Trading Tips Blog

It can be tough to decide what to buy in any market. Following last year’s bear market, which seems to be fading, one strategy might be to buy heavily shorted stocks. In the short-term, that may work. For longer-term investments, however, it may be prudent to invest in companies with solid growth and tremendous cash flow. That’s because cash flow can be used to grow the business, buy a competitor, or even reward shareholders with dividends or buybacks. Many large-cap energy companies ...
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Leung Chan, a director at Super Micro Computer (SMCI), recently bought 3,000 shares. The buy increased the director’s holdings by 12 percent, and came to a total cost of $256,440. The director was the last buyer of shares in November, picking up 1,525 shares for $127,338. Generally, company insiders have been sellers of shares, particularly a director and the company CEO, who both own substantial holdings. Overall, insiders own 13.3 percent of shares. The computer server and storage producer has seen shares ...
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Shares of international bank Canadian Imperial Bank of Commerce (CM) have slid over 25 percent in the past year. One trader sees a further decline for the stock in the months ahead. That’s based on the September $35 puts. With 212 days until expiration, 5,500 contracts traded compared to a prior open interest of 158, for a 35-fold rise in volume on the trade. The buyer of the puts paid $0.45 to make the bearish bet. Shares last traded for about $46.50, ...
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This earnings season has been a mixed bag. Companies are reporting big layoffs and warning on an economic slowdown and the impact of inflation. Yet what sounds like bad news now could be bullish later on. That’s because companies laying off staff are finding that they can do as much – if not more – with a reduced headcount. Lower staffing costs could lead to a further cost savings that increases profitability – which could be a boon for shareholders. Of the ...
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Jonathan Foster, a director at Lear Corp (LEA), recently added 231 shares. The buy increased his holdings by 2 percent, and came to a total cost of $32,153. This marks the first insider buy at the company in the past two years. Otherwise, company insiders, particularly the company President and CEO, as well as the company treasurer, have been sellers of shares, largely from exercising options. Overall, insiders own 0.2 percent of the company. The automotive component manufacturer is down 14 percent ...
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Shares of department store chain Kohl’s Corporation (KSS) are down 44 percent over the past year. One trader sees a potential rebound in the next few weeks. That’s based on the March $30 calls. With 31 days until expiration, 5,143 contracts traded compared to a prior open interest of 116, for a 44-fold rise in volume on the trade. The buyer of the calls paid $3.40 to make the bullish bet. The stock recently traded for about $32, so shares are ...
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Markets are cyclical, and often so are companies. A great product or service won’t last forever. Once the market has been saturated, new products or features are needed to keep revenues growing at a company. For tech companies, this constant iteration is fantastic. It’s inexpensive to develop new ideas and roll them out. And for many tech services, new features can be added while keeping customers on a monthly payment plan. So it’s no surprise that a number of activist investors are ...
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William Hosler, a director at PacWest Bancorp (PACW), recently bought 3,750 shares. The buy increased his stake by 7 percent, and came to a total cost of $99,300. The director was the last buyer as well, with an 8,000 share pickup for $200,000 last June. The company’s CEO has sold shares twice since then, but still owns over 1 million shares of the company in total. Company insiders own 1.8 percent of shares. The California-based bank is down about 43 percent in ...
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