The Apple bull is expected to steam into 2021 – Here’s what you need to know

Apple (NASDAQ: AAPL) is arguably the most talked-about and traded stock in the 2020 market. The Apple bull shrugged off the February and March bears and climbed 139% since the bottom. However, Apple’s meteoric rise is attracting a fair amount of pessimists leading into 2021. Especially as the economic carnage continues and speculations of a tech bubble are still looming. At face value, the Apple bull is showing no signs of fatigue. The release of its iPhone 12, which includes 5G, and analyst upgrades, should act as the wind under the bull’s wings. Nonetheless, today’s article will breakdown Apple’s 2021 forecast for our readers.

Table of contents 
1. Why analysts, institutions, and professional investors are bullish for 2021
2. What you need to know before investing in Apple - YIG's take

Will the Apple bull run out of gas before 2021?

Apple holds a bright 2021 future for four reasons. These include:

  • The release of cheaper 4G iPhone’s and the iPhone 12
  • Upgrades from Wedbush analyst Daniel Ives
  • The historical bullish reaction after stock splits
  • The recent Warren Buffet rally.

Apple is notorious for its flagship product, the iPhone. However, Apple’s entire product range are now household items. The integration of Apple into every facet of our lives allowed AAPL’s product lines to sustain their huge sales volumes during the pandemic. Considering COVID-19 is continuing into 2021, Apple should still maintain its 2020 sales volumes. Especially as customer loyalty seems to grow in times of crisis. Apple’s brand loyalty, encouraged Warren Buffet to snap up shares,and made up to 40% of Berkshire Hathaway’s equity portion earlier this year. Consequently, retail investors followed Buffet’s tracks and invested in Apple, as they saw the brand loyalty skyrocket during 2020. Thus, Apple’s unwavering customer base should propel the bullish run into 2021 (opinion, not advice).

IPhone 12 bullish anticipation

Despite having a suite of products, Apple’s iPhone is their biggest wallet and eyeball magnet. Each year the world waits in anticipation in the lead up until their September launch. For 2020 it is the iPhone 12, which Wedbush analyst Daniel Ives believes, “represents the most significant product cycle for Cook & Co. since the  iPhone 6 in 2014″. Not to mention it will be the first Apple iPhone with 5G. Hence Ives recent upgrade from $515 to $600, which is way above the average analyst price target of $445. The significance of the iPhone 12 saw Wedbush maintain their outperform rating on Apple. Primarily because Ives believes the super cycle product will be the driving force behind the 2021 Apple bull. However, supply disruptions will see the iPhone 12 come out in October of 2020, ultimately heightening the build-up. Thus, the above-average hype should trigger a buying frenzy at the end of 2020 and into 2021.

In addition to analysts and professional investors, retail investors are also snapping up Apple shares. The recent 4-1 stock split saw a tidal wave of everyday investors join the Apple 2020 party. Especially as the price allowed retail investors to purchase fractional shares on platforms like Robinhood.“Historically, after Apple has split its stock, the following year’s return has outpaced the performance of the S&P 500, except for the dot com crash”. Thus, despite the recent bearish onslaught, the stock-split should see Apple rage into 2021 (opinion, not advice).

Here’s what you need to know before investing in Apple pre-2021

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research

To a large extent, it seems the Apple 2021 bull scenario is likely. Especially when you factor in the enormous iPhone 12 hype, the spike in Wedbush’s optimism, and the retail tsunami following the stock-split. Apple has enough catalysts in its quiver to sustain the bullish run into 2021. However, mid-course corrections would not be surprising.

Counterarguments to the 2021 Apple bull

Furthermore, while the Apple cheerleaders have a loud voice, its essential to pinpoint the drawbacks of an AAPL investment. First, Apple might be pandemic proof, but it is not recession-proof. If the recession infiltrated the stock market, Apple would likely turn bearish (opinion not advice). Thus factoring in an economic downturn is crucial when investing in Apple. However, for now, the economic recovery is favouring the Apple bulls. Also, tech bubble or not, Apple’s trillion-dollar market cap might become unsustainable. In which institutions would be the first to sell, and retail investors would likely get burned. Overall, YIG does see validity in the 2021 bull argument but stresses the importance of the potential holes.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Senior Manager of YIG.

UVXY ETF captures investor interest – here’s everything you need to know

ProShares Ultra VIX Short-Term Futures (UVXY) is a listed ETF which provides investors leveraged exposure to the SP 500 VIX index. In short, the fund tracks the performance of the SP 500 VIX – a popular measure of the markets volatility. UVXY tends to increase in value when the market falls, as investors move to buying put options on SP 500 listed companies as protection. This sentiment shift in options puts, increases the overall volatility of the market hence increasing UVXY price. UVXY recently peaked investor interest last week as the SP 500 turned negative after a monumental bull run. With more investors intrigued in UVXY, we will breakdown what you need to know about the fund.

Table of Contents 
1. Introduction
2. Breakdown on how UVXY works 
3. Key factors to take away from this article

Breaking down how UVXY tracks VIX futures is crucial for understanding the movements of the ETF.

When following volatility, investors would like to mirror the CBOE Volatility Index VIX. However, there are no securities that provide identical tracking performance. Hence, investors use options, or in UVXY’s case, VIX futures, to capture volatility.

UVXY will hold a mix of VIX futures each day to reach to 1.5x leverage. However, each day the ETF will hit a reset button, and the UVXY fund manager must sell existing futures and buy new ones to maintain the 1.5 leverage. Accepting this feature blindly is dangerous. Because to maintains UVXY’s leverage, fund managers must carry out contango on VIX futures.

To put it simply, contango is when next month’s future is higher than the current months. For example, January futures are $15, but February futures are $17. In this scenario, the fund manager is selling January’s futures and buying February’s futures to maintain the mix (1.5 leverage). However, $15 only allows you to buy 88% exposure (15/17) to Febuary’s futures. Hence, over time the exposure decreases, and the UVXY peters to zero, theoretically.

Overall the daily leverage makes UVXY still an incredibly volatile product. Understanding the relationship is a must before investing. YIG strongly suggests conducting more research on the UVXY and VIX futures connection before investing.

Key Takeaways regarding UVXY

There are a few key factors to understand before considering an ETF like UVXY

  1. UVXY is an ETF that decays in value over time. The financial instrument was designed to be held for very short periods of time, as it does not generally fluctuate in value based on supply and demand. UVXY tracks the SP 500 VIX index by using futures contracts. These contracts decay in value over time, as the market follows an indefinite long term path upwards.
  2. The ETF is designed for investors who see an upturn in volatility in the coming 30 days. Historically, we have seen investors move to UVXY in times of great uncertainty. Donald Trumps first year inaugurated as the President of the United States, saw a huge swing in volume to UVXY. We may see further investor volume move towards UVXY as the election looms.
  3. UVXY can potentially offer investors security as a hedge within a portfolio. The negative correlation in price movement to the SP 500 can offset some losses if the market was to crash. Some investors look at inverse ETF’s as an insurance exposure for their higher risk portfolios.

We highly recommend referring to the Pro Shares website which go into further depth regarding the current contracts held alongside more information regarding the overall performance of the ETF. Click here for more information.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/

 

Written by Tyger Fitzpatrick, and Patrick McLoughlin, Founder, and Senior Manager of YIG.

 

 

 

NIO 2021 forecast – Does YIG see value in the EV dark horse?

NIO (NYSE: NIO) captivated the EV market in 2020. However, 2020 will soon become history as we enter 2021. Thus, NIO investors are itching to uncover whether the 2021 forecasts are bullish or bearish. Considering NIO is taking on the nickname the “Tesla of China”, we could assume that the projections are bullish. Nonetheless, YIG would look to breakdown NIO’s 2021 forecast for our viewers today.

Table of Contents 
1. NIO 2021 forecast - what's in store for the 2021 calendar? 
2. Does YIG see value in an investment ahead of NIO's 2021 growth?

What does NIO have planned for 2021?

NIO expects its Battery-as-a-Service (BaaS) program to increase production, sales, and investor backing come 2021. Especially as Morgan Stanley analyst Tim Hsiao argues, reducing the cost for the end-user “will see NIO’s incremental vehicle sales increase by 10-36% between 2021-2030”. Tim further explains that if NIO could cement themselves as the BaaS captain, than they could set the industry standards. Ultimately bolstering NIO’s brand and market share in 2021, and beyond.

Another big talking point is NIO’s entrance into Europe and other international markets. NIO expects to open the European door in the second half of 2021. Ultimately adding to the expectations of more robust financials throughout 2021.

Lastly, NIO is expecting to deliver the ET7 to the market in early 2021. The BMW like design is capturing the eyes of car enthusiasts. However, making sure the ET7 experiences no delays in 2020 production is vital if NIO wants their EV sedan to be a knockout in 2021.

 

 

Does YIG see value in a NIO investment before 2021?

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research 

Short answer: Riding the short-term bullish momentum into 2021 seems like a smarter play (opinion, not advice)

NIO holds a bullish outlook for the rest of 2020 and into 2021. Leading investments banks UBS, Morgan Stanley, and Piper Sandler confirm NIO’s bullish 2021 forecast. Especially as Morgan Stanley and UBS both upgraded their NIO positions to over-weight and neutral, respectively, in August. However, the smart money needs retail investors to pour into the “Tesla of China” to set off an enormous rally. Better than expected Q3 and Q4 financials and increased production should convince more retail investors to pick up NIO shares. Considering, NIO already issued a strong outlook and expects to produce 11,000-15,000, vehicles, the chance of the buy-side increasing in high (opinion not advice).

Looming bear market could set NIO back

Despite NIO’s bullish 2021 forecast, riding the short-term momentum into 2021 seems like a smart play. Because it capitalises on the optimism and mitigates the risk of a disappointing 2021. However, all investors should factor in macro stock market corrections, as September shows signs of a bloodbath (opinion not advice). Overall the megatrends of autonomous vehicles and EV’s propelling society towards a greener future are in place for NIO to succeed. Also, the 2021 NIO perception is incredibly bullish, which could become a self-fulfilling prophecy. (opinion not advice) However, cut-throat competition, and the potential for analysts to become bearish, especially if the recession infects the stock market, could see NIO pullback before reaching its 2021 forecast of $30.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Senior Manager of YIG.

Brookline Capital’s $50 million IPO is bearish and bullish – here’s what you need to know.

Brookline Capital Acquisition Corp (NASDAQ: BCACU) is going public on Friday. However, with 2020 being an IPO frenzy, understanding which companies to investigate further is tough. Especially, as valuations leading up to IPOs can be deceptive. Today’s article will explain who Brookline Capital is to our readers and what you need to know before investing.

Table of contents 
1. IPO overview 
2. Bullish and Bearish takes on Brookline Capital

Who is Brookline Capital, and why the IPO?

Brookline Capital is a blank check company, known as a Special Purpose Acquisition Company (SPAC). If the words SPAC or PIPE investors sound foreign, then reading our simple explanation is crucial. Investment bank Brookline Capital Markets brought BCACU to life, which means smart money is already backing this IPO. Brookline intends to raise $50 million by offering 5 million units at $10. Each unit comprises of one share of BCACU and one-half of a warrant, which is exercisable at $11.50.

The target company is a high-growth life science business that is developing a new product for the market. BCACU should be able to acquire a life science company before the two-year deadline successfully. Especially, as CEO and Chairman, Samuel Wertheimer is a scientific advisor at Brookline Capital Markets. In which Wertheimer can leverage his scientific networks to land an acquisition.

YIG would like to point that blank check companies usually have two years to execute the acquisition before returning the money to the investors. Thus, Brookline’s decision to go public should provide some reassurance to investors. Because SPAC’s often hold back if they are not confident in their ability to acquire a company within the two years.

Here’s what you need to know before investing in Brookline Capital

Before I begin, I am  obliged to remind our viewers that this is not advice but rather investment commentary from extensive research.

Bullish argument

Bullish investors would argue that the IPO fever and SPAC hype will send Brookline Capital soaring in no time. Not to mention that BCACU’s target industry, life sciences, could see FOMO kick in as healthcare explodes. The bulls would further drive home their point by stating that the IPO price will be the point of maximum financial gain. Because retail investors are still yet to arrive in numbers. Overall, the bullish side is speculation. However, if their hypothesis was right then yes, investing in Brookline Capital at IPO could be a smart play (opinion not advice)

Bearish argument

While the bullish side does sound attractive, there are still cheerleaders with the bears. The strongest argument for the bears is that investors are putting their eggs in already rising SPAC’s. For example, SHLL is up 400% since its SPAC IPO. Also, BCACU’s potential acquisition is still a fair way away. Hence, the bearish cheerleaders have a loud voice.

Overall, the bears win the fight on BCACU. Because of the lack of acquisition talks. However, once Brookline lines up a life sciences company, the bulls should reign supreme. (opinion not advice)

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Senior Manager of YIG.

ITACU’s 2020 IPO hype is going unnoticed on main street – Does YIG see potential?

Industrial Tech Acquisitions Incorporated (NASDAQ: ITACU) is gaining momentum ahead of its IPO on the 9th September, yet it’s all quiet on the media front. Astronomical surges are now commonplace in the COVID-19 stockmarket, all because of volatility. However, retail investors often hear about the company after the unrealistic gains happen. Ultimately resulting in one big wrestle between the investor and their emotions.

Table of contents 
1. Why is SPAC ITACU so special? 
2. The huge risk/reward play with Industrial Tech 
3. Does YIG see potential in an Industrial Tech Investment?

Who are Industrial Tech Acquisitions, and why are they worth watching ?

Industrial Tech Acquisitions is a Special Purpose Acquisition Company (SPAC). ITACU’s sole intention is to find a company to acquire. In ITACU’s case, they are searching for Northern American companies who specialise in industrial and energy technology. Hence the sudden spike in ITACU’s IPO behind closed doors. However, before we progress if SPAC or PIPE investors sound unusual, YIG strongly suggests you read our simple explanation. Otherwise, you will be at an information disadvantage.

Essentially, Industrial Tech Acquisitions is a blank canvas. Because ITACU does not have a merger on the table, let alone a specific target company in sight. On the 9th September, ITACU is going public with no product offering. However, this is how most SPAC IPO’s play out. Once Industrial Tech Acquisitions enter NASDAQ, they start the two-year hourglass. Some investors might be scratching their head as to why it is worth considering Industrial Tech when they are a blank canvas?

Is investing before ITACU find an acquisition a smart play?

In short, investing before the acquisition is what we could call a smart trading idea. However, it still holds risk that investors must mitigate. The general story of a SPAC is they IPO, then they find a blockbuster company to acquire. Soon after the retail investors pour in, and the stock skyrockets, followed by a correction. Thus, getting in before ITACU even find a technology company to acquire allows investors to enter at the point of  maximum financial gain. (opinion not advice) However, the fairy tale SPAC story could turn into a nightmare if ITACU fails find an acquisition in time or the acquisition does not receive the expected hype.

Investing is largely based on mitigating the risk while maximising the return. In a fairy tale scenario, you could invest before IPO and set profit targets after the IPO hype, and once ITACU acquires the technology company. Alternatively, if you are more risk-adverse, then investing a small amount of capital followed by bigger positions as the ITACU story improves is another option. YIG would like to stress that these methods to mitigate risk are not financial advice but investment commentary.

Does YIG see value in an Industrial Tech Acquisitions investment?

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research. 

Short answer: Investing in ITACU could potentially pay-off. However, an investment will be met with risk/reward situations that each investor must mitigate. (opinion not advice) 

YIG’s Takeaway

The expectation is that ITACU will find an emerging technology company and will follows the bullish suit of previous SPAC’s such as SHLL, Nikola Motors, and Draftkings. Finding a high-growth, and thus a speculative tech company should not be a difficult task. Especially considering the accelerated technology disruption and the fact that SPAC’s are a fast pass for a company to go public. Not to mention the management has networks in the technology sector. For example, CFO Greg Smith was the CEO of ERF Wireless and Infrastructure Networks. However, an Industrial Tech Applications investment still holds considerable risk that could eviscerate an account if left unchecked.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Senior Manager of YIG.

Hennessy Capital is riding the EV SPAC bull – does YIG see value beyond the merger?

Hennessy Capital LLC (NASDAQ: HCAC) is Wall Street’s rising SPAC star as they intend to merge with EV company Canoo. The merger will see yet another EV stock enter the market with uncontrollable momentum. Many investors seem to be getting in on HCAC in the lead up until the merger, all with the expectation of volcanic activity. However, the bears argue that the hype is ridiculous and that banking on HCAC to be another SHLL could be a costly mistake. Nonetheless, today’s article will break down the HCAC merger for our readers and provide our take on a potential investment.

Table of contents 
1. Why all the hype behind the merger? 
2. Who is following HCAC: smart or dumb money? 
3. Does YIG see value in a HCAC investment?

Breakdown of the HCAC merger

HCAC is a Special Purpose Acquisition Company (SPAC). A SPAC is a company that goes public with the sole intention of merging with another company. If the word SPAC or PIPE investors sounds foreign, then you must read YIG’s free and straightforward explanation otherwise, you will be at an information disadvantage.

Canoo is a high-growth, innovative EV company. However, innovation is often the title of most EV companies, so what makes Canoo different? First, their ability to design the world’s first flattest “modular skateboard” provides them with a product edge in the EV space. The skateboard architecture allows Canoo to provide enough interior space without creating a gigantic vehicle. Second, Canoo is targeting the millennial market with its subscription-based EV model and unorthodox interior design. Allowing people to make payments overtime on a Canoo to have access now. Ultimately, providing some relief that Canoo will not lose all its potential market share to other EV makers such as Tesla, Nio, Kandi Technologies, Fisker, and Hyliion. To read the full merger PR, click here, but YIG’s explanation should be enough to get your feet wet on the merger.

Moreover, the unveiling of Canoo’s electric vehicle below should put the investor optimism into perspective.  Overall, it should come as no surprise that HCAC, a SPAC looking for a high-growth company, is deciding to marry Canoo on the 3rd of September (According to Barron’s). The merged companies will trade under the ticker CNOO.

 

Smart money is controlling the HCAC bull – but why?

The smart money has and continues to pour into HCAC, which is no surprise for a bullish SPAC merger. In Hennessy’s case, the percentage ownership of institutions, the recent buying, and the big name players is rather noteworthy. First, institutions own 62% of HCAC. When any group owns more than 50% of a company, investors should look to find out the group’s agenda. It seems the institutions are loading their pockets with HCAC shares with the expectation that the merger will provide an excellent return on investment (opinion, not advice). Especially, as Morgan Stanley, Deutsche Bank, and Bank of America all own a portion of HCAC.

Moreover, the lack of selling and spike in institutional buying over the past few weeks is worth looking into. For example, the Litman Gregory Master fund bought $1.9 million shares at the tail end of August. Overall, the smart money is suggesting a strong bullish undertone leading up until the merger. However, YIG would like to point out that the smart money tends to be the drivers in the lead up to a market debut. Thus, investors should not base their entire investment of one indicator, which is significant institutional ownership.

Does YIG see value in an investment?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research 

Short answer: An investment in the short-term holds potential but is not without significant risk(opinion not advice) 

YIG Takeaway

Riding the HCAC merger momentum holds incredible weight. Especially considering the track record of SPAC success in 2020, the backing from the smart money, and innovative design. Not to mention Dan Hennessy, the Founder of HCAC, has taken 4 SPAC’s public before. Ultimately, creating a picture which seems to good too be true. The optimism should sustain itself until the merger. (opinion not advice)

However, any day after the merger, investors should tread carefully. Because the thought of selling shares enters the smart money’s mind. Also, the fact that Canoo is not rolling out EV cars until 2022 could see investors leave.

 

 

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG

Biomerica set to release earnings this Friday – here’s what you need to know.

Biomerica (NASDAQ:BMRA) is set to release Q2 earnings this Friday, with experts forecasting an expected EPS of -$0.05. This would mark a 37% improvement for Q2 Earnings Year on Year. The medical diagnostic manufacturer has thrived on the opportunity this year to develop a viable COVID-19 test. Biomerica’s rapid COVID-19 test is marketed produce results in 10 minutes via a finger prick. The fast acting test offers a less invasive method of diagnosis which is what continues to reel in investor interest. Currently, BMRA are unlikely release any further updates by Friday in regards to their EAU application for emergency use of COVID testing.

Table of Contents 
1. Introduction 
2. Key forecasts for Biomerica Earnings

Expert forecasts for Q2 Earnings

BMRA earnings are expected to improve from last quarter, with two experts pricing the EPS for Q2 -$0.05 according to NASDAQ. Q1 earnings this year posted an EPS of -$0.09, underperforming against experts forecasts. Taking this into consideration, BMRA are expected to turn a positive EPS by Q4 early 2021.

  • Revenues expected for this quarter are set at $1.9 million (Zack’s Consensus data)
  • Q3 revenues expected to double from 1.9 million to $3.8 million (Zack’s Consensus data)
  • Expectations are highly leveraged by whether BMRA can get the 10 minute COVID testing through the EAU. The revenue for Q3-Q4 will deviate heavily depending on whether BMRA can market and sell these COVID tests by the end of the year.
  • Expert predictions include the bullish outlook of 2021-22 if BMRA are successful in manufacturing the COVID test, with the EPS for 2022 Q1 forecasted to produce an EPS of 0.46

Investor outlook for Biomerica

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research

The imminent future looks positive for Biomerica, with the EAU currently processing the emergency request for the FDA to approve the rapid COVID test. Biomerica announced this morning the CFO Janet Moore would be retiring and Steve Sloan would be taking this position. This restructure should have little effect on investor sentiment, with Steve Sloan bringing across experience at with previous roles at GE and Medtronic. Investors await further notice from BMRA surrounding the EAU approval, which has been in open air for months.

FDA Approval should see an immediate uptrend in the stock price , rewarding the investors who have secured low trading entries (opinion not advice). The forecasts suggest an influx in revenue through 2020-21 if all the necessary requirements (FDA approval) can be met. This is a stock to watch closely moving into 2021.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Zoom looks to post record earnings- Does YIG see value?

Zoom Video Communications (NASDAQ: ZM) is now the poster boy for working at home, socialising during the pandemic, and the bullish technology market. Zoom earnings are just around the corner, 31st August, which is causing share price expectations to polarise. While Wall Street expects Zoom to post another blowout earnings report, Zoom’s future remains unclear. Especially, as valuations become extreme and the coronavirus expiration date remains uncertain. Today’s article will breakdown Zoom’s Q2 earnings expectations and whether the future is bleak or bright for the rising videoconferencing star.

Table of contents 
1. Zoom must hit consensus estimates to maintain bullish momentum. 
2. Does YIG see value in investing in Zoom post-earnings?

 

Why is Wall Street bullish about Zoom’s earnings?

Zoom’s astronomical earnings growth was a by-product of the global pandemic. Wall Street instantly rallied behind ZM ahead of previous earnings in 2020. However, the virus’s future, growing competition from Microsoft, Google, and Cisco, and difficulty in sustaining record earnings have left Wall Street weary. Nonetheless the bulls retain royal status.

According to FactSet, analysts expect adjusted earnings of 45 cents a share, which is up 8 cents Year on Year (YoY).Considering, Zoom adjusted their earnings to 44-46 cents a share, it is fair to say ZM and Wall Street are virtually on the same page. Additionally, Estimize, which pools together expectations from hedge-fund-executives, brokers, and buy-side analysts forecasts adjusted earnings per share of 50 cents.

Thus, on the Q2 earnings front, Wall Street is projecting Zoom to post expected or better than expected results. The harmony of Zoom and Wall Street expectations continues with Q2 revenue. Zoom foresee revenue coming in between $495-500 million, which is on par with the average analyst expectation of $500 million. It is important to note that Analyst predicted less than $225 million in revenue before Zoom increased its Q2 earnings guidance in June. Overall, the congruency between Wall Street and ZM has left the videoconferencing stock as a Moderate Buy. The rating is based upon 12 “Buy,” 8 “Hold,” and 2 “Sell” recommendations.

Moreover, the Wall Street price targets sit between a low of $180 and a high of $300. Despite some low price targets, investors gravitate towards the higher end of the range, as ZM traded around the $290 mark last week. The positive perception is also evident in the options market. ZM’s 10-day call/put ratio of 3.32 is 81% higher than it was at the same time last year. Suggesting investors are pricing in a surge on Monday. However, YIG  would like to point out that the rising bullish sentiment increases cliff-edge height if ZM fails to post expected or better than expected earnings come Monday.

Does YIG see value in a Zoom earnings investment?

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research 

Short answer: Investing in ZM earnings is a gamble. Investing in the future of Zoom may put the odds in your favour (opinion, not advice). 

Arguably, the biggest question critics have thrown at ZM is will their light burnout or are they becoming an evergreen technology giant? Simplifying that question we could put it as should investors invest based on Zoom’s fundamentals or the hype?

Fundamentals and Zoom’s post earnings future

Zoom financial fundamentals thus far are outstanding. However, creating an impressive track record means investors and shareholders expect nothing less than blowout results. Therefore, if Zoom posts disappointing earnings on Monday after the bell, we should see a big sell-off. Moreover, every good company knows that saturation is the killer of growing fundamentals. Consequently, Zoom is not resting on their videoconferencing locals. Instead, ZM is expanding into the international phone cloud service and home device markets. Wall Street is applauding Zoom’s initiative. For example, William Blair analysts see Zoom’s phone service offering as an exciting component of their expansion. However, some bears argue Microsoft, Google, and Cisco already dominate, and Zoom is just a vacuum for free users and not paying customers.

Overall, Zoom is still a speculative stock. However, if they become the videoconferencing captain and can assert market dominance in the home devices, and then ZM should become a value investment.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG

Applied UV looks bullish ahead of Monday’s IPO – Does YIG see value?

Applied UV (NASDAQ: AUVI) is stepping onto the NASDAQ next Monday through a traditional IPO. However, the biotechnology company is receiving little to no coverage in the lead up to its big day. The absence of market commentary is not necessarily a bad sign as retail investors often hear about a company after the big event. Thus, today’s article will breakdown the AUVI business model for our readers and explain whether we see value in an investment come IPO day.

1. What you need to know about Applied UV before their IPO on Monday 
2. Does YIG see value in an Applied UV IPO investment?

Breakdown of Applied UV ahead of IPO

Applied UV focuses on creating and acquiring the technology from other companies to prevent infection in the healthcare, hospitality, commercial, and residential markets. Radiation is a common method when it comes to destroying bacteria, viruses, and infections. AUVI uses Ultra Violet light (UVC), a form of radiation, around mirrors and surfaces to prevent infections within hospitals and residential markets.

Applied UV’s product offering is better understood by breaking down its subsidiaries SteriLumen and Munn Works extraordinary Mirrors. Munn Works solely focuses on manufacturing fine mirrors and frameworks for artwork. According to customers before the IPO Munn Works Mirrors receives the gold standard in terms of quality.

However, SteriLumen’s infection prevention technology is sparking the interest of investors pre-AUVI IPO. SteriLumen has developed UV light devices to kill healthcare-acquired infections (HAI’s), including the coronavirus. Hence, the Applied UV IPO hype. SteriLumen’s devices include UV mirrors and drains, allowing the subsidiary to serve more than just the hospital market. Also, the strong management at AUVI is reassuring investors of a probable bullish first financial year post IPO.

 

Does YIG see value in an Applied UV IPO investment?

Before I begin I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research

Short: A short-term investment could be viable. However, investors must understand IPO market fundamentals first (opinion not advice) 

The lack of media coverage is a double-edged sword. On the one hand it allows investors who do their due diligence to be the first in the door. However, no ears and eyes in the lead up to AUVI’s IPO means volume could be low on Monday. Considering volume is a significant driver of price action, investors could find they invest on Monday but AUVI trades flat.

Resistance and Support levels come AUVI IPO

Moreover, the lack of a defined sentiment for Applied UV’s IPO makes it difficult to understand resistance and support levels. Because all we know is the listing price of $5. Investing without resistance or support is like walking blind. The rule of thumb is unless there is a significant amount of hype to drive up the price on IPO day, you wait until end of AUVI’s debut to obtain resistance and support levels.

Overall, investing after AUVI’s IPO day is the smartest play (opinion not advice). Because you will have the resistance and support levels to make a more informed investment. The IPO will also increase Applied UV’s media coverage and thus trading volume for the following days should be higher. Not to mention that AUVI’s ability to serve part of the coronavirus market could get out on IPO day.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG

Fluidigm soars 25% on COVID-19 FDA approval – here’s what you need to know

Fluidigm Corporation (NASDAQ: FLDM) just became a bull-market magnet as its COVID-19 saliva kit received FDA approval. Optimism is high in pre-market trading as some bullish investors believe this is news to send FLDM soaring. However, the bears are screaming that a pump and dump is coming at the bell. The division in sentiment causes many investors to be in a tug of war between FOMO and shorting. Today’s article will provide our readers with a breakdown on whether the COVID-19 rising star is bearish or bullish.

Table of contents
1. Breakdown of the FDA approval 
2. Everything you need to know before Investing

What does Fluidigm’s COVID-19 FDA approval mean?

The FDA is continuously looking to simplify the testing process during COVID-19. Fluidigm’s tick of approval represents just that, the FDA endorsing a more simplified testing approach. FLDM’s COVID-19 test (Advanta Dx SARS-CoV-2 RT-PCR Assay) is saliva-based, which means it does not require collection via invasive nasopharyngeal swab. However, coronavirus-saliva testing is nothing new, but what is unique is Fluidigm’s production technology. Because, Fluidigm is using an ultrahigh-throughput testing capability system, that eliminates the expense and complexity of extraction.To put the throughput testing capability system’s benefit into perspective FLDM could produce 6000 tests per day per system.

Fluidigm’s ability to simply COVID-19 testing is significant. Because the current testing methods are invasive, time-consuming, and are only relatively effective in responding to COVID-19 hotspots. Hence, FLDM’s saliva test could become an effective method to neutralise COVID-19 hotspots and, thus stave off the lockdowns. Also, investors and society are in vaccine and treatment limbo-land. Thus, FLDM’s FDA approval paints an optimistic view for COVID-19 testing and bullish investors.

Here is what you need to know before investing in Fluidigm

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research

COVID-19 false hope theory

It is common to hear a COVID-19 stock go to the moon overnight only to return to Earth within the next few days. The rollercoaster can be brutal for some investors. The promise of unrealistic gains reels them in, but then the sell-off from the people who pushed the bullish narrative leave some investors burnt. While the COVID-19 false hope theory is more common in penny stocks,  it does not mean Fluidigm is immune. However, Fluidigm differs slightly from your typical COVID-19 stock. Because its meteoric 600% rise is over 6 months and follows a linear progression. Suggesting FLDM is a COVID-19 stock that is transforming from a speculation to a possible coronavirus play.

While the six month chart shows organic growth, Fluidigm’s short-term price action is more volatile. Today’s insurgence of the raging bulls should increase volatility. In turn, people investing in FLDM at the bell are more exposed to a potential sell-off. Overall, Fluidigm does not appear to be a loose end when looking at the general trend but could exhibit signs of the false hope theory days after massive market news.

Institutional weighting – good or bad?

Institutions own 74.9% of Fluidigm shares. Essentially, that means the analysts did their due diligence and thought FLDM was worth investing in. Significant institutional ownership is a strong bullish sign for rising COVID-19 stocks as analyst ratings often drive retail investor sentiment. However, if the FLDM hype fizzles out, we could see a majority of the FLDM institutions take their profit bags and leave. Overall, notable institutional ownership on the share registry is a positive sign for now.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG

Salesforce surges 14% as investors rally behind better than expected earnings results

Salesforce (NYSE:CRM) crunched Q2 earning expectations posting an adjusted EPS of $1.44 in comparison to its expected EPS of $0.67. The software developer is set to open at $247.38 (14.5%) this morning according to pre-market. Salesforce is currently trading at all time highs, smashing its YTD stock value by 62.9%. It was recently announced the software giant will be added to the Dow Jones Industrial Average, replacing Exxon Mobil. This means CRM will be added to an elite list of 30 US companies, placing CRM alongside the likes of Apple (NASDAQ:Apple) and McDonalds (NYSE:MCD). There is significant prestige associated with Dow Jones inclusions. The Dow has a deep history of listing high caliber American corporations dating back to 1896. This is the icing on the cake for long-standing CRM investors.

Table of Contents 
1. CRM summary 
2. Salesforce Earnings breakdown 
3. Where to from here for Salesforce investors?

What we can take out of Salesforce Q2 Earnings

Key Takeaways

  1. Revenue of $5.15 Billion, up 29% YOY
  2. FY21 Revenue Guidance expected to increase by 21%, to $20.7 Billion
  3. EPS was positively impacted by unrealised return on their nCino investment ($617 million contribution)
  4. EPS guidance for Q3 of $0.73 (almost 50% decrease from Q2 EPS)
  5. Subscription revenues increased by 29% YOY
  6. Total cash, cash equivalents and marketable securities recorded at $9.28 billion
  7. Performance Obligation of $15.2 Billion, a 24% increase YOY. (Performance obligation is contract to provide a Good or Service in the future. This simply put suggests an increase in demand for CRM services.)

“It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world,”

said Marc Benioff, Chair and CEO of Salesforce. Read full report here.

Where to from here for Salesforce investors?

Before I begin I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research

This is most certainly an exciting time for CRM investors as Salesforce reach a golden era of growth. The Dow Jones inclusion and positive Q2 results are key drivers in the recent stock price growth. With tech giants such as Apple and Tesla reaching new heights in this recent market up-trend, there is no surprise that CRM is following a similar path. CRM’s services are well ingrained into the global market, with large corporations such as Telstra, Fisher and Paykel and Volkswagen currently using their services.

With CRM up 14% pre-market, we can expect a drawback over the coming days as speculators exit with short term intentions (opinion). Long term shareholders won’t take as much notice to this mornings surge, as the strong fundamentals remain the key focus. The lower Q3 EPS guidance at $0.73 may be a conservative move by CRM to undersell and over perform, however we will wait and see once Q3 results are in. This is definitely one to keep on your watch list.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updated when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

OKTA rallies 10% before earnings – Does YIG see value or hype?

Okta (NASDAQ: OKTA), a cloud software company for user identification, is causing optimism to erupt within investors ahead of this Thursday’s earnings. Considering all tech stocks are experiencing support from the raging bull, Okta’s bullish expectations should be no surprise. Today’s article will provide our readers with an objective breakdown of the earnings expectations and whether YIG sees value.

1. Why is Okta up before earnings - should you be bullish or bearish? 
2. Does YIG see value in an Okta earnings investment?

Wall Street’s take on Okta’s earning – should you be bearish or bullish?

The general sentiment amongst Wall Street is bullish. Zacks Consensus estimate expects Okta to post a quarterly loss of $0.02 per share and $186.44 million in revenue, which is +60% and +32.7% YOY, respectively.  Zacks estimate projects OKTA’s FY20 earnings and revenue to come in at -$0.19 and $777.23 million. If this analysis holds up, OKTA would be posting a 38.71% and 32.62% gain in earnings and revenue for the FY2020. Moreover, Okta’s EPS estimate above has not changed for the last 30 days. The lack of estimated revisions indicates that the analysts covering Okta have not received any sensitive information that would cause them to change their bullish forecasts.

Don’t be completely sold on the Bullish outlook

However, it is worth mentioning that Okta is branded with a Zacks Rank of 4 (Strong Sell). Allowing investors to draw the conclusion that Okta might be reaching an overvalued territory. In which, we could see a slight correction post-earnings as investors cash in on the recent rally. Also, YIG would like to point out that monitoring Okta’s earnings EPS revisions until Thursday is crucial. Because blindly expecting the estimates to remain unchanged could result in a capital loss.

Does YIG see value in an Okta earnings investment?

Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research 

Short answer: Riding the earnings anticipation up to the 27th holds the most potential (opinion not advice) 

Investing and hoping the stock will shoot up on earnings can be just as risky as betting on horse races. Because leading up to earnings, all we have are expectations and not certainties. In the case of Okta, the sentiment is bullish because of the tech stocks immunity to COVID-19. Not to mention that cybersecurity is a megatrend that will only continue to grow. Thus, mounting the case that Okta’s earnings will please investors and trigger a buying spree. However, the margin for a disappointing earnings still exists.

Despite the negative possibility, humans are wishful thinkers. Thus, we should see investor optimism drive up Okta before earnings. However, YIG would like to point out that just because the stock rises before earnings does not guarantee strong financials. In saying that, investing in the Okta hype could be a smart strategy. Because it limits your exposure to the downside and allows you to capitalise off irrational buying before earnings.

If you enjoy our article or are wanting to learn more, you can subscribe to us for free via email and get updates when we post a new article. From all of us at YIG, thank you for the support.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

Want access to free, uncomplicated, and smart COVID-19 Strategies then click below?

https://youth-investment-group.com/2020/04/09/how-to-profit-off-smart-investments-during-covid-19/ 

Written by Patrick McLoughlin, Senior Manager of YIG.

Plug Power continues its bullish path – here’s everything you need to know.

Plug Power (NASDAQ:PLUG) has made its name on Wallstreet, as investors continue to back the next generation hydrogen cell developer. The stock has surged 368.47% over the past six months, establishing very solid grounds for investor confidence. Plug Power develops hydrogen fuelled cells which power electric motors. The business aims to completely shift the power/transport industry towards zero carbon emissions. PLUG has deployed 35,000 Hydrogen cells and has been officially ranked the largest liquid hydrogen consumer in the world.  Plug Power’s mammoth scale and development of the Hydrogen powered market puts its competitors to shame.

Table of Contents
1. Introduction 
2. Expert forecasts on Plug power stock growth
3. Does YIG see value in Plug Power?

What are the experts saying about Plug Power?

Plug has continued to outplay analysts predictions as investors flock towards the hydrogen innovator. The current 12 months predictions remain conservative, with highs pricing at $14 and lows of $9. The current average price target from a pool of 5 expert analysts currently stands at $12.12 according to NASDAQ. These price targets give the everyday investor an insight into the “smart money” consensus. However, price targets continue to change and thus further bullish changes to these targets are something investors will likely rally behind.

With a current conservative forecast for PLUG, we can assume banking institutions are remaining on the sidelines in regards to price targeting. In regards to institutional ownership, roughly 55% of the company is owned by institutions. Institutions such as D. E. Shaw & Co. LP increased their holdings by double (announced EOFYs), suggesting there is “smart money” pouring in.

Does YIG see value in Plug Power?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research

Since our last article introducing PLUG as a up and coming stock, PLUG has surged over 70%. Its business model is innovative and holds a strong future as we move towards an all-electric motor era. Plug has cemented their business firmly, with strong supply chains and positive development of the hydrogen cell. YIG sees Plug still in its infancy phase, and will continue to develop its operations on a global scale (opinion not advice).

Q2 Earnings were very positive for Long Term Shareholders, with guidance of 2024 Revenue targets increasing by 20%. PLUG products were moving 30% of the retail food and groceries in the US at the beginning of 2020. Its close relations with Amazon and Walmart have helped PLUG see record billing numbers. What impresses me the most about PLUG is the vertical integration it has done with partner suppliers. Vertical integration continues to be a very integral part of large corporation strategy. This integration will enable PLUG to reduce costs in the long run.

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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.