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Brock

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  1. Hi James, thanks for coming here asking for advice. Frankly speaking, I think now it's not the time to invest in cinema stocks. The COVID-19 outbreak has dealt a deadly blow to the industry with cinemas closed for more than 2 months. The number of infection seems to be on the rise again, hence we may see restrictions reintroduced globally. The state of the cinema industry is best reflected in the fact that Cineworld, the world's second largest cinema chain operator, pulled out of the deal to buy Cineplex, the Canada-based chain operator. The British cinema giant cited a "breach of contract" as a reason for getting out of the contract. However, analysts believe that Cineworld had to pull out of the deal given the financial blow the COVID-19 has dealt to the cinema industry. "Cineplex believes that Cineworld's allegations represent buyer's remorse, and are an attempt by Cineworld to avoid its obligations under the [agreement] in light of the COVID-19 pandemic," the company said. I think this situation is a great example of the state of the cinema industry currently. We may have to wait for years before seeing cinema sector stable again with solid and regular revenues. Until we reach that point, I think the best course of action is to stay on the sidelines. I hope this was helpful.
  2. Brock

    Uber

    Hi Michael, thanks for coming here. Shares of Uber Technologies Inc. (NYSE: UBER) plunged 10.7% today after the company failed to take over Grubhub, due to antitrust concerns. Dutch online food ordering company Just Eat Takeaway N.V. will acquire Grubhub instead. Before the stock declined, shares of the ridesharing company almost tripled from March, when the stock collapsed. While losing the bid to acquire Grubhub is a big deal, an even bigger problem is the current COVID-19 crisis and the struggling economy. Uber will keep losing millions of dollars until the economy normalizes. “The deal was seen as a way to bolster a part of Uber’s business that executives see as crucial to growth and eventually to turning a profit. The coronavirus pandemic is driving a surge in demand for food delivery as many restaurants keep dining rooms closed and people are spending more time at home. The virus is also decimating Uber’s main business of ride hailing, resulting in mass job cuts at the company,” reports Bloomberg. Uber’s ride-hailing operations have suffered a big blow by the epidemic, sending rides down 80% in April, on a global level. The recovery process has been very slow and further safety concerns would slow it down even more. Wedbush analysts Daniel Ives and Ygal Arounian said the failed deal between Uber and Grubhub is a “clear negative” for Uber as its rivals will keep moving forward. Still, they rated the stock at “outperform” with a $47 price target. Hope that answered your question.
  3. Hi Jane, thanks for the question. Doji candlestick pattern is a transitional or neutral chart formation since it doesn’t directly signal a continuation nor a reversal of the trend. This is why market analysts first think of “indecision” when they see a doji candle. Looking at the shape, a doji candle has long wicks with a very small body or no body at all. Doji can take place anywhere on the chart, but its importance grows when it is found on the top or bottom of the chart. Ultimately, you can classify a doji as both a reversal and a continuation pattern, depending on the final outcome. But is more likely to end up being the reversal pattern as hesitation is hurting the dominant market side more. as the indecision signals there is no firm outcome of who has control over the price action. In addition to a classic or “neutral” doji candle which consists of no body and two wicks of similar length on both sides, there are three types of doji candlesticks: gravestone, long-legged, or dragonfly. A gravestone doji candle is a bearish reversal pattern which occurs near the end of an uptrend. The bulls, who were successful in pushing the price action higher, failed to force a close near the candle’s high. As a result, the sellers were able to return the price action lower to have an open, close, and low are all near one another. A long-legged doji, or a "rickshaw man", is characterized by long wicks on either side. As a doji candle, it signals indecision among traders, although its occurrence within a series of doji candles suggests that the dominant market side may have lost its momentum and the trend may be in the closing stages. Finally, a dragonfly doji candlestick formation is the opposite of gravestone doji as the open, high, and close are all located in the upper part of the candle, near the high. I hope this answer was helpful.
  4. Hi Jeremy, thanks for the question. This is one of the most popular questions right now, with many people trying to come up with their own opinion. I believe that it’s a matter of WHEN, not IF cryptocurrencies will replace traditional money. Not just me, but the Pentagon is apparently sharing the same opinion. While protests are being held in the United States, the online news publication “The Intercept” unveiled a document which states that the Pentagon developed a war game in 2018 that resembles current events. Accordingly, the Pentagon developed a war game named “Joint Land, Air and Sea Strategic Special Program (JLASS)”. One of the plots in the game involves Generation Z starting a rebellion, called the “Zbellion”, funded by Bitcoin. The JLASS is “intended to reflect a plausible depiction of major trends and influences in the world regions,” as described in over 200 pages of documents. In the game, the players are instructed to go on the dark web and obtain advanced malware to steal funds from corporations, non-profit and political organizations as well as financial institutions that support “the establishment”. According to the document, “Zbellion uses software programs to route any proceeds into laundering programs that ultimately convert national currencies into Bitcoin” and makes "small, below the threshold donations" to "worthy recipients", such as players who carry out the attacks or people who need money. Even though the game was developed in 2018, the JLASS backstory could be compared to the current events that drive some US citizens towards cryptocurrency. Two years ago, when the game was created, was the time when the initial coin offerings were thriving and there were no indications that society and public authorities would employ the technology. The Pentagon issued a report in July last year, describing a new cybersecurity shield that utilizes blockchain fight against cyberattacks. Therefore, the US officials are obviously preparing for a scenario in the future when the crypto assets are more popular and adopted globally.
  5. Hey, Shares of Boeing (NYSE: BA) dropped 7% this morning after the company’s main supplier, Spirit AeroSystems, said it was halting production for 737 MAX, raising doubts concerning further aeroplane production plans. The news raised concerns among investors that slower production in 2020 could cause an even bigger delay in 737 MAX timeframe or a weaker-than-expected production rate. Last month, Boeing delivered 4 aircrafts and received orders for 9 non-passenger aeroplanes. However, the number of cancellations for May was even higher - a total of 18 (14 for 737 MAX). Boeing and aerospace manufacturers have been hit hardly by coronavirus pandemic, which resulted in production cuts and raising issues about future sales. Still, Boeing was having issues before COVID-19 as well as the 737 MAX got grounded in the aftermath of two crashes last year. “Boeing has been working to get the 737 Max recertified to fly, and hopes to conduct a key test flight in late June, but even if it can resume deliveries in the third quarter it is going to take time for Boeing to work through the large inventory of built but not delivered planes sitting on its lot,” according to the article. Investors probably didn’t expect the Boeing stock to decline as recent news concerning 737 MAX were quite promising. Now investors will be even more concerned because even if 737 MAX returns to service, the demand will most likely be weak. The news likely caught Boeing investors off guard because most of the headlines on the 737 Max in recent weeks have been encouraging. But it is important to note that even if the plane does get airborne again in the months to come, demand is going to be weak. Before the 737 MAX grounding, the company planned to deliver 57 737 MAX aircrafts per month. Now, Boeing expects it will make 31 planes per month next year.
  6. Brock

    Ripple

    Hi, Ripple refers to a technology that serves as both a cryptocurrency and a digital payment platform used for financial transactions. Currently, Ripple is the 4th largest digital currency by market cap. Ripple differs from other cryptocurrencies in a way that it doesn’t move against the current financial system which involves banks and governments. Moreover, Ripple is attempting to become a part of this system. When it was first launched in 2012, Ripple looked very promising. The platform recently announced that it has formed agreements with more than 300 banks and financial institutions. Some of the notable partners include Euro Exim Bank, Barclays, HSBC, Accenture, MoneyGram, JNFX, FTCS, BFC Bahrain, ConnectPay, Ahli Bank of Kuwait, Transpaygo, GMT and WorldCom Finance. When it comes to the future of Ripple, the opinions are divided. Some of the analysts strongly believe that Ripple will move up over the next few years, while others predict a major decline. Financial behemoths like JPMorgan are developing their own digital assets which will allegedly be very similar to Ripple. This could turn out very bad for Ripple, however, the bad outcome could be avoided if Ripple starts presenting XRP not only as a payment method but also as an investment tool. “I don’t think about the price of XRP in the short-term. I think if we can enable XRP to be the most efficient in terms of the speed of a transaction and the cost of a transaction, more and more people will use it,” said the CEO of Ripple, Brad Garlinghouse. A popular community of investors and analysts, Crypto Rand, thinks that if XRP manages to break the current price range of $0.30-$0.31, the coin’s price will likely skyrocket. However, as I said, there are also those who think very differently.
  7. Brock

    Zilliqa

    Hi, thanks for asking the question. Zilliqa (ZIL) has seen enormous gains since March, outshining Bitcoin. Currently, the cryptocurrency became the 36th most valuable digital currency with a market value of around $245 million. Zilliqa’s daily trading volume amounts to around $90.85 million, and since its collapse in March, the altcoin rose 950%, one of the largest surges lately. Zilliqa recorded a record number of 4 million blockchain transactions since its mainnet in January last year. After crashing at $0.0022, Zilliqa skyrocketed to $0.02. However, the charts show that the cryptocurrency is currently hovering around the resistance area and we shouldn’t expect another rally. “As the chart is showing, the price of Zilliqa is back inside a range structure. The resistances of this range are found between the levels of $0.022 and $0.025, while the support levels are found at $0.012 and $0.014–$0.015,” reported Cointelegraph. It is more likely that we will see a corrective downside move rather than another move up. A correction towards $0.012–$0.015 mark could be expected before the coin is ready for another surge. However, in order to maintain its incredible momentum, Zilliqa would have to stay above $0.019. In that case, we could expect another rally. “What are the interesting areas to watch in the coming months? The support areas around $0.012 and $0.014–$0.016 should be watched for a potential buy-the-dip opportunity. If Zilliqa breaks above $0.025, the next resistance zone is found between $0.047–$0.053,” the article writes.
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