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Tag Archives: Stocks

Daily News Breakdown 1/26/2016

26 Tuesday Jan 2016

Posted by Russell in Daily News Breakdown

≈ 2 Comments

Tags

China, Equity, Finance, Gold, News, Oil, Russia, Stocks, syria

  • Daily Market Update
    • The Dow ended the day up 282.01 points or approximately 1.78%.
    • The S&P 500 ended the day up 26.55 points or approximately 1.41%.
    • The NASDAQ ended the day up 49.18 points or approximately 1.09%.
    • Oil ended the day up $1.11 at $31.45 a barrel.
    • Gold ended the day up $14.90 at $1,120.20.
  • Additional News

API Weekly Report:

The American Petroleum Institute reported today that crude supplies increased by 11.4 million barrels for the week of January 22, 2016.  Tomorrow the more significant EIA report will be released.  Meanwhile, as shown above, the price of oil still ended the day up $1.11 a barrel.

China Oil Demand:

Today state-run China National Petroleum Corporation announced their forecast for China’s oil demand growth for 2016.  The forecast cut demand growth from 4.8% last year to 4.3% for 2016.  CNPC also forecasted China’s net crude imports to grow by 7.3% compared to last years growth of approximately 9%.

Conflict in the Middle East:

Today Syrian government forces recaptured a “strategically important” town in southern Syria.  Syrian’s government forces have made significant gains during the recent weeks as Russian airstrikes continue to destroy their opposition.  As President Assad’s government continues to further entrench itself with military victories and the West and its allies remain steadfast in their demands for President Assad to step down the future of Syria remains frighteningly in the shadows.  For more information click here

Escalating US and Russian Tensions:

The Kremlin has officially demanded proof from the US Treasury after Adam Szubin, a US Treasury sanctions official, made an on the record comment to the BBC accusing Russian President Vladimir Putin of being corrupt.  While the United States has put sanctions on a number of Russian officials in the past the United States government has never gone so far as to place sanctions on President Putin himself.  For more information click here

Recommended further readings:

More bad news from investor who called $30 oil a year ago (CNBC)

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Daily News Breakdown 9/16/2015

17 Thursday Sep 2015

Posted by Russell in Daily News Breakdown

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Tags

Equity, Finance, Gold, News, Oil, Stocks


  • Daily Market Update

    • The Dow ended the day up 140.10 points or approximately 0.84%.
    • The S&P 500 ended the day up 17.22 points or approximately 0.87%.
    • The NASDAQ ended the day up 28.72 points or approximately 0.59%.
    • Oil ended the day up 2.56 at $47.15 a barrel.
    • Gold ended the day up $16.40 at $1,119.00.
  • Hewlett-Packard Will Cut Another 10% of its Workforce

Hewlett-Packard has announced additional cuts to its workforce as it moves ahead with the plan to split the company.  The reasoning behind the move is additional savings of $2.7 billion annually as the company attempts to turn things around.

Daily Market Update 8/21/2015

21 Friday Aug 2015

Posted by Russell in Daily News Breakdown

≈ 1 Comment

Tags

Equity, Finance, Gold, Oil, Stocks

  • Daily Market Update
    • The Dow ended the day down 530.94 points or approximately 3.12%.
    • The S&P 500 ended the day down 64.84 points or approximately 3.19%.
    • The NASDAQ ended the day down 171.45 points or approximately 3.52%.
    • Oil ended the day down $1.82 at $40.80 a barrel.
    • Gold ended the day up $0.87 at $1,159.90.

Daily News Breakdown 8/19/2015

19 Wednesday Aug 2015

Posted by Russell in Daily News Breakdown

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Tags

Equity, Federal Reserve, Finance, Gold, Greece, News, Oil, Stocks


  • Daily Market Update

    • The Dow ended the day down 162.61 points or approximately 0.93%.
    • The S&P 500 ended the day down 17.31 points or approximately 0.83%.
    • The NASDAQ ended the day down 40.29 points or approximately 0.80%.
    • Oil ended the day down $1.82 at $40.80 a barrel.
    • Gold ended the day up $11.00 at $1,127.90.
  • Oil Falls on US Supply Increase

Oil ended the day at a six year low due to a surprise increase in United States crude stockpiles.  The Energy Information Administration announced that crude supplies rose 2.62 million barrels last week compared to analyst estimates of a 820,000 barrel decline.

  • Greece Gets Its Money

Greece will receive the first installment in its new bailout package of 13 billion euros on Thursday as well as 10 billion euros set aside for the banks.  The deal was finalized Wednesday as lawmakers in Germany and the Netherlands gave their approval.  For more information click here

  • The Fed Delays Raising Rates Again

The Federal Reserve meeting minutes showed that the Fed believes it is not time to raise rates.  The minutes said that the Fed would like to see greater improvement in the jobs market before they increase rates but that the job market is almost ready.  For more information click here

Saving But Still Losing

19 Wednesday Aug 2015

Posted by Russell in Commentary

≈ 6 Comments

Tags

Equity, Finance, Money, Saving, Stocks

On August 9, 2015 an article was published on marketwatch.com titled: “Millennials are saving — but they’re doing it wrong” the article discussed how the generation that grew up during the crash of September 2008, also known as the Great Recession, are saving at a rate higher than any other generation.

Source: http://www.marketwatch.com/story/millennials-are-saving-but-theyre-doing-it-wrong-2015-08-07

Source: http://www.marketwatch.com/story/millennials-are-saving-but-theyre-doing-it-wrong-2015-08-07

According to a study by bankrate.com and cited by MarketWatch, 26% of Americans under 30 are invested in stocks.  The 74% of Americans who are not investing their money and earning a maximum of 1% on their savings accounts are actually losing money when you factor in an average inflation rate of 1.6% in 2014.  Meanwhile if invested in the Vanguard 500 Index Fund, which owns the 500 largest companies listed on the US stock exchange, than you would have made a return of 14% in 2014.  After fees of 0.17% and inflation of 1.6% you would have earned a profit of 12.33% on your investment instead of losing 0.6% due to inflation on a savings account.  An example is:

temp

  • Asset Allocation

An important point to remember when deciding how to save for retirement or even just save in general is there is no such thing as all or nothing in investing.  The term for this is asset allocation and in layman’s terms means how you organize your portfolio.  An example is:

tempAs you can see from the allocation above investing is not an all or nothing strategy.  Index Funds follow certain parameters for their allocation which can be anything from a sector of the market to the S&P 500.  Stocks are individual companies and therefore, less diversified.  Bonds are debt and I recommend not owning any bonds with a credit rating less than A- bonds can also be insured which helps limit your total amount of risk.  Another important point to consider is why is this money being saved.  Your retirement account should have less risk than the rest of your investments and your allocation should reflect that.  Remember there is no one size fits all investment strategy and you as an adult need to take the time to create your own personal asset allocation strategy.

  • No Time?

What about people who do not have time to research each individual stock?  My recommendation is an Index Fund.  Index Funds have a great resource, morningstar.com an example of which can be found here.  With investing it is important to remember to have a long term outlook.  When I invest I look forward ten years into the future and ask myself will I be glad I owned this and why.  Vanguard and Fidelity have great low cost Index Funds.  When purchasing an Index Fund, unlike a stock, you are purchasing a basket of stocks with a general theme.  That theme can be anything from mirroring the S&P 500 to clean water.  My personal recommendation is to start out with Vanguard 500 Index, found in the example above, and expand from there.

  • Being Uninformed is no Excuse

When I was 12 years old I taught myself to read a quarterly and annual SEC filing.  I did it through reading the reports and looking up terms and phrases on sites like Investopedia.com and sometimes Wikipedia.com.  I took a half an hour out of my day to read articles on the BBC, CNBC, and Bloomberg.  Reading daily news helps you understand the connections of our daily world.  My blog provides a daily news breakdown Monday through Friday.

-Websites

  1. Investopedia
  2. CNBC
  3. Bloomberg
  4. Wikipedia
  5. Yahoo Finance

-Blogs

  1. A great blog on personal finance for the rudimentary investor to the expert is How To $tuff Your Pig at howtostuffyourpig.com.  You won’t regret paying them a visit.
  2. The Financier Daily at financierdaily.com check back with us for daily news breakdowns as well as market commentary and analysis.

Why I Loved Consolidated Water’s Second Quarter Report

14 Friday Aug 2015

Posted by Russell in Individual Equity Analysis

≈ 2 Comments

Tags

Consolidated Water, CWCO, Equities, Finance, Stocks

Consolidated Water (CWCO) is a company that operates, builds, maintains, and upgrades water desalinization plants.  The company is based in the Cayman Islands and operates in the Cayman Islands, Bahamas, Belize, British Virgin Islands, and Bali with plans in motion to expand into Mexico.  Below is a summery of their Q2 2015 earnings report.

  • Income

Consolidated Water’s net income for the second quarter declined year over year from approximately $2.8 million to $2.25 million.  Looking at these numbers alone they may seem like cause for concern; but when you break them down you see that Consolidated Water is a stable long-term growth company with huge potential.

-Energy Costs

Due to Consolidated Water’s pricing model the company passes off increases in energy prices to the consumer.  Since energy prices were considerably lower this quarter than Q2 2014, they did not charge as much thereby decreasing overall revenue.

-Retail Segment

Year over year gross profit increased $813 as water sales were consistent when compared to Q2 2014 and the cost of retail revenue, due to decreased energy costs, offset the decrease in retail revenue.  The retail segment of Consolidated Water’s businesses operates the water utility for the Seven Mile Beach and the West Bay area of the Grand Cayman as well as selling water to resorts in Bali, Indonesia.

-Bulk Segment

Year over year revenue decreased from $10 million to $8.2 million.  CEO Frederick McTaggart explained this drop in revenue during their Q2 2015 conference call:

Bulk segment revenues declined from $10 million in the second quarter of 2014 to $8.2 million this past quarter, again, on significantly lower energy pass-through charges to our customers and to a lesser extent, lower volume sales in our Bahamas and Cayman bulk water operations.

What Frederick McTaggart was discussing above was the Bahamas Water and Sewerage Corporation, Consolidated Water’s client, continued water conservation efforts.  These efforts caused a 9% drop in volume sales.  The 5% drop in volume sales from the Grand Cayman was due to increased rainfall which causes less water to be needed for irrigation.  The bulk segment of Consolidated Water’s operation supplies water to government utilities in the Grand Cayman, The Bahamas and Belize.

  • Mexico

Consolidated Water is attempting to expand their operations further into Central America through building a 100 million gallon a day seawater desalination plant in Rosarito Beach, Mexico.  They are currently awaiting the committee who decides whether to move forward with the plant final decision on their proposal however, Consolidated Water is confident that it will get approved.

  • Balance Sheet

Consolidated Water’s cash and cash equivalents increased from $36.755 million in Q1 2015 to $39.323 million in Q2 2015 and debt continued to decrease with their demand note payable decreasing from $8.5 million to $8 million.  (For information on what a demand note payable is click here)  Total debt, the demand note payable plus Accounts payable and other current liabilities, totaled $12.231 million down from $13.414 million in Q1 2015.

  • Conclusion

Consolidated Water is a long-term growth company and are perfect for any value investors portfolio.  Cash and cash equivalents continue to increase while debt continues to decrease.  In addition they are a company who is continually expanding as shown with their maneuver into Mexico.  The stock pays a solid dividend of $0.30 (2.52%) a share.  In addition the industry they are in is one of continual increased importance.  Recently the United Nations released a report stating that by 2030 the world will only have 60% of the total usable water that we need.  Water is a commodity that is necessary for the human race’s survival and as the population of the world continuously grows so will Consolidated Water’s business.  They are the definition of a value investment.

Disclosure: While I express my opinion in this article, only you can determine if a specific stock is right for your portfolio. You should always do your own research before buying or selling any stock.

Daily News Breakdown 8/12/2015

12 Wednesday Aug 2015

Posted by Russell in Daily News Breakdown

≈ Leave a comment

Tags

China, Finance, Gold, News, Oil, Stocks

  • Daily Market Update
    • The Dow ended the day down 0.33 points or approximately 0.00%.
    • The S&P 500 ended the day up 1.98 points or approximately 0.10%.
    • The NASDAQ ended the day up 7.60 points or approximately 0.15%.
    • Oil ended the day up $0.22 at $43.30 a barrel.
    • Gold ended the day down $15.90 at $1,123.60.
  • China Blast Kills at Least 17 People

Two blasts rocked the Chinese port of Tianjin on Wednesday as over 300 people were injured and at least 17 people were killed including four firefighters.  The first blast was approximately three tons of TNT while the second was approximately 21 tons of TNT.

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Source: The BBC

The Chinese State controlled broadcaster China Central Television announced that a shipment of explosives had detonated.  However, like all news that comes out of China this cannot be independently verified.  The truth is we will most likely never know what happened on Wednesday.  For more information click here

  • More News From Today

For the rest of today’s earlier news click here

Mid-Day News Breakdown 8/11/2015

11 Tuesday Aug 2015

Posted by Russell in Daily News Breakdown

≈ 1 Comment

Tags

GOP, Greece, Oil, Stocks

  • Dow Drops

The Dow is currently down approximately 218 points as Wall Street attempts to understand the move by China yesterday to devalue the yuan against the dollar.  The move by the People’s Bank of China is thought to be in response to China’s abysmal July export number.  This move by China clearly shows just how worried China’s ruling elite are about China’s economy.

  • Oil Drops Again

At one point today oil was down below $43 in a move not see since March.  The downward progression made by oil today was in response to concerns about weaker demand from China and an increase in production from Iran.  For a more detailed analysis click here

  • GOP Tries to Gain Support for an Iran Veto Override

The GOP House leader said in an interview in Jerusalem that there is a chance for a President Obama veto override as the debate regarding the Iran Nuclear deal continues to heat up.  Congress is almost certainly not going to pass the deal and with President Obama saying he will veto any resistance from Congress the GOP has been trying to get enough support to override a veto.

  • After All Night Negotiations Greece Has a Deal

While Greece has a deal negotiated with European Union heads of state, the deal still has to be ratified by Greece’s parliament in which the Syriza party, who oppose austerity, currently hold a majority.  Due to this fact I am not confident that the deal will indeed pass through parliament.  For a more detailed analysis click here

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