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Author: Collin Seow   |   Latest post: Sun, 31 Jul 2022, 1:14 PM

 

Systematic Trading (August 2022): M&T Bank & Paramount Global

Author: Collin Seow   |  Publish date: Sun, 31 Jul 2022, 1:14 PM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Source: unsplash.com

Welcome to our 11th part of our series on Systematic Trading!

In this part, you'll discover two stocks that are listed in the US. Furthermore, these stocks are exciting as they look like they present opportunities.

Before you scroll further, you'll want to check out our stock pick in July on Bank of America and Unilever.

Are you ready to check out M&T Bank and Paramount Global?

 

M&T Bank (NYSE: MTB)

Source: https://www3.mtb.com/

 

1. About the Company

M&T Bank was founded in 1856, 166 years ago!

Do you know what M&T in its name stands for?

M&T stands for Manufacturers and Traders. From its name, you can infer that M&T Bank was started to support the manufacturing and trading industries.

The bank has been active in the merger and acquisition scene, acquiring 12 financial institutions since 2000.

Through the mergers and acquisitions, M&T Bank now provides commercial and retail banking services such as deposit, lending, loans, securities, wealth management and more.

It enjoys a market capitalization of almost $31.4b, making it the world’s 553rd most valuable company.

M&T Bank is also proud to be deeply involved in the community, placing their customers and staff in high regard.

Source: ir.mtb.com/static-files/7bc97658-8eb9-4ccc-bcb2-a5e9bb4ccf5d

Knowing the overview of M&T Bank, shall we proceed to have a look at its chart?

 

2. Position Trading (Daily)

Looking at the chart above, you’ll see that the price of M&T Bank has been stuck in a range since Jan 2022. Its price has yet to be able to break out of the range for 7 months.

This presents a slightly tricky situation as the price of M&T Bank could continue to be stuck in this range despite the appearance of the green arrow and the Trend Impulse Factor’s dark green bar.

Does this mean that you stay out of M&T Bank completely?

This depends on your risk appetite.

You could:

  1. Go long on M&T Bank’s shares with a reduced position size and wait for its price to break out and for the indicators to agree with each other to enter your remaining position size; OR
  2. Wait for its price to break out and for the indicators to appear together to enter your intended position size

 

Paramount Global (NASDAQ: PARA)

Source: paramount.com

 

1. About the Company

Formerly known as ViacomCBS, it has changed its name to Paramount Global.

Founded in 1986, Paramount Global is in the publishing, news and entertainment industry.

It has many popular channels under its care, including CBS, Nickelodeon MTV, and more.

In the publishing space, it owns Simon Schuster which has published top titles such as Steve Jobs by Walter Isaacson, Principles by Ray Dalio, and Shoe Dog by Phil Knight.

Yes, it is also in the film industry developing, producing, financing, acquiring, and distributing films.

Source: gifer.com/en/PpyT

With so many big brands under its wing, Paramount Global is worth more than $15.4b.

Shall we turn out attention to its chart to find out if there’s any position trading opportunity?

 

2. Position Trading (Daily)

From the look of Paramount Global’s chart above, you can tell that it’s in a downtrend.

In fact, it hasn’t been able to recover from the crash brought about by COVID-19 in Mar 2021.

Thus, it’s natural to be on the lookout for a short-selling position trading opportunity.

You can see a red arrow which symbolizes the likely direction of prices in the coming days and weeks.

Did you notice that the bar of the Trend Impulse Indicator is in dark green?

This shows that the momentum of this downtrend is strong.

And we have an agreement by both indicators! This makes a fabulous short-selling position trade.

 

Conclusion

Source: unsplash.com

M&T Bank could be ready for a position trade if its price can break out of its range. When that happens, you’ll also want to watch for an agreement of both indicators – the green arrow and Trend Impulse Factor.

Paramount Global is still reeling from the shock brought about by COVID-19. Its share price hasn’t been able to find its footing, sliding since Mar 2021.

A look at its chart brings a short-selling trading opportunity though!

Because the stock market doesn't behave according to our instructions and hopes, it's advisable to place a stop loss level to protect your trading capital when the time to short both stocks are ripe, should an unexpected event occur.

Trading stocks without a proper system can be highly risky. This is why TradersGPS (TGPS) was created. The indicators will help you decipher if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Will you choose to trade M&T Bank’s shares now or later? Are you going to short-sell shares of Paramount Global?

Share your thoughts with us below!

 

Did You Know?

The ones who make the MOST money from the stock market actually spent the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It's like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way...

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply it almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd also like to get a FREE e-course and learn how to better time your trade entries, click the banner below:

Systematic Trading

The post Systematic Trading (August 2022): M&T Bank & Paramount Global appeared first on The Systematic Trader | Trading Courses.

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1 Stock That's Out of Favor With Investors But We Use Its Product Everyday

Author: Collin Seow   |  Publish date: Mon, 25 Jul 2022, 9:52 AM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Source: unsplash.com

These days, it’s hard to get me to attend an in-person meeting.

COVID-19 has resulted in new habits formed, and there’s no turning back.

Do you prefer to attend meetings in-person when it can be conducted remotely unless you’re looking to share abstract ideas or complex processes?

And there’s no prize for guessing the product we frequently use to host virtual meetings.

Yes, I’m talking about Zoom Video Communications, or Zoom for short.

Since late 2020, Zoom’s shares have fallen out of favor with investors. Are there reasons?

Let’s discover.

 

Brief History of Zoom

Source: zoom.us

Zoom was founded in 2011 by its current CEO, Eric Yuan.

Eric had prior industry experience. Taking feedback from the market seriously, Eric realized that much could be improved in the web communication space, so much so that he started Zoom.

Zoom started out as a mobile-friendly video communication system and that has remained in its DNA.

Constant research and development has brought multiple blockbuster products such as its chat, events, and break out room functions. These, coupled with acquisitions led to massive success enjoyed by the company.

Since the pandemic, Zoom has become integral to our lives, hosting meetings, webinars, discussions, and more.

Furthermore, Zoom, has now become a verb.

With so many users, is Zoom doing well financially? How does it operate?

 

Business Model and Financials

Source: tradingview.com

From the graph above, you can see that Zoom’s total revenue and net income have been increasing since 2016.

Its total revenue has been increasing at a breakneck speed of almost 2x year-on-year, from $60.8m in 2016 to $4.1b in 2021!

Similarly, its net income has been growing furiously from -$14.3m in 2016 to $1.3b in 2021!

Being in the B2B and B2C space, Zoom has different plans tailored for each segment.

Source: zoom.us/pricing

Source: zoom.us/pricing/healthcare

It’s clear from the screenshots above that Zoom runs a freemium membership model.

Zoom is also always on the hunt for deals to grow its business. It has recently acquired Solvvy, a conversational AI firm, to expand and improve on its product offerings.

All these tell us that Zoom aims to remain an integral part of our lives.

With this said, investors aren’t giving it any love. Does this mean that you buy or short-sell its stock?

Shall we have a look at Zoom’s price chart before arriving at a conclusion?

 

Technical Analysis on Zoom (NASDAQ: ZM)

Zoom’s shares has been suffering a beating since late 2020. From Jan to Oct 2020, its shares had zoomed up by nearly 800%!

From the technical point of view, it’s highly unlikely that you’ll see its share price turn bullish anytime soon.

With the red arrow showing on Zoom’s latest candlestick, is this the time to short-sell its shares then?

The red arrow suggests weakness in the price of Zoom’s shares but it isn’t ripe for a short-sale at this moment. This is because its Trend Impulse Factor bar hasn’t turned dark green.

When its Trend Impulse Factor bar turns dark green with the red arrow present, the odds of Zoom’s share price dropping further is much higher. You’ll be more likely to make money by short-selling its shares then!

Therefore, there’s no hurry to short-sell the shares of Zoom just yet..

 

Conclusion

Source: unsplash.com

Zoom is dominating the video communications space and has solid financials.

It’s unfortunate that its price chart doesn’t reflect its solid business model and growth. Investors in the technology sector are primarily spooked by the increasing interest rates environment, essentially ending the era of cheap money.

Are you facing a dilemma? Should you choose to follow what Zoom’s fundamentals suggest or should you pay attention to its price chart?

I’d advise you to follow the price movement of Zoom.

Instead of rushing to short-sell the shares of Zoom, patience is needed as the indicators aren’t in unison yet.

The red arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is a cut above its peers. You won't have to feel in the dark and make wild guesses

 

Did You Know?

The ones who make the MOST money from the stock market actually spend the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It's like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way...

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd also like to get a FREE e-course and learn how to better time your trade entries, click the banner below:

 

e-course

The post 1 Stock That’s Out of Favor With Investors But We Use Its Product Everyday appeared first on The Systematic Trader | Trading Courses.

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Small-Cap Growth Stock With Low Debt That Could Thrive In A Recession

Author: Collin Seow   |  Publish date: Fri, 22 Jul 2022, 4:50 PM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Small-Cap Growth Stocks With Low Debt

Just over a month ago, the Fed raised interest rates by three-quarters of a percent, marking the largest hike in 20 years. We're currently in an environment of rising interest rates due to inflation, and the market situation hasn't exactly been the best.

We've seen the NASDAQ and S&P 500 drop to a low of about 10560 and 3630 respectively as money rotated out of stocks for fear of a recessionary scenario. With current market conditions, it is imperative that we choose our investments wisely. One area which I will like to bring to my readers' attention is a company's use of debt.

 

The Debt Situation

At first glance, it may seem that companies with high debt would surely stand to lose big as they now have to pay more interest on their debt. However, there is a catch - in a high inflation environment, debt itself loses value as the value of money itself erodes. As such, any outstanding debt is now worth less than it was before inflation.

 

The Push & Pull Factors

To summarize, we see 2 forces here - 1) interest on debt is higher due to rate hikes, but 2) debt itself is worth less due to inflation. Nevertheless, considering the decrease in spending and rotation of money into savings instead of non-essential goods and services, companies with high outstanding debt may find it more difficult to finance these obligations due to a decline in their profitability, even when their debt is worth less (remember that their cash on hand is now worth less too!).

Don't forget that they also have to pay higher interest on their debt, even when they could potentially be generating significantly lesser cash flow due to decreased demand. In comparison, companies with low debt and strong cash flows are less vulnerable to rate hikes as they can easily finance these obligations even if their profits stall due to less consumption of their goods and services.

In addition, the company can use its cash flows to carry out mergers and acquisitions, issue dividends, repurchase shares, and/or reinvest into the company to provide better goods and services; companies with high debt and weak cash flows, on the other hand, do not have this flexibility.

As such, in my humble opinion, I would personally prefer to invest in companies with low debt and strong free cash flow generation where credit risk is low since the possibility of a recession is now very real.

In this article, I will highlight 1 relatively unknown company that have strong growth potential. However, unlike many hyper-growth stocks that the media used to love, stocks such as Peloton, Palantir, Fastly, etc where these companies are typically loss-making, cash-burning entities, this small-cap stock is highly profitable and more importantly, have extremely low credit risk due to their cash-generating abilities as well as a conservative balance sheet status.

This company is a small-cap stock that fall under the radar but is well-positioned to potentially ride any downcycle in the economy and emerge in one piece as they have low credit risk. The same cannot be said of cash-burning hyper-growth stocks that are at risk of 3rd party funding drying up.

Do note that this is not a recommendation to be buying these shares. Please do your due diligence to decide if these small-cap stocks are suitable for you as they are inherently more volatile in terms of their price movement.

 

Small-Cap Growth Stocks With Low Debt: InMode Ltd (INMD)

InMode is a medical technology company focused on beauty care and treatment. The company is best known for its treatment products for contouring, hair removal, and feminine wellness.

The company itself is an attractive pick as the beauty industry is starting to see a rebound after a steep decline caused by the pandemic. InMode is at the forefront of creating non-invasive technology for treatment products for the face and body, and it has won awards for many of its products like Evoke and EvolveX.

Business Model and Financials

The company has shown a sustained increase in its bottom line, with net income rising from $8.82m in 2017 to $164.97m in 2021, representing a 1770% overall increase.

Small-cap growth stocks with low debt (Inmode's revenue and earnings growth)

We see from the graph above that revenue and earnings have been on a strong upward trend from 2018 to 2021. This is a good sign that the company is profitable and is also being run efficiently. The impressive quality of InMode's offerings, which are said to be bringing a "paradigm shift to cosmetic procedures", is a large reason why the company can keep its sales and net income up.

Another impressive metric to consider is the company's free cash flow growth. The company's free cash flow has increased from $14.42m in 2017 to $173.95m in 2021 - this is an 1106% overall increase. In comparison, the company has $62.74m in total liabilities, with only $4.5m of it being debt (ST & LT) as of 2021.

Small-cap growth stocks with low debt (Inmode's earnings forecast)

In addition, we see that the company's earnings have beaten analyst estimates (for earnings-per-share) in the last four quarters, hence further indicating strong financial performance.

 

Technical Analysis on InMode Ltd (NASDAQ: INMD)

The short-term price chart of InMode looks good! After a long and persistent downtrend since Dec 2021, it is starting to show signs of a reversal from a few weeks back, while the general market is still dropping.

From the chart above, you can see that there were 2 green arrows under the candlestick on the 12th and 20th of July.

You can also see that the bar of the Trend Impulse Factor for those days was in dark green. This meant that the bulls are present and strong.

Since the opportune time to buy shares of INMD for a position trade was a couple of days back, should you enter now?

The boat has sailed.

Will the boat return? Will there be a sensible and good opportunity for a position trade?

I think so. What you'll want to see is an agreement of both indicators - the appearance of the green arrow and the bar of the Trend Impulse Factor turning dark green on the same day.

That would be a confirmation that another uptrend is here and the bulls are out to stay, shifting the chances of success to your side.

Being in a more volatile environment, it pays to be extra patient in the stock market.

 

Conclusion

All in all, we see that the company is not only reporting strong earnings, but is also more than able to pay off its debt, and all its other liabilities as well. This is a good sign, especially in current times of high-interest rates, since the company has very low debt and hence low cost of debt and low cost of capital.

Given the company's strong generation of free cash flow, InMode has the flexibility to issue dividends, buy back shares, or invest in R&D to create new non-invasive beauty treatment products. Given the high quality of InMode's offerings, we have good reason to believe that it will continue to create new methods and technologies to provide effective beauty treatment. If you wish to invest in medical technology specifically for the beauty industry, you can put InMode on your radar.

From a short-term trading perspective, although the boat has sailed, it is worth keeping an eye on this stock to wait for the next confirmation sign – where the green arrow appears together with the Trend Impulse Factor indicator.

After all, the green arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is a cut above its peers. You won't have to feel in the dark and make wild guesses.

 

Did You Know?

The ones who make the MOST money from the stock market actually spend the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It's like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way...

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd like to learn more about systematic trading to better time your trade entries, click the banner below:

Systematic Trading

The post Small-Cap Growth Stock With Low Debt That Could Thrive In A Recession appeared first on The Systematic Trader | Trading Courses.

  Be the first to like this.
 

Should You Short This Investment Manager?

Author: Collin Seow   |  Publish date: Tue, 12 Jul 2022, 8:33 PM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Source: unsplash.com

The US stock market’s performance is worrying. It has fallen by about 18% without showing any signs of recovery.

Despite the headwinds, trading opportunities exist. And we are going to explore one potential trade opportunity here.

The company we will be exploring belongs in the financial sector and invests the assets of its clients using various instruments.

This company is a huge player in this industry, managing $9t in 2021!

Ok, let’s analyze BlackRock right away.

 

Brief History of BlackRock

Source: https://ir.blackrock.com/home/default.aspx

BlackRock was founded by 8 people in 1988, 34 years ago.

The founders had the vision of managing clients’ assets and putting their needs and interests first.

As an asset management firm, that didn’t shy BlackRock away from adopting technology. It had come up with a technology to manage risk better. Because of its motto of putting its clients’ needs and interests first, BlackRock decided to sell its technology.

Shortly after, BlackRock became a technology provider too.

BlackRock has also entered the artificial intelligence (AI) space by opening its first AI Lab to improve outcomes and bring progress for its clients and itself.

As the financial world took a hit in the subprime mortgage crisis, many of its competitors liquidated parts of their business. Guess who the acquirer was?

Over the years, BlackRock held fast on its vision and motto by creating low-cost and tax-efficient products.

The combination of innovation, putting their clients first, and strong management has led to its current massive size.

 

Business Model and Financials

Source: Tradingview.com

From the graph above, BlackRock’s revenue has been growing from strength to strength. The only exception was in 2016 where its revenue had contracted by $300m.

Generally, its net income has been growing too!

These two data sets tell us that BlackRock has been performing well over the past years.

As BlackRock is an investment manager, you’ll want to know the assets under its management (AUM).

BlackRock’s AUM grew by 6% from $9t to $9.57t in 2022.

Source: https://s24.q4cdn.com/856567660/files/doc_financials/2022/Q1/BLK-1Q22-Earnings-Supplement.pdf

In addition, BlackRock has distributed a larger amount as dividend for Q1 2022 – $4.88 as compared to $4.13 in Q1 2022, an 18.1% increase! An increase in dividends distribution is usually a positive sign, more so for BlackRock as its mission is to put its clients first.

Knowing that BlackRock is financially strong, is its price chart as strong?

 

Technical Analysis on BlackRock (NYSE: BLK)

The share price of BlackRock looks battered. Its share price has come tumbling down since the start of 2022, sharing the same fate as the S&P 500.

Moreover, there’s a red arrow above its latest candlestick, suggesting weakness in its price.

However, the bar of its Trend Impulse Factor isn’t dark green yet. This means that the bearish momentum isn’t strong enough yet.

Since the ideal time to short-sell shares of BlackRock is when both the red arrow and the bar of the Trend Impulse Factor turns dark green, shares of BlackRock isn’t ripe for a short-sale.

When both indicators display weakness in the price of BlackRock’s shares, you can be more assured that the bears are here to stay and a position trade would be more likely to make you money.

Given that the price movement of BlackRock follows the movement of the S&P 500, if the S&P 500 continues to slide, the share price of BlackRock is likely to slide too. So, there’s no pressing hurry to short its shares now.

 

Conclusion

Source: unsplash.com

BlackRock has a solid business model and strong financials. Yet, its share price has been falling since the start of 2022.

Investors and traders aren’t that optimistic of BlackRock’s performance in the stock market. This brings a dilemma. Should you focus on BlackRock’s fundamentals or technicals?

Prices don’t lie. Hence, I’d advise you to follow the price movement of BlackRock.

And you won’t want to rush into short-selling the shares of BlackRock as the indicators are not in unison yet.

The red arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is a cut above its peers. You won't have to feel in the dark and make wild guesses.

 

Did You Know?

The ones who make the MOST money from the stock market actually spend the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It's like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way...

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd also like to get a FREE e-course and learn how to better time your trade entries, click the banner below:

e-course

The post Should You Short This Investment Manager? appeared first on The Systematic Trader | Trading Courses.

  Be the first to like this.
 

Is the Share Price of This 116 Year Old Food Company About to Rise?

Author: Collin Seow   |  Publish date: Wed, 6 Jul 2022, 10:51 PM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Source: unsplash.com

Do you like cereal for breakfast?

I do!

I love Corn Flakes as it’s crunchy, sweet, and healthy.

This breakfast dish is sold in all leading supermarkets and is served in all good hotels.

Corn Flakes is the creation of Kellogg’s, and with this product, Kellogg Company was founded 116 years ago.

Today, Kellogg Company owns many other brands in the food industry, some which you’ll definitely be familiar with.

So, shall we dive in and analyze Kellogg Company?

 

Brief History of Kellogg Company

Source: https://www.kelloggcompany.com/en_US/home.html

As you’ve discovered from the above section, Kellogg Company started off with selling Corn Flakes. And it didn’t stop there.

Kellogg Company experimented and came up with different types of cereals, with many of them becoming an instant favorite.

Acquisitions were also made to ensure that Kellogg Company held onto its crown as a leading breakfast and snack provider. One such acquisition is Pringles in 2012.

Here’s something trivial – Kellogg Company’s cereal literally flew to the moon on Apollo 11, providing the flying crew a nutritious breakfast in 1969.

Knowing this background of Kellogg Company, shall we take a look at how the company has been performing in recent years?

 

Business Model and Financials

Source: Tradingview

From the annual income statement of Kellogg Company above, you can tell that its revenue has been stable and growing in the past 2 years.

Its net income has been growing every year, except in 2019. This is impressive as it means that Kellogg Company has found a way to increase its net income without increasing its revenue by much.

While its revenue in 2021 grew by 2.9% in 2021, its net income during the same period grew by 19%!

Just last month, Kellogg Company announced that its Board of Directors has approved a plan to spin-off its main business into 3 entities by the end of 2023.

The first entity will focus on the snacks and breakfast business while the second entity will focus on North America, and the third entity will focus on plant based food.

This transformation seeks to allow Kellogg Company to expand, focus better, become more agile to meet its strategic priorities, and shape distinctive corporate cultures.

Source: https://s1.q4cdn.com/243145854/files/doc_financials/2022/q1/Q1-2022_Print-Slides.pdf

As with many other highly successful companies, Kellogg Company places an emphasis on its staff and community.

This has allowed Kellogg Company to enjoy synergy, brand recognition, innovate, and grow consistently.

Source: https://s1.q4cdn.com/243145854/files/doc_financials/2022/q1/Q1-2022_Print-Slides.pdf

While many companies have cut their outlook due to the possibility of a recession, Kellogg Company is expected to grow. This confidence is unparalleled.

The financial health and outlook of Kellogg Company is fit and rosy. Does its chart agree with its fundamentals?

 

Technical Analysis on Kellogg Company (NYSE: K)

The price chart of Kellogg Company looks good! It has been on an uptrend since mid Mar 2022 while the S&P 500 was and is still dropping.

From the chart above, you can see that there was a green arrow under the candlestick a couple of days ago.

You can also see that the bar of the Trend Impulse Factor for that day was in dark green. This meant that the bulls are present and strong.

Since the opportune time to buy shares of Kellogg Company for a position trade was a couple of days back, should you enter now?

The boat has sailed.

Will the boat return? Will there be a sensible and good opportunity for a position trade?

I think so. What you’ll want to see is an agreement of both indicators – the appearance of the green arrow and the bar of the Trend Impulse Factor turning dark green on the same day.

That would be a confirmation that another uptrend is here and the bulls are out to stay, shifting the chances of success to your side.

Being in a more volatile environment, it pays to be extra patient in the stock market.

 

Conclusion

Source: unsplash.com

Kellogg Company is under forward thinking and responsible stewardship. It’s therefore no surprise that it has managed to capture a huge slice of the breakfast and snacks industries.

Its strong fundamentals is in agreement with its price chart, providing you with a rare bullish position trading opportunity in this bearish environment.

However, the time to position trade shares of Kellogg Company isn’t here yet. It would be much better to wait for the next chance.

After all, the green arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is a cut above its peers. You won't have to feel in the dark and make wild guesses.

 

Did You Know?

The ones who make the MOST money from the stock market actually spend the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It’s like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way…

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd like to learn more about systematic trading to better time your trade entries, click the banner below:

Systematic Trading

The post Is the Share Price of This 116 Year Old Food Company About to Rise? appeared first on The Systematic Trader | Trading Courses.

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Systematic Trading (July 2022): Bank of America & Unilever

Author: Collin Seow   |  Publish date: Mon, 27 Jun 2022, 11:10 AM


This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Source: unsplash.com

Welcome to the tenth part of our series on Systematic Trading!

In this part, you'll discover two stocks that are beating the US stock market. Furthermore, these stocks are exciting as they look like they are about to break out and hit new highs.

Before you scroll further, you'll want to check out our stock pick in Apr on Darling Ingredients & Dow Inc.

Are you excited and ready to jump in?

 

Bank of America (NYSE: BAC)

Source: bankofamerica.com

 

1. About the Company

Bank of America is one storied bank. It was founded way back in 1784, more than 200 years ago!

Today, it’s the largest bank in the world based on market capitalization. Its market capitalization stands at more than $258b.

What does Bank of America provide as the largest bank in the world?

Bank of America serves a wide spectrum of clients, ranging from individuals to mega corporations, and even governments worldwide.

It offers traditional savings accounts, certificates of deposit, checking accounts, investment products and management, financing, wealth management solutions, market making and more.

With an extremely wide range of products and services, Bank of America has managed to attract and acquire about 41m active users.

Knowing the size of the bank and the services it provides, what does the chart of Bank of America look like? Is it ready for a position trade?

Let’s take a look at its chart in the next section.

 

2. Position Trading (Daily)

Referring to the chart above, you’ll easily notice that the price of Bank of America was in an uptrend till Nov 2021 before going sideways till Mar 2022.

Since Mar 2022, the price of Bank of America has been on a clear downtrend.

This downtrend is strong. New lows are created every month since Mar 2022 and this pattern doesn’t seem to be halting.

Does this make the shares of Bank of America an excellent target for short-selling?

Yes and no.

Yes, shares of Bank of America is an excellent stock to short-sell because its downtrend is strong and intact. In fact, the entire finance sector is in a strong downtrend, further bringing the odds to your side.

No, because there’s no agreement between the red arrow and Trend Impulse Factor indicator.

The red arrow must appear with a dark green bar of the Trend Impulse Factor indicator to serve as a confirmation. That’ll signal that the bearish momentum is strong and here to stay. Such a condition will be more favorable for a short position trade.

What should you do then?

You should patiently wait for both indicators to appear and agree with each other before taking a short position on Bank of America.

 

Unilever (NYSE: UL)

Source: unilever.com

 

1. About the Company

Founded in 1894, Unilever is 128 years old. Not many companies have such a long history.

Unilever is a conglomerate which has businesses in the beauty and wellness, personal hygiene, cleaning, and food and beverage industries! Popular brands under its care include Ben & Jerry’s, Cif, Dove, Lifebuoy, Rexona, and Vaseline among others.

Under good and tenacious management, Unilever has a presence in close to 200 countries. They are in nearly every country in the world!

Having such a global presence, it’s no wonder that it’s the world’s 103th most valuable company in the world with a market capitalization of more than $113b.

How is its stock faring?

Let’s find out!

 

2. Position Trading (Daily)

The price chart of Unilever is in a clear downtrend. There are many more red candles than blue.

Paying attention to the price action of Unilever from Mar 2022, you can see that its price has been stuck in a sideways movement. With the exception of a false breakout in late May 2022, its share price has been ranging between $42.50 to $46.50.

The next question to ask is – how probable is it for the share price of Unilever to break lower?

If the S&P 500 continues to slide, the probability of Unilever’s share price breaking lower and forming a new low is high.

And when that scenario occurs, what would you want to see before taking action to short the shares of Unilever?

Yes! You’ll want to see a red arrow accompanied by a dark green bar of the Trend Impulse Factor. When both indicators show, they confirm that the bearish momentum is present and most probably here to stay for a prolonged period of time.

 

Conclusion

Source: unsplash.com

Both BAC and UNI are weak stocks. They are in a downtrend and the overall stock market sentiment is bearish.

Given that the appearance of the red arrow and dark green bar of the Trend Impulse Factor bar for both stocks have yet to appear together, it pays to be patient.

Furthermore, the overall US stock market may experience a dead cat bounce before the downtrend continues. This is another sign for us to continue waiting.

Because the stock market doesn’t behave according to our instructions and hopes, it's advisable to place a stop loss level to protect your trading capital when the time to short both stocks are ripe, should an unexpected event occur.

Trading stocks without a proper system can be highly risky. This is why TradersGPS (TGPS) was created. The indicators will help you decipher if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts? Which stock would you short-sell?

Share your thoughts with us below!

Did You Know?

The ones who make the MOST money from the stock market actually spent the LEAST time.

Yet, most people tend to spend hours reading news or analyzing charts, only to be caught in a never-ending spiral of disappointment from the stock market.

The truth is, profiting from the market is all about trading smart, not hard. And this is the very secret of all top retail traders and investors.

They all have a system they follow.

A system that helps them identify winning stocks fast and filter away dangerous risky ones, a system that tells them exactly when to buy and sell and eventually exit the stock with profits.

It's like having a personal guide telling you exactly what to do from start to finish. One that is not only reliable in aiding your investment journey, but also saves you time, energy and stress.

So if you wish to start building an additional stream of income through the stock market the SMART way, not the HARD way...

Come and join me in my upcoming LIVE demonstration webclass where I will demonstrate LIVE how ANYONE, even with no experience can learn and adopt a really simple system and apply it almost immediately to start profiting in the markets.

Click HERE to register your seat before we hit full capacity!

 

If you'd also like to get a FREE e-course and learn how to better time your trade entries, click the banner below:

e-course

The post Systematic Trading (July 2022): Bank of America & Unilever appeared first on The Systematic Trader | Trading Courses.

  Be the first to like this.
 


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