Posts

Why I'm short TWITTER (TWTR)

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  (Shutterstock)   - Summary - Decline in US user growth makes this a precarious investment. Twitter faces serious claims it benefited from sex trafficking. New monetization plans are going to be hit or miss. Current valuation assumes continued revenue growth at unrealistic expectations. The entire market is due for a correction and the tech sector could be hard-hit. Overview Twitter (NYSE: TWTR ) has historically performed poorly as a stock in relation to the broader market and big tech, until last March and the pandemic bull run when it took off from the mid $20's to the mid $60's price it hovers at today. While catalysts such as strong quarterly earnings results and new monetization initiatives are valid, the outlook going forward is tilted towards more risk than reward.  Investment Thesis User Decline in US Average U.S. daily active users were down about 1 million to 37 million from 38 million for the quarterly period. As reopening trends continue, TWTR and other popular s

Where to trade CFDs in Canada?

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 (Shutterstock) What is a CFD? CFD stands for Contract for Difference. These contracts allow investors to speculate on price movements, without taking ownership of the underlying asset. When trading CFDs, a trader will open a long or short position in a specific asset.  Essentially, you are entering into an agreement with the CFD broker, who agrees to exchange the difference in the price of an underlying asset from when you open until you close a trade. As the trader, you will earn a profit or suffer a loss on the difference in the value of the asset at the time the contract is closed from when it was opened.  Why should you trade CFDs? Leverage With CFDs, you can gain access to higher leverage than traditional financial markets and can take significant positions for less capital at risk.  You can speculate in either direction and open positions long or short and deploy various hedging strategies.  Diversification Commodities, Forex, Major Stocks, and Indexes are all available for trad

What are they smoking on Bay Street? Cannabis Stocks.

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  (Shutterstock) A pipe dream?  Cannabis investors in Canada had their dreamy eyes set on pies in the sky since back in 2018 when the Canadian marijuana market was setting its roots. Earnings results have largely missed the mark across the board and some legal Canadian producers seem to be struggling to remain an ongoing concern at these levels of burning cash. Across the border, our American neighbors were similarly bullish over cannabis stocks in the follow-up to the 2020 election when Democrats gained control. President Biden has actually made very limited progress on cannabis reform and US-based stocks have underperformed as a result. On first look, these early results haven't been promising. Our view is that this is because the market potential has yet to be properly realized. The cannabis market is expected to be worth over $73 billion by 2027. This means investors can still get in on this cash crop relatively early. Cannabis Stocks - They aren't created equal. Cannabis

When there's blood in the streets after the earnings beat, we put on our BUY cleats (TME)

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(James Hardy/Getty Images)                             STRONG BUY  We are rating TME (Tencent Music Entertainment) a STRONG BUY, after last night's earnings call. The share price has dropped even further than the epic descent it has been on as of late, which I covered in my recent article ' The Great Collapse Won't be Their End '. In addition to the bullish sentiment we expressed in that article, the price has decreased over another 20% in the light of the fact that as Reuters puts it ' Tencent Music takes copyright rules in stride, earnings beat estimates '.  This company continues to profit and continues to beat estimates. Yet, the streets are bloody, and we know this means it's time to BUY. We don't want to ignore the effect of the recent Chinese regulations. Our thesis is that those effects are priced into these shares at prices significantly above the current levels. We feel so confident in our analysis of this position that we have decided to put

How to create Income with Options

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(Shutterstock) The Basics* (If you already understand the basics of options, skip to the next section, "Selling vs Buying" ) What are Call Options? A call option contract gives the owner the right, but not an obligation, to buy 100 shares of a stock at a fixed price, referred to as the "strike price", on or before the expiration date of the option. For example, let's say you bought a September call option with a $10 strike. If the stock price reaches $15 before the expiration date (September 17th, 3rd Friday),  then you would have profited $500 which is $100 for each $1 increase in the underlying stock.  A holder of a call option has several methods available to close the trade. If the option is in profit; they can sell the option at a profit or hold to expiry and exercise the call option and buy the 100 shares at the strike price.  If the option isn't profitable; they can sell the option for a loss before expiration or hold and let the option expire worthle

Should I use a VPN to buy Crypto?

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(Shutterstock) You may think the answer to that depends on your specific goals. After all, some of us desire or require more privacy than others. Though, I would make the case that there are many reasons why using a VPN is good operational security in general, and therefore part of the optimal setup for a crypto trader.  As an investor or user of crypto-currency, the main reasons you would choose to use a VPN are; Anonymity and Security. When Bitcoin was first conceived by 'Satoshi Nakamoto', his vision was to allow people to send and receive funds anonymously.  These days, with KYC regulations and the traceable nature of blockchain transactions, it's much more difficult to remain anonymous in the crypto world. One way to remain anonymous is to hold and trade a privacy-enhanced coin, such as Monero or Dash.   But if you want to trade popular coins like Bitcoin, how do you still remain anonymous? You would use a peer-to-peer exchange such as  LocalBitcoins.com  and you would

Where is the best place to buy Crypto in Canada?

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(Shutterstock) Get with the times. You should be allocating something to this appreciating asset class.  I understand why you might have not yet. It can seem daunting to get into, or even potentially unsafe. Maybe the volatility in the headlines has scared you off, or maybe you don't understand its appeal or utility. It's time to get over it and do some research. Crypto is here to stay and it is likely to continue increasing in value.  Ruchir Sharma , Chief Global Strategist with Morgan Stanley has detailed the things you should know in this report .  How? You might be wondering the best way you could invest in some Crypto, with minimal fees, and hoops to jump through, that you can trust with your hard-earned money. As a Canadian, sometimes it can be even more difficult to access services in Canadian Dollars to avoid foreign exchange fees and risks. I've used several options to purchase Crypto with CAD and the most seamless and painless process with the best level of custom