Thursday, December 29, 2016

Nvidia: Pump The Brakes

Nvidia hit a new high to start trading Wednesday to cap a remarkable run from the lows to start 2016.
Despite the excitement over end market opportunities, most of the stock gains came from multiple expansion.
The analyst community became too bullish allowing for a contrarian play by Citron Research to easily take down the stock.
When a stock soars and analysts upgrade the price target, one has to question if the positive momentum is too much. Such the case incurred with Nvidia(NASDAQ:NVDA) the last couple of weeks.
Read the full article on Seeking Alpha. 

Disclosure: No position. Please review the disclosure page for more details. 


Saturday, December 17, 2016

Transocean: No Reason For Excitement

Transocean reached yearly highs last week.
The recent production cuts agreed to by oil producers around the world shift drilling towards domestic shale producers.
The deepwater drilling market still remains far from a recovery as Transocean continues to face a declining backlog.
On the back of more oil production cuts, Transocean (NYSE:RIG) soared to multi-year highs this week. The news though has questionable benefits for the offshore drilling market.
The stock traded at a high of $16.66 to start the week, but Transocean is closing down for the week around $15. The question now is whether investors are rushing into the sector on false hopes.
Read the full article on Seeking Alpha. 


Disclosure: No position. Please review the disclaimer page for more details. 

Wednesday, December 14, 2016

Amazon: First Drone Delivery

Amazon (AMZN) released the following video of the first drone delivery in the UK. The PrimeAir customer delivery is part of an initial test with some apparent limitations. Packages have to be less than 5.75 lbs and the test includes an area with large fields and limited homes. The package landed on a spot laid out in the yard far from the house. Very few homes in the US would offer such a landing spot.




The drone test is an interesting step. The question still remains at how viable drone deliveries are in congested towns were the majority of the population in the world lives.

Disclosure: No position. Please review the disclaimer page for more details. 


Saturday, December 3, 2016

FinTech - Improved Regulatory Environment Is Bullish

Trump hasn't even taken office yet and the Federal regulators are already proposing regulations that will make it more efficient for FinTechs to operate. The Office of the Comptroller of the Currency proposed allowing FinTech firms to obtain a national bank charter.