Tag Archives: BABA

Alibaba’s U.S. Shares Fall to Lowest Since 2019 as China Cracks Down

A new round of proposed regulations sent Alibaba Group Holding Ltd. (Stocks BABA -4.91%) ’s U.S. listing to decline 4.9% on Tuesday to $173.73, its lowest close since October 2019.

The Chinese tech company’s American depository receipts have fallen more than 25% so far this year.

New draft guidelines released Tuesday by China’s top market regulator aim to prevent internet companies from adopting forced exclusivity and blocking competitors’ links and apps.

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Some of the most active bets tied to Alibaba shares were bearish put options that were tied to the share price plunging even further. Among the most popular options tied to Alibaba were put contracts pegged to the shares hitting $170, according to Cboe Global Markets data. Put options allow a trader to sell shares at a specific price, later in time.

The ADRs of Tencent Holdings Ltd. fell 4.1% on Tuesday to $55.15, the lowest level in more than a year.

Invesco’s Golden Dragon China exchange-traded fund, which has a third of its portfolio invested in mostly Chinese internet and direct marketing companies, fell 2.4% on Tuesday to $41.87, extending its decline year to date to 34%.

Another factor pressuring U.S.-listed Chinese businesses is Afghanistan, said George Ball, chairman at the investment firm Sanders Morris Harris. He said traders worry that China’s potential growing influence might empower the Chinese government to enact even more stringent regulations.

“The American inability to deal with the threats in Afghanistan is making traders think that China is going to be all the more stronger,” Mr. Ball said.

Top Tech Stocks To Own Right Now

The Holy Grail for income investors is finding quality companies with significant payouts that will continue to generate income over the long haul. It’s important to remember, though, that companies with large dividends are not all created equal. In some cases, a high yield can be a red flag that indicates trouble in the underlying business.

Separating the wheat from the chaff can be an arduous and time-consuming process, but we’re here to help. We asked three Fool.com contributors to choose top companies with high payouts. Read on to find out why they chose the following stocks.

Top Tech Stocks To Own Right Now: Alibaba Group Holding Limited(BABA)

China e-commerce giant Alibaba (NYSE:BABA) has morphed into the face of the booming China tech revolution. As a result of essentially becoming the Amazon.com (NASDAQ:AMZN) of China with a super-charged digital retail business and rapidly growing cloud business, Alibaba stock has gone from $60 to $200 over the past two-plus years.

But the stock has been stung recently by a plethora of headwinds, none of which have staying power or will materially affect the company’s still robust long-term growth narrative.

First up, there are the currency headwinds. There was a recent devaluation of China’s currency, and that creates foreign exchange risks for Alibaba. But as MKM Partners points out, such currency risks always created weakness in shares in the near-term, and never materialized into anything meaningful. As such, present currency headwinds should be viewed as a buying opportunity.

Second, there are also concerns about Alibaba’s profitability. Alibaba has long been a staple for both big revenue growth and healthy margin expansion. But the latter part of that narrative — the margin expansion part — has been lacking recently as big investments into New Retail and cloud have diluted the margin profile of the business.

This isn’t anything to freak out about. Alibaba is investing big for the future. Eventually, big investment businesses will turn into big growth, big margin businesses, and the overall profitability profile of Alibaba will improve dramatically.

Overall, then, the risks presently facing Alibaba stock are over-stated. With the stock now trading at under 30-times forward earnings against the backdrop of 60%-plus revenue growth, it looks like July could be a big bounce-back month for Alibaba stock

Top Tech Stocks To Own Right Now: Canopy Growth Corporation(CGC)

Canopy Growth Corporation is one of the few marijuana stocks that generated a solid return in the first six months of the year. The Canadian marijuana grower’s share price is up 25% year to date.

Can Canopy Growth keep its momentum going? Probably so. The market for adult use of recreational marijuana opens in Canada in October. Canopy already has supply agreements for recreational cannabis with several provinces. The company has also cranked up its capacity to meet what’s expected to be a surge in demand.

An even greater opportunity for Canopy lies in global medical marijuana markets. The company reported record sales in Germany in its fiscal fourth-quarter results. Canopy is also expanding into other international markets. And with its big partner Constellation Brands, the company plans to get into the cannabis-infused beverage market. Canopy CEO Bruce Linton recently hinted in a CNBC interview at the potential for launching a zero-calorie beverage infused with cannabis.

Top Tech Stocks To Own Right Now: Select Income REIT(SIR)

Real Estate Stocks Paying Monster Dividends: Select Income REIT (SIR)

Source: Anders Jildén via Unsplash


Dividend Yield: 9.1%

Select Income REIT (NASDAQ:SIR) specializes in both office and industrial properties leased to single tenants. Buildings as diverse as corporate headquarters and leasable land parcels make up SIR’s portfolio of properties. SIR also owns 69.2% of the shares in Industrial Logistics Properties Trust (NASDAQ:ILPT). ILPT makes up its industrial properties and much of its office property.

Like many real estate stocks, this stock has seen little stock price appreciation. SIR stock currently trades around $22.50 per share, less than $1 higher than its $21.75 per share IPO price in 2012. In six years of trading, the stock has never risen more than 40% above this IPO price. It has also never fallen more than 20% below its original price.

Hence, like most REITs, dividends will constitute the majority of profit earned in SIR stock. The dividend has seen a steady increase since the 2012 IPO. The annual dividend started out at 91 cents per share in 2012. It has seen a sustained move higher since and last increasedto $2.04 per share. The quarterly dividend has remained at that 51 cents per share per quarter for two years. If that trend continues, 2018 will become the first year in its history not to see a dividend increase.

However, even if investors do not see a higher dividend, a yield of 9.1% will still provide income investors with a stable amount of income at a high return.

Top Tech Stocks To Own Right Now: Turquoise Hill Resources Ltd.(TRQ)

Headquartered in British Columbia, Turquoise Hill Resources Ltd. (NYSE: TRQ) is a Canadian mineral exploration firm focused on the Pacific Rim region.

Over the last several years, Turquoise Hill has developed several significant mining projects, including the Oyu Tolgoi Project in Mongolia – one of the world’s largest copper and gold porphyry deposits.

Over the last fiscal year, Turquoise Hill has beat earnings by an average of 225% while heavily investing in the expansion of its mining operations across the globe.

The company’s rapid expansion and investment has given Turquoise Hill some aggressive production estimates for 2018.

The company’s 2017 projections estimated that Turquoise Hill will pull between 125,000 to 155,000 tons of copper and 280,000 tons of gold over the course of 2018.

Last month, Turquoise Hill doubled down on these figures and stated that it had the potential to outpace initial estimates.

Turquoise Hill currently trades for $2.76. However, with rapid expansion fueling rising profit potential, analysts estimate that the company could hit $4.00 in the near future. This is a gain of 43%.

Both Turquoise Hill and Mizuho are great penny stock investments for July. But our top penny stock has better profit potential than both of these picks.

An international steel company, our top penny stock to buy in July, is set to generate substantial returns as trade war tensions continue to rise…

Top Heal Care Stocks To Invest In Right Now

With trade war fears plaguing the market, Chinese stocks have been receiving some bad rap recently. But don’t let this distract you. The top China-based stocks present stellar investing opportunities. And you don’t just have to take my word for it. Here we use TipRanks to pinpoint the best Chinese stocks according to the Street. This website tracks the latest ratings from over 4,800 analysts — so we can find the most highly-rated stocks with just a couple of clicks.

If you think about it, the restrictions on foreign companies means a whole host of Chinese-equivalent U.S. stocks has sprung up. From WhatsApp to Google, China has its own parallel universe of top-notch companies. The best part is that these stocks appear seriously undervalued. It’s true that it’s much easier to invest in a company whose products you know and use. But for the more adventurous investor, these stocks have huge potential.

Here are 5 A-rated stocks to add to your wish list right now:

Top Heal Care Stocks To Invest In Right Now: SVB Financial Group(SIVB)

SVB Financial Group (NASDAQ:SIVB) is my pick from the financial sector. Up 25% YTD, it’s on a seven-year winning streak that doesn’t look to be broken anytime soon.

If you can only own one bank, I wholeheartedly suggest you hold SVB Financial, the holding company for Silicon Valley Bank, consistently named one of the 100 best banks in America.

Silicon Valley Bank got its start lending money to tech startups and has since broadened its base to include innovators and entrepreneurs outside the technology sector with a loan portfolio nearing $25 billion.

“The combination of these two things [digital health and machine learning], I think is super exciting,” SVB Financial CEO Greg Becker told Fortune recently. “I think we’re going to see an incredible amount of innovation over the next five, ten, 15 years.”

Innovation is a big reason I called SIVB in 2013 one of the five best stocks to own for the next 20 years. Up 192% since then, I believe it’s just getting started. 

Top Heal Care Stocks To Invest In Right Now: Equinix Inc.(EQIX)

Equinix (NASDAQ:EQIX) is my pick from the technology sector. Down 5% YTD, it’s not even keeping up with its diversified REIT peers.

However, anyone who has owned EQIX over the past five years — 21% annualized total return — has significantly benefited from the data center buildout that has been going on to support the growing cloud.

In March, InvestorPlace contributor and Finbox.io founder, Matt Hogan, discussed the six most inexpensive growth stocks to buy; Equinix was on his list.

“Equinix’s stock currently trades at $414.48 per share as of Tuesday [March 20], up 9.4% over the last year. On a fundamental basis, the company’s stock is trading at a 7.0% discount to finbox.io’s intrinsic value estimate,” Hogan wrote. “However, the average price target from 22 Wall Street analysts of $507.23 implies 23.2% upside.”

At the time, Finbox.io had a fair value of $444, providing investors with 7% upside. Now trading around $428, Finbox.io suggests it has 22% upside or fair value of $520.

With the public cloud computing market expected to grow by 22% in 2018 to $178 billion, the company’s data centers will continue to experience strong demand.

As long as Amazon and the rest of the major cloud participants continue to grow, so too will Equinix.

Top Heal Care Stocks To Invest In Right Now: Baidu Inc.(BIDU)

As China’s No. 1 search engine, Baidu Inc (NASDAQ:BIDU) is often nicknamed the ‘Google of China.’ Like Google, Baidu’s business interests span much more than just search. Baidu’s business covers the cloud, AI, maps, IT security and self-driving technology. The latest update: Baidu has announced a new partnership with Ford Motor (NYSE:F) to develop smarter cars for the Chinese market.

Ford will now install Baidu-powered in-vehicle infotainment systems known as DuerOS in its cars for Chinese customers. “Baidu and Ford share the vision of using technology to build the future of driving,” says Ya-Qin Zhang, president of Baidu. “Together, with Baidu’s leading-edge AI technology and Ford’s advanced engineering expertise, we will transform the mobility ecosystem and create the next-generation in-vehicle experience for consumers.”

And from a Street perspective, Baidu certainly gets the thumbs up. The stock has 100% support from top analysts specifically and a $306 price target (26% upside potential). Top Oppenheimer analyst Jason Helfstein has just reiterated his BIDU Buy rating. The “current valuation is too low for the leading Chinese search engine” argues Helfstein. He points out that BIDU is in prime place to benefit from the secular growth of China’s online ad market.

Top Heal Care Stocks To Invest In Right Now: GlaxoSmithKline PLC(GSK)

You certainly know the name GlaxoSmithKline (NYSE:GSK). As investors, we aren’t going to freak out about a U.K.-based company, right? We also know it is an $100 billion pharmaceutical company.

It has four divisions: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer Healthcare. Besides its huge portfolio of proprietary pharma drugs, it has other products you certain know: Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren.

It also has consumer products, such as drinks and foods, toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.

GSK invented NicoDerm and has more than three dozen other products in development. It’s no wonder GSK has billions of cash on the balance sheet, and more than enough cash flow to pay its dividend, presently at 5.4%.

Top Heal Care Stocks To Invest In Right Now: Alibaba Group Holding Limited(BABA)

Chinese e-commerce giant Alibaba Group Holding (NYSE:BABA) is always one of the Street’s favorite stock picks. And this doesn’t appear to be changing any time soon. On the contrary; our data shows that in the last three months 15 analysts have published BABA Buy ratings. Couple this with a bullish $248 price target (34% upside potential) and you can see why BABA is a hot stock pick right now.

Indeed, you may get more than you bargained for. Five-star Argus Research analyst Jim Kelleherhas just initiated coverage of BABA with a $275 price target. This translates into massive upside potential of 48%. Kelleher wrote, “Although BABA shares have had a strong multi-year run, we regard the stock as attractive based on mid-double-digit growth prospects for GMV [gross merchandise volume].”

But this huge sales potential still isn’t reflected in current prices: “We believe that BABA’s growth prospects are accelerating more rapidly than the share price, creating a favorable entry point. The shares also appear attractively valued. Based on peer group, historical comparables analysis, and discounted free cash flow valuation, we believe the BABA shares are attractive up to $330 and beyond.” We’re sold!

Hot Heal Care Stocks To Buy Right Now

Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive,” and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced shares. When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have.

Today we’ve highlighted five stocks that are currently trading for under $10 per share. All of these stocks currently sport a Zacks Rank #2 (Buy) or better, and the selected companies are showing signs of outpacing the market in the current calendar year.

Check out these five great stocks for 2018:

Hot Heal Care Stocks To Buy Right Now: Johnson & Johnson(JNJ)

Despite a reasonable valuation, solid growth and what I considered a good earnings result earlier this month, Johnson & Johnson (NYSE:JNJ) has had trouble finding its mojo.

For the reasons I noted above, long-term bulls may feel just fine holding onto J&J, whether it’s at $120 or $140. For the short-term traders out there though, it’s hard to feel bullish. JNJ has been pulverized since mid-January and hasn’t recouped any of those losses, as it now rests below all three key moving averages.

This $124 to $126 level has been support lately. Below that and it’s hard to say where JNJ goes. It’s recent closing low and recent low could be in play if that’s the case. It probably won’t get there without a big market decline, but JNJ would yield 3% near $114, where income buyers would surely start to step in. Also worth noting is that the average price target for JNJ sits up at $141.50.

J&J is a fund-favorite. So as long as they’re buying equities, I expect JNJ to have a bid, with or without $125 holding.

Hot Heal Care Stocks To Buy Right Now: Eclipse Resources Corporation(ECR)

Eclipse Resources Corp (NYSE:ECR) shares are pushing above their 50-day moving average for the first time since January, pushing up and out of a three-month consolidation range. Merely a return to the 200-day moving average would be worth a 50%-plus gain from here.

Back in March, management issued updated projections on two of its Mercellus wells and initiated a strategic review. At the end of last year, production was up 22% from the year-ago period, with proved reserves up 211%.

Hot Heal Care Stocks To Buy Right Now: Paylocity Holding Corporation(PCTY)

Lewis: Another smaller player here is Paylocity. This company, I think it’s about a $1.7 billion market cap business, what do they do?

Feroldi: Paylocity does cloud-based human resources software. As you might have guessed from their name, their bread and butter is payroll. They go after small businesses that have a few employees, just to get them on a platform for doing payroll. But they also offer a number of other services on top of that. Payroll is kind of how they get their foot in the door, but they also offer things like benefits management, you can do time and attendance on there, you can do employee reviews, a whole bunch of general HR functions, on their platform. 

As you can imagine, this is a very old business. When you think about your ADPs and your Paychexs of the world, those guys have existed for years. What Paylocity does that’s a little bit different is, they were founded on a mobile-first strategy. Their software is 100% based in the cloud, and it’s really designed to be used on a phone, a tablet, or PC kind of last. That’s how they set themselves apart from the big boys.

Lewis: Yeah. Hearing you talk about this company, I’m reminded, in a way, a little bit, of another business that I really like, and that’s Square. You think about how it’s mobile-first, it seems like it’s very oriented toward small shops and making the getting-setup very simple for small business owners.

Feroldi: That’s exactly right.

Lewis: HR stuff, one, it’s a space that you want to have your stuff together. You want to be organized. But it’s something that a lot of people don’t have training doing. And having organized systems coming into, this is what this should look like, and picking up that template from a business, is really helpful. It’s also stuff that a lot of people don’t really want to do. So, having a company that can take care of some of the messier or maybe less-sexy parts of your business is always going to be a good opportunity, if you’re looking for places to serve customers.

Feroldi: Absolutely. Payroll is boring, but it’s absolutely mission-critical. I don’t know about you, I like getting a paycheck every week.

Lewis: Yeah. I only get paid every two weeks, but every two weeks, I look forward to it. [laughs] 

Feroldi: Absolutely. And when you take on an employee, there are some things that they just naturally expect from the business. They expect you to have your 401(K) set up, they expect you to have your payroll act together, they expect to be able to have some kind of system for logging their hours if they’re hourly. So, what I like about Paylocity is, once they get their teeth into a business, they can then layer on services on top of that to bring in more functionality. These guys recently just acquired a small company that provides flexible spending accounts and health savings accounts, so they’re starting to get into the health insurance side of it. And with that acquisition, they can then take this thing that they built and offer it out to all of their clients to grow their revenue within their client base, let alone when they add on new customers. 

So, this is a repeat purchase business. Their top line is growing very quickly, 25% annually. 97% of their revenue is recurring. They did about $300 million in revenue last year, which was high enough to get them to profitability. They’re cash flow positive. And management sees an opportunity in the U.S. of about $26 billion. 

Now, these guys are facing much more competition, I would say, than the other two, because, again, they’ll eventually butt heads with the likes of ADP and Paychex, but I think that they have a solution that’s unique enough that they can still continue to grow quickly.

Hot Heal Care Stocks To Buy Right Now: Alibaba Group Holding Limited(BABA)

Alibaba Group Holding Ltd (NYSE:BABA) has a lot going for it right now, including massive outperformance across 2017. Just look at a chart through January 2018 and you’ll see that this stock almost always goes up — rarely down!

But it’s more than just momentum that matters.

For starters, BABA stock is the main e-commerce player in China, and the Chinese economy remains healthy. Although a barrage of negative press has caused many investors to sour on the region, remember that a slowing growth rate does not mean the end of growth. Sure, 10% GDP expansion would be better … but given the rest of the world, a 6% clip is pretty darn nice!

This means citizens transitioning to the middle class and entering the online world will help power Alibaba’s growth far into the future. That shows up constantly in the company’s growth rate, which includes a stunning growth forecast of 56% revenue expansion this year. On top of that, EPS is also expected to jump almost 39% in fiscal 2018!

This is where the numbers get interesting, because that big profit potential and revenue growth has fueled aggressive acquisitions. Alibaba has a very long-term vision and made a bold investment in microblogging platform Weibo Corp (ADR) (NASDAQ:WB) — a Chinese version of Twitter Inc (NYSE:TWTR) – last year. Unlike troubled growth metrics at TWTR, Weibo crushed first-quarter 2017 estimates, and this provides yet another path to growth for the internet giant.

As a result, the time is perfect to buy BABA stock, since it has a dominant share in the growing e-commerce space and continues to make bold bets on the future.

Shares have roughly doubled in the last year or so, and continued appreciation could send BABA stock to a 3x gain easily enough in 2018. Just make sure to keep an eye on the buy-below price, and enter in on any short-lived dips.