Investors Focused Stocks: Netlist, Inc. (NASDAQ:NLST), ASA Gold and Precious Metals Limited (NYSE:ASA), Cool Holdings, Inc. (NASDAQ:IFON)


Editorial Staff Wcryptn

Date: 15.07.2018

U.S. stocks rose on Monday, giving the Dow and S&P 500 their biggest gains in more than a month, as bank shares jumped ahead of earnings reports later this week.

Industrial, energy and consumer discretionary shares also rose sharply, while S&P utilities and telecommunications – among the market’s recent outperformers – led percentage declines.

The S&P banks index climbed 2.7 percent, registering its biggest daily percentage gain since March 26. The S&P 500 financial index rose 2.3 percent, leading gains among sectors.

JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc are scheduled to report results on Friday, kicking off the second-quarter earnings season in earnest.

“We’re on the eve of what’s going to be a dynamite earnings season,” for the S&P 500 overall, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Investors may also be shifting their focus for now away from trade tensions between the United States and China. The two countries slapped tit-for-tat tariffs on $34 billion of each other’s goods on Friday.

The Dow Jones Industrial Average rose 320.11 points, or 1.31 percent, to 24,776.59, the S&P 500 gained 24.35 points, or 0.88 percent, to 2,784.17 and the Nasdaq Composite added 67.81 points, or 0.88 percent, to 7,756.20.

A Bank of America Merrill Lynch research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected U.S. economic growth.

U.S. analysts’ estimates for S&P 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to Thomson Reuters data.

On Monday, Netlist, Inc. (NASDAQ:NLST) reached at $0.15 price level during last trade its distance from 20 days simple moving average is -18.66%, and its distance from 50 days simple moving average is -13.95% while it has a distance of -55.82% from the 200 days simple moving average. The company’s distance from 52-week high price is -88.64% and current price is above +7.14% from 52-week low price. Past 5 years growth of NLST observed at 15.00%, and for the next five years the analysts that follow this company are expecting its growth at 16.40%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges. The company has Relative Strength Index (RSI 14) of 36.23 along with Average True Range (ATR 14) of 0.02. Its weekly and monthly volatility is 8.53%, 8.86% respectively.

ASA Gold and Precious Metals Limited (NYSE:ASA) closed at $10.35 by scoring 0.00%. The price/earnings to growth ratio (PEG ratio) is a stock’s price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock’s value while taking the company’s earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. Currently has a PEG ratio of N/A where as its P/E ratio is 115.00. The overall volume in the last trading session was 82,490 shares while oil prices rose more than 3 per cent as bulls charged ahead in the wake of the Iran decision.

ASA’s price to sales ratio for trailing twelve months is 142.61 and price to book ratio for most recent quarter is 0.82, whereas price to cash per share for the most recent quarter is 53.96. The Company’s price to free cash flow for trailing twelve months is 221.84. Its quick ratio for most recent quarter is N/A. Analysts mean recommendation for the stock is N/A. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Further, 16.60% shares of Cool Holdings, Inc. (NASDAQ:IFON) are owned by insiders with 0.00% six-month change in the insider ownership. The insider filler data counts the number of monthly positions over 3 month and 12 month time spans. The stock closed at $4.05 by scoring 4.11%. Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 0.70 as current ratio and on the opponent side the debt to equity ratio was 5.44 and long-term debt to equity ratio also remained 0.26. The stock showed monthly performance of 0.25%. Likewise, the performance for the quarter was recorded as -14.92% and for the year was -64.02%.

Growth in earnings per share is everything. The expected future growth in earnings per share (“EPS”) is an incredibly important factor .in identifying an under-valued stock. The impact of earnings growth is exponential. Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Therefore stocks with higher earnings growth should offer the highest capital gains. And doubling the growth more than doubles the capital gain, due to the compounding effect.

If we consider EPS growth of the company, then the company indicated the following observations:

The company showed -8.01 diluted EPS growth for trailing twelve months. However, YTD EPS growth remained -43.64%.

Cool Holdings, Inc. (NASDAQ:IFON) exchanged hands 120,539 shares versus average trading capacity of 183.97K shares, while its relative trading volume is 0.65. IFON’s total market worth is $9.27M. The Company has a Return on Assets of -37.40%. The company currently has a Return on Equity of -92.20% and Return on Investment of -92.10%.

Beta is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets has a beta of exactly 1. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. An example of the first is a treasury bill: the price does not go up or down a lot, so it has a low beta. An example of the second is gold. The price of gold does go up and down a lot, but not in the same direction or at the same time as the market.

A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa. There are few fundamental investments with comprising and noteworthy negative betas, but some derivatives like put options can have large negative betas.

Why Traders should have a look on beta and why it is important

Beta is important because it measures the risk of an investment that cannot be reduced by diversification. It does not measure the risk of an investment held on a stand-alone basis, but the amount of risk the investment adds to an already-diversified portfolio. In the capital asset pricing model, beta risk is the only kind of risk for which investors should receive an predictable return higher than the risk-free rate of interest.

Why higher-beta is riskier than lower- beta

Higher-beta stocks tend to be more volatile and therefore riskier, but provide the potential for higher returns. Lower-beta stocks pose less risk but generally offer lower returns. Some have challenged this idea, claiming that the data show little relation between beta and potential reward, or even that lower-beta stocks are both less risky and more profitable (contradicting CAPM). In the same way a stock’s beta shows its relation to market shifts, it is also an indicator for required returns on investment (ROI).

Now have a glance on “Beta value” of these three stocks

NLST’s Beta value is -0.74.

ASA’s Beta value is -0.11.

IFON’s Beta value is 0.35.

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