Category Archives: Best Stocks

11 midcaps fall 30-80% in 2018; experts say limit your exposure to 30%

It looks like the age-old saying, sell in May and go away might be coming true not just for May butfor 2018. The BSE Midcap index and BSE Smallcap index has plunged over 12 percent and14 percent in 2018, respectively.

Both smalland midcap indices produced many multi-bagger stocks in 2017 but the New Year has started with its own set of challenges for the broader market. Market experts advise investors to stick to quality and limit their small and midcap exposure to 20-30 percentof their portfolio.

In2018, 75 percent stocks in the BSE Midcap indexdelivered negative returns. These include: Vakrangee (down 87 percent), Reliance Communications (down 57 percent), Adani Power (down 49 percent), Bank of India (down 45 percent) and Union Bank of India (down 42 percent).

The remaining stocksthat managed to buck the trend include: Mphasis (up 54 percent), L&T Infotech (up 37 percent), Gruh Finance (up 34 percent), Ashok Leyland (up 24 percent) and Biocon (up 20 percent).

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There are plenty of factors which have plagued the midcap space: high valuations, falling rupee versus the dollar, persistent selling by foreign investors, earnings failing to pick up as well as classification of mutual fundsby the Securities and Exchange Board of India (Sebi) led to some shuffle in mutual fund portfolios.

The midcap and smallcap indices are quoting at an astronomically high price-to-earnings (P/E) ratio. On a trailing basis, the midcap index was at 50 times and smallcap index was at 100 times, which is not sustainable in a difficult macro environment, Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas told Moneycontrol.

He was quick to add that investors need to maintain an exposure limit to avoid shocks to the portfolio.Exposure of 20-30percent is considered reasonable. We have to remember that there could be better performing companies within midcap/smallcap space where one can hold or add stocks during the volatile phase.

Jani feels it makes sense for investors to exit not-performing companies and move into ones with better performance and quality management.

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The bull market in midcaps started after 2014 when the Narendra Modi government took chargeat the Centre. Since then, the broader market saw massive inflows into local mutual fund portfolios. Most funds inflows were diverted into mid- and smallcaps due to lack of largecap options.

Alot has changed since 2014 and the mid-and smallcap space seems to be losing momentum. After 2014, the midcap-to-Nifty ratio broke out of a decade cycle downtrend on the back of investors chasing midcaps, Elara Capital said in a report.

The brokerage advises investors to focus on largecaps from mid- and smallcaps. However, it was quick to add that bottom-fishing remains strong and hence one could see strong counter-rallies.

The story is similarin the smallcap space as 80 percent of stocks in the BSE Smallcap index posted negative return so far in 2018. These include:Gitanjali Gems (down 92 percent), Diamond Power (down 87 percent), Electrosteels Steels (down 81 percent), Orient Paper (down 75 percent) and SRS Real Infrastructure (down 80 percent).

If we look at the stocks which managed to outperform the index, only 20 percent bucked the trend. These include: Excel Industries (up 102 percent), Nelco (up 77 percent), Firstsource Solutions (up 73 percent) and Mindtree (up 64 percent).

John Deere (DE) Position Trimmed by Colonial Trust Advisors

Colonial Trust Advisors trimmed its position in shares of John Deere (NYSE:DE) by 10.8% in the first quarter, HoldingsChannel reports. The firm owned 26,415 shares of the industrial products company’s stock after selling 3,195 shares during the period. Colonial Trust Advisors’ holdings in John Deere were worth $4,103,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its stake in John Deere by 5.5% during the 1st quarter. BlackRock Inc. now owns 18,857,199 shares of the industrial products company’s stock valued at $2,928,897,000 after acquiring an additional 978,907 shares during the last quarter. Lazard Asset Management LLC boosted its stake in John Deere by 11.4% during the 4th quarter. Lazard Asset Management LLC now owns 2,740,365 shares of the industrial products company’s stock valued at $428,894,000 after acquiring an additional 280,750 shares during the last quarter. TIAA CREF Investment Management LLC boosted its stake in John Deere by 27.0% during the 4th quarter. TIAA CREF Investment Management LLC now owns 1,392,357 shares of the industrial products company’s stock valued at $217,918,000 after acquiring an additional 296,148 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its stake in John Deere by 3.7% during the 1st quarter. Schwab Charles Investment Management Inc. now owns 1,315,073 shares of the industrial products company’s stock valued at $204,258,000 after acquiring an additional 46,396 shares during the last quarter. Finally, Swiss National Bank boosted its stake in John Deere by 1.0% during the 4th quarter. Swiss National Bank now owns 1,006,319 shares of the industrial products company’s stock valued at $157,499,000 after acquiring an additional 9,600 shares during the last quarter. 66.18% of the stock is owned by institutional investors and hedge funds.

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A number of research firms have commented on DE. TheStreet downgraded shares of John Deere from a “b+” rating to a “c+” rating in a research note on Friday, February 16th. Bank of America upgraded shares of John Deere from a “neutral” rating to a “buy” rating and set a $159.00 price objective on the stock in a research note on Thursday, May 3rd. ValuEngine upgraded shares of John Deere from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. BMO Capital Markets reiterated an “outperform” rating and set a $195.00 price objective (up from $190.00) on shares of John Deere in a research note on Wednesday, February 21st. Finally, Royal Bank of Canada reiterated a “buy” rating and set a $200.00 price objective on shares of John Deere in a research note on Wednesday, April 18th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and sixteen have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $175.17.

Shares of NYSE:DE opened at $155.09 on Wednesday. The stock has a market capitalization of $51.27 billion, a P/E ratio of 23.22, a PEG ratio of 2.91 and a beta of 0.81. John Deere has a fifty-two week low of $112.87 and a fifty-two week high of $175.26. The company has a debt-to-equity ratio of 2.52, a quick ratio of 1.64 and a current ratio of 1.91.

John Deere (NYSE:DE) last issued its quarterly earnings data on Friday, May 18th. The industrial products company reported $3.14 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $3.33 by ($0.19). The firm had revenue of $9.75 billion during the quarter, compared to the consensus estimate of $9.83 billion. John Deere had a net margin of 5.46% and a return on equity of 27.67%. The company’s revenue for the quarter was up 34.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.14 earnings per share. research analysts expect that John Deere will post 9.59 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 1st. Investors of record on Thursday, March 29th were given a $0.60 dividend. The ex-dividend date of this dividend was Wednesday, March 28th. This represents a $2.40 annualized dividend and a yield of 1.55%. John Deere’s dividend payout ratio is presently 35.93%.

In other John Deere news, insider Jean H. Gilles sold 15,083 shares of the firm’s stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $166.98, for a total transaction of $2,518,559.34. Following the transaction, the insider now owns 69,089 shares of the company’s stock, valued at approximately $11,536,481.22. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Samuel R. Allen sold 269,353 shares of the firm’s stock in a transaction dated Wednesday, February 28th. The shares were sold at an average price of $163.83, for a total transaction of $44,128,101.99. Following the transaction, the chief executive officer now directly owns 361,166 shares in the company, valued at approximately $59,169,825.78. The disclosure for this sale can be found here. Over the last quarter, insiders sold 284,578 shares of company stock worth $46,670,270. 0.74% of the stock is currently owned by insiders.

John Deere Profile

Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. The company's Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, including large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; related harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment comprising sprayers, and nutrient management and soil preparation machinery.

Want to see what other hedge funds are holding DE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for John Deere (NYSE:DE).

Institutional Ownership by Quarter for John Deere (NYSE:DE)

[CHART] You Can Double Your Money with This Oil Play

You already know the oil market is in the middle of a historic rebound, but you might not know you can turn this rally into triple-digit profits by the end of summer…

The price of West Texas Intermediate (WTI) crude oil is up nearly 20% on the year and up 45% over the last 12 months.

And an important indicator signals it’s heading even higher…

The Brent-WTI crude oil spread has surged to its highest point since May 2015. That’s a sign the WTI rally is far from over, and it’s creating a money-doubling opportunity.

When global oil prices are rising, Brent crude, the international oil benchmark, typically trades for more than the United States’ benchmark, WTI. That’s not because the oil is any different – in fact, WTI is better oil – it’s because Brent responds more quickly to international changes in the oil market.

But WTI eventually catches up…

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That means the difference between WTI and crude oil prices – the spread – can be a handy barometer for what’s about to happen to WTI prices.

You see, the long-term average spread between Brent and WTI is just $0.87.

And right now, the spread is $7.17. It’s up 474% since hitting $1.25 this time last year.

Just take a look at this surge…

You Can Double Your Money with This Oil Playmoneymorning.com/wp-content/blogs.dir/1/files/2018/05/0518_TheBrentWTISpread-300×246.png 300w, moneymorning.com/wp-content/blogs.dir/1/files/2018/05/0518_TheBrentWTISpread-75×61.png 75w” sizes=”(max-width: 480px) 100vw, 480px” title=”You Can Double Your Money with This Oil Play” />

Brent crude oil is trading above $80 a barrel for the first time since 2014, and it’s up 75% since its 2017 low. While WTI is also climbing – it’s up 67.9% since 2017 lows – the spread between them is spiking to its highest level in three years.

That’s a sign WTI prices will continue to rise even higher. And it’s creating a potentially lucrative profit play for savvy investors, especially as the summer driving season creates even more demand for WTI in the United States.

The spread will eventually revert toward its average, either because Brent crude prices will fall or because WTI prices will rise.

And we have every reason to think WTI prices will rise.

The summer travel season kicks off this Memorial Day weekend, which will create more demand for refined oil. Plus international catalysts will continue to boost oil prices. The United States’ departure from the Iranian nuclear deal will lead to new sanctions on their oil. Venezuela’s oil production is collapsing. And finally, American oil producers are only cautiously increasing output.

That means if the Brent-WTI spread closes thanks to higher oil prices, you can turn it into a triple-digit profit.

The simplest way to play this spread is to buy the United States Oil Fund LP (NYSE Arca: USO). This exchange-traded fund tracks the price movement of WTI, so when prices rise, USO will, too.

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If USO rises to $17 or more, you could be looking at gains of over 300%.

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Depomed (DEPO) Shares Down 0%

Depomed (NASDAQ:DEPO) dropped 0% during mid-day trading on Tuesday . The stock traded as low as $6.58 and last traded at $6.69. Approximately 3,739,419 shares traded hands during mid-day trading, an increase of 190% from the average daily volume of 1,287,687 shares. The stock had previously closed at $6.69.

DEPO has been the topic of several research analyst reports. BidaskClub downgraded Depomed from a “hold” rating to a “sell” rating in a research report on Friday, May 4th. Mizuho reissued a “buy” rating and set a $9.00 target price on shares of Depomed in a research report on Friday, March 23rd. ValuEngine downgraded Depomed from a “sell” rating to a “strong sell” rating in a research report on Friday, February 2nd. Roth Capital set a $10.00 target price on Depomed and gave the stock a “buy” rating in a research report on Friday, March 2nd. Finally, Piper Jaffray Companies reissued a “hold” rating and set a $8.00 target price on shares of Depomed in a research report on Thursday, March 1st. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the company. Depomed presently has an average rating of “Hold” and a consensus price target of $8.00.

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The stock has a market capitalization of $483.90 million, a price-to-earnings ratio of -5.31 and a beta of 1.22. The company has a debt-to-equity ratio of 2.55, a current ratio of 0.75 and a quick ratio of 0.73.

Depomed (NASDAQ:DEPO) last released its earnings results on Thursday, May 10th. The specialty pharmaceutical company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.69. Depomed had a negative return on equity of 15.74% and a negative net margin of 10.02%. The business had revenue of $128.40 million for the quarter, compared to the consensus estimate of $65.77 million. During the same period last year, the business earned $0.07 earnings per share. The firm’s revenue for the quarter was up 41.9% compared to the same quarter last year. equities research analysts anticipate that Depomed will post -1.1 EPS for the current fiscal year.

In other Depomed news, SVP Matthew M. Gosling sold 19,674 shares of the firm’s stock in a transaction dated Friday, May 11th. The shares were sold at an average price of $7.07, for a total transaction of $139,095.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 2.27% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the business. Jane Street Group LLC bought a new position in Depomed during the fourth quarter worth about $127,000. Arrowstreet Capital Limited Partnership bought a new position in Depomed during the fourth quarter worth about $131,000. ClariVest Asset Management LLC bought a new position in Depomed during the first quarter worth about $108,000. MANA Advisors LLC bought a new position in Depomed during the fourth quarter worth about $148,000. Finally, Teacher Retirement System of Texas bought a new position in Depomed during the fourth quarter worth about $155,000. Hedge funds and other institutional investors own 97.36% of the company’s stock.

About Depomed

Depomed, Inc, a specialty pharmaceutical company, engages in the development, sale, and licensing of products for pain and other central nervous system conditions in the United States. It offers Gralise (gabapentin), an once-daily product for the management of postherpetic neuralgia; CAMBIA (diclofenac potassium for oral solution), a non-steroidal anti-inflammatory drug indicated for acute treatment of migraine attacks in adults; and Zipsor (diclofenac potassium) liquid filled capsule, a non-steroidal anti-inflammatory drug for the treatment of mild to moderate acute pain in adults.

Hot High Tech Stocks To Own Right Now

In the week ended December 22, 2017, the number of rigs drilling for oil in the United States totaled 747, unchanged from the prior week and up by 224 compared with a total of 523 a year ago. Including 184 other rigs drilling for natural gas, there are a total of 931 working rigs in the country, one more week over week and up by 278 year over year. The data come from the latest Baker Hughes North American Rotary Rig Count released on Friday.

West Texas Intermediate (WTI) crude oil for February delivery settled at $58.36 a barrel on Thursday and traded down about 0.2% Friday afternoon at $58.26 shortly before regular trading closed.

The natural gas rig count rose by one to 184 this week. The count for natural gas rigs is now up by 55 year over year. Natural gas for February delivery traded up about 2.1% at around $2.65 per million BTUs before the count was released and was essentially unchanged afterward.

The U.S. Energy Information Administration noted changes in producer hedging in its weekly status report:

Hot High Tech Stocks To Own Right Now: Fortinet, Inc.(FTNT)

Advisors’ Opinion:

  • [By ]

    Cybersecurity remains red hot, after another three high-profile attacks, at Under Armour (UAA) , Boeing (BA) and Hudson’s Bay, the parent of Saks. But while many investors know of the big boys like Palo Alto Networks (PANW) , Fortinet (FTNT) and Proofpoint (PFPT) , Cramer dove into three smaller cybersecurity names to see if they’re worth investing in.

  • [By Timothy Green]

    Cybersecurity company Fortinet (NASDAQ:FTNT) announced its first-quarter results after the market closed on May 3. The report featured double-digit revenue expansion and explosive earnings growth, and the company expects its third-generation network security products to drive continued growth for the next few years. Here’s what investors need to know about Fortinet’s first-quarter results.

  • [By Garrett Baldwin]

    Yesterday, the Fed Open Market Committee announced it would not raise interest rates this session. The central bank committee, which is in charge of monetary policy, said that inflation is rising and that the U.S. economy is getting better. Markets are now looking forward to the next meeting on June 12 for the U.S. Federal Reserve to bump rates higher for the second time in 2018. Shares of Tesla Inc. (Nasdaq: TSLA) slumped more than 4.5% after Tesla CEO Elon Musk held an highly unusual earnings call. After announcing that his firm burned through $700 million in cash during the quarter of 2018, Musk refused to take any more questions on the company’s fiscal health, dismissing analysts’ questions as “boring.” Musk instead spent the rest of the quarterly call taking questions from a YouTuber named Gali Russell who had lobbied Musk on Twitter to let him partake in the earnings call. This morning, the U.S. Labor Department reported initial jobless claims rose by 2,000, to 211,000. Analysts had projected 225,000 for the week. The tightening U.S. labor market has now seen the total number of Americans receiving benefits fall to the lowest level since 1973. America’s unemployment rate is sitting at 4.1%, the lowest figure in 17 years. Tomorrow, the Labor Department will release the April jobs report.
    Four Stocks to Watch Today: GPRO, SPOT, CI
    GoPro Inc. (Nasdaq: GPRO) will lead another busy day of earnings reports on Wall Street. The firm will report earnings after the bell Thursday. Wall Street expects that the tech firm is about to report a loss of -$0.40 per share on top of $175.40 billion in revenue. Here’s a way to make a lot of money in a short time during earnings season. Spotify Technology SA(NYSE: SPOT) did not have a very good first earnings report. Shares plunged more than 8% after the firm’s music-streaming forecasts fell well short of expectations. During its earnings report, signals indicated that the firm’s growth could slow despite news that its

Hot High Tech Stocks To Own Right Now: Advantage Lithium Corp. (AVLIF)

Advisors’ Opinion:

  • [By ]

    The following 6 companies are on the bench for the index:

    Advantage Lithium (OTCQX:AVLIF) Argosy Minerals (OTCPK:ARYMF) Bacanora Minerals (OTC:BCRMF) Critical Elements (OTCQX:CRECF) NEO Lithium (OTCQX:NTTHF) Wealth Minerals (OTCQX:WMLLF)

    “Bench” is a sports analogy meaning that one or more of them could be added in the future if one of the above companies becomes a producer, is acquired, or the market capitalization (“cap”) of one or more of the index holdings falls significantly below that of one or more companies on the bench.

  • [By ]

    Advantage Lithium (OTCQX:AVLIF) is a strategic advanced junior lithium exploration company that operates between Lithium Americas and Orocobre in the Cauchari-Olaroz basin. Orocobre is the largest shareholder in the company with a 30% equity stake, coupled with a 25% interest in the project. Over the past few months, the company has been moving towards completing the second stage of its drilling campaign, which will be completed in May 2018 and will then be followed on with an updated Natural Resource Estimate Study. This will allow the company to move into phase three of its drilling efforts, which will utilize larger drills to further define the resource, with a Feasibility Study expected to be completed in the first part of 2019.

Hot High Tech Stocks To Own Right Now: S&P GSCI(GD)

Advisors’ Opinion:

  • [By ]

    Moreno was also upbeat on General Dynamics (GD) , which just made a bullish crossover, but felt that Raytheon had the best chart of them all.

    Cramer agreed, saying he’s bullish on all of these names.

  • [By Ethan Ryder]

    Traders sold shares of General Dynamics (NYSE:GD) on strength during trading on Friday. $52.91 million flowed into the stock on the tick-up and $170.65 million flowed out of the stock on the tick-down, for a money net flow of $117.74 million out of the stock. Of all stocks tracked, General Dynamics had the 0th highest net out-flow for the day. General Dynamics traded up $0.76 for the day and closed at $202.52

  • [By Joseph Griffin]

    Riverhead Capital Management LLC increased its holdings in shares of General Dynamics (NYSE:GD) by 223.5% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 12,055 shares of the aerospace company’s stock after purchasing an additional 8,328 shares during the period. Riverhead Capital Management LLC’s holdings in General Dynamics were worth $2,663,000 at the end of the most recent reporting period.

  • [By Lou Whiteman]

    The deal, in effect, makes General Dynamics-owned (NYSE:GD) Gulfstream both a customer of and subcontractor to Triumph on G650 wing box and wing completion work. Wing production work currently being performed at Triumph facilities in Nashville, Tennessee, and Tulsa, Oklahoma, will move to Gulfstream’s Georgia facility.

  • [By Logan Wallace]

    These are some of the headlines that may have effected Accern’s analysis:

    Get General Dynamics alerts:

    U.S. Air Force Awards General Dynamics Cloud Services Contract (finance.yahoo.com) General Dynamics (GD) Receives Average Recommendation of “Buy” from Analysts (americanbankingnews.com) America Desperately Needs More Submarines. And That Is Good News for General Dynamics. (yahoo.com) GD completes Hawker Pacific acquisition (janes.com) General Dynamics Unit Secures Work for Aircraft Computer System Repairs, Replacement (govconwire.com)

    Shares of NYSE:GD traded up $3.17 on Tuesday, reaching $199.62. The company’s stock had a trading volume of 2,149,954 shares, compared to its average volume of 1,720,029. General Dynamics has a 52-week low of $190.30 and a 52-week high of $230.00. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.98 and a current ratio of 1.34. The stock has a market capitalization of $57.94 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 1.89 and a beta of 0.84.

  • [By ]

    Finally, General Dynamics Corp. (GD) , along with Lockheed and BAE Systems, could possibly profit from heightened demand ships and other vehicles. 

Hot High Tech Stocks To Own Right Now: Vince Holding Corp.(VNCE)

Advisors’ Opinion:

  • [By Shane Hupp]

    Francesca’s (NASDAQ: FRAN) and Vince (NYSE:VNCE) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.