I Know First generates daily predictions for over 10,000 assets and 559 Equity ETF predictions and continues to expand the coverage.
The Importance of Investing in ETFs
The ETF industry had a great year in 2020 as it has benefitted from the rising popularity of low-cost, diversified index fund management. The global inflows for the year surpassed $750 billion, a new record, and global assets under management grew by over 30%. According to ETF.com, a minimum of a 110% return was required to be among the top 10 best-performing ETFs of 2020, while a 94% gain was the threshold to enter the top 20.
The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary:
Inspite of the noise from a President Trump-initiated trade war with China, Alibaba’s revenue growth story remains very robust.
Alibaba reported its June 2018 quarter results last week and it posted revenue of $12.229 billion – a 61% Y/Y growth Core e-commerce revenue also grew 61% Y/Y to $10.456 million.
This outstanding quarterly performance convinced me that Alibaba did not deserve the 3% dip in its stock price during the post-earnings trading.
A trade war between China and America is just a minor annoyance. More than 92% of Alibaba’s revenue is generated inside China.
I Know First has a very bullish one-year algorithmic forecast for BABA. Going long on this stock now is highly likely to prove profitable.
“The underlying strength of our operations, coupled with higher realized prices, resulted in our best financial performance since before the downturn in 2014. For the second consecutive quarter, we recorded significant growth in our earnings and cash flow. ”
Last week, Chesapeake Energy Corporation (NYSE: CHK) jumped from $3.6 at closing on May 14 and closed at $4.54 on May 22, a solid 26.11% gain. Overall, the stock has gained over 50% in the last 3 months whereas the SPDR Energy Select Sector rose only by around 15% over the same time period. From May 10 to May 17, Chesapeake had its greatest week long increases since March 2016. This boost in stock price appear to be a result of an overall gain in the energy sector due to rising crude oil and natural gas prices as well as strong Q1 reports posted earlier in the month. The large one week rise of CHK can be seen in the chart below:
(Source: Yahoo Finance)
As crude oil and natural gas prices have risen, energy stock performance has also improved. WTI crude oil prices have been strong over the past two weeks above $70 per barrel. Additionally, while natural gas prices have been relatively stagnant compared to oil over the last year, there was a slight upturn this week. Natural gas prices increased about 3% to $2.82 on May 16 from $2.81 on May 11. These commodities prices volatility played in favor of the entire energy sector, and particularly Chesapeake.
To analyze the gains of Chesapeake Energy this week, it is important to consider the ramifications of the Q1 report released on May 2, 2018. When the Q1 report was released, the stock value declined, which appears to result from the decline of year over year revenue. However, since then the stock has been on the rise as a result of a combination of factors. Chesapeake’s adjusted earnings per share (EPS) were $0.34 for Q1 2018, much higher than analyst’s predictions of $0.27 and Q1 2017’s EPS of $.23. Additionally, Q1 production grew 5% from last year and even adjusted for asset sales still increased by 3%. Moreover, the company’s cash flow was the highest in three years at $609 million which allowed Chesapeake to pay off $581 million of debt. Following this payment, Chesapeake Energy’s debt was reduced to around $9.4 billion from $10 billion at the end of December 2017. The combination of higher than expected quarterly earnings with the reduction of debt led to improved confidence in the stock.
Analyst Recommendation
According to analysts’ recommendations presented by Yahoo Finance, the majority of analysts gave “Hold” ratings on Chesapeake with 5 of 29 choosing “Underperform” and 3 choosing “Buy.”
(Source: Yahoo Finance)
I Know First’s Success With CHK Stock
On May 15, 2018, the I Know First algorithm forecasted a signal of 17.43 with a predictability of 0.2 for CHK over 7 days period. In accordance with the prediction, the stock rose 26.11% over this time period, highlighting the accuracy of the I Know First algorithm.
Whiting Petroleum Corporation engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids, and natural gas primarily in the Rocky Mountains region of the United States. The company sells its oil and gas production to end users, marketers, and other purchasers. As of December 31, 2017, it had interests in 1,980 net productive wells on approximately 490,000 net developed acres, as well as total estimated proved reserves of 617.6 million barrels of oil equivalent. The company was founded in 1980 and is headquartered in Denver, Colorado.
Over the 14 days after I Know First issued its bullish forecast for WLL on May 7, 2018, Whiting Petroleum Corporation’s stock price jumped from $46.54 to $53.39 per share, outperforming the market by about 14%. The company’s Q1 results of 2018 contributed to the growth, released with the following highlights:
Average Production of 127,050 barrels of oil equivalent per day
Capital expenditure of $187 million
Net cash provided by operating activities of $233 million exceeded capital expenditures by $46 million
Discretionary cash flow of $290 million exceeded capital expenditures by $103 million
Diluted Earnings per Share of $0.16 and Adjusted Earnings per Share of $0.92
In addition to the above highlights, Whiting had a few reductions in order to optimize their performance. Depletion and amortization of $16.43 per BOE, oil differentials of $4.31 per barrel (Bbl) and natural gas differentials of $1.48 per thousand cubic feet (Mcf), all came in below the low end of guidance. Guidance at the midpoint for such metrics called for $17.50 per BOE, $4.50 per Bbl and $1.50 per Mcf, respectively.
[Image Source: Yahoo Finance]
From the above data one can see that Whiting Petroleum Corporation increased its share value by about 16.6% with their improving performance following the announcement of their successful Q1 results of 2018.
With good agreement with the I Know First bullish 14-day forecast that was published on May 7, 2018, WLL stock grow after the financial operations resulted for Q1 of 2018 were published on April 30, 2018. The forecast illustrated a signal of 60.23 and a predictability of 0.26. In accordance with the forecast, WLL’s stock returned 19.14% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish WLL forecast on May 7, 2018
Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.
VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was founded in 1984 and is headquartered in Houston, Texas.
Over the 3 days after I Know First issued a bullish short term forecast for EGY on May 4, 2018, VAALCO Energy’s stock price jumped from $1.09 to $1.2 per share, outperforming the market by about 9%. What happened that drove the growth? The reason lies in the company’s outstanding growth results for Q1 2018 released with the following highlights:
Total oil sales for Q1 of 2018, $27.6 million.
Income from continuing operations of $8.7 million ($0.15 per diluted share) for Q1 of 2018, 146% higher, compared with $4.4 million ($0.07 per diluted share) in Q1 of 2017.
Average price for crude oil in Q1 of 2018, $68.69 per barrel, an increase of 32% from $51.99 per barrel in Q1 of 2017.
Adjusted EBITDAX totaled $14.5 million in Q1 of 2018 compared with $10.4 million in the same period of 2017.
Total oil sales for Q1 of 2018 were $27.6 million, compared to $17.2 million in Q4 of 2017. During Q1 of 2018, VAALCO sold approximately 393,000 net barrels of oil at an average price of $68.69 per barrel, compared to 280,000 net barrels at an average price of $59.89 per barrel in Q4 of 2017.
During Q1 of 2018, VAALCO reduced its debt by $2.1 million. On March 31, 2018, debt, net of deferred financing costs, totaled $7.0 million, of which $5.8 million is expected to be repaid during 2018 and was classified as current, reflecting the repayment terms of the loan agreement with the IFC.
[Image Source: Yahoo Finance]
From the above data one can see that VAALCO Energy, Inc. increased its share value by about 9% with the announcement of their successful Q1 revenues of 2018.
With good agreement with the I Know first bullish 3-day forecast that was published on May 4th, 2018, EGY stock grew after the financial operations resulted for Q1 of 2018 were published on May 7, 2018. The forecast illustrated a signal of 36.93 and a predictability of 0.1. In accordance with the forecast, EGY’s stock returned 42.73% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish EGY forecast on May 4, 2018
Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.
The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Disney Stock Forecast
Summary:
Disney’s movie ticket sales and merchandise licensing business has a strong tailwind from its Marvel Cinematic Universe franchise. Licensing its intellectual property is a $3.2 billion/year business for Disney.
After the massive $1.33 billion success of Black Panther, Disney’s Avengers: Infinity War is another giant blockbuster movie.
Avengers: Infinity War posted a new record in U.S. domestic opening weekend box office revenue with $250 million in estimated ticket sales.
Avengers: Infinity War is also a big hit in foreign markets. Its 3-day opening weekend gross is $380 million. This international gross is without China’s contribution.
Disney’s stock has a neutral signal from I Know First. However, I rate DIS as a buy because I know hit Marvel movies also leads to increased merchandise licensing.
I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.
