Category: INO.com Contributors

Pendulum Experiment: The Weakest Metal Vs. The Strongest Future

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Dear readers, I hope things are good if you are short both top precious metals as per my Gold and Silver updates and you are enjoying the rising gains. As nothing unforeseen has been happening, let us do an experiment.

Do you know what a pendulum is and what the effect it has on an instrument? When something moves one way and then swings back and we push it harder forward, it will move back deeper for the distance that is equal to the distance between equilibrium and the forward point. Swings and waves are a normal part of our everyday life, and that is true for the markets as well. Continue reading "Pendulum Experiment: The Weakest Metal Vs. The Strongest Future" →

No Matter How You Look At It, This Stock Is A Screaming Buy

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Investing in the market is a lot like anything else – if it seems too good to be true, it probably is. Then again, sometimes a stock play makes so much sense, it's impossible to ignore.

The current economic environment has investors concerned what 2016 will bring. China's stock bubble burst, commodities are suffering in the dredges with no positive catalysts anytime soon and the US stock market is looking more and more like it's hit the top and could be reversing course sometime over the next six months or so. And the Fed rate hike still looms large as investors prepare to get defensive against a rising rate environment that could last several quarters.

After more than five years of economic expansion, consumer spending is at all time high levels, although further growth has been mixed over the past few months – another sign of a market top. Margin debt levels hit a record high this year as well meaning consumers and investors both are leveraged more than ever financially. Continue reading "No Matter How You Look At It, This Stock Is A Screaming Buy" →

ETF's That Let You Trade the Volatility Index "VIX"

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


One of the many great side effects to the rise in popularity of Exchange Traded Funds, ETF's, is that they have increased the types of investments individuals can buy into. The average investor can now easy buy and sell funds that hold actual commodities, indexes, bond portfolios, and even dabble in the options markets without ever making a signal put or call trade themselves.

Today, I would like to point out how investors can use ETF's to play the S&P 500 Volatility Index or VIX.

But, before we get into the ETF's that allow you to profit from the VIX's moves, let take a look at the VIX itself and what causes it to move in one direction or the other. The VIX is calculated using option pricing. It looks at the price of the call and put options because we know that higher option prices mean that investors believe there is a greater chance of volatility. Without getting into too much detail about options, the reason this works is because if an underlying security has high volatility it can make an option more or less valuable depending on what side of the trade you are on. Because the level of volatility will change the likelihood, the option will expire in or out of the money.

Are you confused yet? Continue reading "ETF's That Let You Trade the Volatility Index "VIX"" →

Turkish Lira Will Continue To Plunge

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Investors in the Turkish Lira got a whiff of optimism recently following the AKP party’s landslide victory. What’s the reason for the optimism you might ask? It’s that Turkish President Recep Tayyip Erdoğan would now have a stronger hold at the helm. That means the AKP party could conceivably push through much-needed reforms. But the fact is that’s really just wishful thinking. Any strength in the Turkish Lira should be used for selling not buying.

TRY Looking Bearish

Usually, I like to leave the FX charts for dessert, yet sometimes a quick glimpse can better deliver my point. Looking at the chart it becomes clear that the path towards a higher USD/TRY hasn’t budged a bit. Any inkling of optimism was overwhelmed by pessimists looking to get out of the Turkish Lira. So much so in fact that most of the Lira’s gains have already been lost.

Why are short sellers still dominant if reforms are coming? Because even much-needed reforms would take years before they’d have any impact. Meanwhile, the problems for Turkey and the Turkish Lira are imminent. Continue reading "Turkish Lira Will Continue To Plunge" →

McKesson Delivers Another Steller Quarterly Report

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (MCK) reported quarterly results last week and beat on both the top and bottom line while raising guidance and announcing a massive $2 billion share buyback program. The stock responded with a yawn and now sets around $180 per share. MCK presents a compelling investment opportunity in the healthcare space, particularly after the recent sell-off from $243 to $180 per share. This downward movement was flanked by great earnings reports, increased dividend and additional share buybacks. MCK continues to become cheaper and cheaper as each earnings report is announced and the company continues to purchase additional shares. McKesson looks to be undervalued given its growth rate, acquisitive mindset, attractive P/E, dividend and share buyback program. I previously wrote an article outlining my bull case for McKesson and since then the stock has only become cheaper. I feel McKesson is a buy below $200 per share.

McKesson's Blowout Quarterly Results

McKesson reported revenue of $58.8 billion which translates into a 10% increase from the prior fiscal year quarter. On top of this revenue growth, earnings per share increased 19%, cash, and cash equivalents reached $5.2 billion, the company initiated a $2 billion share buyback program and raised guidance from $12.36-$12.86 to $12.50-$13.00 per share. All of these attributes bode well for investors, and now McKesson has a trailing 12 month EPS of $8.26 and with a current price of $179 this translates into a P/E of 21.7. This is an attractive P/E given its shareholder-friendly capital return plan via dividends and share buybacks along with its growth. Continue reading "McKesson Delivers Another Steller Quarterly Report" →