Below are the valuation targets for Worthington Industries Inc. (WOR) for the next 10 years. Continue reading
- Japan
- Market Indicator
- Price Momentum Indicators
- Richard Russell
- Silver
- Speed Resistance Lines
- U.S. Dividend Watch List
Rockwell Automation 10-Year Targets
Below are the valuation targets for Rockwell Automation (ROK) for the next 10 years. Continue reading
Transaction Alert
The NLO team executed the following transaction(s): Continue reading
Share Buybacks by Decade
A common theme in rationalizing the rise of stocks prices from the low in 2009 to the current level of 2019 has been to say that company buybacks, the buying back of their own shares which artificially boost per share earnings and therefore the share price in subsequent earnings announcements, is the reason.
Although we’re not at the end of the decade, from 2010 to 2019, we have reviewed the number of New York Times articles on the topic of “buyback” and “stock” and compared it to prior decades.
On a relative basis, the period from 2010 to 2019 is a long way off from approaching the next highest decade of the 1980’s.
What does the data suggest? First, buybacks have had relatively little impact on the market’s rise since 2010. Additionally, at the current level, when/if buybacks exceed prior highs the stock market could be significantly above 27,000 on the Dow Jones Industrial Average.
See Also:
Posted in buyback, New York Times
Chart of the Day: Big Mo from 1920-1987
Below is a chart of Altria (Philip Morris) from 1920 to 1987.
See our 10-Year price targets for MO at the following link (here).
Posted in 1920, 1987, Altria, Chart of the Day, MO
Bitcoin: Downside Targets
According to Coindesk, Bitcoin achieved a high of $13,884.77 on June 26, 2019. Based on the data provided by Coindesk, we have the following downside targets: Continue reading
Bitcoin Observation
Again the financial media gets the assessment wrong when commenting on financial markets. In this case, it is Barron’s which gets it wrong about the resurgence of Bitcoin.
On June 24, 2019, Barron’s gave the following headline:
In the eyes of Barron’s, Bitcoin has finally arrived on the scene due to the news that Facebook announced that they will issue their own cryptocurrency called Libra. Facebook made their announcement of Libra on June 18, 2019.
Let’s look at Facebook’s announcement of Libra relative to the price of Bitcoin from December 2017 to June 26, 2019.
In the price chart above, Bitcoin crashed from $19,343.04 in December 16, 2017 to a low of $3,194.96 on December 17, 2018. The amount of increases from the December 17, 2018 low was +183.61%. This was approximately the same level the Bitcoin achieved on May 27, 2019 when it traded at $8,800.
Attributing the move up in the price of Bitcoin, after it had already bottomed six months earlier, mistakes correlation as causation. This also highlights the potential power of Bitcoin which, at this point in time, adds more credibility to Bitcoin as a viable “investment” versus a pure speculation.
Posted in Bitcoin
SJW Group 10-Year Targets
Below are the valuation targets for SJW Group (SJW) for the next 10 years. Continue reading
Kroger Co. 10-Year Targets
Below are the valuation targets for The Kroger Co. (KR) for the next 10 years. Continue reading
Barrick Gold 10-Year Targets
Below are the valuation targets for Barrick Gold Corp. (GOLD) for the next 10 years. Continue reading
Interest Rate Monitor: June 2019
On April 23, 2019, we said the following of interest rates:
“If the current run of stability in rates is anything like the period of 2015 to 2016, we should see a sharp drop in rates…”
At the time, rates had been in a trading range, as seen below.
The drop in the 3-month Treasury has been nothing short of phenomenal. However, the question on everyone’s mind is, how far down? We attempt to address this in the following commentary. Continue reading
Chart of the Day: New England Electric Systems
Below is the annual 52-week low for New England Electric Systems (NES) from 1958 to 1967. We’ve also included the 3-month Treasury Bill as a comparison to show how utility stocks perform against the backdrop of rising interest rates.
In this example, the 3-month Treasury Bill increased from 1.77% to 4.31%. Meanwhile, New England Electric Systems (NES) had a 52-week low range from $14.50 to $23.50.