A Simple Way to Repeatedly Bank Profits From Smaller Companies

There are a lot of ways to make money in the market. But even if you find that rare company that can move ten-fold and provide one of the best profits of your lifetime, that will take time.Most investors get impatient. Trading Tips’ Andrew Packer explains why you should be looking at blue-chip bargains ...
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Mortgage Rates Rise as Bond Market Declines

Cost to borrow rises, despite Fed’s rate cut. The cost of a mortgage rose to 3.73 percent on average from 3.5 percent in the past week, following a decline in the bond market. That’s in spite of the cut in interest rates by the Federal Reserve, which is designed to make the cost of all loans, including mortgages, cheaper. Despite the rise, mortgage rates remain near all-time lows, and the 3.73 percent rate was last seen as recently as August. The move higher is the largest one-week increase since October 2018. One year ago, mortgage rates averaged 4.65 percent. As a result of ...
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Insider Activity: Scientific Games Corporation (SGMS)

Billionaire investor adds to stake. Ronald Perelman, billionaire investor, added 100,000 shares of Scientific Games Corporation (SGMS), recently. The buy increase his stake by 0.27 percent, and cost $2.2 million. Perelman now owns over 36.5 million shares of the company, and holds more than 10 percent of shares. Perelman has been a buyer in the past year, often at prices as much as 50 percent higher than where shares of the company currently trade. In that timeframe, only one insider has made a sale. Las Vegas-based Scientific Games Corporation develops technological products and services for the gaming, lottery, and digital gaming industries worldwide ...
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Unusual Options Activity: Philip Morris (PM)

Cigarette company shares may be due for a rally. The October 11th $74 call options on Philip Morris (PM) saw heavy trading, with over 2,500 contracts trading against a prior open interest of 109, for a 23-fold gain in volume. With shares of the company around $72, shares will need to rise by nearly 3 percent in the next 21 days to trade in-the-money at expiration. The buyer paid $0.55 per option on average, meaning shares will need to trade closer to $74.50 before making a profit. Tobacco giant Philip Morris has seen shares decline 12 percent in the past year, and ...
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Natural Gas Inventory Surges

Larger-than-expected build sends prices down. The U.S. Energy Information Administration released weekly data on natural gas inventories, suggesting a stronger-than-expected build. With an increase of 84 billion cubic feet, inventories rose more than the 78 billion cubic feet expected. The increase send natural gas prices down about 2 percent, to around $2.60. Inventories are particularly building up in the Midwest region, and without some cold winter weather, there could be a 500 billion cubic foot surplus by year-end. Natural gas prices typically decline in the summer and rise in the winter, when natural gas is in demand as a heating fuel. The ...
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Oppenheimer Gives Papa Johns International Perform Rating

Investment firm sees opportunity in pizza business. Oppenheimer started coverage on Papa John’s International (PZZA), starting the company out with a Perform rating. The company sees the current valuation of the company as reasonable, but has long-term potential. The company’s international operations have room to run, and the company is also seen as a potential acquisition target in the future if the company’s turnaround continues. Papa John’s has struggled in recent years as pizza sales have declined and the board of directors replaced the company founder. As the company has been making a directional shift and improving earnings, shares have rallied. They’re up ...
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Unusual Options Activity: Nvidia (NVDA)

In-the-money call option suggests further gains for shares. The November 2019 $165 call options on Nvidia (NVDA) saw over 3,300 contracts trade against a prior open interest of 281, making for a 12-fold increase in volume. With shares of the company currently trading at $180, the contracts are already $15 in-the-money. With the contract trading around $21, shares of the company need to rise at least another $6 for the call buyer to break-even on the trade before the option expires in 57 days. Nvidia, the graphics processing giant, has seen its shares decline 33 percent in the past year against a small, ...
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Insider Activity: Tailored Brands (TLRD)

Multiple insiders buy at beleaguered retailer. Dinesh Lathi, President and CEO of Tailored Brands (TLRD), bought 15,000 shares recently. So did director Theo Killion on the same day. Both paid around $4.60-$4.80, slightly above where shares now trade at $4.55. Both paid around $70,000 for that stake, and both increased their total ownership in the company by over 33 percent. Tailored Brands, owner of retailers Men’s Wearhouse and Joseph A. Bank, has seen shares drop 82 percent in the past year on slow sales. The company is also saddled with over $2 billion in debt, which, with the company’s market cap of $200 ...
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