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Trading Penny Stocks? Top Stock Market News For January 21st, 2022

What to know about trading penny stocks on January 21st
The post Trading Penny Stocks? Top Stock Market News For January 21st, 2022 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Buying Penny Stocks Today? Here’s What You Need to Know 

With another wild week of trading penny stocks and blue chips coming to an end, there is a lot for investors to keep track of right now. Right now, there are several factors that are impeding stock market growth including the pandemic, inflation, balance sheet announcements and much more. And because penny stocks are both reactive and speculative, it’s worth taking a closer look. 

What’s Going On In The Stock Market Right Now?

During premarket on January 21st, we witnessed futures drop, signaling another potentially bearish day of trading in the market. With the NASDAQ Composite dropping by roughly 1%, it has now dropped by around 12% from its record high back in November. This clearly signifies a bearish drop and puts it well into correction territory. 

[Read More] Best Penny Stocks to Watch Tomorrow? Check These 3 Small-Caps Out

On the earnings side, we saw shares of Netflix (NASDAQ: NFLX) drop by over 20% during premarket on slowed subscriber growth. Its first-quarter subscriber growth outlook was well below expectations, with only 2.5 million reported compared to an expected almost 6.3 million. Other entertainment companies such as Disney and Roku, saw share price drops as well, likely in a sympathetic movement pattern. 

So, while all of this may sound disheartening, given the extraordinary times we’ve been living in, it makes sense that we would witness major market volatility like this. On top of that, we also witnessed the price of Bitcoin dip below $40,000, with crypto-related stocks falling simultaneously. So, with that in mind, let’s take a look at three penny stocks that gained during premarket. 

3 Penny Stocks That Gained During Premarket 

  1. Blue Star Foods Corp. (NASDAQ: BSFC)
  2. Save Foods Inc. (NASDAQ: SVFD)
  3. ReTo Eco-Solutions Inc. (NASDAQ: RETO

Blue Star Foods Corp. (NASDAQ: BSFC) 

The largest gainer of the day by far is BSFC stock, shooting up by over 220% by morning trading. While we did witness a similar jump with BSFC stock back in November of last year, it quickly corrected. Now, we are witnessing another major bullish move for the food company. While there is no company-specific news right now. The company did state back in December that it agreed to acquire assets from Gault Seafood. It also stated that this deal would be expected to close during the first quarter of this year. 

So, while no news has come out detailing any update to this deal, it is exciting to consider. In addition, Diamond Equity Research issues an update, stating the ins and outs of this deal with Gault and the company moving forward as a whole. So, with this major move today, we do see that BSFC stock is highly speculative. But, whether it’s worth adding to your list of penny stocks or not is up to you. 

Save Foods Inc. (NASDAQ: SVFD)

Another big gainer of the day is Save Foods Inc., which managed to climb by over 34% in early morning trading. With shares halted on a circuit breaker in the morning, we are seeing massive volume for SVFD stock right now. 

[Read More] 3 Penny Stocks That Investors Are Watching Right Now And Why

Similarly to BSFC, there is no news that is driving SVFD stock up right now. However, many view it as a low-float play which is likely the cause behind this uptick. Keep in mind that SVFD stock is highly volatile as we’ve seen with its trading today. And with an over 50% drop in its value in the past year, it’s clear that there are many fluctuations occurring with SVFD stock right now. Whether this makes it a worthwhile addition to your penny stocks watchlist however, is up to you and your trading strategy. 

Penny_Stocks_to_Watch_

ReTo Eco-Solutions Inc. (NASDAQ: RETO) 

While RETO stock’s gain of around 3% in morning trading is not much compared to the other stocks on this list, RETO has climbed by almost 70% in the past five days. And, in the last month or so, that number jumps to over 160% which is no small feat. The major news with RETO came as it entered into an equity acquisition agreement to acquire an interest in Yile IoT Technology Co. Ltd. through REIT Mingde.

“We are excited about the acquisition of REIT Mingde as we believe this transaction will enable us to integrate Yile IoT’s technologies into ReTo and accelerate the upgrade and growth of ReTo’s business. With the support of IoT technologies, ReTo strives to become a technology-driven provider of services for ecological and environmental protection industries, and increase value for our shareholders.”

The CEO and Chairman of ReTo, Mr. Hengfang Li

This is great news for the company as the IoT market is continuing to heat up right now. So with that in mind, is RETO stock worth buying or not?

Penny_Stocks_to_Watch_ReTo

Which Penny Stocks Are You Watching?

If you’re looking for the best penny stocks to buy in 2022, there are hundreds of options to choose from. While it can be difficult to land on just a few for your watchlist, with the right research on hand, it can be much easier than previously imagined.

[Read More] Trading Penny Stocks? Top Stock Market News For January 20th, 2022

Now, trading penny stocks right now is highly volatile considering the sheer number of events that are impacting the stock market. But, with high hopes surrounding the future, many expect that it could get better in the coming weeks. With that in mind, which penny stocks are you watching?


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The post Trading Penny Stocks? Top Stock Market News For January 21st, 2022 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Economics

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart,…

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Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart, Target indicated that it is seeing a shift in the consumer wallet away from the pandemic purchases and into reopening purchases - including apparel - and the pace of this shift caught some retailers off guard on inventory. WMT, COST, and TGT all saw their stocks fall sharply last week as investor concerns around a US consumer slowdown mounted and investors reconsidered just where, if anywhere, you can play "defense" in the current market.

But as Goldman's Chris Hussey writes today, this week, results from companies like DKS, Macy's, JWN, WSM, DLTR, and DG painted a decidedly different picture.

Deep discount retailers Dollar Tree - or rather Dollar 25 Tree - and Dollar General both posted strong results and DLTR raised top-line guidance.

Which isn't surprising: as we discussed in "Middle Class Is Shutting Down As Spending By The Rich Remains Robust" when consumers are trading down - as they are doing now due to Biden's runaway inflation - dollar stores see more business.

As a result, Dollar Tree surged as much as 20% on Thursday, the biggest intraday move since October 2020. Evercore ISI said Dollar Tree's move to a "$1.25 price point" last November from $1 “came in the nick of time" adding that "given the broad-based inflationary cost pressures, the 25% price increase drove material sales and margin upside for both the namesake division and the total company," wrote analyst Michael Montani who also said that while freight, transport, and labor headwinds are real, some of the pressure cited by Target last week was likely company specific.

The analyst concluded that the read-across from DG and DLTR is “favorable,” and it seems that the low-end consumer is “hanging in better than initially thought.” Or rather, the middle-class is getting crushed and it has no choice but to trade down to the cheapest retail outlets.

And with countless shorts having piled up and getting massively squeezed, the S&P 500 Consumer Discretionary Index today has risen as much as 5.6%, its best day since April 2020, as optimism on the health of the consumer returns following a string of better-than-expected earnings reports from retailers.

Top performers in the S5COND index include Dollar Tree, Dollar General, Norwegian Cruise, Caesars Entertainment and Carnival; the Discretionary Index is on pace for its best week since March 18, when the group climbed 9.3%; the index sank 7.4% as Walmart and Target reports spooked investors. The index is still down almost 30% YTD.

"Retail earnings are bullish.... with four blow-outs,” said Vital Knowledge’s Adam Crisafulli, referring to quarterly reports from Williams-Sonoma, Macy’s, Dollar General, and Dollar Tree.  “The overall retail industry is experiencing stark changes and the market is incorrectly conflating these shifts with underlying demand weakness when the actual health of the consumer is much better than it seems,” Crisafulli says, although there are many - this website included - who wholeheartedly disagree with his optimistic view of the US consumer.

Remarkably, thanks to today’s rally, even Burlington Stores, which sank as much as 12% in premarket on disappointing results, is trading up as much as 11% and some say, the rally helped reverse the earlier tumble in NVDA shares.

The discretionary group is also getting a boost from airline operators Southwest and JetBlue, helping travel-related names, while on the economic front, better-than-expected personal consumption (for the revised Q1 GDP print). and jobless claims may be adding to the bullishness according to Bloomberg.

Tyler Durden Thu, 05/26/2022 - 15:00

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Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

By Nation’s Restaurant News

Restaurants continued to increase their share…

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Restaurants' Share Of Food-Dollar Grows To Record 54.9% In April

By Nation's Restaurant News

Restaurants continued to increase their share of spending in April, reaching 54.9% of the food dollar, according to U.S. Census data released Tuesday. That was a 260-basis-point increase from April last year, when the share was 52.3%, said analyst Mark Kalinowski, president and CEO of New Jersey-based Kalinowski Equity Research LLC.

“Even more impressively, as best as we can tell, this 54.9% market share figure for April 2022 is an all-time monthly high for the U.S. restaurant industry,” Kalinowski said in a note released Tuesday about the April U.S. Census data.

Kalinowski said restaurants, especially multi-unit public chains, were increasing prices but at a more modest rate than retail groceries.

“The key takeaway from this is you have a lot of menu prices going up in the restaurant industry,” he said in an interview.

“And, of course, the fear anytime you're raising your menu prices is that customers will trade down, but that hasn’t happened.”

Kalinowski noted that while restaurant brands were increasing prices, the rate of hikes was less than in grocery prices.

“If you need to eat — and I haven't yet met the person who didn't need to eat — you have got to buy the food from some place unless you're growing it yourself or you have a neighbor who grows it,” he said. “The fact is the restaurant industry offers a lot of convenience. It offers experiences that the grocery stores can't match.

“It is so firmly a part of the American fabric now that Americans don't necessarily want to cut their restaurant spending,” Kalinowski said.

The analyst also noted that larger restaurant brands were being very calculated in how they were raising prices to offset their increased commodity and labor costs.

For example, Kalinowski noted, “McDonald's looks at the food at home inflation and takes that into account with their menu pricing. I would imagine there's definitely a lot of other chains out there that have gotten a little more sophisticated with how they take their menu pricing.”

Those judicious price increases are easier for large, multi-unit chains to institute than for independent restaurants, he noted.

“Independents lack the scale advantages that large chains have,” he said, “so part of the challenge for independence is, in the time of just big commodity cost inflation, how do you battle that. That's not saying it's easy for the large chains — it's hard on everybody just about.”

Over the past two years, he added, the industry has seen the largest shift toward big restaurant brands who are taking increased shares of what is a larger pie.

Census data for April calculated U.S. food services and drinking places posted $83.741 billion in sales, as compared to the April 2022 figure for U.S. grocery stores of $68.906 billion.

Kalinowski said it was intriguing that combined foodservice and drinking place sales with grocery sales had increased significantly from pre-pandemic levels.

“There seems to be meaningfully more spending on food/beverages than there was pre-pandemic,” he said. “The April 2022 combined number of $152.6 billion is 26.4% larger than the April 2019 combined number of $120.7 billion.”

This past April marked the 12th consecutive month for which that number was up more than 10% over the corresponding pre-pandemic monthly number, Kalinowski noted.

“We continue to look for restaurants’ market share in full-year 2022 to be at least one full percentage point higher than the full-year 2021 figure of [positive] 52.7%,” he said.

“All in all, this is good news for restaurant stocks — which tend to be comprised of the very largest restaurant concepts in most cases,” Kalinowski said in his note. “Large concepts have fared better than smaller chains and independents during the pandemic, creating the largest opportunity in decades for market-share gains within the restaurant industry favoring large chains.”

Tyler Durden Thu, 05/26/2022 - 13:40

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Economics

‘Insiders’ Are Buying This Dip

‘Insiders’ Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest…

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'Insiders' Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest losing streak in 99 years.

As that is happening, faith in The Fed is crumbling as Powell faces the central bankers' nemesis of stagflation... and all in an election year (threatening the confidence in The Fed's independence should it falter from its path of uber-hawkishness).

According to the latest BofA Fund Manager Survey, the grim 'market' has sent investors reeling with those equity funds tracked by EPFR Global suffering six straight weeks of outflows (the longest stretch of withdrawals since 2019), and cash levels among investors soaring to their highest level since September 2001.

Additionally, the BofA survey also showed that technology stocks are in the 'biggest short' since 2006.

The 'proverbial' dip-buyer appears to have abandoned hope as the strike on any Fed Put (at which Powell will fold like a cheap lawn chair over the pain) gets marked lower and lower.

But...

There is one group apparently, that is willing to dip a toe in the capital market deadpool - corporate insiders.

As Bloomberg reports, according to data compiled by the Washington Service, more than 1,100 corporate executives and officers have snapped up shares of their own firms in May, poised to exceed the number of sellers for the first month since March 2020 marked the pandemic trough two years ago.

The ratio has surged to 1.04 this month from 0.43 in April.

Notably, the insider buy-sell ratio also jumped in August 2015 and late 2018, with the former preceding a market bottom and the latter coinciding with one.

“It is a function of investors functioning at the '30,000 foot level' or 'macro' whereas insiders are functioning at the 'boots on the ground', company-fundamentals level,” said Craig Callahan, chief executive officer at Icon Advisers Inc. and author of 'Unloved Bull Markets'.

“We believe the company-fundamentals view is usually correct.”

Nicholas Colas, co-founder of DataTrek Research, is not as confident:

“All we know for sure is that the valuation of any stock or the entire market hinges on whether investor confidence in future cash flows is rising or falling. At present, confidence is falling,” he wrote in a recent note.

“This is not because stocks expect a recession. Rather, it is because the range of possible S&P 500 earnings power runs in a wide channel and can become wider still.”

Starbucks' Interim Chief Executive Officer Howard Schultz and Intel CEO Patrick Gelsinger are among corporate insiders who scooped up their own stock amid the latest market rout that took the S&P 500 to the brink of a bear market.

With their share prices plunging, we can't help but wonder if this 'buying' is mere virtue-signaling so that the board won't fire them for their absymal loss of market cap? 

Tyler Durden Thu, 05/26/2022 - 13:20

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