Turkish Lira Will Continue To Plunge

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Investors in the Turkish Lira got a whiff of optimism recently following the AKP party’s landslide victory. What’s the reason for the optimism you might ask? It’s that Turkish President Recep Tayyip Erdoğan would now have a stronger hold at the helm. That means the AKP party could conceivably push through much-needed reforms. But the fact is that’s really just wishful thinking. Any strength in the Turkish Lira should be used for selling not buying.

TRY Looking Bearish

Usually, I like to leave the FX charts for dessert, yet sometimes a quick glimpse can better deliver my point. Looking at the chart it becomes clear that the path towards a higher USD/TRY hasn’t budged a bit. Any inkling of optimism was overwhelmed by pessimists looking to get out of the Turkish Lira. So much so in fact that most of the Lira’s gains have already been lost.

Why are short sellers still dominant if reforms are coming? Because even much-needed reforms would take years before they’d have any impact. Meanwhile, the problems for Turkey and the Turkish Lira are imminent. Continue reading "Turkish Lira Will Continue To Plunge" →

Here's One Stock That Could Do Very Well In Q4

Posted on by The INO.com Team

There are two months left in the quarter and the Fed continues to dither, and if anything, create uncertainty in the marketplace. I read this morning there's a 52% chance that they will raise interest rates in December. That means there is also a 48% chance that they will not raise interest rates in December. This uncertainty and lack of direction from the Fed is causing anxiety problems for the market.

That aside, I do have a stock that I think will do well for the balance of the year. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) had a monthly green Trade Triangle trigger yesterday. The stock has the potential to move up as much as 20% in the next several months. In today's video, I'll show you why I think it can move up 20% from current levels. I will also share with you an important technical aspect that makes me believe that this can happen this quarter or early in Q1 of 2016. Continue reading "Here's One Stock That Could Do Very Well In Q4" →

McKesson Delivers Another Steller Quarterly Report

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (MCK) reported quarterly results last week and beat on both the top and bottom line while raising guidance and announcing a massive $2 billion share buyback program. The stock responded with a yawn and now sets around $180 per share. MCK presents a compelling investment opportunity in the healthcare space, particularly after the recent sell-off from $243 to $180 per share. This downward movement was flanked by great earnings reports, increased dividend and additional share buybacks. MCK continues to become cheaper and cheaper as each earnings report is announced and the company continues to purchase additional shares. McKesson looks to be undervalued given its growth rate, acquisitive mindset, attractive P/E, dividend and share buyback program. I previously wrote an article outlining my bull case for McKesson and since then the stock has only become cheaper. I feel McKesson is a buy below $200 per share.

McKesson's Blowout Quarterly Results

McKesson reported revenue of $58.8 billion which translates into a 10% increase from the prior fiscal year quarter. On top of this revenue growth, earnings per share increased 19%, cash, and cash equivalents reached $5.2 billion, the company initiated a $2 billion share buyback program and raised guidance from $12.36-$12.86 to $12.50-$13.00 per share. All of these attributes bode well for investors, and now McKesson has a trailing 12 month EPS of $8.26 and with a current price of $179 this translates into a P/E of 21.7. This is an attractive P/E given its shareholder-friendly capital return plan via dividends and share buybacks along with its growth. Continue reading "McKesson Delivers Another Steller Quarterly Report" →

Bet On This Retailer For The Holidays

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The holidays are right around the corner, and that means retailers are gearing up for their biggest sales and marketing campaigns of the year. While the broader averages haven't given investors much to cheer about this year, one stock could still deliver gains and brighten up any portfolio.

Unemployment is down to just 5.1% with a healthy job market, and consumer spending is up over 3% and could be headed higher for the fourth quarter. Inflation, which began this year as a negative figure, has finally begun to pick up a little in the past few months as well and currently stands at 0.2%. Retail sales this year have been choppy with growth of 0.6% in July but only 0.2% and 0.1% in August and September. However, retail sales are still up 2.4% year-on-year.

A strong US dollar has been hurting stocks, but could be a positive factor for retailers going into the holiday season. A high dollar relative to other currencies make imported goods cheaper and could help out consumers. Continue reading "Bet On This Retailer For The Holidays" →

Government Sells Low

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


What will oil prices be when the U.S. government begins selling tens of millions of barrels of oil from its Strategic Petroleum Reserve (SPR) in 2018?

The House passed a federal budget on Wednesday – which is reportedly on its way to likely Senate passage and Presidential signature – calling for the government to sell at least 58 million barrels of oil from the SPR over an 8-year period beginning in 2018. The SPR currently holds about 695 million barrels in 4 sites along the Gulf of Mexico coast. Per the budget bill, the U.S. may sell up to an additional $2 billion dollars’ worth of oil from the reserve to build new pipelines and otherwise modernize infrastructure. That program would represent an incremental 43.5 million barrels based on today’s prices, bringing the total number of barrels to be sold up to a possible 101.5 million. At today’s rates, that could add about $4.7 billion into the US Treasury.

Or… Continue reading "Government Sells Low" →