Earlier on Thursday we issued an alert on Fossil Group, Inc. (FOSL) during lunch hour trading. The stock stayed flat in the afternoon, closing at $15.52. It was down 8.5% on the day after gaining 87.7% on Wednesday, a reasonable pullback. We think this is an opportune time to go long the stock as it is highly susceptible to a short squeeze and fundamentals have improved based on stronger than expected Q4 financials. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 459 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.
Review this article from Seeking Alpha "Fossil: Defied The Odds To Dazzle Patient Investors" for good fundamental analysis on this stock. Some highlights from the article:
At $15.50, FOSL's enterprise value is around $1 billion. That would be around a 5-6x EBITDA multiple based on mid-point 2018 guidance of $175 million and only 8 times Q4's operating cash flow. A $25 stock price puts the company at about a $1.5 billion enterprise value, or 8-9x EBITDA multiple. So the $25 target seems fair to us, but we are thinking $20 is more realistic in the short term on a continued short squeeze.
The short interest is very high, 75% of the float, and institutions own over 100% of the shares so they are going to know how to squeeze the shorts for the most profits. A lot of shorts must have covered on Wednesday, but we think a second round is coming based on the strong financial improvement and second wave of shorts who came in over the last couple of days having to cover.
Canopy Growth: Breakout to $35 Looks Imminent
Last week in "Buy WEED When There Is Blood On The Streets" we disclosed that we went long on Canopy Growth Corporation (TWMJF) (WEED.TO). When it popped over $30 it hit our initial target, but we quickly reloaded on the dip from there as disclosed in "Going For A Second Round On WEED" last Wednesday. We believe Canopy will do very well in the near-term with a $35 target on WEED in Canada.
Canopy reported third quarter financial results on Wednesday. The numbers are excellent, with the most revenue ever reported for a cannabis company in Canada, record revenue in Germany, average selling price increased and average cost down. There is a clear sign that Canopy is growing into its economies of scale. Registered patients increased 10% from the previous quarter while kilograms sold increased by 15%:
The end result was an EPS of $0.01 for the quarter, reversing the slight loss in EPS seen for the first six months of the fiscal year and beating analyst expectations of a loss of $0.05. The stock reacted positively to the news, up 1.6% on Wednesday and another 3% on Thursday to close at $27.99. It has been met with some resistance at the 50-day MA, but it looks like it is ready to break through and go on another multi-dollar run:
Top Microcap pick: Fintech Select (SLXXF) (FTEC.V)
Fintech Select is creating a network of thousands of cryptocurrency point of sales locations across Canada. Several of them are up and running already which can be seen at selectcoin.io. The company is paying off old debts, including a big one announced on Monday at a discount and increasing revenue in its existing fintech businesses as well as its start-up cryptocurrency division. For all the good that it is doing, it is trading at a very cheap market cap of only $15 million Canadian. SLXXF isn't very liquid but FTEC trades frequently in Canada. The company announced the following on Thursday:
Fintech Select Ltd. (“Fintech Select” or the “Company”) (TSX-V:FTEC) wishes to advise the investor marketplace that Fintech Select, through its fully owned Cryptocurrency division Selectcoin.io, offers key differentiators from its peer competitors. Namely, we are not a third party but rather the owners of the large POS network across Canada.
Given this direct-to-consumer business model, our revenue models are robust and fall generally in the realm of 10-12% margins. Peer competitors are mostly middle men or third party processors, which are low margin businesses. Fintech Select is exploring the possibility of owning its own Cryptocurrency exchange. This will enhance the margins to an even greater degree as we will be able to control the spread between the buy and the sell.
Furthermore the company is also looking at geographic expansion for our POS network outside of Canada as the demand for buying Cryptocurrencies has been escalating across many regions.
The Company also wishes to announce that multiple updated features regarding the process of purchasing Cryptocurrency through its POS network will be launched next week.
As we remain focused on our technical infrastructure we also believe that we are at the right point of the Company’s evolution to be engaged in multiple investor relation campaigns across North America as to shed light on the Company and its disruptive technologies. These campaigns will be multifaceted including further reaching press release dissemination across multiple Cryptocurrency & investor focused websites, CPM based digital advertising, retargeting campaigns, advertorials, newsletters and more press coverage.
Mohammad Abuleil, President and CEO of Fintech Select, issued the following comment, "We believe that Fintech Select is undervalued due to the lack of market comprehension relative to our business model versus peer competitors. We are the outright owners of our POS network, whereas most companies are third party processors. To date, we have enjoyed good transactional traction with the stores that are operational and we expect to grow the store footprint at an accelerated pace once the new features and additions of the Cryptocurrency platform that we have been working on are implemented.”
FTEC had a full retracement of its stock price from $0.60 all the way down to $0.18, but has bounced back strong, led by the large white candle on February 6th that looks like it signifies a bottom. You can take a bit of profits on the way up, but we think that this stock returns to $0.60 in Canada reasonably soon.
Disclosure: We are long stocks listed in this report.
Despite a recent pullback, Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:
The Cryptocurrency Codex from the Cryptocurrency Institute
Secrets To Unlimited Free Bitcoin
The Crypto-Currency Evolution eBook
Bitcoin Complete Guide for Dummies
The Bitcoin Miracle Guide
The Bitcoin Cheat Code Book
The Crpytocurrency Course
Bitcoin Investing Live
If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.
Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017
The dividend stock report from dividendstocksonline.com
Review this article from Seeking Alpha "Fossil: Defied The Odds To Dazzle Patient Investors" for good fundamental analysis on this stock. Some highlights from the article:
- Fossil reported sales and earnings near high-end results of the guidance; EPS reported $0.64 vs $0.40 consensus.
- Rumor of a potential buyout at $15.75 now must be raised if the buyer still wants to purchase it.
- Fossil nearly doubled its wearables sales to over $300 million in just two years
- Online sales grew by 31% in the quarter.
- During Q4, FOSL managed to generate $120 million operating cash flow and $112 million in free cash flow
- Fossil is expected to complete its New World Fossil initiative in 2019 by achieving $200M net income
- Fossil expects forward EBIDTA for 2018 to be $150-$200 million
- Valuation target of $25 per share
At $15.50, FOSL's enterprise value is around $1 billion. That would be around a 5-6x EBITDA multiple based on mid-point 2018 guidance of $175 million and only 8 times Q4's operating cash flow. A $25 stock price puts the company at about a $1.5 billion enterprise value, or 8-9x EBITDA multiple. So the $25 target seems fair to us, but we are thinking $20 is more realistic in the short term on a continued short squeeze.
The short interest is very high, 75% of the float, and institutions own over 100% of the shares so they are going to know how to squeeze the shorts for the most profits. A lot of shorts must have covered on Wednesday, but we think a second round is coming based on the strong financial improvement and second wave of shorts who came in over the last couple of days having to cover.
Canopy Growth: Breakout to $35 Looks Imminent
Last week in "Buy WEED When There Is Blood On The Streets" we disclosed that we went long on Canopy Growth Corporation (TWMJF) (WEED.TO). When it popped over $30 it hit our initial target, but we quickly reloaded on the dip from there as disclosed in "Going For A Second Round On WEED" last Wednesday. We believe Canopy will do very well in the near-term with a $35 target on WEED in Canada.
Canopy reported third quarter financial results on Wednesday. The numbers are excellent, with the most revenue ever reported for a cannabis company in Canada, record revenue in Germany, average selling price increased and average cost down. There is a clear sign that Canopy is growing into its economies of scale. Registered patients increased 10% from the previous quarter while kilograms sold increased by 15%:
The end result was an EPS of $0.01 for the quarter, reversing the slight loss in EPS seen for the first six months of the fiscal year and beating analyst expectations of a loss of $0.05. The stock reacted positively to the news, up 1.6% on Wednesday and another 3% on Thursday to close at $27.99. It has been met with some resistance at the 50-day MA, but it looks like it is ready to break through and go on another multi-dollar run:
Top Microcap pick: Fintech Select (SLXXF) (FTEC.V)
Fintech Select is creating a network of thousands of cryptocurrency point of sales locations across Canada. Several of them are up and running already which can be seen at selectcoin.io. The company is paying off old debts, including a big one announced on Monday at a discount and increasing revenue in its existing fintech businesses as well as its start-up cryptocurrency division. For all the good that it is doing, it is trading at a very cheap market cap of only $15 million Canadian. SLXXF isn't very liquid but FTEC trades frequently in Canada. The company announced the following on Thursday:
Fintech Select Ltd. (“Fintech Select” or the “Company”) (TSX-V:FTEC) wishes to advise the investor marketplace that Fintech Select, through its fully owned Cryptocurrency division Selectcoin.io, offers key differentiators from its peer competitors. Namely, we are not a third party but rather the owners of the large POS network across Canada.
Given this direct-to-consumer business model, our revenue models are robust and fall generally in the realm of 10-12% margins. Peer competitors are mostly middle men or third party processors, which are low margin businesses. Fintech Select is exploring the possibility of owning its own Cryptocurrency exchange. This will enhance the margins to an even greater degree as we will be able to control the spread between the buy and the sell.
Furthermore the company is also looking at geographic expansion for our POS network outside of Canada as the demand for buying Cryptocurrencies has been escalating across many regions.
The Company also wishes to announce that multiple updated features regarding the process of purchasing Cryptocurrency through its POS network will be launched next week.
As we remain focused on our technical infrastructure we also believe that we are at the right point of the Company’s evolution to be engaged in multiple investor relation campaigns across North America as to shed light on the Company and its disruptive technologies. These campaigns will be multifaceted including further reaching press release dissemination across multiple Cryptocurrency & investor focused websites, CPM based digital advertising, retargeting campaigns, advertorials, newsletters and more press coverage.
Mohammad Abuleil, President and CEO of Fintech Select, issued the following comment, "We believe that Fintech Select is undervalued due to the lack of market comprehension relative to our business model versus peer competitors. We are the outright owners of our POS network, whereas most companies are third party processors. To date, we have enjoyed good transactional traction with the stores that are operational and we expect to grow the store footprint at an accelerated pace once the new features and additions of the Cryptocurrency platform that we have been working on are implemented.”
FTEC had a full retracement of its stock price from $0.60 all the way down to $0.18, but has bounced back strong, led by the large white candle on February 6th that looks like it signifies a bottom. You can take a bit of profits on the way up, but we think that this stock returns to $0.60 in Canada reasonably soon.
Disclosure: We are long stocks listed in this report.
Despite a recent pullback, Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:
The Cryptocurrency Codex from the Cryptocurrency Institute
Secrets To Unlimited Free Bitcoin
The Crypto-Currency Evolution eBook
Bitcoin Complete Guide for Dummies
The Bitcoin Miracle Guide
The Bitcoin Cheat Code Book
The Crpytocurrency Course
Bitcoin Investing Live
If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.
Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017
The dividend stock report from dividendstocksonline.com
The dividend stock report from Dividend Stocks Rock
Top rated signals for binary options from binaryoptionsprosignals.com
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review shows how to time the market with its "Percent of X" indicator
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
Top rated signals for binary options from binaryoptionsprosignals.com
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review shows how to time the market with its "Percent of X" indicator
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
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