Stock Price – Coach Outlet Online S Pick http://coachoutletonlinespick.org/ Tue, 21 Jun 2022 14:09:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://coachoutletonlinespick.org/wp-content/uploads/2021/09/coach-oultlet-online-s-pick-icon-150x150.jpg Stock Price – Coach Outlet Online S Pick http://coachoutletonlinespick.org/ 32 32 Kellogg’s share price jumps after company announces split and headquarters move to Chicago https://coachoutletonlinespick.org/kelloggs-share-price-jumps-after-company-announces-split-and-headquarters-move-to-chicago/ Tue, 21 Jun 2022 13:18:17 +0000 https://coachoutletonlinespick.org/kelloggs-share-price-jumps-after-company-announces-split-and-headquarters-move-to-chicago/ CHICAGO — Kellogg Co., the maker of Frosted Flakes, Rice Krispies and Eggo, will move its headquarters to Chicago and split into three companies focused on cereals, snacks and plant-based foods. Kellogg’s, which also owns MorningStar Farms, the plant-based foods maker, said on Tuesday that the spin-off of the yet-to-be-named grain and plant-based foods companies […]]]>
CHICAGO — Kellogg Co., the maker of Frosted Flakes, Rice Krispies and Eggo, will move its headquarters to Chicago and split into three companies focused on cereals, snacks and plant-based foods.

Kellogg’s, which also owns MorningStar Farms, the plant-based foods maker, said on Tuesday that the spin-off of the yet-to-be-named grain and plant-based foods companies should be complete by the end of next year.

Kellogg’s had net sales of $14.2 billion in 2021, including $11.4 billion generated by its snacks division, which makes Cheez-Its, Pringles and Pop-Tarts, among other brands. Cereals accounted for $2.4 billion in additional sales last year, while plant-based sales totaled around $340 million.

“These companies all have significant stand-alone potential, and increased focus will allow them to better direct their resources to their distinct strategic priorities,” said CEO Steve Cahillane.

Cahillane will become chairman and CEO of the global snacking company. The management team of the grain company will be named later. The board of directors approved the splits.

Shareholders will receive shares in both spin-offs in proportion to their holdings in Kellogg.

Cereal sales in the United States have been declining for years as consumers turn to more portable products, such as energy bars. They saw a brief spike during pandemic shutdowns, when more people sat down for breakfast at home. But sales fell again last year.

Kellogg’s grain business was also rocked last fall by a 10-week strike by more than 1,000 workers at factories in Michigan, Nebraska, Pennsylvania and Tennessee. The strike ended after the company promised higher wages, improved benefits and a faster path to permanent employment for its temporary workers.

RELATED: Caterpillar to Move Headquarters from Deerfield to Irving, Texas

In March, a few hundred other workers at a factory that makes Cheez-Its won a new contract with 15% wage increases over three years.

Kellogg said he would explore other options for his herbal business, including a possible sale. Sales of plant-based meat in the United States have plateaued in recent months after several years of strong growth.

The company’s headquarters will move from Battle Creek, Michigan to Chicago, but it will maintain dual headquarters in both cities for its snacks business, which accounts for about 80% of current sales. Kellogg’s three international headquarters in Europe, Latin America and AMEA will remain at their current locations.

Kellogg has been focusing on snacks for years. In 2019, the company sold its cookie, pie crust, ice cream cone and fruit businesses to the Ferraro Group.

Major companies have begun to split at an accelerated pace, including General Electric, IBM and Johnson & Johnson, but such splits are rarer for food producers. The industry’s last major split was in 2012, when Kraft spun off to create Mondelez.

Mondelez made its own big play in the snacks business on Monday when it announced it would acquire Clif Bar & Co., a major energy bar company. The $2.9 billion deal is expected to close in the third quarter.

This is a particularly perilous time in the food industry due to rising costs, both for labor and materials. Russia’s invasion of Ukraine pushed grain prices higher and this month the United States reported inflation hitting four-decade highs.

Shares of Kellogg Co. jumped 8% to $73.29 before the opening bell on Tuesday.

Boeing and Caterpillar recently announced that they were moving their headquarters out of the Chicago area.

Copyright © 2022 by The Associated Press. All rights reserved.

]]>
$50 target and equal weight odds https://coachoutletonlinespick.org/50-target-and-equal-weight-odds/ Sun, 19 Jun 2022 18:08:08 +0000 https://coachoutletonlinespick.org/50-target-and-equal-weight-odds/ Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. These are the details. Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. And Morgan Stanley analyst Pamela Kaufman recently adjusted the company’s rating from “Equal weight” to “Underweight.” “We see a bearish-to-bullish bias of around 1.5:1.0. Altria shares have outperformed the […]]]>

  • Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. These are the details.

Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. And Morgan Stanley analyst Pamela Kaufman recently adjusted the company’s rating from “Equal weight” to “Underweight.”

“We see a bearish-to-bullish bias of around 1.5:1.0. Altria shares have outperformed the S&P 500 by 27% year-to-date, and after adjusting for the 7% decline in the price of ‘ABI in USD, MO core activity is +29% month-to-date,” Kaufman wrote in the research note earlier this month. “The market may continue to move towards more defensive positioning , but we believe the risk-reward trade-off is on the downside given the combination of near-term fundamental pressures and our longer-term concerns about (Altria’s) cigarette portfolio, limited RRP supply and SWMA acquisition pending PM.

The new price target reflects IQOS entering the US market in 2024. And Kaufman sees an adverse risk-reward with a 24% decline from the $41 bearish case and a 13% upside from the $41 bearish case. $61 bullish case.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

]]>
Morgan Stanley’s $156 target https://coachoutletonlinespick.org/morgan-stanleys-156-target/ Fri, 17 Jun 2022 21:20:13 +0000 https://coachoutletonlinespick.org/morgan-stanleys-156-target/ Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. These are the details. Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. And Morgan Stanley analyst Adam Jonas gave the company an “underweight” rating. Jonas noted that while the car rental industry has […]]]>

  • Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. These are the details.

Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. And Morgan Stanley analyst Adam Jonas gave the company an “underweight” rating.

Jonas noted that while the car rental industry has shown some structural improvement, the market is in the final stages of a post-COVID economic boom.

Despite Avis Budget and its counterpart Hertz’s record first-quarter results, Jonas lowered both companies’ price targets to reflect market rates, recession risks and secular headwinds.

“With the combined 1Q22 Americas fleet (HTZ + CAR) less than 6% of 1Q19 levels, we see negative mean reversion risk for RPD and fleet depreciation as anti-inflationary actions the Fed take hold and new/used vehicle inventories increase,” Jonas wrote. in a research note. “We are updating our financial models to reflect the latest results from CAR and HTZ. Despite record first quarter results, we are revising our price targets lower to reflect market rates, recession risks and secular headwinds.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

]]>
IMAC (IMAC) stock price: Why it rose 3.31% https://coachoutletonlinespick.org/imac-imac-stock-price-why-it-rose-3-31/ Thu, 16 Jun 2022 05:45:13 +0000 https://coachoutletonlinespick.org/imac-imac-stock-price-why-it-rose-3-31/ The stock price of IMAC Holdings, Inc. (Nasdaq: IMAC) rose 3.31% in the last trading session. That is why. The stock price of IMAC Holdings, Inc. (Nasdaq: IMAC) rose 3.31% in the last trading session. Investors responded positively to IMAC’s announcement of the launch of retail healthcare products for optimal spinal health and well-being for […]]]>

  • The stock price of IMAC Holdings, Inc. (Nasdaq: IMAC) rose 3.31% in the last trading session. That is why.

The stock price of IMAC Holdings, Inc. (Nasdaq: IMAC) rose 3.31% in the last trading session. Investors responded positively to IMAC’s announcement of the launch of retail healthcare products for optimal spinal health and well-being for IMAC patients.

Starting July 5, IMAC will offer certified organic, farm-sourced supplements that focus on spine and joint issues, inflammation, overall health, and common metabolic issues. Core supplement offerings will include a multivitamin for men and women, and to reduce stress, improve sleep, boost immunity and fight inflammation for optimal joint health. Physical health and rehabilitation products will be available for purchase to reverse the effects of textual neck, poor posture and the adverse effects of technology on the spine, joints and soft tissues.

KEY QUOTE:

“Our certified organic product line is ultra-premium, made with biodynamic ingredients using regenerative farming practices in top-selling categories like organic multivitamins, whole food nutrients, botanicals and herbs, probiotics, superfoods greens and super clean proteins. I am very excited to introduce breakthrough products to our new and existing patients while generating an additional synergistic revenue stream for the company.”

— Dr. Ben Lerner, IMAC COO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

]]>
Yoshitsu (NASDAQ:TKLF) Share Price Down 8.4% https://coachoutletonlinespick.org/yoshitsu-nasdaqtklf-share-price-down-8-4/ Tue, 14 Jun 2022 05:50:33 +0000 https://coachoutletonlinespick.org/yoshitsu-nasdaqtklf-share-price-down-8-4/ Yoshitsu Co., Ltd (NASDAQ:TKLF – Get Rating) stock price fell 8.4% on Monday. The company traded as low as $1.20 and last traded at $1.26. 93,115 shares changed hands during the midday session, down 95% from the average session volume of 1,739,229 shares. The stock previously closed at $1.37. The company’s fifty-day simple moving average […]]]>

Yoshitsu Co., Ltd (NASDAQ:TKLF – Get Rating) stock price fell 8.4% on Monday. The company traded as low as $1.20 and last traded at $1.26. 93,115 shares changed hands during the midday session, down 95% from the average session volume of 1,739,229 shares. The stock previously closed at $1.37.

The company’s fifty-day simple moving average is $1.72.

A hedge fund recently bought a new stake in Yoshitsu shares. Virtu Financial LLC acquired a new stake in Yoshitsu Co., Ltd (NASDAQ: TKLF – Get Rating) in Q1, according to its most recent Form 13F filed with the Securities and Exchange Commission (SEC). The fund acquired 57,819 shares of the company, valued at around $123,000. Virtu Financial LLC owned approximately 0.16% of Yoshitsu when it last filed with the SEC.

Yoshitsu Company Profile (NASDAQ: TKLF)

Yoshitsu Co, Ltd engages in the retail and wholesale of beauty, health and other products. It offers beauty products, such as cosmetics, skin care, fragrance, body care and other products; healthcare products, including over-the-counter drugs, nutritional supplements, and medical supplies and devices; and other products including lingerie, homeware, food, and alcoholic beverages.

Further reading



Get news and reviews for Yoshitsu Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for Yoshitsu and related companies with MarketBeat.com’s free daily email newsletter.

]]>
Stock up on food supplies https://coachoutletonlinespick.org/stock-up-on-food-supplies/ Sun, 12 Jun 2022 12:32:00 +0000 https://coachoutletonlinespick.org/stock-up-on-food-supplies/ Farknot_Architect/iStock via Getty Images The Nasdaq composite has lost about 30% of its year-to-date gains. Some would view these gains as “ill-gotten” because the market should never have gone this high in the first place. After all, valuations were sky-high and the economy had major structural problems (inflation, excessive money printing, uncontrolled government spending, rising […]]]>

Farknot_Architect/iStock via Getty Images

The Nasdaq composite has lost about 30% of its year-to-date gains. Some would view these gains as “ill-gotten” because the market should never have gone this high in the first place. After all, valuations were sky-high and the economy had major structural problems (inflation, excessive money printing, uncontrolled government spending, rising interest rates, etc.).

The stock market had to come back down to earth. It had simply gone too high, too fast and valuations were in the stratosphere. In the meantime, I bought QID as a hedging/insurance policy against my long positions. The good news is that food stocks are somewhat immune to future carnage. The three companies profiled in this article have all shown high relative strength lately and rallied at least 10% above their 52-week lows.

Why do I love food companies so much? People still have to eat. Plain and simple. Another bonus? inflation can also be beneficial for these companies. For example, suppose a beef jerky company’s meat costs are 30% of its sales and it sells a package for $1.00. A year later, that same amount of meat costs 10% more (now reaching 33% of sales). The company passes the entire increase on to its customers in the form of a 10% price hike – selling the same package of beef jerky now at $1.10. Last year the company earned 70 cents on this package, while this year (thanks to inflation) it earns 74 cents. That’s a gain of 5.70%. Translation? Inflation can be a good thing if it can be “fully” passed on.

Farmer Bros. (FARM): Deep, deep, discount. With a market cap of just $94 million, it sells for a mere 21% of its annual revenue and a 6% discount to its book value. Shares are already up 10% from their 52-week low of $4.51 and have started to show impressive relative strength.

Tim Stabosz, a major Seeking Alpha shareholder and contributor, has recently spearheaded the bullish case on the company and brings some rather compelling questions to the table.

Some of his bullish trepidation is offset by Seeking Alpha author Michael Doyle’s complete shredding of the company via his “Don’t Add to Farmer Bros” article. In an exchange of comments between Stabosz and Doyle, Stabosz raised the following point:

This article is quite worn, with hardly any new perspective on the updated situation. 1) Management has become even more insistent on its ability to monetize assets, and it’s abundantly clear to me that there is a significant, if not massive, understatement of land and other heavy assets on the books, providing a unrecognized additional margin of safety. 2) The improvement in gross margin has indeed been very encouraging and will continue to improve, and 3) management has made it clear that there are still effects of both Covid (particularly in the quarter which has just been reported) and labor shortages, where hotels are not catering their breakfasts, for example, and of course, the same delayed catering of an office life apart whole, where there is clearly more revenue to recover. This business has scale and fixed costs, so a return of more sales will allow the business to return to profitability in the next fiscal year.

I agree that the lack of follow through on substantial internal purchases has been disappointing, and I would have liked to see slightly better numbers in the last quarter. As a result, I reduced my exposure here months ago. But all of that is discounted in the current stock price, looking back over the past two months, and I modestly added…and also traded around the position, because I agree with the author that “the street” is eager for the losses to stop here and does not want to give them credit until it happens. But that doesn’t mean the stock can’t go up to $6-7, for example. I agree with Krieger that the author has a mealy mouth trying to have it both ways. The right choice is either to lower the average (especially since he keeps reminding us how small his position is) or to sell. Staying put is more like the action (or inaction) of someone who doesn’t really understand what they have and who is frozen in fear of further loss. The article’s lack of substance, and providing only the most superficial makeover, seems to validate this.”

Price target: $9

Coffee Holding Co. (JVA): The company will release its second quarter results the week of June 13 and may have a positive surprise lurking. This company, devoid of any research coverage, is definitely under the radar. With a market capitalization of just $17 million, calling it a nanocap is a huge understatement.

Shares slowly began to stabilize, rising about 10% above their 52-week low. Measurements prove severe value status. The stock has a price-to-sales ratio of 0.26 (implying that each quarter the company generates enough sales to cover its entire market valuation). Additionally, JVA is currently selling at a 40% discount to book value ($5.01).

Regarding the upcoming second quarter earnings release: Sequential sales are expected to increase 5% to $17.50 million, while earnings on a sequential basis will increase 20% to 6 cents. On a “year over year” comparison, look for JVA sales to show a rapid 21% increase from $14.46 million to $17.50 million. As for net profit, it will be stable at 6 cents, due to higher freight and packaging material costs. One-time costs such as legal fees and stock option expenses will also affect net income.

Price target: $6

Bridgford Foods (BRID): The stock has been on a tear lately. Over the past six weeks, it is up nearly 25% from its low of $10.28.

On June 1, 2022, the company completed its Green Street estate sale. As a result, his bank account swelled exponentially.

Second Quarter Sequential Improvement Highlighted: From the company’s first to second quarters, progress was recorded. Although sales fell 6% from $64 million to $60 million and SG&A expenses increased 230 basis points (from 23% to 25.30%), there was a strong report. . The snack supplier was able to triple its revenue from 3 cents to 9 cents (an impressive gain of 200%). The reason? The company’s gross profit margin increased by 230 basis points, from 25.50% to 27.80%. The irony present? Changes in the company’s general and administrative expenses and gross profit margin were exactly the same (230 basis points).

Summary of the company’s second quarter: (1) sales increased 19.80% from $50,477,000 to $59,986,000 (2) earnings climbed 29 cents from a loss of 20 cents to a 9 cent gain (3) Gross profit margin jumped 680 basis points from 21% to 27.80% (4) General and administrative expenses fell 30 basis points from 25.60% to 25.30% (5) as a percentage of total sales, Dollar General’s revenue increased by 39% from 14.20% to 19.60% (6) cash position increased by $9 million (7) operating profit generated a positive improvement of $3.80 million from a loss of $2,311,000 to a gain of $1,504,000.

Other key metric highlights: The company’s price-to-sales ratio sits at 0.47 while its price-to-book ratio registers a mark of 1.55. The “price to book” ratio will change radically, after the filing of its third quarter results. This number could fall below the 1.00 figure, as a large one-time gain (sale of Green Street) of $40 million passes through the financial statements. It will represent the best net profit (by leaps and bounds) the company has ever produced in its history. As a result, equity will flourish.

Price target: $18

Summary

Food businesses offer a high degree of security and stability. The ones included in this article are all selling near multi-year lows and offer significant reward potential. All the bad news and some of it has already been incorporated into these actions. As a result, they all produce a compelling risk to reward outcome. In addition, their low market capitalizations make them vulnerable to merger and acquisition activity, such as a takeover attempt or a management-led privatization attempt. Having food stocks while using QID as a blanket will definitely help you sleep better at night.

]]>
Stocks plunge as inflation climbs at fastest pace in 4 decades https://coachoutletonlinespick.org/stocks-plunge-as-inflation-climbs-at-fastest-pace-in-4-decades/ Fri, 10 Jun 2022 20:28:00 +0000 https://coachoutletonlinespick.org/stocks-plunge-as-inflation-climbs-at-fastest-pace-in-4-decades/ Stocks plunged on Friday after new government data showed inflation in May jumped 8.6% from a year agothe strongest rise in consumer prices since 1981. The S&P 500 fell 117 points, or 2.9%, to 3,901. The Dow Jones Industrial Average fell 2.7% and the tech-heavy Nasdaq fell 3.5%. The sharp drop marks the eighth week […]]]>

Stocks plunged on Friday after new government data showed inflation in May jumped 8.6% from a year agothe strongest rise in consumer prices since 1981.

The S&P 500 fell 117 points, or 2.9%, to 3,901. The Dow Jones Industrial Average fell 2.7% and the tech-heavy Nasdaq fell 3.5%. The sharp drop marks the eighth week of losses in the past nine weeks for U.S. benchmarks.

“Selling was very broad on Friday, but financials, technology and travel/leisure saw some of the steepest declines,” Vital Knowledge analyst Adam Crisafulli said in a report. “Travel/leisure names were hit very hard on Thursday and Friday as investors took profits in this group as demand began to falter given huge price increases and growing pressures on gas and gas budgets. food.”

The jump in the Consumer price index, a broad basket of goods and services, was driven primarily by higher fuel, food and housing prices, the Labor Department reported Friday. The record increase dashed investors’ hopes of easing inflation, replacing them with stagflation fears that central banks continue to raise interest rates in an effort to contain inflation.

The US Federal Reserve meets for two days next week, and most economists and analysts expect the central bank to raise its main borrowing rate by an additional half a point. While the Fed no longer uses CPI data to frame its policy, analysts say the higher-than-expected inflation numbers argue for further rate hikes.

“This report influences the outlook for monetary policy in September and beyond,” Comerica Bank chief economist Bill Adams said in an email to clients. “The persistence of high inflation in May strengthens the case for further rate hikes of half a percentage point after July and weakens the case for a pause in hikes in September.”


Inflation rate hits new 40-year high as Fed eyes interest rate hike

04:59

The aggressive rate hikes are part of a growing global wave where central banks are scrapping ultra-low interest rates that have supported borrowing, economic growth and stock prices during the pandemic and have also flooded markets with investments in search of higher returns. Now central banks are focusing on slowing growth to stifle high inflation for four decades.

The risk is that such moves could cause a recession if they are too aggressive. And higher interest rates tend to pull stock prices down.

A major driver of inflation is higher gas prices, which have tightened pressure on businesses and households, increasing pressure on budgets. Crude oil prices are up about 60% for the year. Much of the jump is due to The Russian invasion of Ukraine.

Early Friday, the AAA automobile club reported that the national average for a gallon of regular gasoline in the United States had reached $4.99. In California, the average price per gallon is $6.42, according to AAA estimates.

Benchmark U.S. crude oil gained 82 cents to $122.33 a barrel in electronic trading on the New York Mercantile Exchange. It fell 60 cents to $121.51 on Thursday.

Brent crude oil, the price standard for international trade, added $1 to $124.07 a barrel.

Haircut Tracker

While consumer spending grew at an annual rate of 3.1% from January to March, that trend may soon reverse as soaring prices continue to strain U.S. households, economists said.

“Rising gasoline prices and high inflation are also weighing on consumers,” said John Leer, chief economist at Morning Consult. “To date, consumer pessimism has not led to a pullback in consumer spending, but high prices are eating away at consumer savings, which could be the catalyst for a real contraction in real consumer spending.”

Another telltale signal, noted Comerica’s Adams, is the cost of haircuts, which rose 0.5% in May and more than 6% this year.

“Economists watch this price closely because a haircut is largely the same service today as it was 10, 20 or 50 years ago, and is similar in all countries,” he explained. . This makes it useful for measuring inflation.

“Consistent with the rest of the report, this shows that inflation failed to moderate in May and is far too high,” Adams said.

]]>
Stock futures are flat Wednesday night https://coachoutletonlinespick.org/stock-futures-are-flat-wednesday-night/ Wed, 08 Jun 2022 22:04:29 +0000 https://coachoutletonlinespick.org/stock-futures-are-flat-wednesday-night/ Stock futures were flat in overnight trading on Wednesday after major averages ended the regular session decline and U.S. Treasury yields rose. Dow Jones Industrial Average futures rose about 30 points, or 0.1%. S&P 500 and Nasdaq 100 futures were flat. Shares of Five Below fell more than 6% in extended trading after first-quarter sales […]]]>

Stock futures were flat in overnight trading on Wednesday after major averages ended the regular session decline and U.S. Treasury yields rose.

Dow Jones Industrial Average futures rose about 30 points, or 0.1%. S&P 500 and Nasdaq 100 futures were flat.

Shares of Five Below fell more than 6% in extended trading after first-quarter sales were weaker than expected and the retailer shared a weak outlook for the current period.

In regular trading, the Dow Jones Industrial Average fell 269.24 points, or 0.81%, to 32,910.90, while the S&P 500 lost 1.08% to close at 4,115.77. The Nasdaq Composite slipped 0.73% to end at 12,086.27.

On Wednesday, investors continued to look for signs of slowing economic growth ahead of May’s consumer price index reading scheduled for Friday. The data is expected to be slightly lower than the April figures and could indicate that inflation has peaked.

Meanwhile, the bond market gave investors little hope as the 10-year Treasury yield topped the 3% mark. Oil prices also hit a 13-week high, with U.S. West Texas Intermediate crude rising 2.26% to settle at $122.11 a barrel.

CNBC Pro Stock Picks and Investing Trends:

Ten of the 11 S&P sectors ended the day negative, dragged down by real estate. Energy, meanwhile, closed at its highest level since 2014.

During regular trading on Wednesday, Intel shares slid more than 5% and dragged the Dow down 30 shares after the company warned of weakening demand for semiconductors. Chinese tech stocks rose, with JD.com adding nearly 8% and helping to limit Nasdaq’s losses. After a strong quarterly earnings report, Campbell Soup added 1.5%.

Fundstrat’s Tom Lee told CNBC’s “Closing Bell: Overtime” on Wednesday that the likelihood of a soft landing from the Federal Reserve is rising and stocks have priced in “almost a full recession.”

“I think there’s a series of hikes ahead, but it’s really the Fed being more hawkish than expected that has the markets worried,” he said.

Initial unemployment claims and earnings from Nio, DocuSign and Rent the Runway are on deck for Thursday.

]]>
Weekly chart makes $545 seem obvious after Twitter deal blows up https://coachoutletonlinespick.org/weekly-chart-makes-545-seem-obvious-after-twitter-deal-blows-up/ Tue, 07 Jun 2022 13:06:35 +0000 https://coachoutletonlinespick.org/weekly-chart-makes-545-seem-obvious-after-twitter-deal-blows-up/ TSLA stock price closes 1.6% higher after Musk made TWTR deal less likely. The weekly chart for Tesla stock price shows the support line moving down to $545. Elon Musk says Twitter is in breach of contract for not specifying bot percentage. Tesla Stock (TSLA) closed up 1.6% on Monday but should have done much […]]]>
  • TSLA stock price closes 1.6% higher after Musk made TWTR deal less likely.
  • The weekly chart for Tesla stock price shows the support line moving down to $545.
  • Elon Musk says Twitter is in breach of contract for not specifying bot percentage.

Tesla Stock (TSLA) closed up 1.6% on Monday but should have done much better. A letter from Elon Musk, CEO of Tesla at Twitter (TWTR) The management went public on Monday in which he criticized them for not providing him with data on the number of bots on the social media platform he agreed to buy in April for around $44 billion. Musk’s letter called Twitter’s failure to provide updated data on the fake accounts a “clear material breach” of its contract. Many see these antics as Musk’s attempt to walk away from the buyout offer without paying the mandatory $1 billion break fee.

Read also : Tesla Stock Deep Dive: $400 Price Target on China Headwinds, Margin Squeeze, Drop in Shipments

Tesla stock price rose to $734.59 on the news as a failed Musk takeover of Twitter would mean Tesla shares were not used as collateral in the deal. However, TSLA quickly lost momentum and closed Monday at just $714.84. Tuesday’s pre-market sees the shares trading at $706.16, a decline of 1.2%.

Tesla Stock Forecast: $545 is a given at this point

As Tesla fanatics continue to post about how the EV producer is on its way to becoming the first $10 billion company (yes, people are writing this), FXStreet has a much less ambitious question: Where is the TSLA stock heading in the next six months? I even have an answer: $545.

Yes, much of the recent fall in Tesla stock price is a feature of Musk’s unpopular Twitter buyout program and general market turmoil. The fact remains, however, that TSLA stock is down 42% from its all-time high of $1,243.49 and has yet to enter any type of base building or consolidation. On the contrary, the stock price has oscillated between hardcore rallies and sell-offs. There’s little to no reason to look at the weekly chart below and think the bottom has already been reached for Tesla.

A few weeks ago, FXStreet produced a Tesla’s robust assessment, concluding that the leader in electric vehicles was worth around $400 per share. You can read the report here.

For my own sake here, I’m less focused on TSLA’s low point during this market rout. I just know it has to be $545 or less. Tesla stock has long since broken support at $700. Much less commented on at the time is that it also broke support at $621 during the last full week of May. Below $621, the only serious support level is $545. $600 is there, but the market has shown it little respect in the past. $545, on the other hand, has worked three times recently as support with a wide gap in between. This happened in the first week of December 2020, the first week of March 2021 and the third week of May 2021. Each time $545 resisted.

Tesla stock has been trading in an oblique but descending price channel since last November. The weekly chart shows two lower highs and nine lower lows. The lower trendline falls at a steep angle and suggests that the next major low will be a deep dive. In fact, it reached the horizontal line of $545 about four weeks ago. We may be closer than we think.

The Relative Strength Index (RSI) is currently at 40 and has spent all of May and now June below the neutral 50 level. Moving Average Convergence Divergence (MACD) the indicator broke below the zero line, another sign that the downtrend is likely to continue.

All this to say that while Tesla can indeed be a great long-term investment (it could even be worth $10 trillion if this inflation continues!), the best bet for bears and bulls is either hold or wait up to $545.

TSLA Weekly Chart


Like this article ? Help us out with some feedback by taking this survey:

]]>
Exxon Mobil Stock: Don’t follow Buffett in oil now (NYSE:XOM) https://coachoutletonlinespick.org/exxon-mobil-stock-dont-follow-buffett-in-oil-now-nysexom/ Sun, 05 Jun 2022 18:08:00 +0000 https://coachoutletonlinespick.org/exxon-mobil-stock-dont-follow-buffett-in-oil-now-nysexom/ michelmond/iStock Editorial via Getty Images A few years ago, my view was very bearish on Exxon Mobil (NYSE: XOM) until the stock was so beaten into the $30s that the only logical path forward was up. My hint for getting really bullish on the energy giant was a policy shift toward less capital spending to […]]]>

michelmond/iStock Editorial via Getty Images

A few years ago, my view was very bearish on Exxon Mobil (NYSE: XOM) until the stock was so beaten into the $30s that the only logical path forward was up. My hint for getting really bullish on the energy giant was a policy shift toward less capital spending to drill oil with a focus on generating positive cash flow. Now, my investment thesis suggests that investors should start looking for an exit point with the stock rising to $100 after gains of 200% from late-2020 lows.

Do not follow Buffett

Oil is currently trading at high levels due to Russia’s invasion of Ukraine over 100 days ago, as well as some supply constraints due to supply changes due to covid . Additionally, President Biden’s decision to restrict oil drilling and pipeline construction, including the Keystone pipeline, has not helped energy prices.

As stated in the introduction, a few years ago it was time to buy energy stocks. Warren Buffett fills up Chevron Corp. (CVX) and Occidental Petroleum (OXY) following Russia’s outbreak of the first war in Europe since World War II are retrospective sparks.

Over the past month, Berkshire Hathaway (BRK.B) has been steadily buying shares of Occidental after adding 121 million shares of Chevron in Q1’22. In fact, Occidental’s last buy was at $57 per share and investors could have bought shares below $10 in 2020. The stock is actually trading near a 5-year high calling into question question the logic of now buying oil stocks during a war by one of the largest energy producers in the world.

List of Insider Trading in XOM Stocks

Source: FinViz

So far, Buffett has done a solid job of buying Occidental shares in May at prices around $57, with the stock now over $70. No one can deny that these purchases of almost 7 million shares were solid purchases for the first month.

The big question is whether an investor should now follow Buffett into energy stocks after Occidental jumped more than 20% above the last buy price. Berkshire Hathaway already owns more than 143 million shares and technically the Buffett-led company didn’t buy shares aggressively in May. Even though Buffett is still bullish on oil stocks, the signal isn’t very strong.

Another reason for caution is that Buffett has sold airlines like Delta Air Lines (DAL) and Wells Fargo (WFC) virtually to covid-induced lows. The notorious contrarian investor now appears much more like a dynamic investor dumping airlines at covid lows and chasing oil at war-induced highs.

Delta was sold around $20 and quickly rebounded to nearly $50 the following year. Similarly, Wells Fargo was sold at $24 and hit $60 in just over a year. In both cases, Buffett missed 150% gains in short periods due to panic selling stocks. In my opinion, Buffett built Berkshire by investing in banks during the financial crisis and making long-term bets on profit machines shot and ignored in previous decades.

Buying an energy stock after a 500% gain over a 20-month period resembles the scenario where Buffett would have unloaded a stock in the past, not built the position.

Weak bull case

A possible sign that Exxon Mobil is overvalued occurs when an analyst writes a bullish research note on a stock, but the conclusion does not offer a price target much higher than the current price. JP Morgan analyst Phil Gresh presents us with this case with the price target of $108 on a bullish call. Any bullish case for a 4% rise speaks volumes.

In fact, the analyst community as a whole struggles to justify Exxon Mobil’s current price. According to TipRanks, the average price target of $97.22 is 2% lower than the current price.

Exxon Mobil rating and price target

Source: TipRanks

Average analyst EPS estimates point to another bearish thesis for the stock. The energy giant is expected to see its profits plummet over the next 4-5 years, at least.

XOM EPS estimates

Source: Alpha Research

The stock is trading at 15x 2025 EPS targets. A big key is naturally where oil and natural gas prices will trade over the next few years. Hess (HES) explained how the Stabroek Block contains billions of additional barrels of oil on top of the 11 billion barrels already discovered. The market is not short of oil supply, the market is only short of the will to drill and produce those supplies and the incentive is there with oil well above $100/bbl.

Perhaps the best indication of why Exxon Mobil is not a buy now is the net payout performance. The energy giant shifted from capital expenditures to returning capital to shareholders, but the net payout yield fell to just 4.1%.

XOM Net Payment Yield
Data by YCharts

The net distribution yield combines the dividend yield with the net treasury yield to derive a stock valuation equation that provides a better valuation view. The current dividend yield is a solid 3.6%, but the net payout yield is only 4.1% as Exxon Mobil hasn’t repurchased many shares as the market capitalization has climbed to 400 billions of dollars.

Remember, the company only increased the stock buyback program to $30 billion through 2023. Exxon Mobil only spending $15 billion on buybacks a year doesn’t move the company much. needle with the stock at 100 dollars.

Furthermore, investors should wonder if the energy giant will even use this clearance to buy back shares here, knowing that oil prices can’t stay that high. It is highly unlikely that Russia will continue to fight this battle for Ukraine after the first 100 days have mostly failed to achieve any stated goals.

In Q1’22, Exxon Mobil only spent $2.1 billion to repurchase shares. The stock traded at just $60 at the start of the quarter and ended around $80. Exxon Mobil is no longer attractive to management at $100 now.

On the Q1’22 earnings call, CEO Darren Woods reinforced the plan to spend $10 billion to $15 billion on stock buybacks this year:

We returned $5.8 billion to shareholders, of which approximately 2/3 was in the form of dividends and the rest in the form of share buybacks, in line with our previous program. We said in our corporate plan update in December that we plan to buy back $10 billion of our stock. This morning we announced an increase in the program, up to $30 billion in total through 2023. This decision reflects the confidence we have in our strategy, the performance we are seeing across our businesses and the strength of our balance sheet.

Additionally, management has made it clear that the goal is to grow cash balances from $11 billion at the end of March to levels between $20 billion and $30 billion. The company is smart to focus on improving the balance sheet and not spend all the money available to buy back shares at what are likely high oil prices.

Worse still, if Exxon Mobil sticks to its $15 billion annual buyout plan, the energy giant would spend more than $4 billion per quarter for the rest of the year. The company would fall into the normal trap of spending more on buybacks as stock prices rise compared to charging over the past two years when stock prices were much, much lower.

Carry

The main takeaway from investors is that now is not the time to follow Buffett to stock up on energy stocks. First, Buffett mostly bought Chevron and Occidental stocks at lower prices. Second, Exxon Mobil itself has pointed out that the valuation is already stretched by only offering a plan to buy back up to 3.8% of outstanding shares.

Oil could certainly soar and push the stock much higher, but investors need to use further gains to offload Exxon Mobil. The stock is now trading at peak valuations.

]]>