LPETTET If you had to take away one figure from B. Riley Financial’s (NASDAQ:RILY) fiscal 2024 first-quarter earnings it would have to be its total cash and investments balance of $1.61 billion. The financial services firm is also set to fully redeem its 6.75% Senior Notes Due 5/31/2024 (NASDAQ:RILYO) at the end of May, reducing…
FG Trade With Medical Properties Trust, Inc. (NYSE:MPW) presenting encouraging earnings for its last quarter, and with investors barely reacting to the news of one of its most important operators, Steward Health Care System, sliding into bankruptcy, I think that we could see substantial upside price movement for the hospital real estate investment trust in…
Sundry Photography Investment Thesis Sanmina (NASDAQ:SANM) reported its Q2 2024 results on April 29, 2024. Revenue missed expectations by $60 million and EPS was a beat by $0.05. The company delivered revenue of $1.83 billion (-21% YoY), and non-GAAP EPS of $1.30. The market’s reaction to Sanmina’s earnings was muted, likely due to very low…
hyejin kang/iStock via Getty Images The Short Duration Income Fund’s Institutional Class returned +1.16% in the first quarter compared to a +0.45% return for the Bloomberg U.S. Aggregate 1-3 Year Index. For the one-year period ended March 31, 2024, the Fund’s Institutional Class returned +5.46% compared to a +3.56% return for the index. Given the…
Michael Blann/DigitalVision via Getty Images The analysis and recommendation below is from the March 31st issue of my short seller’s newsletter. Builders FirstSource (NYSE:BLDR), round two – One stock in particular that continues to baffle me is Builders FirstSource (BLDR – $184.55), which has run from $110 to $208 and back down to $184 since…
In this article, I offer a trade idea: short junk bonds with put options. I also suggest a hedging strategy that should help mitigate the cost of the trade. I think this is a very low-risk trade with big potential upside. After explaining the details of the trade, I will discuss the economic assumptions that…
wildpixel Purpose I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your beliefs to market.”…
retouchman/iStock via Getty Images Shorting high-flying stocks, like Nvidia (NVDA) or Advanced Micro Devices (AMD), can be nerve-racking, as Super Micro Computer (SMCI) bears found out, painfully, since the start of this year: Google Finance The Direxion Daily Semiconductor Bull 3X Shares ETF (NYSEARCA:SOXL) allows a more diversified and leveraged approach to betting against a…
CIPhotos Karuna Therapeutics (NASDAQ:KRTX) is on the verge or releasing a novel product to the market that will eschew dopamine modulation in favor of a more sophisticated action to treat psychosis related to Alzheimer’s and schizophrenia, according to our discussions with physicians and other experts in the field. Soon to be the first of its…
Andrii Yalanskyi Kimball Electronics’ (NASDAQ:KE) Q2 Results missed analyst expectations, and the stock has significant risks related to its momentum and revisions at this time. Over the long term, I believe returns from the shares could be quite good. However, the potential for short-term downside is enough to stop me from making an investment. Operations…
PM Images Dave’s (NASDAQ:DAVE) rally from 52-week lows has been nothing short of dramatic, with the neobank moving up a remarkable 360%. This blistering rally came after a 52-week low reached in the aftermath of a 1-for-32 reverse split at the start of its fiscal 2023 that was forced by a roughly 96% collapse from…
miniseries I last wrote on John Wiley & Sons (NYSE:WLY) in July 2023, and I saw many issues at that time; hence, I saw no buying opportunity in it, which turned out to be true. It has moved around 0.7% in these six months, and even now, I expect that it might not provide returns…
Sundry Photography Note: I have previously covered Bloom Energy Corporation (NYSE:BE), so investors should view this as an update to my earlier articles on the company. It’s been a rough start to the year for leading U.S. exchange-listed fuel cell players, with stationary power generation system provider Bloom Energy Corporation, or “Bloom Energy”, being among…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. China has moved to officially limit short selling after informal efforts failed to stop a worsening stock market sell-off. Investors who buy shares will not be allowed to lend them out for short selling within…
takasuu The ProShares UltraPro QQQ ETF (NASDAQ:TQQQ) seeks daily investment results that correspond to three times the daily performance of the Nasdaq 100 Index. The ETF is typically used by bullish short-term investors to generate higher returns than simply owning the underlying market. It also offers an opportunity for bearish investors to gain exposure to…
ALFSnaiper/iStock Editorial via Getty Images In my prior article on SoFi Technologies (NASDAQ:SOFI) I set out my belief that it makes an abundance of sense to short SOFI at above $10. Data by YCharts And as you can see from the price action above, I was correct in my prediction. The share price momentarily breached…
baona/iStock via Getty Images By Andrew Prochnow For those exploring fresh investment and trading strategies for 2024, considering the long technology versus short financials pairs trade could be worthwhile. This approach may be particularly advantageous for individuals who are already positioned on the long side of the technology sector, either through individual stocks or ETFs….
jpgfactory Although ZIM Integrated Shipping Services (NYSE:ZIM) lowered its EBITDA forecast in 2023 due to challenges in the container shipping industry, recent turmoil in the Red Sea has fundamentally changed the short to medium outlook for the shipping company, in my opinion. A number of shipping companies including Maersk and Hapag-Lloyd have said that they…
Pla2na With the QQQ finally making all-time highs, many investors are wondering if it’s really just a “double top” and time to short the QQQ by buying PSQ. To answer this, we’re going to look at investor activity in PSQ itself, which has guided us before with this question. We’ll update the same internal indicators…
Filograph Invesco Senior Loan ETF (NYSEARCA:BKLN) is a high-yield fund with the goal of generating income while keeping share price stable. This may be a decent place to park your cash for the short term while you are trying to decide where to deploy that cash but its long-term performance is questionable so I might…
Iuliia Korniievych /iStock via Getty Images Great Lakes Dredge & Dock (NASDAQ:GLDD) offers dredging services. GLDD posted Q3 FY23 results with a significant drop in revenues. There are some positives and negatives in this quarter. After assessing all the factors, I think GLDD can be risky in the short term. So it would be best…
Eoneren Short-Selling Indicators During the heyday of technical analysis from 1960 to 1985, some of the best indicators of market direction were the odd lot and public short selling ratios. High levels of short selling were positive for stocks while low levels were negative. Unfortunately, with the emergence of index futures and arbitrage short selling…
valiantsin suprunovich One small IPO and one SPAC priced this past week as markets slowed around the Thanksgiving holiday. Skincare company Elevai Labs (ELAB) priced at the low end to raise $6 million at a $69 million market cap. Small and highly unprofitable, the company offers “physician-dispensed” skincare products, meaning they are sold exclusively in…
tadamichi Introduction Ever since the Simplify Volatility Premium ETF (NYSEARCA:SVOL) entered the market, retail investors have had access to a strategy traditionally reserved for sophisticated options and futures traders, commodities trading advisers (CTAs), and hedge funds: short volatility. SVOL is actively managed and typically provides exposure ranging from 0.2x to 0.3x short the VIX. This…
William_Potter Investment Thesis I covered Axcelis Technologies (NASDAQ:ACLS) two months ago with this article and explained how the company and the semiconductor industry had been more resilient than most people had thought. Axcelis has a crucial position in the industry, providing ion implantation equipment to chip manufacturers. While it performs strongly in good times, it…
Justin Sullivan Investment Thesis: Profitability is Coming. Short Sellers Are Not Ready SoFi Technologies (NASDAQ:SOFI) delivered yet another strong quarter in Q3 2023, beating expectations and showing continued momentum across its business segments. The fintech company seems well on track to achieve GAAP profitability in Q4 2023, poking holes in the main bearish arguments about…
Damian Lugowski/iStock via Getty Images In February, I believed that investors in Hanesbrands Inc. (NYSE:HBI) were standing in their shorts. The company has seen tough years, with sluggish operating performance being exaggerated by too much leverage. After a tough 2022, the 2023 outlook was outright shocking, and after the dividend was finally eliminated, Hanesbrands had…
grandriver Thesis The ProShares UltraShort Bloomberg Natural Gas ETF (NYSEARCA:KOLD) is a commodities exchange traded fund. The vehicle falls in the leveraged products category, aiming to provide investors with the -2x daily performance of U.S. traded Natural Gas: ProShares UltraShort Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two…
Just_Super/iStock via Getty Images Preamble Rare earth elements are in the news these days for their wondrous chemical properties. They have the kind of names any marketing department within a top tier pharmaceutical company would be proud of. For instance, dysprosium sounds for all the world like a medication to treat some kind of mental…
Beyond Binance’s own commitment, the IRI garnered an additional $100 million in contributions from 18 organizations by February 2023. A recent report from Bloomberg suggests that the $1 billion Industry Recovery Initiative (IRI), launched by Binance has fallen short of expectations, with only 2.7% of the committed funds deployed. The Industry Recovery Initiative was first…
Dontstop “Feelings. Nothing more than feeeelings,” the aptly named “Feelings” song by Morris Albert croons. In case you don’t know what I’m talking about, here’s how the lyrics continue from there: “Trying to forget my feelings of love Teardrops Rolling down on my face Trying to forget my feelings of love. Feelings For all my…
Wipada Wipawin Purpose I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your beliefs to…
solarseven/iStock via Getty Images Introduction Novavax, Inc. (NASDAQ:NVAX), a prominent biotech company, distinguished itself during the COVID-19 pandemic by pioneering a spike protein-based COVID-19 vaccine, deviating from the widely adopted mRNA technology used by its competitors. However, Novavax’s stock has recently faced a downward spiral, plummeting by an additional 9% just yesterday. The negative market…
RudyBalasko/iStock via Getty Images Roma Caput Mundi About fifteen years ago I was making a facsimile of a 16th-century illuminated codex for the publishing house with which I was collaborating, and this codex was housed in the Casanatense Library in Rome. For a few months I went to the capital quite often, checking the fidelity…
canbalci Vanguard Financials Index Fund ETF Shares (NYSEARCA:VFH) is a passively managed sector specific ETF. I believe this fund offers some opportunities as well as some risk factors in the short term and I generally see it as a mixed bag as I’ll explain in the remainder of the article. The fund invests in close…
Astrid Stawiarz The SPDR® S&P 500 ETF Trust (NYSEARCA:SPY) is overvalued in our view and likely to underperform its historical performance average in the coming years. Moreover, it faces a plethora of potential negative catalysts that could further hamper total return performance in the near future. In this article, we will compare and contrast our…
Drew Angerer/Getty Images News The streak of negative 2-year/10-year Treasury spreads has now reached 282 trading days, 4 trading days longer than the third longest streak since 1976. The probability that the inverted yield curve ends by February 16, 2024 is now 13.1% compared to 10.4% last week. As explained in Prof. Robert Jarrow’s book…
jetcityimage The following analysis and commentary is from the most recent Short Seller’s Journal. In the context of the stock market going “full idiot” right now, Wayfair’s (NYSE:W) share price has levitated to an absurd valuation. Wayfair (W – $76.88) – W reported its Q2 number on August 3rd before the open. Of course, it…
mbbirdy/iStock via Getty Images The reshuffling of weightings in the popular Invesco NASDAQ 100 ETF (QQQ) during late July pushed the positioning of Apple (AAPL) and Microsoft (MSFT) lower in particular. It also has some traders looking for ways to gain exposure to the Big Tech sector through different investment vehicles. Perhaps the best, lowest…
imamember/iStock via Getty Images I’m reiterating my Strong Sell rating on Vonovia SE after reviewing the 2nd quarter results. On March 28th, 2023, I issued a contrarian thesis against Vonovia SE (OTCPK:VONOY) (OTCPK:VNNVF) arguing that the Company has assumed just too much of a leverage to survive without making value-destructive share issuances. After the Q1…
Nick van Bree/iStock via Getty Images “I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” -James Carville If you don’t eat all…
statu-nascendi By David Waugh Copper appears a cornerstone of the green-technology revolution. With global supply constrained, we think prices could soon be on the rise. Copper, a linchpin of the green energy revolution, appears to face a looming supply-demand imbalance that, in our view, could soon shine up the metal’s market price. On the demand…