STOCKS TELEGRAPH

Author: Ali Hassan

  • Grove Inc. (GRVI) Shares Soar following Share Repurchase Authorization

    Grove Inc. (GRVI) stock has had a wobbly time since its IPO. Once again GRVI shares are rising after the company announced a share repurchase program for up to 1 million shares of its outstanding common stock.

    The innovator in health and wellness, Grove Inc. (GRVI), has been in the news lately. In the last week, the company launched its wholly-owned division to acquire promising Amazon and ecommerce businesses. The subsidiary will run with the name Upexi.

    GRVI stock skyrocket above $9 on October 14 following the Upexi news. Now, the stock is once again approaching the $8 price mark with the common stock repurchase news. Overall, Grove has soared over 36% year-to-date and has jumped nearly 87% in this quarter.

    At the moment, GRVI is trading around its resistance point and the RSI confirms that, which is 70.46.

    The fundamentals look good but the company is still relatively new on the stock market. The IPO just occurred on June 23, 2021. The quarterly sales have soared over 43% and the revenues increased by a whopping 250% in the fiscal year 2021 over 2020. The revenues totaled around $24.1 million, showing strong progress.

    As of June 30, 2021, the working capital increased to $12,473,922 from a negative $869,760 in the same period last year. Whereas, the net increase in the cash this year was $13,646,694 compared to a negative $2,809,915 in 2020.

    The company expects the current fiscal year 2022 to outperform the fiscal year 2021. The prospects are bright for the company as we conclude the fundamentals of Grove.

    The 1 million shares repurchase authorization shows GRVI’s commitment to increasing shareholder value. That will also help the firm in deploying some of the cash flow in the coming period. With improvement in revenues, a strong balance sheet, and positive cash flow, this might be the right time to authorize the option to repurchase stock.

    Apart from that, Grove Inc. (GRVI) is also expanding its business. The launch of Upexi is part of its expansion plan. The company plans to take direct aim at the Amazon Aggregation market. Through Upexi, the company would integrate the e-commerce market as a desirable suitor to which prospective business owners may sell. That will provide potential sellers access to Grove’s programmatic ad technology, in-house digital marketing experts, and direct partnership with a team of expert Amazon PPC buyers.

    Amazon is the biggest e-commerce marketplace and the pandemic has really ignited the online marketplace. It is a great opportunity for Grove Inc. (GRVI) to expand in the right market at the right time.

  • Best Cannabis Stocks to Buy Before Christmas

    Best Cannabis Stocks to Buy Before Christmas

    The cannabis industry is considered to be the next big thing. Most U.S. states have legalized the use and sale of medical marijuana, and many more are following it for recreational purposes. One must have the idea about the best cannabis stocks in order to know the opportunities it can generate.

    Why you should learn about the best cannabis stocks?

    The United States is the largest cannabis market, and overall, Cannabis looks to have a promising future globally. As per Investopedia, cannabis’ annual market values across the U.S. are expected to reach $30 billion by 2025. Whereas, Cannabiz media projects the cannabis industry to reach $160.7 billion in the U.S. by 2025. The stats may differ, but the point is that the market is growing swiftly.

    What do you conclude from this? Opportunities for cannabis companies, and by opportunities, we mean massive ways to generate revenues. Therefore, we bring you the five best cannabis stocks to buy before Christmas 2021.

    Amyris(AMRS)

    The first cannabis stock on our list to buy before Christmas is Amyris(AMRS).

    Amyris (AMRS) is synthetic biotechnology and renewable chemical company whose aim is to produce sustainable energy. Its shares have soared nearly 450% since this time last year.

    Amyris completed another quarter of strong strategic and operational execution. The company recently updated its second-quarter results, reporting a whopping 74.4% increase in sales. The cannabis firm expects another record year, with expected total revenue north of $400 million in 2021.

    Amyris has ambitious operational and financial goals and plans to reach $2 billion in revenue in 2025. Moreover, the company has been working to create synthetic cannabinoids that could revolutionize the industry.

    Amyris is accelerating its growth and market leadership in clean beauty. The company is adding digital innovation, machine learning, and data science to enhance the consumer experience. Therefore, Amyris plans to acquire Beauty Labs International, a leader in A.I. technology that provides breakthrough connected consumer experiences to the beauty and wellness community.

    Moreover, as part of Amyris’ expansion plan, the company closed the acquisitions of OLIKA and M.G. Empower Ltd. OKILA is an award-winning clean consumer brand. At the same time, M.G. is a leading global influencer marketing agency.

    GrowGeneration Corporation(GRWG)

    The next cannabis stock on our list is GrowGeneration Corporation(GRWG).

    GrowGeneration(GRWG) is one of the highly valued cannabis stocks in the market. As we have mentioned, the future cannabis market seems promising. GrowGeneration has had a good ride since the pandemic began, and the stock has almost doubled annually on average over the past three years.

    GrowGeneration has a strong standing in the industry and is the largest operator of hydroponic garden centres in the U.S. The company sells the equipment used to cultivate marijuana, which helps GrowGeneration earn most of its revenue.

    Currently, the cannabis firm operates out of over 55 retail, and distribution centres in the U.S. GrowGeneration can produce at masses and is expanding.

    In July this year, GrowGeneration announced that they are going to acquire HGS Hydro. HGS is a hydroponic garden centres operator based in Michigan and owns six stores. It is the 3rd largest hydroponic retailer in the U.S. Last year, HGS generated around $50 million in annual sales.

    The company plans to continue its expansion and have at least 60 stores in 15 states by the end of 2021. While the target is to reach 100 stores by 2023. The good thing about GrowGeneration’s expansion is that it’s targeting the states where Cannabis is legal for medical and recreational use.

    Looking at the quarterly outcomes, in the third quarter of 2021, the company had 60% same-store sales growth over last year. While the revenue grew by 190%, and the net income surged 161% year over year. These are good signs, and GrowGeneration has much upside considering its growth and the market condition.

    Innovative Industrial Properties (IIPR)

    The next cannabis stock on our list is Innovative Industrial Properties (IIPR), which is a REIT stock as well.

    Innovative Industrial Properties (IIPR) owns properties in the cannabis sector. The company acquires properties from medical cannabis companies, then leases them back.

    IIP has a safe yet profitable business model, which makes it one of the investor’s favourites. By safe and profitable model, it means that the company makes money by controlling properties that yield income. The company passes a large portion of its income to its shareholders in the form of dividends. Currently, IIP has a decent dividend yield of 2.24%.

    Earlier this year, the company reported its first-quarter 2021 outcomes. Innovative’s total revenue jumped by a staggering 103% to $43 million compared to 2020. While the net income also jumped from $12 million to $26 million. In the same quarter, Innovative made four new acquisitions.

    So far this year, Innovative has invested $1.7 billion in real estate investments across the cannabis industry. The Cannabis REIT expects to record $195.5 million in annual rental revenue in 2021. Whereas, last year, it made $116.9 million in revenue. Therefore, Innovative is right on the path to glory.

    Constellation Brands(STZ)

    The fourth cannabis stock we have for you is Constellation Brands(STZ).

    Constellation Brands (STZ)is not a cannabis company, but it has a stake in the Cannabis giant Canopy Growth. Constellation Brands is a popular producer and marketer of beer, wine, and spirits. The company owns 38.6% of Canopy’s shares.

    Assuming full exercise of all remaining warrants and full conversion of the notes, Constellation Brands would own approximately 55.8% of the issued and outstanding common shares of Canopy Growth.

    The beverage seller continues to hold warrants to exercise 88.5 million shares by Nov. 1, 2023, and the remaining 51.2 million shares by Nov. 1, 2026.

    Adding Canopy to its portfolio, Constellation is well on its way to make huge profits. Canopy is the fourth profitable revenue stream to Constellation’s business. Therefore, in the coming years, Constellation Brands can give a huge investment return to its shareholders.

    Tilray(TLRY)

    The last of the best cannabis stocks to buy before winter on our list is Tilray (TLRY).

    Many analysts consider Tilray (TLRY)out of the league. However, the recent events have put some Tilray back in the race. Tilray’s merger with Aphria, a Canadian based cannabis firm, has made the company country’s second-largest behind only Canopy Growth.

    Tilray might not be the front face with the following merger, as Aphria CEO Irwin Simon leads the combined entity. In fact, Aphria acquired Tilray in a reverse merger.

    One of the key highlights of the post-merger was Tilray’s SweetWater Brewing division opening a Colorado brewery. At the same time, its SweetWater Mountain Taphouse opened at the Denver International Airport in July 2021.

    As far as the core business is concerned, Tilray’s German subsidiary, Aphria RX GmbH, completed its first German-grown cannabis harvest in early July this year.

    This is a major update for the company as the European medical cannabis market is expected to cross $3.9 billion by 2025. The company’s CC Pharma distribution business in Europe will be a major shareholder of the market.

    Whereas, in Canada, Tilray’s target is to grow its market share to 30% in the next two years. The company will continue its expansion in the U.S. via its SweetWater Brewing and Manitoba Harvest businesses.

    As far as the quarterly outcomes are concerned, Tilray recently reported its full-year and fourth-quarter results. For the fourth-quarter of fiscal 2021, the net revenue jumped to $513 million, which was 27% more than last year. While the Cannabis revenue grew 55% in Q4, ranking it on the top with the no. 1 market share in Canada.

    These were our five best cannabis stocks to buy before Christmas 2021.

  • Growth Stocks for October 2021

    Growth Stocks for October 2021

    Growth stocks are always an exciting segment in the stock market. Before we enter 2022, the fourth quarter of 2021 is a perfect time to analyze the market and look for the best investments. Growth stocks are graded in high ranks. Therefore, we will go through the best growth stocks for October 2021.

    According to Forbes and many other market analysts, the 4th quarter of 2021 could launch a healthy 2022 stock market. Some exciting stocks have a high growth potential heading into the following year.

    Tesla Inc. (TSLA)

    We have covered the technical and the market trends of the season, and Tesla Inc. (TSLA) seems to rush upwards by the end of 2021 and the beginning of 2022.

    Tesla is the world’s largest EV maker by market cap, nearly reaching the $800 billion mark. Since the pandemic, Elon Musk’s car company has deceived the stock market and soared to new highs. If we follow last year’s trend of TSLA stock, it looks pretty adjacent to reach the new highs.

    In the last six months, TSLA stock has been pushing upward and is in a similar trend design compared to last year’s period. EV maker has a 52-week range between $379.11 – $900.40.

    On the other side, Tesla is breaking delivery records every quarter. Despite a global automotive semiconductor shortage, the company delivered over 70% of cars from a year ago. Tesla surpassed the Wall Street estimates that were around 225,0000 to 230,000.

    Tesla continues to increase its production, and this means that the demand is increasing as well. Strong deliveries usually mean good news for Tesla bulls down the road. TSLA stock has outperformed the S&P 500 six out of the past eight times in the span between reporting deliveries and reporting quarterly earnings.

    Tesla stock’s PE Ratio (TTM) is 408.66, which means it’s highly overvalued. However, that’s how Tesla works. Analysts are rating the stock as a buy based on the recent trends of the stock.

    Netflix Inc. (NFLX)

    Let’s see Netflix Inc.’s (NFLX) stock based on the current trends and how it can go full in the next few months.

    The stock market usually has a high buying volume during the fourth quarter. That leads investors to enjoy high profits in the first quarter of the following year.

    Netflix, just like Tesla, is on a similar trend, but it might look more promising. The streaming giant was a fan favorite last year, with its stock price climbing 67%.

    NFLX stock is continuing a strong trend upwards, and a couple of factors could push the stock further by the end of this year.

    The very first achievement of Netflix has been its dominance at the Emmy awards. The streaming giant won 44 trophies this year, more than any other network or streaming service. Not on that, Netflix tied a long-standing record for the number of awards in a single-year setback in 1974. Now, that’s a tremendous achievement that could create a bullish impact on the stock.

    Highlighting Netflix’s achievement competitively, it won more than twice the number of awards than AT&T’s HBO and HBO Max. This is really something to cherish considering NFLX stock.

    Apart from that, Netflix’s latest series Squid Game has created a new buzz in the streaming network. The new Korean-language original series has already pumped the stock, and with a growing audience, things will get even better. Stifel analyst Scott Devitt recently upgraded Netflix stock to a buy rating and boosted its price target from $580 to $650.

    Datadog (DDOG),

    Since its IPO two years ago, Datadog (DDOG) shares have almost quadrupled. DDOG stock sits around its all-time high value. Is it still a buy at its all-time high?

    Datadog is a widespread and growing observability service provider for cloud-scale applications, including monitoring of servers, databases, tools, and services. Datadog shares have stacked over 50% so far in 2021, which makes it a growth investor favorite.

    Datadog’s rally is far from over as it executes at a high level and invests in future growth. The company is coming up with some stellar growth numbers. It is also winning large customers hand over fist. But why should the investors get excited about all this?

    Datadog’s RPO has increased at triple digits year over year to a whopping $583 million. That means the customers are signing larger and longer contracts. The customer base has also increased. Over 75% of customers now use two or more modules, and 28% use four or more, up from 15% from the prior second quarter.

    The company stands strong with 16,400 customers and the top 1,610, making up 80% of its annual recurring revenue. That allows the company to focus on expansion and continue its growth momentum. As the company adds more to its footprint each quarter, DDOG stock could really pump by the year’s end.

    Chewy Inc. (CHWY) 

    Chewy (CHWY) stock is trading on the lower side, which could create an opportunity to enter the trade. Before discussing the trend of CHWY stock, let’s talk about the business fundamentals.

    Chewy is one of those companies that benefited from the popularity of e-commerce during the pandemic. The online seller of pet supplies reported a 47% increase in net sales last year and grew its customer base by 43%.

    In this year, the company has continued to report an increase in net sales and adjusted EBITDA. That means that the company holds long-term potential. In the most recent quarter, Chewy saw a 21% increase in active customers and a 13% increase in net sales per active customer. The company saw impressive results despite the opening of physical stores. That’s another encouraging signal for Chewy’s growth.

    As we report, Chewy stock has major support at $65.66 and another strong support at $60. Analysts and investors maintain their confidence in Chewy. ClearBridge Investments recently stated that Chewy would maintain customer relationships it established during pandemic lockdowns and expand into international markets. Moreover, Wolfe Research has upgraded Chewy to outperform.

    Intuitive Surgical (ISRG),

    Intuitive Surgical (ISRG) seems like a good buy in October. Two major factors put ISRG stock on our list; the first is its strong moat, and the second is its excellent growth prospects.

    The intuitive stock has soared 45% since the last year, and we could see a further push. The company has a global network with over 6,300 robotic surgical systems installed worldwide. Around 8.5 million procedures have been performed with its robotic technology so far.

    As the healthcare industry continues to shift operations from humans to robots, Intuitive Surgical is all there to grow. We have seen new companies enter this space in the last few years. However, none of them have even come closer to Intuitive.

    The company is investing in new features and innovation. That opens a new chapter for Intuitive Surgical’s growth prospects. The company projects its new products would expand the current market to nearly 20 million procedures annually.

    As for now, the company expects to complete around 6 million procedures annually, five times more procedures performed with Intuitive’s systems last year. ISRG stock seems promising and makes onto the list of October’s growth stock.

  • HIVE Blockchain Technologies Ltd. (HIVE) Reports Record Annual Revenue and Earnings

    The crypto miner ended the year on March 31, 2021, with record revenue and earnings of $66.7 million and $43.5 million, respectively. 

    HIVE Blockchain Technologies Ltd. (HIVE) closed the trading session at $3.74 up by 4.47% on September 23, 2021. The company has just released its staggering revenue figures for the past year. The blockchain and crypto industry is really moving a step ahead each year and HIVE is in a perfect position being the first publicly traded crypto miner.

    The company has effectively worked on the expansion of Ethereum (ETH) and Bitcoin (BTC) mining capacity. Despite the COVID-19 pandemic upheavals, HIVE continues to achieve more than it expected.

    In the coming years, we can see HIVE gaining more mining space in the industry. A large number of miners from China are moving to the US. This will create a positive impact among the investors as far as the mining industry is concerned.

    HIVE Blockchain recorded a whopping 174% increase in digital mining income, which was around $66.7 million from the prior year. While the net income rose to a record $42.5 million, jumping massively from a loss of $1.9 million a year earlier. The gross mining margin expanded to $50.1 million from $8.5 million last year. The net income per share was 1000% more than last year, recorded at $0.12 per share.

    HIVE is working on the expansion of its business and is focused on its Canadian construction that will add 20MW of green and clean Bitcoin mining. The company expects this project to end by this year. Following the completion of this project, HIVE is looking forward to integrating an additional 20MW in the first quarter of 2022. This expansion would add around 900 Petahash per second to HIVE’s BTC production and allow the company to HODL more virgin coins.

    Another important project that awaits to expand Ethereum mining is undergoing in Sweden and Iceland. The company is investing highly in ETH mining and is upgrading the majority of its GPU memory cards from 4 giga-bytes to 8 giga-bytes. In addition, HIVE did a corporate restructuring in Sweden to become a Data Centre business.

    The best thing is that HIVE is focusing on lower-cost mining and moving towards renewable sources that would be beneficial for the environment. This will ultimately improve the efficiency and profitability of HIVE’s mining operations.

    Moving forward, HIVE Blockchain Technologies Ltd. (HIVE) is in a good position to continue with its projects and install more mining stations. The company HODLs 25,000 ETH and has purchased new ASIC machines to expand and mine Bitcoin to HODL.

  • How Vaccine Stocks performed after prolonged FDA Approval

    Things are getting interesting in the COVID-19 vaccine space. Pharmaceutical firms are fighting against the global pandemic. Big US pharma’s who are part of this vaccine manufacturing drive have their stocks in the gold mine.

    Last Monday on August 23, shares of Pfizer (PFE) soared massively following the formal approval of its vaccine by the U.S. Food and Drug Administration. You rarely see a market that’s this straightforward, but anything with any cyclicality roared on the Pfizer story. This news almost took Pfizer stock to its all-time high.

    Pfizer-BioNTech vaccine stands at the top of the table among other companies. The Pfizer-BioNTech vaccine is also the first COVID-19 vaccine to be fully approved by the FDA.

    With the first vaccine approval, other companies also got in line with the FDA approval. Moderna also got approved.

    So, there are a lot of upsides for vaccine stocks. For investors, this is a golden opportunity to avail. Before we kick off with the vaccine stocks. We’d like to clear that Pfizer and BioNTech are two different companies that have collaborated on this vaccine project.

    Pfizer (PFE)

    Pfizer shares really took off last week when the news of FDA approval was announced. What does this vaccine approval mean for Pfizer investors?

    The recent reaction of investors to the vaccine approval was obvious. The market reacts favorably to positive news, especially these days when it’s related to the COVID-19 pandemic. But there’s much more to it.

    The vaccine approval will provide legal backing for the vaccine mandates a lot of companies and government organizations are planning to implement. Moreover, it’ll help get meaningful results on making people more comfortable getting the vaccine.

    The COVID vaccine has been a massive boon to Pfizer’s business. The firm expects $33.5 billion in revenue from Covid-19 vaccines this year. Pfizer stock has already touched the $50 mark on August 2021. It could break that once again following more good news.

    And, the company has announced one. Pfizer isacquiringthe cancer drug company Trillium Therapeutics for $18.50 per share, at a compound value of $2.3 billion. Pfizer invested nearly $25 million in Trillium in 2020, so they are enhancing their portfolio.

    BioNTech (BNTX)

    Before we begin with BNTX stock, let’s get this clear. COVID vaccine stocks are here to last much longer than expected. Analysts are counting on a long tail for COVID vaccines.

    One of the biggest mistakes investors make is seeing a stock go up and thinking they missed the boat. Guess what you haven’t. You will always have time to get into the market, but the best is to do it at the right time. That’s why it’s important to consider a stock like BioNTech.

    So far, BNTX stock has rallied up to 962% since the beginning of 2020. But a lot has happened since. The company’s future might be even brighter than its recent past. If so, there could be a lot of gains left for shareholders and potential investors.

    Over the past three weeks, BioNTech shares have fallen. There’s a lot of debate going on in the US on booster doses. BioNTech along with Pfizer can make easy money via the supply of boosters.

    Moderna (MRNA)

    Moderna (MRNA) is really making some pump as the US Centers for Disease Control and Prevention weighs in on if America should get the third dose. Currently, the company estimates about $19 billion in revenue from the shots in 2021. And, if the US government authorizes the booster shots, Moderna will really add a huge chunk of money to its revenue.

    Earlier in August this year, Moderna stock crossed the $410 mark. At the moment, it trades around $386. Analysts are expecting Moderna to pump either way, as it depends on the government regarding the third shot.

    In the long-term, Moderna looks like a solid vaccine stock and it will continue its momentum. Moreover, the company has also applied for full FDA approval.

    So, Moderna’s vaccine is expected to become the second COVID vaccine that the FDA would approve.

    The company expects to advance its cytomegalovirus (CMV) vaccine candidate into late-stage testing in 2021. So, for Moderna, there is much going on at the moment.

    Johnson & Johnson (JNJ)

    Johnson & Johnson’s vaccine was the third to secure U.S. authorization for emergency use. Unlike the Pfizer-BioNTech and Moderna vaccines, JNJ’s vaccine takes full effect after only a single dose.

    Johnson & Johnson’s vaccine has had issues, and it has faced some backlash. The company had some manufacturing problems at a contractor’s facility, and concerns about blood clotting. This issue caused a temporary halt in the U.S. of the vaccine’s administration.

    However, this hasn’t been a big concern for the Johnson & Johnson investors. The company is selling its COVID-19 vaccine at cost during the pandemic, meaning that it doesn’t much affect Johnson & Johnson’s financial performance.

    In contrast, Johnson & Johnson surpassed Wall Street’s second-quarter forecasts and JNJ stock topped a buy point.

    Johnson & Johnson is so big that its success doesn’t depend on one product. Analysts believe JNJ stock looks good in the long term regardless of vaccine issues. Although there are still questions being asked regarding its vaccine.

    Novavax (NVAX)

    Novavax (NVAX) stock hasn’t performed the way they accepted it for a vaccine stock. Rather, it has reacted abruptly. Novavax hasn’t yet won any authorization or approval for its COVID-19 vaccine. So, it makes some sense why the stock has been up and down in 2021 so far.

    The company plans to file for regulatory authorizations in the U.S., U.K., and Europe in the third quarter of 2021. Recently, the company again delayed its timeline for seeking U.S. authorization for its vaccine. The company expects to become a major distributor to lower and middle-income countries this year.

    Following a late-stage clinical study conducted in the U.S. and Mexico, Novavax reported an overall efficacy of 90.4% for its experimental coronavirus vaccine.

    The COVID-19 keeps on reappearing with new variants every time. Novavax can enter the vaccine game late, but it could still be a big winner in the COVID-19 vaccine market.

  • Top Robinhood Stocks for 2021

    We are into the second phase of 2021 and the stock market is already creating new entry points. For more than a year, volatility has been a big theme for Wall Street. There has been the quickest decline of at least 30% in history for the benchmark S&P 500 during the first quarter of 2020. And the strongest bounce-back rally from a bear-market bottom of all time. Robinhood is one of the most prominent platforms for investors. This is likely because of its commission-free trading in stocks, ETFs, options, and cryptocurrencies.

    There are thousands of stocks trading on the NYSE and Nasdaq. But to generate big gains, you have to find the very best. The best Robinhood stocks for investors will be those that offer a mix of earnings and stock market performance.

    There’s the latest update on Robinhood. Securities and Exchange Commission Chairman Gary Gensler has hinted at banning the controversial practice of payment for order flow. Also, know as PFOF.

    Payment for order flow is one of Robinhood’s largest revenue sources. That’s the way the Robinhood trading app is able to provide zero-commission trading. Payment for order flow is a controversial practice. And, lately, it has been under the radar of legal authorities. SEC Chairman said that PFOF has an inherent conflict of interest.

    However, Robinhood has highlighted that if the PFOF model changed, the brokerage and the industry could adapt.

    Johnson & Johnson Stock (JNJ)

    Johnson & Johnson (JNJ) will not have a swift pump anytime soon, but it won’t collapse as suddenly, either. JNJ is one of the oldest medical firms in the industry with a solid reputation. It is also one of the most valuable companies in the market.

    The company has been successful in regularly growing its revenue, maintaining profitability, and delivering consistent returns to investors as dividends and share buybacks.

    The key reason for JNJ’s success is its strong background in consumer healthcare and pharmaceutical products. This brings in the majority of the revenue for the company.

    Moreover, the ongoing demand for Johnson & Johnson’s goods supports the growth and safety of its dividend in the long term. Over the last 58 years and counting, Johnson & Johnson has raised its dividend payout, making it one of the dividend kings in the industry. As of now, the stock’s dividend yield is about 2.39%, which is higher than the S&P 500’s average yield of 1.35%.

    Johnson & Johnson is a strong long-term buy at the moment in Robinhood stock’s top list.

    Nvidia Stock (NVDA)

    Nvidia (NVDA), the graphics-chip maker, is one of the hot stocks in the Robinhood list. The Nvidia stock is expected to make a correction after touching its all-time high recently. In the long run, the stock would create new entry options for investors.

    The relative strength line is trying to make progress again after a dip during its consolidation. As mentioned, Nvidia stock will consolidate and the recent pump is being pushed by strong second-quarter results. An increase in gaming sales and solid data-center processor revenue supported the strong Q2 outcomes.

    Nvidia stock has a perfect IBD Composite Rating of 99. Also, the stock has outperformed the S&P 500’s gain of over 19%, up to around 68%.

    For the current quarter, Nvidia expects to generate sales of about $6.8 billion, up 44% year over year. The intriguing part is that Wall Street has anticipated a strong third quarter. Wall Street expects Nvidia stock to report earnings of $1.05 per share on sales of $6.57 billion.

    So, Nvidia holds a powerful position both in the short and long term.

    Power stock (PLUG)

    Plug Power (PLUG) comes up with a lot of potential and is in line with those companies which would dominate their industries in the future. The fuel cell company is a top Robinhood stock focuses on hydrogen cell technology has grown its revenue impressively in the last few years. However, it is still nowhere near profitability. That’s a mixed signal.

    It may take quite a few years before Plug Power reaches that profitability mark. But, for a growing company, that isn’t necessarily a concern.

    Just like Tesla (TSLA), which has not been in profit but the stock has outperformed in recent times. Plug Power stock has the same potential of growth in the long run.

    Using hydrogen as a fuel is increasingly gaining traction. Many countries are actively promoting hydrogen as they try to make pollution-free energy. For instance, South Korea is targeting 81,000 fuel cell electric vehicles in use by 2022. And, hopes to increase this number to 2.9 million by 2040.

    However, looking at the gross margin’s stats, Plug Power hasn’t been impressive at all. In over two decades, the company has reported losses. To your surprise, Plug Power’s second-quarter loss stood at $99.6 million, compared to a loss of $9.4 million in the second quarter of 2020.

    Plug Power is backing on stockholders’ funds and believes that it would finally generate a gross margin of over 30% by 2024.

    Square (SQ)

    Square (SQ) stock has fallen back into a base after surging earlier this month. The recent downtrend has offered aggressive entries. The stock currently holds a very impressive Composite Rating of 97. So far, Squares’ shares have soared up to 24% in 2021.

    Earlier this year, Square posted a first-quarter sales increase of 266% to $5.05 billion. Whereas, the EPS jumped to $0.41 per share from a loss of $0.20 per share.

    The key for square has been its increasing subscriptions. The company has significantly increased its revenue from its subscription and services-based products. Another aspect that could act as a catalyst for Square stock is its love for Bitcoin.

    Squares’ CEO Dorsey said the company will create a new business line to help developers build financial services products focused on Bitcoin. Square is building an open developer platform to improve decentralized financial services.

    Catalyst Pharmaceuticals (CPRX)

    Catalyst Pharmaceuticals (CPRX) is the one stock that many investors might not know of or fancy. Maybe is the riskiest stock on the Robinhood list today. Catalyst Pharmaceuticals is a profitable small biotech company that’s profitable and is growing its revenue slowly.

    Catalyst’s once approved drug, for a rare autoimmune disease known as Lambert-Eaton myasthenic syndrome, made only $30.2 million in the first quarter. That’s merely an increase of 3.7% year over year. It’s improving and the reason we’ve chosen this stock is that there’s more to the company than that one drug.

    Catalyst’s management plans to uplift its research and development spending this year. The company is also looking to acquire other promising small biotechs as well. This is an indicator that things could turn for good for Catalyst Pharmaceuticals stock.

    In simple words, Catalyst’s growth prospects and its financial performance can change. And when those things do change, the market’s valuation of the stock will, too.

  • Update on the Crypto Market: What’s next

    Update on the Crypto Market: What’s next

    The crypto market is very hard to judge with a lot of volatility around the space. But the market updates keep the investors interested. If we go back into the past, things are improving for the cryptocurrency industry. And, Bitcoin and altcoins are getting more approval than ever before.

    Bitcoin (BTC) has been trading in the key support region of $46,666 and resistance of $50,000. BTC crossed the $50,000 mark on August 23rd, 2021 for the first since the last three months.

    Regulation heralds the coming age of any new financial instrument. Some might argue that cryptocurrencies do not need help from the authorities. It may sometimes. But for cryptocurrencies to thrive in the masses, they need to be regulated.

    Lately, there has been a lot of drama in the Crypto Market. China has threatened Bitcoin and completely ban the mining process.

    Increased regulatory scrutiny from China is changing the bitcoin mining landscape. The bans aren’t exactly shocking, but their sudden manifestation and stringency have left miners in the region reeling.

    Apart from the problems that miners are facing in China. What effects will this ban have on the crypto society in the future? That’s the crucial question. Well, since the ban news first surfaced, it had its impact on the market for a while. But there’s much optimism considering the circumstances in the US.

    It is estimated that a substantial minority around 30% to 40% of China’s orphaned hash rate will end up in the United States, with Texas leading the charge. While the rest of the miners are expected to set up in the Central Asian region.

    The U.S. is positioned to benefit greatly from the shakeout. We anticipate over 40 exahashes will be managed by U.S.-based mining pools by the end of 2021.

    Recently, there has been a debate in the US government regarding the tax reporting of cryptocurrencies. For now, the US Congress blocked the crypto amendment. It was because of the undefined and broad language of the crypto bill.

    Recently there’s been a lot of hype around Non-Fungible Tokens. Popularly known as NFTs. What we’re saying here is that the blockchain world is evolving more than ever. Bitcoin’s adoption by financial institutions is growing. PayPal is a big example recently.

    The US government reportedly is pushing to include global crypto data sharing rules in the $3.5 trillion budget package. The Biden Admiration is keen to get hands-on the proper legislation of the crypto markets. The Treasury wants crypto businesses to report information on foreign account holders. So, the U.S. government can share information with global trading partners.

    This is a good signal for the crypto community in the long term as we’re heading towards crypto adoption. Now the US government is serious about the crypto market and thinks of it as a major revenue tax stream.

    However, former US President Donald Trump, in a recent interview, said that he’s not a big fan of Bitcoin. His stance regarding the crypto industry has been rather strict. If we see Donald Trump once again as the US president, things might get different.

    Trump made a statement saying that he would like to see US currency thrive. He doesn’t like it because it’s another currency competing against the dollar. With hurdles, governments will gradually accept the reality and how crypto market can add billions to their economy.

    There’s this latest update from Twitter. The social media giant could soon enable users to tip content creators using Bitcoin. This will be added via the latest update to Twitter’s Tip Jar feature.

    Market Situation

    Moving towards Bitcoin, things are looking good as of September 1. We might head towards a new bull run. Ethereum with the ticker name ETH has really kicked off and has lowered the dominance of BTC to 41.9%. And, Ethereum dominates by 19.1%.

    Ethereum dominance means that altcoins are the ones that will benefit the most from the bull run. When there is higher BTC dominance, it means that Bitcoin will have a higher trading volume.

    As of September 1, Ethereum’s price breaks $3,500 and hits 3-month highs against Bitcoin. Is Ethereum’s rally signaling the next bull market phase for Bitcoin above $50,000?

    Bitcoin has been seeing some consolidation below $50,000 as a psychological barrier. However, during this pullback, several big altcoins have been surging in price, suggesting that the alt season isn’t over yet.

    Meanwhile, Bitcoin’s price faces a crucial resistance to breakthrough. While Ether is already cracking that resistance, hitting a three-month high versus BTC. And, facing a run toward the next resistance around the all-time high.

    The primary question is now whether this Ether breakout is a signal for Bitcoin to follow suit. And, break through the resistance barriers in September. Historically, September has been a corrective month. Meaning that such a breakout may catch many traders off guard. The critical resistance zone at $51,000 is key to break for Bitcoin to push further upwards.

    The daily chart for Bitcoin shows a consolidation between $44,000 and $50,000. This consolidation resulted in a big breakout of altcoins. Some altcoins already broke their previous all-time highs.

    The bearish divergence in the chart will only be confirmed when the recent higher low is invalidated and broken downward. At that point, the uptrend is officially reversed.

    Currently, the market is consolidating after the rally from Bitcoin’s July lows. The bearish divergence remains unconfirmed until Bitcoin loses the lower bound of the support range, which can be found at $44,000.

    Whereas, the total cryptocurrency market capitalization shows a bullish continuation with constant higher lows and higher highs.

    The crucial breaker for the market cap to break through is the resistance zone, around $2.12 trillion. Once that one breaks, more upside is likely toward new all-time highs. This structure might also foreshadow Bitcoin’s price trajectory. As the Bitcoin and USDT charts are showing upside.

    On the other hand, Ethereum crossing the crucial breaker at $3,400 is a big signal for the crypto market. The difference between Bitcoin and Ethereum right now is that Ether is hitting higher highs, while Bitcoin remains in a sideways range.

    So, the critical breaker for Ether is the previous resistance zone at $3,400. As long as that sustains support, continuation toward all-time highs becomes increasingly likely.

    However, if a breakdown beneath $3,400 takes place, a potential bearish divergence comes into play. This could end in a correction to $2,600. Such a correction would also affect Bitcoin, which also has a few critical levels to watch as support.

    Conclusion

    To conclude our analysis of the market, if Bitcoin doesn’t go vertical or has a significant impulse wave. Altcoins are in a splendid position to outperform BTC in the short term. And that’s what the market is currently seeing.

  • Stock investing strategies; Benjamin Graham and Warren Buffett

    Everyone in this world invests in some sort of security to get higher returns and maximize their wealth. The stock market is one of the most treasured places to invest capital. Let’s have a look at some prominent ways of stock investing and, of course, how Warren Buffett has invested over the past decades.

    The best thing about investing strategies is that they are flexible. If an investor chooses one and it does not suit their risk tolerance or schedule, they can certainly make changes. But doing so can be costly. Every purchase carries a fee. Selling assets can create a realized capital gain. These gains are taxable and, therefore, expensive. So, you need to be careful about it.

    Before you commit your money, you need to answer the question, what type of investor you are?

    When you will open an account at any brokerage firm, you will be asked about your investment goals. Certainly, the brokers will ask if you are a risk-taker or risk-averse. And, if you are a risk-taker, how much risk you’re willing to take on.

    “A key rule of thumb to keep in mind with any stock market strategy: Don’t invest cash you’ll need within five years.”

    Some investors want to take an active hand in managing their money’s growth, and some prefer to “set it and forget it”. If you are new, you must stay active and learn the art of investing and somewhat trading as well.

    Warren Buffett is a modern time great and an inspiration to many of us when it is about distributing your capital in the stock market and maximizing your wealth. Before reaching out on Buffet’s ‘buy and hold investing strategy, it is important to introduce the father of value investing himself, Benjamin Graham.

    Graham, a British-born American economist, professor, and investor, was one of the first people to use financial analysis to Stock investing, doing it successfully. Graham first shared in his 1949 version of “The Intelligent Investor.” Investors are still using his strategies as of today.

    Before jumping into the investing strategies of Benjamin, let’s give a brief introduction to who Benjamin Graham was and what led to his five common stock investing formulas.

    Graham addresses the specific quandary every active investor will face in determining how to manage his or her portfolio, saying:

    “Whether the investor should attempt to buy low and sell high, or whether he should be content to hold sound securities through thick and thin—subject only to the periodic examination of their intrinsic merits—is one of the several choices of policy which the individual must make for himself. Here temperament and the personal situation may well be the determining factors.”

    What Graham was trying to say is that your emotional capacity and how you react to a certain situation play a key role in your investment. The key to this is ‘stay patient.

    Benjamin Graham’s common stock investing strategies:

    Beginning with Graham’s five categories of common stock investing strategies, that explains how it can conceivably result in better-than-average returns.

    General Trading: General trading involves anticipating the market moves as a whole, following the basic trends as reflected in the familiar averages. This investment strategy goes in line with dollar-cost averaging. Using this method, you will spread out investment purchases to minimize market volatility and ensure you do not put a high percentage of money when the stock prices are unreasonably high or we can stay the stock fundamentals are overstated.

    Selective Trading: Selective trading means you will categories the sectors, then watch out for the best performing or growing sector in the long term, and then further choose the best stocks in the market over a period of a year or less.

    Buying Cheap and Selling Dear: For a beginner, you need to understand that buying during the pump will end you in losses and you would panic sell your stocks. Investors are infamously irrational, which explains why inexperienced investors buy while prices are rising and sell while prices are dropping. Focus on ‘buying the dip’, and in the long run, it would be beneficial. That’s what value investors do.

    Do you want to become a value investor and see your holdings increase in the long run? Yes, everyone wants that. So, what you need to do is enter the market and purchase investments when prices are low and sell when the prices are high. And, avoid the pitfalls that come along with acting based on a stock’s fluctuating price.

    Long-Pull Selection: Long-pull selections mean you pick out those companies or stocks that have high potential in the longer run, which are often referred to as growth stocks. These stocks belong to emerging sectors. Cannabis stocks and EV stocks are big examples of long-pull selections.

    Bargain Purchases: The bargain purchases technique is selecting those shares in the market that are being sold considerably below their true value, which is measured by reasonably dependable techniques. One of the common methods to evaluate if a stock is undervalued or overvalued is its price-to-earnings (P/E) ratio.

    So far, we have come across Benjamin Graham’s value investing techniques and now let’s get insights into Buffet’s investing strategy.

    Warren Buffett’s way of Investing

    Warren Buffett, one of the most decorated investors of this generation, follows the Benjamin Graham school of value investing, which looks for securities whose prices are unjustifiably low based on their intrinsic worth.

    This means that Buffet focuses on the actual worth of the stock and bets on it for the long-term by holding the stock rather than focusing on supply and demand intricacies of the stock market.

    Warren looks at companies. This is a simple yet effective way of investing and that has made him a billionaire and one of the richest persons in the world. Buffett also teaches young investors how to financially educate themselves and work on building positive money habits and breaking those that hurt your wallet.

    The first fundamental from Warren’s book is to stick with long-term value investing strategies—Graham’s value investing strategies. Invest in what you understand. This means never invest in something you do not have enough knowledge about.

    Buffet only invests in companies he understands and believes have stable or predictable products for the next 10—15 years.

    Prefer those companies with competitive advantages, such as companies with pricing power, strategic assets, powerful brands, or other competitive advantages. This means the companies with the ability to outperform in good and challenging times. This is key to understand when investing in the long term. An investor must know that the company would survive bad times as well.

    Another key aspect of Warren’s investing policy is to require a margin of safety. If you purchase shares of a stock with a margin of safety below its intrinsic value, this will reduce risk and provide an allowance for unpredictable events.

    Last but not least is to be patient and think rationally while investing. And this is very important for a beginner to understand. Buffet is a long-term value investor, as he understands the power of exponential growth.

    Warren Buffett’s golden words say that always invest in yourself.

    “Invest in as much of yourself as you can. You are your own biggest asset by far.”

  • Stock Market Politics, Bulls vs Bears!

    The rally of the stock market keeps the stock prices in motion, thanks to the bulls vs bears – the stock market politics. They are the trends of the stock market controlled by two types of investor parties. Knowing the fundamentals of bulls and bears is crucial. Bulls keep the market in an upward trend and bear in a downward trend. The stock market movements are bullish or bearish in the longer run.

    To understand this bulls vs bears game, the trend is the first thing to understand. A trend is the overall direction of a market or an asset’s price. In technical terms, the trend lines identify a trend on the price chart of a particular security.

    In the stock market, there are multiple stocks in different sectors. When the stock market is bullish, this means that all the stocks listed in the stock market are going upstream. Whereas, the bearish market reflects that all the stocks listed in the stock market are going downstream.

    Definition

    The U.S. Securities and Exchange Commission defines a bull market as a period when there is a market rise of 20% or more in broad-based market index funds for at least two months. While the U.S. Securities and Exchange Commission defines a bear market as a period when there is a market drop of at least 20% over two months.

    Origin of Bear and Bull

    The terms ‘bear’ and ‘bull’ are thought to derive from how each animal attacks its opponents. Just like a bull thrusts its horns up into the air, while a bear will takedown. Someone then related metaphorically these actions of the two animals to the movement of a market.

    Historically, the middlemen, while trading bearskins, would sell skins they had yet to receive. They would speculate on the future purchase price of these skins from the trappers, hoping they would drop. The trappers would profit from a spread—the difference between the cost price and the selling price. These middlemen became known as “bears,” short for bearskin jobbers, and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered being opposites because of the once-popular blood sport of bull-and-bear fights, the term bull stands as the opposite of bears.

    So, a bull is someone who buys securities or commodities, anticipating a price rise, or someone whose actions make such a price rise happen. In contrast, a bear is someone who sells securities or commodities, anticipating price decline.

    Digging Deeper

    Certainly, a majestic bull and a powerful bear present striking images, but how did these two come to be associated with the stock market and its politics? Have you ever thought about this?

    First, let’s have a brief look at politics. If we stick to the book, politics is the set of activities that are related to decision-making in groups or other forms of power relationships between individuals or parties. Politics is often associated with countries and democracies, but it’s everywhere happening in our life.

    For instance, just like in households, when a child wants something, he would insist the mom ask dad. That is back channeling, and that is what politics is all about. So, it is in human nature.

    The stock market politics, just like that of the government, is to gain and maintain power. Bulls want the stock market to remain in an upward trend and the bears want the market to remain in a downward trend.

    Most of the time, there is a balance of power between bulls and bears, which we call equilibrium. However, bulls are always working to take the market in a bullish trend, when it’s in a bearish trend and the bears focus on taking the market in a downward trend when it’s in a bullish trend.

    The famous German sociologist and political economist, Max Weber, defined power;

    “Power is ‘the probability that one actor within a social relationship will be in a position to carry out his will despite resistances.”

    Just like in any sport, one team wants to win over the other. Bulls is one team in the stock market and bears are the other. Those who are politically involved in the market are institutional investors, large brokerage firms, financial institutions, etc.

    When a stock market will form a bullish trend and continue to be bullish, the bears will certainly remain quiet and wait for the best opportunity to hit back and drive the market to a bearish trend. Similar is the case with bulls, they will wait for the right moment to enter and pump the stock market when things are bearish.

    Bulls and bears are among those parties that are institutional investors, large brokerage firms, financial institutions, etc. Things are mostly occurring in the back channel, and for a normal investor, it is arduous to get the insight information. But there is a strong network of web media and social media, which can update you on the latest happenings in the market.

    Also, the investor needs to look at the technical indicators of a particular stock, and the overall performance of the sector in which that stock lies. So, why do you have to do this step by step? To ensure that you anticipate the trend correctly.

    If the investor is sensing the market to enter a bull run, it means that person is optimistic about the market conditions. And, if the investor is sensing a bear run, it means that person is pessimistic about the stock market and believes that prices are likely to fall.

    Apart from political influences, unexpected tragedies or natural disasters can affect the stock market, shaping the bull or bear market. One prominent example of such a scenario is the 9-11 indecent.

    9-11 is probably one of the most defining moments in United States history. Following the attack, U.S. stock markets closed and remained that way for the rest of the week. Once the market re-opened, the S&P lost 11.6% in four trading days.

    Bulls vs bears are very much a core of the stock market or any efficient market in the world. However, things are gradually changing in the financial markets with technological advancements. To better explain this cryptocurrency market is an ideal example.

  • How a stock exchange works; everything you need to know about basics of stock exchange

    If you search online or look up the basic definition of the stock exchange, it will be “A platform where people buy and sell the shares of stocks”. Search more and you’ll learn something like “the stock market is where companies have their stock listed and investors can go through any stock they choose to buy. This definition may not really be enough for you to understand what a stock exchange is.

    This is because the stock market and other trading-related activities are usually taught in such a way that makes it feel like it is necessary for one to have a financial or technical background. We will show you the simplest ways to understand the stock exchange without making it overly complicated.

    Let’s start with an example. Let’s imagine you are at a science fair. There are many teams participating in this science fair. You and other visitors are here to see which team presents a new and successful seeming project. Each team presents their science model. Then one of the teams presents a very attractive, promising model or wins a top prize at the fair. This model prompts you and others to somehow invest in it, hoping to see that the future success of this model in the market and public may bring profitable returns for your investment.

    The stock market works similarly to this example. The stock market is like the science fair, which is a platform that brings visitors and teams together. The Stock market brings buyers and sellers together. The teams at the science fair presenting their models are known as companies or sellers in the stock market. These companies place their stocks on the stock exchange’s listing. The visitors and participators who want to invest in the team’s models are called buyers or investors who wish to invest in the company’s stock.

    Types of stock exchanges

    Of course, this was just an example of explaining how a stock exchange works in the simplest of ways. However, there are many other aspects that we would like to cover that are not part of this comparison.

    Let’s now look at what types of stock exchanges are there.

    Auction-based stock exchange; trader’s floor

    There is the centralized physical location of the stock exchange, where buyers and sellers verbally communicate and physically exchange shares of stock. These physical stock exchange platforms are known as auction-based exchanges where the traders are physically on the exchange floor.

    Electronic-based exchange; screen-based platform

    The second way stock exchanges exist is through electronic-based platforms where exchanges take place electronically. This means that there is no need for a physically centralized platform for traders to meet. Out of both major types of exchanges, we consider the electronic stock exchange much more efficient. Recently, more and more exchanges are phasing out the auction-based exchange system for the electronic exchange platform.

    NYSE and Nasdaq

    We will learn more about the type of stock exchange by going over the two most famous ones in the world.

    Starting with the New York Stock Exchange is one of the world’s largest physically traded exchanges. It is also the largest equities exchange in the world and in Wall Street it is known as “The Big Board” since its origination in 1792. NYSE transformed from a private to a public entity in March 2006. It is mainly owned by Intercontinental Exchange. NYSE comprises both electrical exchange platforms and an auction-based exchange platform. NYSE has mainly designated market makers for different stocks on its physical exchange floor. These deal makers then physically interact with the buyers and sellers face-to-face on the auction floor.

    Let look at the electronic exchange realm. Particularly at the world’s largest electronic-based stock exchange, which is Nasdaq. Nasdaq stands for National Association of Securities Dealers that came into existence in February 1971. It comprises deal makers that are connected with stock buyers and stock sellers. The electronic mediums of connection between them are screen and computer-based displays of the listings of stocks in the Nasdaq exchange. It places deals through a certain type of trader known as the market makers or dealers. These dealers can be individuals or firms that make deals incentivized for their own benefits. They generate by selling shares at higher bids and buying quotes at the cheaper bid.

    Now that you know about NYSE and Nasdaq. The next thing you need to know is what is the underlying functioning of stock exchanges. This includes regulations and requirements for companies that are listed.

    Requirements and Regulations

    Stock exchanges like Nasdaq and NYSE have regulations and eligibility criteria for the stocks that are enlisted in them. If certain stocks of companies fall off the requirements and eligibility criteria of the exchange, then they are removed or delisted from the exchange.

    The general requirements of these stock markets include the initial listing consideration fees and the entry fees upon successful listing. These fees can reach up to thousands of dollars. There is also a minimum number of shareholders and stockholder equity that is considered.

    They specifically placed these restrictions to ensure that the stocks can maintain their credibility for all those involved. This credibility automatically allows investors and traders to know that only companies with relatively good corporate and financial management track records are placed on these stock exchanges. These exchanges then also require the listed companies to provide maintenance fees as part of an ongoing minimum standard.

    When a company does not meet these ongoing requirements, they are served a notice for non-compliance or deficiency notice. After a certain period like 90-days in the case of Nasdaq, these companies are then delisted from the stock exchange if not brought back to the standards. One of the most important ongoing requirements includes the minimum bid price and minimum market value of a certain stock in the exchange.

    Also, there are other regulations imposed on these stock exchanges and stocks, which are placed by government or financial regulatory bodies. For example, the Securities and Exchange Commission, known as the SEC, specifically has stringent requirements for fair and transparent trading. Penalties and repercussions, including blacklisting of the company, heavy fines, and criminal charges, are some punishments imposed if companies don’t comply with SEC regulations.

    Other platforms for stock trading

    The OTC market

    Other types of markets for stocks where buyers and sellers can get shares are known as the Over-The-Counter markets or known as OTC. The OTC markets are usually markets where small companies that could not make it to the exchange listing or are delisted, usually trade. However, OTC markets have less stringent and credibility-check requirements for the companies listed on them. This makes the background info on the companies’ management and activities less transparent.

    Pink Sheets

    Pink sheets are another type of market service for trading. Here, quotation services are provided. However, these market services do not require companies to register with the Securities and Exchange Commission. Neither do these companies have to report their filings periodically, which makes Pink sheets even riskier than OTC.

    A review of the stock exchange

    First, a company has to comply with the listing procedure of the stock exchange. Once it has been deemed eligible, it is then officially known as a publically traded company. The publically traded company has to provide an Initial Public Offering (IPO) of its stock. In an IPO, the stock price is determined by the demand and supply of its stock shares.

    The company is now listed. Therefore, the public can now invest in the company through its stock. Various other players, like deal makers and brokers, will start trading the share of this company’s stock. The company has to make sure that it complies with the ongoing requirements and the regulations set by the SEC.

    Overall, this is how the companies can expand and grow their investments publically by listing in the stock exchange.