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  • Finance 0

    Hong Kong Housing Bubble Suffers Spectacular Collapse: Sales Plunge Most On Record, Prices Crash

    Two months ago, we observed the record plunge in Hong Kong home sales when according to Land Registry data, a paltry 2,826 registered residential transactions were record, down 14.4% from October and what we thought was an amazing 41.7% less than in November last year. This was the lowest print in the history of the series. Little did we know just how bad it would get just two months later.   As we said in our last check on the HK housing market, the weakness was sharp and widespread, with sales of new homes declining to a three-month low. In the primary residential market, the number of home sales also declined 26.4 per cent month on mont...
    On February 2, 2016 / By
  • Finance 0

    Alphabet’s Other Bets Are Costly But The Stock-Market Should Remain Supportive… For Now

    Alphabet Inc, formerly known as Google has presented its 2015 results. Pretty decent earnings, by the way. But the novelty is the broken out earnings segment, comprising Google’s other bets. So, now we know that the Other Bets provided $458 Million in Revenue against $3.5 Billion operating loss. Let’s see how the stock-market will accommodate this information during the next weeks. The loss is not huge when compared with the company’s earnings but, nevertheless, it is significant. Back in August, I warned that the Alphabet’s new reporting method could be a risk, if shareholders initiate a movement to pressure Google to get rid of s...
    On February 2, 2016 / By
  • Finance 0

    Expected Test Of 1.0930/40

    Yesterday’s Trading: The euro/dollar slid to the balance line by at 1.0885 by American opening on Monday. After varying US data came out, the euro strengthened to 1.0912 against the dollar. The PMI and ISM in the manufacturing sector were in different directions. The PMI was down and the ISM was in line with forecasts, but December’s value was reassessed downwards. The US business activeness index was set at 48.2 against 48.0 (reassessed from 48.2) the previous month (forecasted: 48.1). The US business activeness index from Markit was down from 52.7 to 52.4 (forecasted: 52.7). Main news of the day (EET): 10:55, German unemployment changes...
    On February 2, 2016 / By
  • Finance 0

    Daily Market Analysis – February 2, 2016

    During the session on Tuesday, we get a lot of mid-level announcements out of the European Union and Great Britain, as well as employment numbers coming out of New Zealand but really nothing to move the markets drastically. Because of this, we believe that the market will more or less continue to look the same as it has for some time now. 1 – Because of this, we believe that pullbacks will offer value in stock markets, especially in the United States. They all look as if they are trying to build up enough momentum to break out, but it may take a few more sessions to actually do so. 2 – Energy markets still looks vulnerable to the downs...
    On February 2, 2016 / By
  • Finance 0

    Researching United Technologies: Here’s How I Do It

    Introduction One of the greatest challenges that authors face when posting articles on financial blogs is how much information they should include and how much they should exclude. Space is limited, and many readers prefer a short write-up over long dissertations. Therefore, most authors (yours truly included) attempt to summarize their positions in the fewest words possible. However, this approach implies that readers will fill in the blanks between what is said and what is left out. Unfortunately, that is not what always happens.  In my own personal experience, the best example I can offer to illustrate what I’m talking about relates to ...
    On February 2, 2016 / By
  • Finance 0

    Gold Hits Three-Month High

    Gold prices ended Monday’s session up 0.95%, or $10.53, to settle at $1128.26 an ounce as disappointing U.S. economic data pressured the dollar. The greenback weakened after the Institute for Supply Management said economic activity in the manufacturing sector contracted in January for the fourth consecutive month. Comments by Federal Reserve Vice Chairman Stanley Fischer also helped provide a lift to gold. Fischer said “Further declines in oil prices and increases in the foreign exchange value of the dollar suggested that inflation would likely remain low for somewhat longer than had been previously expected before moving back to...
    On February 2, 2016 / By
  • Finance 0

    Liberty Property’s Big Dividend: Safe And Unloved

    Liberty Property Trust (LPT) is real estate investment trust (REIT) with a big 6.5% dividend yield. However, because the company cut its dividend during the financial crisis (like many other REITs did), and it has not increased its dividend since that cut, Liberty Property receives very little love. We believe this is a REIT worth loving because its dividend is relatively safe, its long-term strategy (to shift out of suburban office properties and into industrial properties) is smart, and it offers a better total return opportunity than many of its peers. Further, we expect LPT may resume dividend increases within the next 12 to 18 months. Hi...
    On February 2, 2016 / By
  • Finance 0

    A Chart That Refutes The Gold Price Suppression Story

    The assertion that the gold price has been successfully manipulated downward over a great many years via the relentless selling of “paper gold” contains more than a few logical and factual holes. In this brief post I’m going to highlight one of these holes. Before I get to the main point, it’s worth pointing out that in order to sell “paper gold” there must be demand for “paper gold”, since demand for physical gold cannot be satisfied with paper claims. It is also worth pointing out that downward pressure on the price of “paper” gold that was not supported by the “physical” market would inevitably result in the price o...
    On February 2, 2016 / By
  • Finance 0

    How Much Will The E. Coli Scandal Hurt Chipotle’s Q4 Earnings?

    Photo Credit: tales of a wandering youkaiChipotle Mexican Grill, Inc. (CMG) Consumer Discretionary – Hotels, Restaurants & Leisure | Reports February 2, After Market Closes Key Takeaways The Estimize consensus calls for EPS of 1.94 and revenue of 1.005 billion, a significant freefall when compared to the same period this past  year After a series of E. Coli outbreaks, expectations are low for Chipotle coming into its earnings report With plunging sales, this is expected to be the first quarter the burrito chain posts negative same store sales What are you expecting for CMG? Get your estimate in here! CMG data by YCharts Once ...
    On February 2, 2016 / By
  • Finance 0

    10 Low PE Stocks For The Enterprising Investor – February 2016

    There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected 10 low PE stocks for the Enterprising Investor. These companies have the lowest PEmg (price / normalized earnings) ratio out of all companies reviewed by ModernGraham. Each company has been determined to be suitable for the Enterprising Investor and undervalued according to the ModernGraham approach. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprisin...
    On February 2, 2016 / By