“What the internet did for communications, blockchain will do for trusted transactions.”
— Ginni Rometty, IBM Chief Executive Officer
International Business Machines Coproration (IBM) has struggled in recent years to transition away from its dependency on legacy businesses to the future of cloud, artificial intelligence, and analytics. Despite this long transition of posting 20+ consecutive quarters of declining revenue, IBM has finally posted its first revenue growth in nearly six years. Its long-term imperatives are beginning to bear fruit in emerging high-value segments that has fundamentally changed its business mix while evolving its offerings to align with new age information technology demands. New talent has driven these long-term business initiatives in these key areas as ~50% of its employee base has been added to the company within the last five years. A new frontier of growth lies in the nascent blockchain technology as IBM is a first mover in this promising, emerging technology. As IBM transitions to quarterly revenue growth, per the recent guidance of low single-digit growth, in the backdrop of its evolution to emerging high-value segments (i.e., blockchain) the company presents a compelling investment opportunity. In addition to the evolving business mix, IBM offers a great dividend, share buyback program while continuously acquiring companies to drive the business into the future.
Blockchain Technology and Applications
Blockchain technology is the architecture that underpins the volatile cryptocurrency markets. This technology applies to enterprise applications since it employs a decentralized database, open ledger, and incorruptible transactional capabilities. Blockchain applies to any transactional business model whether it’s financial or goods being transacted. The open ledger concept within the blockchain makes it incorruptible as any changes need confirmation from multiple parties and any changes can be seen at any time with a permission blockchain. As a function of the decentralization, there’s no central repository or clearinghouse to be hacked or accessed. The blockchain speeds up and by-passes these intermediaries (i.e., a clearinghouse of the bank) to achieve transactions within minutes and not days (Figures 1 and 2). Continue reading "IBM - Blockchain Technology Driving Growth"
Hello traders everywhere. After opening slightly higher for the day, the stock market has once again retreated into negative territory. The S&P 500 and DOW are both posting losses of over 4% on the week while triggering new red weekly Trade Triangles. The NASDAQ is heading for a 5% loss on the week.
The recent volatility over trade turmoil has turned gold's "good week" into a great week as traders flock to the haven. Gold is up 1.6% on the day and 2.7% on the week, making it the best weekly gain in over a month.
Crude oil is looking to close out a great week with a 4.8% gain, its best weekly gain in ten weeks. Oil has maintained the $60 a barrel level as OPEC and its partners have trimmed inventories, helping crude stockpiles in the U.S. tick below the five-year average mark.
Bitcoin is going to post a weekly gain of 7.8% for the week after two consecutive weeks of losses. However, the push to break its 200-day MA has come under pressure as Bitcoin retreated from that level. The RSI also remains below the 50 level indicating that a bearish move could still be in play. Keep a close eye on Bitcoin as it tries to fight off the potential death cross.
Key Levels To Watch Next Week:
Continue reading "Stock Market Retreats Into Weekend"
Analysis originally distributed on March 14, 2018 By: Michael Vodicka of Cannabis Stock Trades
Cannabis beverages are quickly emerging as one of the fastest growing cannabis sub-industries.
For proof - look no further than Canopy Growth Corp (TWMJF), Canada's largest cannabis company.
Back in October, Canopy announced a groundbreaking $200 million investment from Constellation Brands (CONST), the third largest US beer distributor with Corona on the roster.
In the short run, news of the investment sent shares of Canopy soaring - jumping more than 100% in the next 10 weeks.
More importantly - the deal signaled an important shift in the Canadian cannabis industry. Continue reading "Canadian Cannabis Company Betting Big On Beverages"
Hello traders everywhere. Crude oil climbed to its highest level in six weeks, a 2.6% gain to $65, after inventories in the U.S. dropped for the first time in a month, catching traders many off guard.
Refiners and brokers pulled more than 2.6 million barrels of crude from American storage facilities last week as many analyst and traders were expecting an increase. The withdrawal occurred amid speculation that the U.S. may intensify sanctions against Iran, OPEC's third-largest supplier.
Check our Robert Boselgo's updated 2018 crude oil outlook that we posted this morning.
The stock market is anxiously awaiting Fed Chairman Jerome Powell's news conference this afternoon at 2 pm where it is widely expected that he'll announce a rate hike after wrapping up the FOMC's two-day meeting. The expectation is for a 25 basis-point bump in rates.
Investors will also look for clues about the Fed's tightening trajectory for the rest of 2018.
Key Levels To Watch This Week:
Continue reading "Crude Oil Rises Alongside Stocks"
Analysis prepared on March 19, 2018
The relative rate of growth in supply v. demand will ultimately determine stock levels and prices. And the three key predicting agencies, the International Energy Agency (IEA), Energy Information Administration (EIA), and OPEC have different views on what is likely to unfold.
OPEC does not often predict is own production, but in December it forecast it would average 33.2 million barrels per day (mmbd) during 2018. That would far exceed its projected “call on OPEC oil,” which is world demand minus non-OPEC production. For 2018 as a whole, it predicts that figure will be 33.1 mmbd.
That demand for OPEC oil is based on a gain in demand of 1.52 mmbd and a rise in no-OPEC production of 1.15 mmbd. In my view demand is likely to be a bit stronger due to world economic growth. However, the non-OPEC supply number is much too low, given the recent rise in U.S. production of 886,000 b/d from August through November. (December production was down a bit for seasonal reasons.) Furthermore, U.S. production has yet to respond to $60/b. The rise in output last autumn was a response to $50/b.
The EIA has the most aggressive non-OPEC production estimate of a gain of 2.5 mmbd, with 2.0 occurring in the U.S. alone, and the balance in Canada and Brazil. The EIA forecast is based on a gain in crude production of 1.5 mmbd and a rise in other liquids of 500,000 b/d. WTI did not exceed $60 in any month since 2015 until January 2018. And the year-over-year gain in March 2018 is estimated to be 1.29 mmbd. And so the industry’s response to $60/b could very well enable the 1.5 mmbd gain. Continue reading "Updated 2018 Crude Oil Outlook"