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Stock Card's winner and loser of the week
This week the stock market created too many losers. Not many loser companies from the operational point of view, but just loser stocks from the share price point of view. The losing streak is so prominent that it is hard to find a winner. But, don't you worry, we've got you a winner: 
Burlington Stores, Inc. (Ticker: BURL)
Burlington! Yeh, You may know it as Burlington Coat Factory. Let me tell you something! Put the coffee you have in your hands on the table. Ready? Burlington stock has done better than Amazon and Netflix in the past 5 years. Total 5-year return on a daily basis for Burlington Stores is up by 492%. In the same period, Amazon is up by 331.9%, and Netflix is up by 423.7%. Think about it! While most investors have been chasing the tech and weed stocks, the folks at Burlington have been doing something well. While the revenue hasn't grown that significantly, the company has improved its earnings per share (partly, thanks to the tax cuts). And, when you are a small company that is not talked about a lot, the algorithms pick you up based on your earnings improvements. And, that's the story of this successful winner. Thanks to Chris Hill from the Market Foolery podcast who brought this winner to our attention. Request Burlington Stores' Stock Card
Loser: Johnson & Johnson (Ticker: JNJ)
Who hasn't seen the report by Reuters that mentions Johnson & Johnson knew for decades that its baby powder included asbestos! Oh no! Not in baby powders! This is a significant blow to the company's brand. The stock dropped by about 10%, and the company lost $40 Billion of its value. The company has categorically denied it, and we are now waiting to see what the truth is. If it is proven right, the brand value the company is going to lose may not be easy to recover anytime soon. Just ask Volkswagen or BP! Visit Johnson & Johnson's Stock Card now
Should you invest in Beyond Meat after its IPO?
Beyond Meat filled its S1 Documentation in November of 2018, which means the company is getting ready to go public soon. Typically, when it's a new IPO, we hold off from it. There is no rush to invest in an IPO for several reasons including the fact that most IPOs get hyped up at the beginning to give the company a chance to raise as much money as possible. But, Beyond Meat maybe an exception to such a rule. In this episode of Renegade Investors podcast, we explore whether or not you should invest in Beyond Meat when it goes public. We will hear from the founder and CEO of the company. We also dig deep into the S1 document and other resources to assess whether the company is worthy of a spot in our long-term portfolios.
Season One of the How To Invest Video series
Season One of our How To Invest YouTube channel is over. If you haven't watched it yet, it's time to binge watch. We will be back with Season 2 in early 2019. You can send us your topics and episode requests by clicking on this link. Binge-watch the Season One
Stock Card request of the week
That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thoughts and ideas!
As I write this post, The Game Awards 2018 ceremony is wrapping up. The Game Awards is the Oscars of the gaming industry. Many adults roll their eyes when we talk about gaming as entertainment. But, think about it! This year, Red Dead Redemption 2 video game has achieved the biggest opening weekend in entertainment history; not the video game history, but the entertainment history. It is now apparent that video games and video games companies are going to shape our lives for years to come. This week's most interesting stock market stories are inspired by The Games Award 2018:
Winner: Tencent Holdings (Ticker: TCEHY)
The Chinese video game maker has had quite a few bad quarters. Despite owning 40% of the Epic Games, the maker of the global phenomena - Fortnite, the stock has been in a free-falling mode for a long time. Earlier this year, the Chinese government put a freeze on the publishing of video games that the government deemed to be inappropriate. This has cost the company significantly in revenues and maybe even more importantly investors' sentiment and trust. This week though, in a surprise announcement, a new ethics panel has started reviewing game titles, and the news is welcomed by the gaming executives. It has not yet created a significant win in the stock market, but the story is undoubtedly a win for Tencent. Visit Tencent's Stock Card now ...
Loser: Activision Blizzard (Ticker: ATVI)
A few companies can be so successful and pull off an epic fail in their stock price at the same time. Activision Blizzard has done just that. The company is a leader and is on track to benefit from the emergence of eSports category and has already invested significantly in developing its eSport line of business. The investment includes the development of an eSport league, athlete drafting and recruitment rules, and the development of the world's first eSport stadium for its popular Overwatch franchise. Activision Blizzard is a monster player in the video game industry. However, the shares of Activision Blizzard, Inc. dropped by approximately -42% since the beginning of October 2018. The video-game company reported 345 million active users in the last quarter, which was a 2% drop compared to the previous quarter. This caused the share price to tumble. Additionally, the company has had some fall outs with its fan base as a result of disagreement around the release of a mobile version of its popular PC game, Diablo. The current holiday season is expected to turn the fortunes for Activision Blizzard. Only time will tell! Visit Activision Blizzard's Stock Card now ...
Should you invest in Chinese stocks?
Considering the U.S.- China tariffs and trade war and the rapid fall of the Chinese companies' stock prices in the past few months, a drift is shaping up in the stock market community. On one side, people believe China is a trap. It's full of fraudulent practices, the numbers are baked, and the government is unfair and has control over everything. Other investors believe that the decline is temporary and marks a unique opportunity to invest in great businesses at affordable levels. Who is right? And, as stock market investors, what should we do? Should we hold on to our Chinese stocks, should we double-down and invest more, or should we sell them off?
Tax-related stuff you need to know as a beginner long-term investor
Filing for taxes seems to scare many people. Especially, new investors who tell us that they get scared of filing their taxes if they have bought or sold a few stocks. As always, if you break down a complex question into smaller parts, it is not too difficult to answer it. On this episode of How To Invest series, we talk about six tax-related things you need to know to glide through investment taxes.
A new company that is shaping the future of work!
This week our Stock Card premium members were quite excited. When the stock market is going down, long-term investors are all joyous to pick up a few shares of the companies that they have been patiently watching. The Stock Card Request that piqued our interest this week is a new IPO. While new IPOs are too young to be worthy of a spot in our portfolios, they are an indicator of the type of companies that are going to shape our future. We are all so accustomed to having Google in our personal lives to help us with the things we need. What about in our professional lives? What if we want to know the # of new users who signed up last week? We can't google it. Companies store a massive amount of data, but there is no google to retrieve such data organically and in simple spoken-language. That's where this week's Stock Card Request comes it. Elastic NV (Ticker ESTC) is a software developer that is among the leaders in the enterprise search software market. What an interesting and futuristic market it is, which is going to shape how we work in the future!
That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thoughts and ideas
Stock Card's winner and loser of the week This week we lived amid the so-called tariff war between the U.S. and China. It's no surprise that China has been the fuel of the two of the most interesting stock market stories of the week. For one company, China is turning the fortune. For another, it is causing its dismay.  Winner: Ambarella Inc (Ticker: AMBA), up 19% After losing ~42% of its value since the beginning of 2018, the patient investors in the company are celebrating a 19% growth of the stock price during the week. The company is a designer of high-quality, compact video processing chips. And, GoPro has been its biggest customer. As GoPro struggled to stay relevant and grow beyond being just a one-product wonder, Ambarella was not able to move out of GoPro's shadow. This week, the company announced its quarterly earnings and a glimpse of light at the end of the tunnel has emerged. It announced its first major win in the automotive market and new design contracts in the computer-vision system-on-a-chip market with two tier-1 Asian customers. Who are those customers? They keep them unnamed. I don't blame them. In this heated, politically-charged environment, the less you say about your customers in Asia, the less you are in danger of spooking the investors away. It looks like China is turning the company's fortune around. Visit Ambarella's Stock Card Loser: Tiffany Co (Ticker: TIF), down more than 12%! One-third of Tiffany's revenues is all thanks to the luxury-loving Chinese customers. This week the company announced such revenues are on the decline. And, when the investors heard that revenue is in danger, they freaked out. Tiffany's stock lost 12% of its value compared to the beginning of the week. The company is planning to invest significantly in its New York flagship store and historically it has been able to maintain its brand recognition. And, with luxury goods, their brand is everything. If Tiffany can convince its customers that having Tiffany-branded jewelry shows their high-society status, this lower share price is not a big deal. Visit Tiffany's Stock Card Two new sections on all Stock Cards Which section on Stock Card is your first stop when you look up the Stock Card of a company? Our favorite section is the "company strength". That box tells us most of the things we need to know about whether the company is worthy of a spot in our long-term portfolio. Which section is your favorite? We just added Analyst Consensus and Key information sections to all Stock Cards. Look up Stock Card of your favorite company and see how these new additions can help you make better decisions without time-consuming research.  How To Invest YouTube episode When do you sell the stock you own in your long-term portfolio? When-to-sell is one of the most common questions that long-term investors ask. It's a difficult decision. As a long-term investor, you'd want to hold onto your stocks for as long as possible. But when you hear everybody talking about selling, or when your stocks' prices fall, it makes you nervous about whether it is time to sell and lock your gains! That's why episode 7 of the How To Invest YouTube series is about three reasons why you may sell your long-term investments. Stock Card request of the week One Stock Card request by one of our premium members was extremely fun to publish. It's called MTY Food Group Inc. When I first saw the Stock Card, I yawned and clicked away. Who cares about MTY Food Group? But the company owns thousands of very well-known brands. Have you had a scoop of ice-cream at Cold Stone Creamery? What about some good Tex Mex at Baja Fresh? Well, those are brands that MTY Food owns. The Stock Card also brought so many good memories from the time I lived in Canada. Some of my favorite fast-service mall-food, such as Tiki-Ming and Thai Express are among the brands the company owns. That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thoughts and ideas! |
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