Wesco Aircraft (WAIR) sparked my interest after ranking value attributes for a basket of over 3,000 companies. At first, it was the large debt reduction since 2014. Then the aggressive and historical outsized insider buying over the past two months, mean reverting stock performance with a -44% 52-week price change near 52 week low. Enterprise value decline of 50% from the first fiscal quarter ending March 2014 (3,190.560M) to 08/24/17 (1,605.856M). Further, a renewed interest by patient value institutions reporting additional buying for the quarter reported 06/30/17. These and other attributes warranted a closer examination into Wesco Aircraf...
Last week I said that investors have plenty to worry about, but also that many of the traditional reasons to abandon ship—chiefly extended valuations and political paralysis and risk—perhaps weren’t as valid as many think they are. The most convincing argument for not panicking despite extended valuations is that ample global liquidity and low-interest rates remain as support for equities and credit markets. I imagine that his idea has been put down on page one of most investors’ playbook since the financial crisis. The argument is pretty simple. As long as central banks are on the bid, their purchases of bonds—and other as...
Top 5 Things to Know Before You Start Trading This Tuesday gold is trading at 10 months high after North Korea fired a missile over Japan causing an explosive reaction in the markets. 1 – Markets See High Volatility After North Korea Launches Missile Over Japan North Korea Fires a missile over Japan and US and Asian stock markets collapsed on Tuesday while the JPY jumped to 4-month highs against the USD. The missile flew over Japan and landed in the Pacific about 1180km off the northern Region of Hokkaido. This was the first missile over Japan. 2 – JPY at 4-Month High The USD/JPY fell to 108.33, its lowest since April, but manag...
EUR/USD was only gradually getting closer to 1.20, but when it made a move, it was quite significant, to say the least. EUR/USD is already trading at 1.2067, a gain of around 90 pips on the day. After breaking above 1.20, the pair reached these new levels after an hour and 15 minutes. On the way, euro/dollar broke above 1.2040. This was the low point July 2012, when there was a risk of redenomination, or in other words: a break up of the euro. Then, ECB President Mario Draghi made his famous speech. He vowed to do “whatever it takes” to do so and added, “and believe me, it will be enough”. That marked the big turnaround in the pair. ...
After opening the day marginally higher, share markets in India have continued the momentum and are trading above the dotted line. All sectoral indices are trading on a negative note with stocks in the power sector and stocks in the consumer durables sector leading the losses. The BSE Sensex is trading down by 290 points (down 0.9%), and the NSE Nifty is trading down by 92 points (down 0.9%). Meanwhile, the BSE Mid Cap index is trading down by 0.3%, while the BSE Small Cap index is trading down by 0.4%. The rupee is trading at 64.02 to the US$. In news about the economy, according to a leading financial daily, India’s steel...
The Federal Reserve tries and tries and just can’t muster up some price-tag ripping price inflation. Blowing up its balance sheet from $900 billion to $4.5 trillion would have seemed to send us to Zimbabwe, but no, prices just won’t cooperate with the monetary masterminds toiling away in the Eccles Building. MarketWatch’s Caroline Baum says Fed Chairs used to call these things conundrums. However, “Conundrums are a thing of the past. Nowadays, Fed Chairwoman Janet Yellen has an explanation — an excuse, really — for almost anything, from the atypical behavior of asset prices to inconsistencies in economic relationships,” writes B...
Gold prices ended Monday’s session up $17.85, helped by a slumping U.S. dollar index that hit a 15-month low. Trump administration’s mounting problems and the recent turbulence in world stock markets are also working in favor of the precious metal. XAU/USD traded as high as $1324.34 an ounce as investors moved away from stocks and sought safe havens after North Korea fired a ballistic missile over Japan. At the beginning of the month, I had pointed out that gold was likely to maintain bullish trend over the medium term based on the technical developments. Closing above the 1296 level, which had blocked the bulls’ way back in April and J...
It seems as though the practice of using one’s home as a personal ATM machine is making a ‘yuge’ comeback of late thanks, at least in part, to the same aggressive lending terms and attractive teaser rates that nearly sank the world economy just under a decade ago. According to the Wall Street Journal and Equifax, home equity originations soared to $46 billion in 2Q 2017, the highest level since the market collapsed in 2008. “If customers feel like their home values are stable or increasing, and if they feel like their job prospects are good—that they will have the ability to pay back a loan they take—then they will s...