Investing and Analysis

Shifting from Quarterly Reporting to Semi-Annual Reporting – Bad Idea?

President Trump has instructed the Securities and Exchange Commission to study the impacts of shifting corporate earnings’ requirements from a quarterly schedule to a semi-annual schedule. There are two theories behind the idea. First, that there is too much attention paid to the quarterly results and that management in turn is too short-term in its focus. The second part is ...

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Lack of Global Diplomacy Rattles Financial Markets

There are a number of diplomatic disputes going on around the globe currently. The U.S. has placed sanctions on Iran and Turkey for different reasons. Canada and Saudi Arabia are at odds over human rights and things have escalated dramatically. England and the European Union are at odds due to Britain’s plans to exit the union. Of course then there ...

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Is Tesla a LeBron James or a Kwame Brown?

I am an admitted basketball junkie. I watch 20-25 games a week during college basketball season. Every summer, when the NBA draft is approaching, fans, scouts, and analysts start evaluating players. One word that you hear a lot is potential. You hear comments like, “he has a lot of potential” and “there is no limit on his potential”. And every ...

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Trump Gets Support from EU in Trade War with China

The sand is shifting again in relation to allegiances between global powers in an effort to secure free trade and point tariffs in one direction; China. President Trump’s recent swing through Europe left many wondering whether relations with Europe were dinged, as Trump launched his financial attack on NATO countries not holding up their monetary weight. Other than Larry Kudlow, ...

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Why Facebook and Twitter Both Got Crushed After Earnings

Social networking companies Facebook and Twitter both reported earnings this past week and both saw violent drops in their stock price after the reports. Facebook dropped 19% on Thursday and according to Bloomberg, that decline erased $120 billion in market cap, more market capitalization than any decline in history. Twitter reported Friday morning and opened over 13% lower and was down ...

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Stocks Are Not Reacting Positively to Earnings in Many Cases

It is still early in this earnings season, but I am already noticing a trend that is concerning. There have been a number of companies that reported earnings and revenue numbers that beat analysts’ estimates, but the stocks have reacted by moving lower or hardly moving at all. Three banks kicked off earnings season on July 13 and Citigroup and ...

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Banking Industry Not Meeting Expectations So Far in 2018

Heading into 2018, expectations for the banking industry were running high and many analysts were predicting that it would be a great year for bank stocks. You had the tax cuts to help the bottom line. Interest rates were rising which would allow the banks to increase the spread between lending rates and deposit rates. And there was an expectation ...

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Junk Bonds Proliferate with Mergers and Acquisition Growth

There is a feeling in the air on Wall Street that is eerily reminiscent of the subprime boom a decade ago, and if you want to go a little further back, the Michael Milken 80’s era.  The junk bond party is in full swing. Earlier this spring, the Federal Reserve issued guidelines to banks and lending institutions that essentially gave ...

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