bomhard – head of automotive services company Inchcape – whose appointment was announced on Monday with a start date yet to be disclosed. Imperial said first-half adjusted earnings per share in constant currency were expected to drop by 10%, as it writes-down inventories following the U.S. government ban on selling certain flavours for pod-based e-cigarettes, which goes into force on Thursday. …read more […]

(Bloomberg) — Elon Musk asked Twitter users whether Tesla Inc. should build a new factory in Texas, as the electric-car maker accelerates a global push to tap rising demand for its vehicles.The chief executive officer simply asked “Giga Texas?” and invited his 31 million followers to vote “Hell yeah” or “Nope.” As of just after midnight San Francisco time Wednesday, more than 125,000 people had voted, with about 80% responding yes.Shares of Tesla have more than doubled this year, giving it a market value greater than that of General Motors Co. and Volkswagen AG combined. In January, the company started …read more […]

As the earnings season gets on and companies start reporting their results from Q4 2019, Wall Street’s analysts are taking note and declaring the winners. It’s not hard to determine which stocks are getting the seal of approval – those companies forecasting or reporting strong earnings.We’ve used TipRanks’ Daily Stock Ratings tool to take a closer look at three companies which have just seen ratings upgrades from top analysts. An upgrade is an important signal for investors to note – it shows that the stock in question has deeply impressed the reviewing analyst.The three companies on this list are Buy-rated, …read more […]

(Bloomberg) — As equity investors who bet against Tesla Inc. lick their wounds, some corners of the debt market are taking a different view.A hedge fund in Denmark that delivered a 29% return last year has stocked up on credit-default swaps on the world’s second-biggest automaker, based on a bet that its bonds are just too expensive.“It’s mispriced,” Daniel Pedersen, the chief investment officer at Asgard Credit Fund, said by phone. “Tesla could be upgraded to BB- during 2020, but even in that scenario the credit spread is still too tight.”Tesla has riveted market watchers as its bold predictions tempted …read more […]

The warning comes on the heels of Stefan Bomhard’s appointment as the chief executive officer of the FTSE 100-listed group. Growth of Imperial’s “next generation” products has slowed and the vaping market in the United States has taken a turn for the worse after vaping-related deaths and rising popularity of e-cigarettes among teens led to intense regulatory crackdown. “Regulatory uncertainty and adverse news flow continues to affect demand in the U.S. and Europe,” Imperial Brands said. …read more […]

BEIJING/SHANGHAI, Feb 5 (Reuters) – A state-run Chinese research institute has applied for a patent on the use of Gilead Sciences’ experimental U.S. antiviral drug, which scientists think could provide treatment for the coronavirus that has killed hundreds and infected thousands. The Wuhan Institute of Virology of the China Academy of Sciences, based in the city where the outbreak is believed to have originated, said in a statement on Tuesday it applied to patent the use of Remdesivir, an antiviral drug developed by Gilead, to treat the virus. The Wuhan Institute of Virology did not respond to Reuters’ …read more […]

(Bloomberg) — Want the lowdown on what’s moving Asia’s markets in your inbox every morning? Sign up here.Asian stocks headed for their first back-to-back daily advance since concerns about the coronavirus erupted two weeks ago, while U.S. futures retreated after a powerful rally on Wall Street Tuesday.Asian currencies mostly retreated, pulled down by Singapore’s dollar, after that city’s central bank said there was room for easing. Hong Kong stocks gave up gains after a report on potential new restrictions to contain the virus. Japanese equities led advances. European equity futures slid. Bonds fell, though came off their lows late in …read more […]

(Bloomberg) — The Singapore dollar weakened to a four-month low after the central bank said there’s “sufficient room” for the currency to ease if the economy weakens due to the impact of the coronavirus.The currency, which is maintained in a band against a basket of peers, has been fluctuating near the upper end of its boundary since October, and could ease, the Monetary Authority of Singapore said in a statement Wednesday. The MAS maintained its policy outlook and said it will meet in April, as scheduled.Traders across Asia have been ratcheting up bets that central banks in the region will …read more […]

Today, we’ll introduce the concept of the P/E ratio for those who are learning about investing. We’ll show how you can… …read more […]

(Bloomberg) — Oil recovered from a one-year low to trade above $50 a barrel as Saudi Arabia ran into Russian resistance in its push for further production cuts to combat a virus-driven demand hit.Futures rebounded with Asian stocks on Wednesday, but oil is still down more than 20% since early January as the coronavirus dents global demand. Saudi Arabia’s push for deeper supply reductions to combat the drop in consumption due to the outbreak is being received with caution by Russia, whose budget is more resilient to lower prices.BP Plc is forecasting the crisis will wipe out one-third of global …read more […]

(Bloomberg) — Ford Motor Co., founded 100 years and 15 days before Tesla Inc., is paying the price for a sudden role reversal: It’s now the one struggling to produce a new model on time, at scale and without losing money.Ford on Tuesday projected lower-than-expected profit for this year after ending 2019 with a quarterly net loss. Costs linked to launching revamped F-150 pickups will hurt future results and extend an earnings slump partly blamed on the botched rollout of its signature SUV, the Explorer.The disappointing forecast and faulty introduction of a crucial vehicle are reminiscent of the struggles investors …read more […]

(Bloomberg) — China’s biggest health crisis since at least 2003 has worsened the outlook for defaults in the world’s second-biggest bond market, likely tipping a raft of distressed borrowers over the edge this year.With scores of millions of citizens barred from travel, and companies, factories and retail outlets shuttered for a period of weeks, strains on cash flow add an unexpected layer of stress on Chinese borrowers. Market participants had already anticipated that defaults in 2020 would be on par with 2019, which saw a second straight annual record high.Old-line industrial companies with excess capacity and over-leveraged firms with grand …read more […]

A nearly 14% gain in Tesla Inc’s stock on Tuesday was likely sparked by investors looking to hop aboard its remarkable rally, rather than a reversal of bearish bets, an analysis of positioning dynamics showed. While the share price has more than doubled so far this year to $887.06, the gains do not appear to have sparked a reversal of the sizeable short position in them. As Tesla has rallied 36.4% over the past two days, short sellers have incurred $5.7 billion in paper losses. …read more […]