Friday, July 23, 2021

China regulatory clampdown batters U.S.-listed companies

China’s efforts to discourage companies from going public in the U.S. and to rein in those already listed there are proving costly. The relative performance of the S&P/BNY Mellon China Select Index, consisting of companies with listings on the New York or Nasdaq stock exchanges, shows as much. A ratio between the indicator and the S&P 500 fell Friday to its lowest level since May 2004, according to data compiled by Bloomberg. Last week’s close was down 46% from the ratio’s high for the year, reached Feb. 16, and down 67% from a record set in October 2007.


Wednesday, July 7, 2021

Over-the-counter U.S. stocks point to fading speculation

Speculation in U.S. over-the-counter stocks appears to be fading, according to Maneesh Deshpande, a strategist at Barclays Plc. He cited the performance of the OTCQX and OTCQB composite indexes, consisting of companies that aren’t listed on the New York Stock Exchange or the Nasdaq Stock Market, in a report Tuesday. 

 

The OTCQX set a record on June 14 and then dropped as much as 4.3% through Tuesday, according to data compiled by Bloomberg. The OTCQB peaked on Feb. 16 and then fell as much as 20%. “Further pain is likely” in OTC shares as well as meme stocks and cryptocurrencies, Deshpande wrote.
 

Thursday, July 1, 2021

Meme stocks

Meme stocks are stocks that see sudden and dramatic surges thanks to social media hype (primarily Reddit, Twitter and Tik Tok).
 
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The first prominent example of a meme stock in 2021 was struggling video game retailer GameStop (GME). The stock traded $19 per share at the start of the year, but by January 28, it hit an all-time high of $483 per share.
 
FOMO is one of the main drivers of investor buying. The term FOMO is an acronym that stands for the ‘fear of missing out’, originally coined by Patrick J. McGinnis in 2004 and used largely by the highly connected millennial and Gen Y generations.


 
Much of the manic interest in speculative stocks is gone now. (July 20, 2021) 
 
 





 

Friday, June 25, 2021

Canadian shares are a bargain again

Canadian shares are a bargain at a time when “U.S. stocks look frothy,” in Bank of America Corp.’s view. Strategists Ohsung Kwon and Savita Subramanian made the argument in a report last week that compared forward price-earnings ratios for the S&P/TSX Composite and S&P 500 indexes. The valuation gauge showed Canada’s benchmark was 23% cheaper as of Friday, according to data compiled by Bloomberg. The discount bottomed out April 13 at 27%, the biggest in more than two decades. “Canada looks particularly attractive” as the global economy rebounds, the report said.

 

Saturday, June 19, 2021

Sector vs. industry

What is the difference between a sector and an industry?

This difference pertains to their scope; a sector refers to a large segment of the economy, while the term industry describes a much more specific group of companies or businesses.
When it comes to investing, a "sector" refers to companies that operate in a specific portion of the economy. The U.S. stock market can be grouped into 11 different sectors as defined by Standard & Poor's. Consumer discretionary, financials and energy are just a few examples.
For example, the computer industry includes only companies that produce computers, and the software industry includes only companies that produce software, but both industries are part of the technology sector.

Sectors can be broken down further into "industries," which are groups of companies within each sector that engage in similar business activities. For example, the automobile industry is part of the consumer discretionary sector. (Industries are also commonly referred to as "sub-sectors.")

All 11 S&P sectors in the U.S. stock market can be further broken down into two to 14 different industries. For example, the materials sector contains five distinct industries: chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products. It's also important to point out that these are S&P sectors and industries and that other agencies may have slightly different definitions.

For investors, there are exchange-traded funds (ETFs) available that track each sector and some that even focus on specific industries, or subsets of companies within each industry. For example, the Financial Select Sector SPDR Fund invests in the financial sector, the SPDR S&P Bank ETF narrows it down to banking institutions and the SPDR S&P Regional Banking ETF hones its focus even further to regional banking institutions.

Tuesday, June 8, 2021

Cryptocurrency news

 

  • 7/26/21:  Amazon posted a job for a digital-currency expert recently, saying in the description that the person will “own the vision and strategy for Amazon’s Digital Currency and Blockchain strategy.” Amazon may also launch its own “stablecoin,” or digital token pegged to a hard currency like the dollar.
  • 7/26/21: Goldman Sachs has filed for a DeFi and blockchain exchange-traded fund, according to a public filing.
  • 5/24/18: U.S. Justice Department launches criminal probe into bitcoin price manipulation.
  • 4/13/18:  Yahoo Japan (OTCPK:YAHOY) said it would buy a 40% stake in cryptocurrency exchange BitARG Exchange Tokyo. Services are planned for launch in the fall. The deal also comes after Japanese online brokerage firm Monex (OTCPK:MNXBY) announced last week that it would acquire hacked crypto exchange Coincheck for $34M.
  • 3/7/18:  Japan's Financial Services Agency punished seven cryptocurrency exchanges, ordering two of them to suspend business, just hours after a warning from the SEC that many online trading platforms must register with the agency. 
  • 3/7/18:  The Commodity Futures Trading Commission can legally classify and regulate cryptocurrencies as commodities, according to a new ruling from a federal judge that allowed a CFTC lawsuit against company Coin Drop Markets. Crypto legislation is still in its early stages in the U.S. and the federal government has held off from making any major rulings on regulation.
  • 1/8/17:  The Financial Industry Regulatory Authority (FINRA), the organization that regulates brokers, advisers and financial institutions in the United States, announced that it was going to focus on cryptocurrencies. 
  • 12/28/17:  South Korea said it was eyeing options including a potential shutdown of at least some cryptocurrency exchanges to stamp out a frenzy of speculation.  South Korea has been ground zero for a global surge in interest in bitcoin and other digital currencies as prices surged this year.  South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges, according to a statement from the Office for Government Policy Coordination.
  • Ethereum has jumped 5,628% in 2017 from $8.03 on Dec. 31, 2016, and was at $459.99 Dec. 8, 2017. It surged as high as $464.99 early in the day.
  • 11/21/17 NY Times: Warning Signs About Another Giant Bitcoin Exchange (Bitfinex, and exhcange incorporated in the British Virgin Islands)
  • In other moves by financial companies to bring bitcoin to investors, on Sept. 6, 2017, CoinIRA, Goldco's digital currency unit, launched its new Digital IRA Bundles. The bundles, available in amounts of $25,000, $50,000 and $100,000, come prepackaged with digital currencies. Investors can choose from three portfolios based on their risk appetite: conservative, moderate or aggressive. The conservative bundle is made up of 50% Bitcoin, 41% Ethereum and 3% each in Ether classic, Litecoin and Ripple.
  • China banned initial coin offerings and trading in cryptocurrencies. (Sept 2017)
  • But many retailers are accepting Bitcoins as payment, including Microsoft, Target, Home Depot and Subway. And more uses are in the works.

Monday, May 10, 2021

Marijuana news

See also :  marijuana stocks
As of Aug. 2019, nine states and Washington, D.C., have legalized recreational marijuana, while 29 states have legalized medical weed.
  • 7/14/21: Democratic Sens. Chuck Schumer, Ron Wyden and Cory Booker announced the release of draft legislation, called the Cannabis Administration and Opportunity Act, that would decriminalize and de-schedule cannabis. However, it would allow states to set their own cannabis policies.
  • 2/2/21: Cannabis stocks rally after three Democratic senators led by Majority Leader Chuck Schumer said they would make reform legislation a key priority in the current Congress, bolstering hopes for an end to federal prohibition.
  • 10/10/20: The legalization and taxation of recreational marijuana is up for a vote in 4 states this fall: Arizona, Montana, New Jersey and South Dakota.
  • 8/19:  GW Pharmaceuticals (GWPH) has just revealed that sales of its Epidiolex drug topped Street expectations by over 50% ($68 million vs. $44 million) and doubled Q1 ($34 million).  GWPH recently launched Epidiolex, its flagship product, in the U.S. for congenital seizure syndromes known as Dravet and Lennox-Gastaut Syndrome. Given the drug’s favorable efficacy/safety profile, the significant unmet need, and positive physician feedback, investors had every reason to be hopeful. 
  • 8/02/19 Cronos Group (CRON) : agreed to buy parts of a company that makes premium hemp-derived CBD skin care products in the U.S., representing the latest effort by Canada's pot industry to stake out territory in the world's largest marijuana market.  Cronos said it would pay $300 million to acquire four subsidiaries of Redwood Holding Group, which makes and sells CBD skin care and other products under the brand name Lord Jones. Lord Jones sells and makes CBD-based body lotions, oils, bath salts, gum drops and other edibles. Outlets like Sephora sell those products.  Cronos already has a relationship with U.S. cannabis retail chain MedMen (MMNFF).
  • 7/31/19:  Canada-based cannabis name CannTrust (CTST) said it will undergo a strategic review, which includes a possible sale. This follows a C-suite shakeup earlier this month following media reports of illegal grow rooms. CTST stock jumped 9.5% on the news. (MarketWatch)
  • 7/25/19: Sweden's Supreme Court rules that cannabidiol (CBD) oil made from industrial hemp containing any amount of the psychoactive compound tetrahydrocannabinol (THC) is a drug. The ruling effectively bans the retail sale of CBD oil in the country.
  • 7/12/19: Innovative Industrial Properties (IIPR) announces public offering of 1.25 mln shares of common stock. The company intends to use proceeds to invest in specialized industrial real estate assets that support the regulated cannabis cultivation and processing industry that are consistent with its investment strategy as well as for general corporate purposes.
  • 7/7/19: Canopy Growth (CGC) Founder Bruce Linton was ousted from his role as co-CEO. He did a great job scaling the largest cannabis company in the world, but Constellation Brands (STZ) sought a more sound operational manger for the next phase of growth at its multi-billion dollar cannabis investment.
  • 7/12/19: CannTrust (CTST) implements voluntary hold on sale and shipment of all cannabis products as a precaution while Health Canada visits and reviews its Vaughan, Ontario manufacturing facility. CannTrust placed a hold on medical sales through their customer service line and online as of 11:59 p.m. on July 10. CannTrust is working closely with the regulator through the review process and expects to provide further detail of the duration of the hold and other developments as they become available.  CannTrust announced that it was non-compliant with certain regulations in Canada
  • 5/21/19: Aphria (APHA) completes German tender process and receives fifth culitvation license in Germany.  Co announced that its German subsidiary Aphria Deutschland GmbH had been awarded a fifth lot for the cultivation of medical cannabis in Germany as part of the Company's previously awarded license from the German Federal Institute for Drugs and Medical Devices.   The additional lot was provisionally awarded to Aphria Germany in April and was secured following a review by a German court, which affirmed the original decision by the BfArM.
  • 4/10/19:  Aurora Cannabis Inc. (ACB) announced an update on the status of Aurora Sun, the Company's latest and largest Sky Class facility, which is currently under construction in Medicine Hat, Alberta. To support rapidly growing global demand for high-quality medical cannabis in Canada and abroad, the facility will be expanded to 1.62 million square feet, representing a 33% increase from its originally planned 1.2 million square feet. With the Sky Class production philosophy proven at Aurora Sky, the Company is confident in projecting an expected production capacity at Aurora Sun in excess of 230,000 kg of high-quality cannabis per annum.
  • 3/21/19: CVS (NYSE:CVS)  is selling some cannabis-based products in eight states, Alabama, California, Colorado, Illinois, Indiana, Kentucky, Maryland and Tennessee. Cannabidiol, or CBD, is the non-psychoactive element in marijuana. The pharmacy chain said the available products include topicals such as creams, sprays and lotions, but will not sell any CBD-containing supplements or food additives. CVS said the products comply with applicable laws.
  • 2/26/19: Aurora Cannabis (ACB) to acquire a 51% ownership interest in Gaia Pharm. The co announced that it has agreed to terms to acquire a 51% ownership interest in Gaia Pharm Lda., a license applicant in Portugal, to establish a local facility to produce medical cannabis and derivative products. The company will be renamed "Aurora Portugal Lda". On February 21, 2019, Gaia Pharm Lda. received approval of its application to construct an EU GMP compliant cannabis cultivation facility from INFARMED, a division of the Portuguese Health Ministry, which is responsible for the evaluation, authorization, regulation and control of human medicines as well as health products for the protection of public health.
  • 12/20/18: The 2018 Farm Bill, signed by President Donald Trump, legalized hemp.