Best Canadian Stocks To Watch Right Now

tags:CM,CNR,BRD,NGD,

Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM) – Analysts at Desjardins reduced their Q2 2018 earnings per share estimates for Canadian Imperial Bank of Commerce in a research report issued to clients and investors on Wednesday, May 2nd. Desjardins analyst D. Young now forecasts that the company will post earnings of $2.85 per share for the quarter, down from their prior estimate of $2.86.

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A number of other equities research analysts also recently issued reports on the company. Canaccord Genuity set a C$131.00 price objective on Canadian Imperial Bank of Commerce in a research report on Friday, February 23rd. Royal Bank of Canada increased their price objective on Canadian Imperial Bank of Commerce from C$138.00 to C$141.00 and gave the stock a “sector perform” rating in a research report on Friday, February 23rd. Barclays lowered their price objective on Canadian Imperial Bank of Commerce from C$125.00 to C$124.00 in a research report on Friday, February 16th. CSFB increased their price objective on Canadian Imperial Bank of Commerce from C$125.00 to C$134.00 in a research report on Friday, January 19th. Finally, Eight Capital increased their price objective on Canadian Imperial Bank of Commerce from C$134.00 to C$139.00 in a research report on Friday, February 23rd. Four investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of C$132.00.

Best Canadian Stocks To Watch Right Now: Canadian Imperial Bank of Commerce(CM)

Advisors' Opinion:

• [By Logan Wallace]

  A number of firms have modified their ratings and price targets on shares of Canadian Imperial Bank of Commerce (TSE: CM) recently:

  6/6/2018 – Canadian Imperial Bank of Commerce was upgraded by analysts at Citigroup Inc from a “neutral” rating to a “buy” rating. They now have a C$130.00 price target on the stock, up previously from C$125.00. 5/24/2018 – Canadian Imperial Bank of Commerce was downgraded by analysts at National Bank Financial from an “outperform” rating to a “sector perform” rating. They now have a C$124.00 price target on the stock, down previously from C$136.00. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target lowered by analysts at Scotiabank from C$131.00 to C$127.00. They now have a “sector perform” rating on the stock. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target lowered by analysts at Royal Bank of Canada from C$141.00 to C$135.00. They now have a “sector perform” rating on the stock. 5/24/2018 – Canadian Imperial Bank of Commerce was given a new C$140.00 price target on by analysts at Eight Capital. 5/24/2018 – Canadian Imperial Bank of Commerce had its price target raised by analysts at Barclays PLC from C$133.00 to C$138.00.

  CM traded up C$0.59 on Wednesday, reaching C$115.86. 987,570 shares of the stock were exchanged, compared to its average volume of 1,290,708. Canadian Imperial Bank of Commerce has a fifty-two week low of C$103.84 and a fifty-two week high of C$124.37.

• [By Garrett Baldwin]

  We're about to reveal a little wealth secret that could unlock the trade of a lifetime. Money Morning Special Situation Strategist Tim Melvin takes you inside what could easily be a 10-bagger for investors in the weeks ahead. Read more right here.

  The Top Stock Market Stories for Tuesday The Euro has plunged to its lowest point against the U.S. dollar in 2018 thanks to political problems in Europe. The breakdown of power in Italy has raised new concerns about the nation's ability to repay its debts, as the spread between German and Italian bonds has widened. Market instability has also spread to Spain where the nation's parliament is preparing to vote on whether to oust Prime Minister Mariano Rajoy and his party. Oil prices slid one news that OPEC and Russia will consider hikes in production during a meeting in Vienna, Austria on June 22nd. The news accompanied reports that U.S. production is expected to rise throughout the summer. The price of WTI oil sat at $67.20 per barrel. The Brent crude oil price recovered this morning, adding 1% to hit $76.12. Canadian banks are under pressure this morning over a major breach by cyber criminals. The Bank of Montreal (NYSE: BMO) and the Canadian Imperial Bank of Commerce (NYSE: CM) – the two largest banking institutions in the country – announced that roughly 90,000 customers' data may have been stolen. This would be the first major cybersecurity event to happen in Canada involving financial firms. Three Stocks to Watch Today: CRM, SBUX, MOMO com (NYSE: CRM) will lead a busy day of earnings reports on Wall Street. The cloud computing giant is set to report fiscal first quarter 2019 numbers after the bell on Tuesday. The average analyst projection calls for a 46% jump in EPS of $0.46 on top of a 23% gain in revenue to $2.94 billion. Starbucks' Corporation (Nasdaq: SBUX) will temporarily close about 8,000 locations on Tuesday to train roughly 175,000 employees on racial bias. The training sessions were
• [By Ethan Ryder]

  Canadian Imperial Bank of Commerce (NYSE:CM) (TSE:CM) saw unusually large options trading activity on Monday. Traders acquired 2,517 call options on the stock. This is an increase of approximately 3,772% compared to the typical volume of 65 call options.

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on Canadian Imperial Bank of Commerce (CM)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Best Canadian Stocks To Watch Right Now: China Metro-Rural Holdings Limited(CNR)

Advisors' Opinion:

• [By Shane Hupp]

  Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp cut its position in Canadian National Railway (NYSE:CNI) (TSE:CNR) by 21.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,956,400 shares of the transportation company’s stock after selling 522,300 shares during the period. Canadian National Railway accounts for about 1.7% of Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp’s investment portfolio, making the stock its 7th biggest position. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp owned 0.27% of Canadian National Railway worth $184,215,000 at the end of the most recent reporting period.

• [By Shane Hupp]

  Shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) have been assigned a consensus recommendation of “Buy” from the twenty-two ratings firms that are currently covering the firm, Marketbeat.com reports. Eleven research analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $91.71.

• [By Ethan Ryder]

  State of Tennessee Treasury Department lessened its stake in shares of Canadian National Railway (NYSE:CNI) (TSE:CNR) by 1.6% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 842,775 shares of the transportation company’s stock after selling 13,507 shares during the quarter. State of Tennessee Treasury Department owned about 0.11% of Canadian National Railway worth $61,565,000 as of its most recent filing with the SEC.

Best Canadian Stocks To Watch Right Now: Apollo Gold Corporation(BRD)

Advisors' Opinion:

• [By Max Byerly]

  Bread (CURRENCY:BRD) traded 0% higher against the US dollar during the 24 hour period ending at 0:00 AM E.T. on February 12th. Bread has a market capitalization of $17.44 million and $74,926.00 worth of Bread was traded on exchanges in the last day. In the last week, Bread has traded 6.8% higher against the US dollar. One Bread token can currently be purchased for $0.20 or 0.00005397 BTC on major cryptocurrency exchanges including Cobinhood, OKEx, Tokenomy and Kucoin.

• [By Ethan Ryder]

  Bread (CURRENCY:BRD) traded 10.1% lower against the U.S. dollar during the 24-hour period ending at 15:00 PM ET on May 6th. Bread has a market cap of $73.13 million and approximately $1.09 million worth of Bread was traded on exchanges in the last 24 hours. One Bread token can currently be purchased for about $0.82 or 0.00008683 BTC on popular exchanges including OKEx, Binance and Cobinhood. In the last seven days, Bread has traded 3.3% higher against the U.S. dollar.

• [By Max Byerly]

  Bread (CURRENCY:BRD) traded up 0.8% against the US dollar during the twenty-four hour period ending at 22:00 PM Eastern on September 1st. Over the last week, Bread has traded 3.1% higher against the US dollar. Bread has a market cap of $32.33 million and $367,357.00 worth of Bread was traded on exchanges in the last day. One Bread token can currently be purchased for about $0.36 or 0.00005097 BTC on major cryptocurrency exchanges including Kucoin, Cobinhood, Binance and OKEx.

Best Canadian Stocks To Watch Right Now: NEW GOLD INC.(NGD)

Advisors' Opinion:

• [By Ethan Ryder]

  Commerzbank Aktiengesellschaft FI raised its holdings in shares of New Gold Inc (Pre-Merger) (NYSEAMERICAN:NGD) by 5.3% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,015,289 shares of the basic materials company’s stock after buying an additional 101,852 shares during the period. Commerzbank Aktiengesellschaft FI owned about 0.35% of New Gold Inc (Pre-Merger) worth $4,192,000 at the end of the most recent reporting period.

• [By Paul Ausick]

  New Gold Inc. (NYSEAMERICAN: NGD) dropped about 1.9% Tuesday to post a new 52-week low of $2.09. Shares closed at $2.13 on Monday and the stock’s 52-week high is $4.25. The junior gold miner had no specific news.

• [By Lisa Levin]

  Check out these big penny stock gainers and losers

  Losers Check-Cap Ltd. (NASDAQ: CHEK) fell 23.3 percent to $9.87 in pre-market trading after declining 13.45 percent on Wednesday. SunCoke Energy Partners, L.P. (NYSE: SXCP) fell 12.8 percent to $16.00 in pre-market trading after reporting Q1 results. Briggs & Stratton Corporation (NYSE: BGG) fell 11 percent to $17.55 in pre-market trading after the company posted mixed Q3 results and lowered its FY18 guidance. New Gold Inc. (NYSE: NGD) fell 8.4 percent to $2.30 in pre-market trading following downbeat Q1 results. Quality Care Properties, Inc. (NYSE: QCP) fell 8.2 percent to $20.85 in pre-market trading. Welltower announced plans to acquire QCP for $20.75 per share in cash. China Customer Relations Centers Inc. (NASDAQ: CCRC) shares fell 7.5 percent to $17.25 in pre-market trading after climbing 18.73 percent on Wednesday. Nokia Corporation (NYSE: NOK) shares fell 5.7 percent to $5.58 in pre-market trading after reporting Q1 results. eBay Inc. (NASDAQ: EBAY) fell 5.6 percent to $38.66 in pre-market trading following Q1 results. Southw

Top 5 Dividend Stocks To Invest In Right Now

tags:MMM,ATAX,FFNW,UMH,UPS,

Oracle (NYSE:ORCL) and Manhattan Associates (NASDAQ:MANH) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Risk & Volatility

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Oracle has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

53.4% of Oracle shares are held by institutional investors. 32.0% of Oracle shares are held by company insiders. Comparatively, 1.0% of Manhattan Associates shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Top 5 Dividend Stocks To Invest In Right Now: 3M Company(MMM)

Advisors' Opinion:

• [By Max Byerly]

  3M (NYSE: MMM) and Luminex (NASDAQ:LMNX) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

• [By Lee Samaha]

  The 16% year-to-date dip in the stock price of 3M Company (NYSE:MMM) is naturally going to attract value investors toward the Dividend Aristocrat. After all, the company now sports a near 2.7% dividend yield, and more than 60 years of dividend increases attest to its history of delivering for investors. However, I think the stock is still worth avoiding. Incoming CEO Mike Roman's presentation at the recent Electrical Products Group (EPG) conference did little to dispel fears concerning the company's pricing power -- a key part of its business model. Let's take a look at why, as well as what was discussed at the event.

• [By ]

  My Final Thoughts
  A good company is a well-managed one, period. That's really all you need to know. Examples of well-managed companies are legion. Berkshire Hathaway (NYSE: BRK-B) is among the best. JPMorgan Chase (NYSE: JPM) is another. IBM (NYSE: IBM) and 3M (NYSE: MMM) each belong in the Top Ten.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on 3M (MMM)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Paul Ausick]

  3M Company (NYSE: MMM) traded down 2.03% at $210.02. The stock’s 52-week range is $190.57 to $259.77. Volume was about equal to the daily average of around 2.2 million shares.

Top 5 Dividend Stocks To Invest In Right Now: America First Tax Exempt Investors L.P.(ATAX)

Advisors' Opinion:

• [By Shane Hupp]

  America First Multifamily Investors LP (NASDAQ:ATAX) Director Lisa Y. Roskens bought 5,965 shares of the stock in a transaction that occurred on Monday, August 27th. The shares were purchased at an average price of $5.95 per share, for a total transaction of $35,491.75. Following the purchase, the director now owns 100,069 shares in the company, valued at approximately $595,410.55. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

• [By Joseph Griffin]

  America First Multifamily Investors LP (NASDAQ:ATAX) announced a quarterly dividend on Friday, September 14th, Wall Street Journal reports. Stockholders of record on Friday, September 28th will be given a dividend of 0.125 per share by the financial services provider on Wednesday, October 31st. This represents a $0.50 annualized dividend and a dividend yield of 8.50%. The ex-dividend date is Thursday, September 27th.

• [By Max Byerly]

  Get a free copy of the Zacks research report on America First Multifamily Investors (ATAX)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Stephan Byrd]

  BidaskClub upgraded shares of America First Multifamily Investors (NASDAQ:ATAX) from a strong sell rating to a sell rating in a research report sent to investors on Thursday morning.

• [By Stephan Byrd]

  TheStreet downgraded shares of America First Multifamily Investors (NASDAQ:ATAX) from a b- rating to a c+ rating in a research report released on Friday.

• [By Joseph Griffin]

  Bank of Montreal Can bought a new position in shares of America First Multifamily Investors LP (NASDAQ:ATAX) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 22,500 shares of the financial services provider’s stock, valued at approximately $143,000.

Top 5 Dividend Stocks To Invest In Right Now: First Financial Northwest Inc.(FFNW)

Advisors' Opinion:

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Max Byerly]

  First Financial Northwest (NASDAQ:FFNW) will be announcing its earnings results on Tuesday, July 24th. Analysts expect the company to announce earnings of $0.26 per share for the quarter.

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Logan Wallace]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 5 Dividend Stocks To Invest In Right Now: UMH Properties Inc.(UMH)

Advisors' Opinion:

• [By Logan Wallace]

  Get a free copy of the Zacks research report on UMH PROPERTIES/SH SH (UMH)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Max Byerly]

  Get a free copy of the Zacks research report on UMH PROPERTIES/SH SH (UMH)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Motley Fool Transcribers]

  UMH Properties Inc  (NYSE:UMH)Q4 2018 Earnings Conference CallMarch 08, 2019, 10:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

Top 5 Dividend Stocks To Invest In Right Now: United Parcel Service Inc.(UPS)

Advisors' Opinion:

• [By Paul Ausick]

  United Parcel Service Inc. (NYSE: UPS) said Friday morning that the company has reached a tentative agreement with the Teamsters union on a five-year contract covering union employees involved in small package deliveries. The agreement remains subject to ratification by the UPS employees.

• [By ]

  United Parcel Service Inc. (UPS) posted better-than-expected revenue for the first quarter despite winter weather costs that weighed on operating results. Earnings totaled $1.55 a share, in line with analysts' expectations. Revenue gained 10% annually to $17.1 billion, topping Wall Street predictions.

• [By Adam Levy]

  Amazon is working to reduce shipping expenses by moving more of its logistics and deliveries in-house with Amazon Air and a homegrown network of delivery service providers. On the company's fourth-quarter earnings call, CFO Brian Olsavsky provided some additional details about how Amazon manages its shipments between its own network and partners including FedEx (NYSE:FDX) and UPS (NYSE:UPS).

• [By Lee Samaha]

  The announcement that Amazon.com (NASDAQ:AMZN) is inviting budding entrepreneurs to become Amazon Delivery Service Partners as part of its crowdsourcing delivery model will naturally concern investors in United Parcel Service (NYSE:UPS) and FedEx Corporation (NYSE:FDX). But is it really that big of a threat? In reality, it could turn out to be more of a help than a hindrance and stockholders in the package delivery giants should not be unduly worried. Here are three reasons why.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on United Parcel Service (UPS)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Timothy Green, Neha Chamaria, and Rich Smith]

  There are some companies, though, that have better shots than others at continuing to thrive over the next 12 years. These companies have durable competitive advantages that are unlikely to vanish, making their stocks safer than most. Here's why you should consider Mastercard (NYSE:MA), United Parcel Service (NYSE:UPS), and Boeing (NYSE:BA) if you're looking for safety.

Hold Kewal Kiran Clothing; target of Rs 1415: Sharekhan

Sharekhan's research report on Kewal Kiran Clothing

Our meeting with the CFO of KKCL suggests that the company has taken adequate steps to revive revenue growth (including selling 1/4th garments on sale-or-return basis in north India and improving deliver time from manufacturing to availability of product on retail shelves). However the revival in the revenue growth will be gradual and is expected to remain in the range of 8-10% in the near term. The revamped strategies would not put any stress on OPM (likely to remain at 20%+) and Balance Sheet in the near term.

Outlook

We maintain Hold on the stock of KKCL with unchanged TP of Rs. 1,415 and advise long term investors to stay invested in the stock given its lean balance.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More First Published on Mar 20, 2019 04:11 pm

Maruti Suzuki's slump a bummer for investors; brokerages lose confidence

Maruti Suzuki India, the country's largest car manufacturer, lost its 30 percent market capitalisation in last eight months and underperformed its sector as well as benchmark index.

The stock had hit a life high of Rs 9,922.85 on July 24, 2018, when the market capialisation was nearly Rs 3 lakh crore and now at current market price, it is around Rs 2.09 lakh crore.

In the last eight months, Nifty Auto index plunged close to 20 percent as compared to Nifty's gain of 2.6 percent.

The company management had been saying for last few months that demand would pick up but their strategy including discounts did not work due to lot of issues which directly hit the demand of passenger vehicles.

related news Hotel Leela Venture locked at upper circuit on sale of hotel properties for Rs 3,950 cr Slideshow | Brokerages upgrade these 6 stocks to 'buy' with 7-28% upside Chalet Hotels climbs over 4% after JM Financial initiates coverage with 'buy' call

The demand momentum in the passenger vehicle industry has remained sluggish since September 2018 due to an increase in ownership cost and lack of product launches in the festive season. The successful launches by competitors have led to further pressure on volumes.

NBFC liquidity crisis and muted demand during festive season also hit auto industry.

Mandatory long-term third-party insurance and increasing acquisition costs on new safety norms and stricter Bharat Stage VI emission norms also plagued the stock performance.

As per latest news reports, weak demand has forced the company to cut its production by 26.8 percent in March (considering inventory of around 3540 days), which is in sharp contrast to a positive trend in the past several years.

Sales volume in current financial year (April 2018-February 2019) increased at a slower pace, up 5.3 percent against 13.3 percent growth in same period last year. Domestic sales grew 6.7 percent and exports de-grew 13.8 percent during April-Feb period against 14.3 percent and 1.6 percent, respectively, in corresponding period last year.

When the stock had started to trade around Rs 8,000-9,000 levels, most Indian as well as foreign investors placed the target for the stock in five digits, saying it could cross Rs 10,000 mark but that hasn't happened till now.

The recent release on retail sales growth and dealer inventory by the Federation of Automobile Dealers Associations indicated demand is much grimmer than what analysts highlighted in Dealer check. Key takeaways from the release were 1) retail sales slid 7–10 percent YoY in February across sub-segments, and 2) Inventory days as on 13th March for passenger vehicles (PVs) are 50–60 days.

High inventories and discounts would put margins under pressure across the spectrum.

Edelweiss Securities believes that demand weakness could protract given overall weak income levels, tighter finance availability and lack of new products.

In a weak demand environment, the auto industry may not witness strong pre-buying due to BSVI implementation, which most OEMs are guiding for, it said.

Recently, Kotak Institutional Equities downgraded its rating on the stock to add from buy earlier and also slashed price target to Rs 7,500 from Rs 7,600 apiece after cut in earnings per share estimates.

The domestic passenger vehicle (PV) industry is likely to grow in low single digit (6 percent CAGR over the next two years) due to increase in costs related to stricter safety and emission regulations, it reasoned.

"While Maruti is better-placed and will gain market share, we cut EPS estimates by 4-9 percent for FY2019-21 mainly driven by cut in volume estimates (lower industry growth assumptions) and EBITDA margin forecasts (factoring in lower operating leverage and higher costs related to safety regulations in entry-level models), it said.

While having hold rating on the stock and advising to wait till ground data reverses, Sameer Kalra, Founder & President (Research) at Target Investing told Moneycontrol that Maruti Suzuki stock fall will continue as the company and sector is facing demand slowdown.

"The registrations of passenger cars have reduced by 21 percent MoM in February 2019. This comes post heavy discounts which are near peak discounts and new model launches which are seeing lower response. In addition to this past couple of Uber & Ola were large growth drivers which have slowdown due to financing barriers," he said.

Astha Jain, Senior Research Analyst at Hem Securities also expects the stock to fall further as company is estimated to have cut production to around 1,26,000 units as compared to more than 1,72,000 units a year ago.

"This in turn is signalling the lower demand and will act as a dampener in profitability of company going forward," she said.

In quarter ended December 2018, the company reported a 17 percent YoY decline in profit to Rs 1,489.3 crore dented by adverse commodity prices and forex rates. At operating level, it also reported dismal performance with EBITDA (earnings before interest, tax, depreciation and amortisation) falling 36.4 percent and margin contracted sharply by 600 bps YoY.

Astha said the demand is lower on back of various reasons like in metro cities with growing popularity of Cabs & availability of better public transport, demand of passenger vehicles is lowering down.

Also CY18 being the year of not very good monsoon with IL&FS crisis, NBFC sector has faced serious problems thus impacting auto sector as a whole, she added.

She expects the stock to loose another 5-8 percent from current level before making any base, hence advising investors not to buy at current level.

While maintaining neutral rating with a price target at Rs 7,022, Naveen Kumar Dubey, Research Analyst at Narnolia Financial Advisors said the demand scenario may remain under pressure due to 10-15 percent further increase in cost of ownership because of upcoming safety norms.

Technically, Prashanth Tapse, AVP Research at Mehta Group is negative on the stock, citing bearish pattern on the chart.

"We can see in chart has made a bearish double top pattern and we can also see ADX is below 20 which show that there is no strength in the recent trend, which further confirms that the stock is in consolidating phase and expect to move in sideways range with crucial support near Rs 6,500 & resistance near Rs 7,195," he said.

For long trades it is better to trade in this stock only when its near above support levels, he advised.

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Mar 19, 2019 01:04 pm

Burford Capital (BUR) Given “Sell” Rating at Canaccord Genuity

Burford Capital (LON:BUR)‘s stock had its “sell” rating reaffirmed by analysts at Canaccord Genuity in a note issued to investors on Wednesday. They currently have a GBX 1,543 ($20.16) target price on the stock. Canaccord Genuity’s price objective would suggest a potential downside of 17.49% from the stock’s current price.

Several other research analysts also recently weighed in on the company. Liberum Capital restated a “buy” rating and set a GBX 2,300 ($30.05) target price on shares of Burford Capital in a research note on Friday, January 25th. Numis Securities restated a “buy” rating and set a GBX 2,300 ($30.05) target price on shares of Burford Capital in a research note on Wednesday, December 19th. Finally, Berenberg Bank restated a “buy” rating and set a GBX 2,070 ($27.05) target price on shares of Burford Capital in a research note on Wednesday. One research analyst has rated the stock with a sell rating and four have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of GBX 2,026 ($26.47).

Get Burford Capital alerts:

Shares of BUR stock opened at GBX 1,870 ($24.43) on Wednesday. Burford Capital has a 1-year low of GBX 1,166 ($15.24) and a 1-year high of GBX 2,075 ($27.11). The company has a current ratio of 6.58, a quick ratio of 6.55 and a debt-to-equity ratio of 68.55. The firm has a market cap of $4.09 billion and a P/E ratio of 14.09.

About Burford Capital

Burford Capital Limited is a global finance company focused on law. The Company provides investment capital, investment management, financing and risk solutions with a focus on the litigation and arbitration sector. The Company’s segments include provision of litigation investment, provision of litigation insurance, exploration of new initiatives related to application of capital to the litigation and arbitration sector until such time as those initiatives mature into full-fledged independent segments and investment management activities.

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Why Warren Buffett Thinks JPMorgan's Stock Could Soar

These days, the financial sector seems cheap ... very cheap. Despite the U.S. economy's continued growth, investors appear to be anticipating the end of the 10-year bull market and a subsequent downturn, which would drag financial stocks along with it. Yet the pessimism around banks has attracted at least one famous investor: Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) Chairman and CEO Warren Buffett.

Why is the market worried? Recent interest rate hikes, along with downward projections for U.S. economic growth, have caused the yield curve to flatten. The yield curve is the spread between short-term interest rates and longer-term interest rates. When it narrows, lending becomes less profitable, since banks typically borrow short-term via deposits and lend longer-term. That means banks don't lend -- and a recession could be looming.

As you can see, the yield curve for the 10-year minus 2-year treasuries is still positive, though it has flattened quite a bit over the past year.

10-2 Year Treasury Yield Spread data by YCharts.

But just because the yield curve is flattening doesn't necessarily mean it will go negative, or that we'll have a recession. That seems to be Buffett's position, as the Oracle of Omaha loaded up on bank stocks in Berkshire's portfolio last year, including a new stake in JPMorgan Chase (NYSE:JPM).In a recent interview with CNBC, Buffett gave his reasoning behind the purchase, along with his thoughts on the company's intrinsic value.

Buffett loves big banks. Image source: The Motley Fool.

A checking account that pays 17%?

When asked about the JPMorgan purchase, Buffett said:

You can find a bank like JPMorgan that earns maybe 15%, maybe 17%, even, on net tangible equity. A business that earns 15% or 16% or 17% on net tangible equity, that's incredible in a world of 3% bonds. I mean, just imagine that you had a deposit account with JPMorgan that they made a mistake and they gave you 15% on it. And they couldn't redeem it. What would you sell that account for? You wouldn't sell it for 100 cents on the dollar. You wouldn't sell it for 200 cents on the dollar. You wouldn't even sell it for 300 cents on the dollar. You have an FDIC-guaranteed instrument that would now be at 300 cents on the dollar. If it was 15% on equity, you'd be earning 5% on it, which is way better than treasuries.

What is Buffett saying here exactly? First, he's discussing JPMorgan's incredible return on tangible equity, which is net income divided by this tangible equity figure. Tangible equity is the bank's common equity minus preferred stock, goodwill from acquisitions, and other intangible assets. Essentially, its the bank's loans and cash minus its liabilities.

Last year, the company earned an incredible 17% on tangible common equity. That's a testament to CEO Jamie Dimon's leadership, as well as JPMorgan's competitive advantage as the country's largest bank.

One way to value large, mature banks with steady-state growth is by this formula:

(Return on equity-growth rate) / (cost of equity-growth rate) = price-to-book value

Buffett appears to be making the simple calculation in his head using no growth but rounding down JPMorgan's normalized ROE to 15% and using a low cost of capital of just 5% -- a bit above the 10-year U.S. treasury's yield of 2.63%:

(15%-0%) / (5%-0%) = 3 times book value

Replacing JPMorgan's exact numbers with just a 2% growth rate and, let's say, a more conservative 7% cost of equity, would yield the same figure:

(17%-2%) / (7%-2%) = 3

JPMorgan's current tangible book value is $56.33, so according to this formula, JPMorgan's intrinsic value would be a whopping $169 per share, more than 60% higher than today's price of $105.

But wait, there's more

While most would take a nice 60% return, it's possible this figure could actually be conservative. That's because JPMorgan isn't done growing just yet. Last year, JPMorgan grew revenue over 8%, and it recently unveiled a new growth initiative to open 90 branches in underpenetrated markets in 2019.

Growing above steady-state GDP growth could yield an even higher value in Buffett's eyes:

If, on top of that, your deposit allows you to let your interest compound to some extent, now, that instrument becomes even worth way more. Because if you have an instrument that could compound at 15% for 10 years and use the added capital, that's worth way more than three times tangible equity at current interest rates, way more.

Risks to the rosy outlook

Of course, there is nothing automatic about Buffett's take or the valuation above. Buffett's rough cost of equity of 5% appears to assume JPMorgan is nearly as safe as a 3% treasury note, which is backed by the U.S. government. While the government insures FDIC deposits, it doesn't insure stockholders of banks -- though the banks are much, much safer now than they were before the financial crisis.

In addition, banks received a huge boost from the government due to last year's Tax Cuts and Jobs Act, which dropped the federal corporate tax from 35% to 21%, boosting the earnings of all banks. Should the Democrats sweep the White House and Congress in 2020, it's possible that could be clawed back somewhat.

Nevertheless, JPMorgan is just about as well-managed a bank as they come. While it's not exactly going out on a limb, I'd lean toward Buffett's take on this one: JPMorgan is a buy.

Investors Buy Shares of iShares MSCI Switzerland ETF (EWL) on Weakness

Investors bought shares of iShares MSCI Switzerland ETF (NYSEARCA:EWL) on weakness during trading hours on Tuesday. $27.32 million flowed into the stock on the tick-up and $2.49 million flowed out of the stock on the tick-down, for a money net flow of $24.83 million into the stock. Of all companies tracked, iShares MSCI Switzerland ETF had the 15th highest net in-flow for the day. iShares MSCI Switzerland ETF traded down ($0.05) for the day and closed at $34.39

A number of large investors have recently modified their holdings of the business. Assetmark Inc. lifted its position in iShares MSCI Switzerland ETF by 3.4% during the 3rd quarter. Assetmark Inc. now owns 1,684,902 shares of the exchange traded fund’s stock worth $58,449,000 after buying an additional 54,680 shares in the last quarter. JPMorgan Chase & Co. lifted its position in iShares MSCI Switzerland ETF by 62.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,387,798 shares of the exchange traded fund’s stock worth $48,142,000 after buying an additional 532,660 shares in the last quarter. Wells Fargo & Company MN lifted its position in iShares MSCI Switzerland ETF by 11.5% during the 3rd quarter. Wells Fargo & Company MN now owns 1,376,459 shares of the exchange traded fund’s stock worth $47,749,000 after buying an additional 141,609 shares in the last quarter. Envestnet Asset Management Inc. lifted its position in iShares MSCI Switzerland ETF by 299.2% during the 3rd quarter. Envestnet Asset Management Inc. now owns 924,384 shares of the exchange traded fund’s stock worth $32,067,000 after buying an additional 692,822 shares in the last quarter. Finally, 1607 Capital Partners LLC lifted its position in iShares MSCI Switzerland ETF by 28.2% during the 4th quarter. 1607 Capital Partners LLC now owns 626,051 shares of the exchange traded fund’s stock worth $19,733,000 after buying an additional 137,900 shares in the last quarter.

TRADEMARK VIOLATION WARNING: “Investors Buy Shares of iShares MSCI Switzerland ETF (EWL) on Weakness” was reported by Ticker Report and is the property of of Ticker Report. If you are reading this report on another publication, it was stolen and republished in violation of U.S. & international copyright and trademark legislation. The correct version of this report can be viewed at https://www.tickerreport.com/banking-finance/4216548/investors-buy-shares-of-ishares-msci-switzerland-etf-ewl-on-weakness.html.

About iShares MSCI Switzerland ETF (NYSEARCA:EWL)

iShares MSCI Switzerland Capped ETF (the Fund), formerly iShares MSCI Switzerland Capped Index Fund, is an exchange-traded fund (ETF). The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Switzerland 25/50 Index (the Index).

See Also: P/E Growth (PEG)

E.ON SE Sponsored ADR (Germany) (EONGY) Downgraded by Zacks Investment Research

E.ON SE Sponsored ADR (Germany) (OTCMKTS:EONGY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

According to Zacks, “E.ON AG is the world’s largest investor-owned energy service provider with operations in the following businesses: energy, chemicals, real estate, oil, telecommunications, distribution/logistics, aluminum and silicon wafers. “

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Other equities analysts also recently issued reports about the stock. Jefferies Financial Group downgraded shares of E.ON SE Sponsored ADR (Germany) from a “hold” rating to an “underperform” rating in a report on Wednesday, February 6th. JPMorgan Chase & Co. downgraded shares of E.ON SE Sponsored ADR (Germany) from an “overweight” rating to a “neutral” rating in a report on Monday, March 4th. Two equities research analysts have rated the stock with a sell rating and four have issued a hold rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $11.00.

Shares of EONGY stock traded up $0.14 on Monday, hitting $11.05. The stock had a trading volume of 67,373 shares, compared to its average volume of 109,523. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.84 and a quick ratio of 1.78. The company has a market capitalization of $23.92 billion, a P/E ratio of 14.73, a PEG ratio of 1.87 and a beta of 1.05. E.ON SE Sponsored ADR has a one year low of $9.48 and a one year high of $11.68.

E.ON SE Sponsored ADR (Germany) Company Profile

E.ON SE operates as an energy company in Germany, the United Kingdom, Romania, Hungary, the Czech Republic, Sweden, the United States, Poland, Italy, Denmark, and internationally. It operates through three segments: Energy Networks, Customer Solutions, and Renewables. The company provides power and gas distribution networks and related services; and distributes energy solutions to residential customers, small and medium sized enterprises, large commercial and industrial customers, and public entities.

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Money and Marriage: 6 Steps to Talking Family Finances With Your Spouse

Some of us like wine tasting with our spouses. Some of us enjoy kayaking. But hardly any of us love a good couples' chat about finances. In fact, a Wells Fargo survey found that for Americans, money is the No. 1 most difficult topic to discuss -- even harder than death, politics, or religion. Yet a TD Bank survey found 90% of couples who say they are in a happy relationship talk about money once a month, whereas 68% of unhappy couples say they discuss it less often.

Clearly talking about money is part of a healthy relationship -- so why don't more couples discuss their dollars and cents? The answer is complicated. Gender differences have a little to do with it; the Wells Fargo survey found that half of the women who responded said it was difficult to talk with others about personal finances, versus 38% of men.

Debt is a factor, too. A Ramsey Solutions survey found that the more debt a couple had, the more likely they were to fight. Not talking about credit-card debt can also lead to sneaky behavior; in a separate study, 32% of respondents said they've hidden their credit card debt from their significant others. That can't be good for a marriage.

Money is a complicated topic, and we understand the impulse to avoid it rather than face a potential fight. But happy couples do talk about the family finances more regularly than unhappy couples do. Reaching the same page about this sensitive topic is worth the investment, so here are six steps to talking with your spouse about money without ending up yelling at each other (we hope). 

Don't let difficult conversations about money get between you and a happy marriage. Source: Getty Images.

1. Set the stage

With any hefty topic, it's best to dig in when both partners feel ready. No one likes to talk shop when they come home from a long day at work, tired and hungry. Some suggest setting and preparing for a "money date" -- a night earmarked for the discussion of your finances, free from the distractions of TV, kids, cell phones, and the like. Some may want to get out of the house and make this a true date night, while others may find it easier at home. Either way, I suggest opening a bottle of red wine. 

2. Ease into the conversation

If you anticipate that the discussion might get contentious, Trent Hamm from the Simple Dollar money blog suggests admitting faults first. This is a good way to acknowledge that none of us is perfect; it's like saying, "It's not you, it's me." If you feel your spouse is spending too much money, take a look at the budget over the past few months -- there may be things you splurged on as well. Admit that you have your own flaws, and understand that everyone has a different relationship with money, one that comes from their individual background and has been forged over many years. As with any important topic worth discussing, when it comes to money, it's best to be patient.

3. Find commonality

A difficult conversation will go more smoothly if you can find common ground. Start off by posing questions; asking "When do you want to retire?" "Where should we live in retirement?" or "Where will the kids go to college?" will help get you both thinking about the same things. Try to get specific with your answers: "I want to retire in 15 years," "I think the kids should go to public college instead of private." This will help make the goals more realistic. Finally, write the goals down so you can both reference them at your next money date.

4. Look at the numbers -- but don't point fingers

It helps if you have prepared a balance sheet and can both look it over. This is a great next step, as it ensures both spouses are aware of the complete family picture. Credit-card balances, mortgage debt, car loans, student loans, investment accounts, and college accounts should all be listed and put out in the open for both partners to see.

Be careful not to judge or make comments if, for instance, one spouse has all the debt in their name. This will quickly shut down the conversation. Instead, have another glass of wine and talk about the good things you've accomplished so far, like how much you have saved or the progress you are making toward paying down a debt. 

5. Start planning

Now that the numbers are out in the open and the goals are clearly articulated, it's time to have some fun and start planning! Goals should be shared, so it's best to talk in terms of "we," not "you." If one person has student debt to pay back, the question is "How can we pay off the debt faster?" or "Where can we save in other places to help pay down the loan?" Talking in terms of "we" makes it a team venture, and there's greater buy-in when both partners feel that they are in it together. 

There are several free financial calculators online that can help you get an idea of how much to save for a specific goal and show how paying down debt faster saves you money.

6. Set another date

Assuming you both survived the first money date unscathed and the bottle of red is empty, it's now time to schedule the next meeting. I try to do this once a quarter with my spouse. If you're just having this conversation for the first time, then maybe try once a month till you gain some traction. I find reviewing the balance sheet is an extremely useful tool that helps guide the conversation. It's also good to keep it light and recognize that however daunting any goal may seem, it all starts with communication.

Money shouldn't be a taboo topic for couples. It's too important not to discuss. If you approach it the right way -- by not judging, setting common goals, talking in terms of "we," and having regular conversations over time -- talking about money may get easier and lead to a more enriching marriage, in more ways than one. I'll drink to that. 

4 Tax Breaks Seniors Don't Want to Miss

Everyone wants to pay as little as possible in taxes, but reducing tax liability is of special concern for seniors, many of whom are retired and living on fixed-income.

Fortunately, the government offers tax breaks to help older folks hold onto more of their hard-earned cash. Here are four tax deductions and credits every retiree needs to know about.

Image Source: Getty Images

1. Larger standard deduction

Most people take the standard deduction rather than itemizing deductions -- or listing all their qualified deductions individually -- when filing their taxes. The standard deduction is a set dollar amount that you can subtract from your taxable income, based on your filing status. For most people, taking the standard deduction offers a better deal on your taxes than itemizing the deductions you're claiming.

Here are the standard deductions for each tax filing status:

Tax Filing Status

Standard Deduction for 2018

Single	$12,000
Head of household	$18,000
Married filing jointly	$24,000
Married filing separately	$12,000
Qualifying widow(er)	$24,000

Data source: Internal Revenue Service.

Adults who are 65 and older get an extra $1,600 added to their standard deduction if they're filing as single, head of household, or married filing separately. Married couples filing jointly may add another $1,300 for each spouse who is 65 or older, as can qualified widow(er)s. You must be at least 65 on Jan. 1, 2019, to qualify for this larger standard deduction for the 2018 tax year. This higher standard deduction reduces your taxable income, so you pay taxes on a smaller base amount, keeping more of your money.

2. Higher tax filing threshold

A higher tax filing threshold is not a tax break per se, but it may still help you save. You are required to file a tax return if you earned more than the standard deduction for your filing status. Because seniors have higher standard deductions, they can earn more money before being triggering the need to file a tax return.

Remember, taxable income includes money withdrawn from tax-deferred retirement accounts, and it may include your Social Security benefits, based on the result of the Social Security earnings test. This means your benefits may be taxed if your combined income -- your gross income, minus any tax deductions you qualify for, plus nontaxable interest and half of your Social Security benefits -- exceeds $25,000 for single adults or $32,000 for married couples.

If you're unsure whether you need to file a tax return, consult a tax professional or consider filing a return anyway. This is smart if you've had taxes withheld from your paychecks throughout the year or you qualify for refundable tax credits, like the Earned Income Tax Credit for low-income families, because you may get a nice refund back.

3. Tax Credit for the Elderly or Disabled

The Tax Credit for the Elderly or Disabled is worth anywhere from $3,750 to $7,500 for seniors 65 and older in 2018. This is a tax credit, not a tax deduction, so rather than reducing your taxable income, it reduces your tax liability dollar for dollar. So if you owe $5,000 in taxes and you qualify for a $5,000 tax credit, the two cancel each other out and you won't owe anything. You must be at least 65 by the end of the tax year in order to qualify for this credit.

The value of the credit will depend on your tax filing status and your income from other sources. You can calculate yours by following the instructions on the IRS Schedule R Form or by using its Interactive Tax Assistant tool. This is a nonrefundable tax credit, which means that you won't get any money back from the government if the credit you qualify for is larger than the amount you owe.

4. Catch-up contributions

Young working adults may contribute up to $19,000 to a 401(k) and $6,000 to an IRA in 2019. These limits are up slightly from $18,500 for 401(k)s and $5,500 for IRAs in 2018. But in either year, adults 50 and older are allowed to contribute an extra $6,000 to a 401(k) or $1,000 to an IRA. These are known as catch-up contributions, and they can help you increase your retirement savings and possibly reduce your taxes as well if you are closer to retirement.

Contributions to tax-deferred retirement accounts, like traditional IRAs and 401(k)s, reduce your taxable income in the tax year you make it. So if your salary was $50,000 last year and you contributed $5,000 to a 401(k), your taxable income would only be $45,000. By taking advantage of catch-up contributions to these accounts, not only do you increase your nest egg, but you also qualify for a bigger tax deduction this year.

Contributions to Roth 401(k)s and Roth IRAs will not reduce your taxable income for the year. The tradeoff is that you won't pay any taxes on Roth distributions in retirement like you will with tax-deferred retirement accounts. Stick to tax-deferred traditional 401(k)s and IRAs if you want to take advantage of the tax deduction this year.

If you use software to file your taxes or if you hire an accountant, you shouldn't worry about determining which tax deductions and credits you qualify for, or how much they're worth. But it still pays to understand the tax breaks that are available to seniors because you may want to modify your behavior, like increasing your tax-deductible retirement contributions, to reduce what you owe even further.

Okta’s (OKTA) Buy Rating Reaffirmed at Canaccord Genuity

Okta (NASDAQ:OKTA)‘s stock had its “buy” rating reiterated by research analysts at Canaccord Genuity in a note issued to investors on Friday, The Fly reports. They presently have a $85.00 price objective on the stock, up from their prior price objective of $75.00. Canaccord Genuity’s target price would indicate a potential upside of 4.67% from the stock’s previous close. The analysts noted that the move was a valuation call.

A number of other brokerages have also recently weighed in on OKTA. SunTrust Banks cut Okta from a “buy” rating to a “hold” rating and upped their price objective for the stock from $74.00 to $90.00 in a research note on Monday. They noted that the move was a valuation call. Morgan Stanley assumed coverage on Okta in a research note on Monday, February 4th. They set an “equal weight” rating and a $85.00 price objective for the company. Zacks Investment Research cut Okta from a “hold” rating to a “sell” rating in a research note on Tuesday, February 5th. Needham & Company LLC upped their price objective on Okta from $75.00 to $96.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Robert W. Baird restated a “hold” rating on shares of Okta in a research note on Friday. Four research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Okta has an average rating of “Buy” and an average price target of $77.44.

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Shares of NASDAQ OKTA opened at $81.21 on Friday. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.69 and a quick ratio of 2.69. The firm has a market cap of $9.30 billion, a P/E ratio of -59.28 and a beta of 1.25. Okta has a 1-year low of $37.21 and a 1-year high of $87.72.

Okta (NASDAQ:OKTA) last issued its quarterly earnings data on Wednesday, December 5th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.24. The firm had revenue of $105.58 million during the quarter, compared to analysts’ expectations of $96.81 million. Okta had a negative return on equity of 48.01% and a negative net margin of 33.02%. As a group, equities analysts forecast that Okta will post -1.05 EPS for the current fiscal year.

In other Okta news, CFO William E. Losch sold 20,000 shares of the stock in a transaction dated Monday, December 17th. The stock was sold at an average price of $62.07, for a total value of $1,241,400.00. Following the completion of the sale, the chief financial officer now directly owns 20,000 shares in the company, valued at $1,241,400. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Benjamin A. Horowitz sold 35,669 shares of the stock in a transaction dated Friday, February 15th. The shares were sold at an average price of $84.64, for a total value of $3,019,024.16. Following the completion of the transaction, the director now directly owns 11,765 shares in the company, valued at $995,789.60. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,408,272 shares of company stock valued at $95,470,066. 20.59% of the stock is currently owned by company insiders.

Several hedge funds have recently made changes to their positions in OKTA. FMR LLC increased its holdings in shares of Okta by 27.5% in the fourth quarter. FMR LLC now owns 9,265,547 shares of the company’s stock valued at $591,143,000 after purchasing an additional 1,996,090 shares during the period. Renaissance Technologies LLC increased its holdings in shares of Okta by 2,210.1% in the third quarter. Renaissance Technologies LLC now owns 1,298,300 shares of the company’s stock valued at $91,348,000 after purchasing an additional 1,242,100 shares during the period. FIL Ltd acquired a new position in shares of Okta in the third quarter valued at about $75,914,000. Norges Bank acquired a new position in shares of Okta in the fourth quarter valued at about $53,106,000. Finally, Morgan Stanley increased its holdings in shares of Okta by 49.3% in the third quarter. Morgan Stanley now owns 2,256,056 shares of the company’s stock valued at $158,736,000 after purchasing an additional 744,738 shares during the period. 62.54% of the stock is currently owned by institutional investors and hedge funds.

About Okta

Okta, Inc provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for Web and mobile applications, and data of organization; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; and Mobility Management, which simplifies and automates mobile device administration and provisioning across phones, tablets, and laptops.

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Top 10 Penny Stocks For 2019

tags:SSBI,NICK,UBOH,RIG,NRG,FFNW,SAFM,NYMT,PTI,SMSI,

The phenomenon of "fake news" has infected some well-known investing websites. The Securities and Exchange Commission has brought civil fraud charges against 27 companies and individuals involved in stock-promotion schemes that played out on popular sites, such as Ben­zinga, Seeking Alpha and Wall Street Cheat Sheet. The SEC alleges that public companies used intermediaries to pay writers to post bullish articles without disclosing that they were paid for. More than 250 such articles "specifically included false statements that the writers had not been com­pensated by the companies they were writing about," says the SEC.

See Also: Test Your Investing IQ

To avoid being duped by phony advice, investigate before you invest. If a writer claims to be an investment professional, search on Investor.gov to view his or her credentials, says Lori Schock, director of the SEC's Office of Investor Education. And even if you trust the author, says Schock, thoroughly research any stock you're considering, especially thinly traded "penny stocks," which are more susceptible to promotion schemes. The SEC's Edgar database provides free access to corporate filings, such as quarterly and annual reports.

Top 10 Penny Stocks For 2019: Summit State Bank(SSBI)

Advisors' Opinion:

• [By Max Byerly]

  ValuEngine upgraded shares of Summit State Bank (NASDAQ:SSBI) from a hold rating to a buy rating in a research note released on Saturday.

  Separately, TheStreet raised Summit State Bank from a c+ rating to a b rating in a report on Wednesday, February 14th.

Top 10 Penny Stocks For 2019: Nicholas Financial Inc.(NICK)

Advisors' Opinion:

• [By Stephan Byrd]

  Nicholas Financial (NASDAQ: NICK) and CPI Card Group (NASDAQ:PMTS) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

• [By Ethan Ryder]

  Nicholas Financial (NASDAQ: NICK) and Encore Capital Group (NASDAQ:ECPG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

• [By Max Byerly]

  CPI Card Group (NASDAQ: PMTS) and Nicholas Financial (NASDAQ:NICK) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

• [By Max Byerly]

  Nicholas Financial, Inc. (NASDAQ:NICK) major shareholder Adam K. Peterson acquired 5,500 shares of the company’s stock in a transaction that occurred on Thursday, August 9th. The shares were acquired at an average cost of $10.80 per share, for a total transaction of $59,400.00. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Major shareholders that own 10% or more of a company’s stock are required to disclose their transactions with the SEC.

• [By Logan Wallace]

  Nicholas Financial (NASDAQ: NICK) and Encore Capital Group (NASDAQ:ECPG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Top 10 Penny Stocks For 2019: United Bancshares Inc.(UBOH)

Advisors' Opinion:

• [By Logan Wallace]

  United Bancshares Inc. OH (NASDAQ:UBOH) and Bank of America (NYSE:BAC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Top 10 Penny Stocks For 2019: Transocean Inc.(RIG)

Advisors' Opinion:

• [By Logan Wallace]

  American International Group Inc. grew its position in shares of Transocean LTD (NYSE:RIG) by 7.7% during the 1st quarter, HoldingsChannel.com reports. The institutional investor owned 872,019 shares of the offshore drilling services provider’s stock after buying an additional 62,611 shares during the quarter. American International Group Inc.’s holdings in Transocean were worth $8,633,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

• [By The Ticker Tape]

  TD Ameritrade clients appeared to take some profits in multiple names during the period. Oil companies were popular sells with ConocoPhillips (NYSE: COP), BP  PLC (ADR) (NYSE: BP), National-Oilwell Varco Inc. (NYSE: NOV), and Transocean LTD (NYSE: RIG) all net sold. Oil prices traded near three-year highs on higher global demand and possible OPEC-led production cuts. COP and BP both traded at multi-year highs, while NOV and RIG reached 52-week highs, enticing clients to take profits in all four names. Alcoa Corp. (NYSE: AA) traded at levels not seen since before the financial crisis following proposed tariffs on steel and aluminum, and was net sold. For the third month in a row, Facebook, Inc. (NASDAQ: FB) was net sold after CEO Mark Zuckerberg testified before Congress regarding the misuse of user data and a beat on earnings.

• [By Stephan Byrd]

  An issue of Transocean LTD (NYSE:RIG) debt rose 2.5% against its face value during trading on Wednesday. The high-yield debt issue has a 6.8% coupon and will mature on March 15, 2038. The bonds in the issue are now trading at $85.45. Price moves in a company’s debt in credit markets sometimes anticipate parallel moves in its share price.

• [By Jason Hall]

  So what's an investor to do? Owning the companies best-positioned to profit is a great place to start. Consider two of Big Oil's finest in Royal Dutch Shell plc (ADR) (NYSE:RDS-A)(NYSE:RDS-B) and Total SA (ADR) (NYSE:TOT), offshore driller Transocean LTD (NYSE:RIG) and natural gas for transportation specialist Clean Energy Fuels Corp (NASDAQ:CLNE).

Top 10 Penny Stocks For 2019: NRG Energy Inc.(NRG)

Advisors' Opinion:

• [By Lee Jackson]

  This stock has made a nice run off the lows, but it may hold solid upside for aggressive accounts. NRG Energy Inc. (NYSE: NRG) is an integrated independent power producer that owns and operates 27 gigawatts (GW) of conventional and renewable generating capacity in the United States and serves 3 million retail customers in Texas and the Northeast.

• [By Shane Hupp]

  State of Wisconsin Investment Board cut its holdings in shares of NRG Energy Inc (NYSE:NRG) by 12.8% in the 2nd quarter, Holdings Channel reports. The firm owned 61,614 shares of the utilities provider’s stock after selling 9,051 shares during the quarter. State of Wisconsin Investment Board’s holdings in NRG Energy were worth $1,892,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

• [By Shane Hupp]

  Energi (CURRENCY:NRG) traded 3.8% lower against the dollar during the 24-hour period ending at 22:00 PM Eastern on February 2nd. Energi has a market cap of $9.51 million and approximately $100,521.00 worth of Energi was traded on exchanges in the last day. One Energi coin can currently be bought for approximately $0.76 or 0.00021720 BTC on major cryptocurrency exchanges including CoinExchange, Cryptopia and CryptoBridge. In the last seven days, Energi has traded down 9.3% against the dollar.

• [By Matthew DiLallo]

  Shares of NRG Energy Inc. (NYSE:NRG) rose 10.9% in August, buoyed by its second-quarter results and an analyst upgrade.

  So what

  "Our business performed exceptionally well during the second quarter," stated CEO Mauricio Gutierrez in the company's earnings press release. Driving that view is that income from continuing operations rose from $99 million in the year-ago period to $121 million in this year's second quarter. Powering the company's improvement was its retail segment, where adjusted EBITDA came in at $298 million, which was $94 million higher than the second quarter of last year. The company's generation business also delivered stronger results as adjusted EBITDA rose $45 million to $197 million. Those dual fuels enabled the company to reaffirm its full-year outlook for adjusted EBITDA between $2.8 billion to $3 billion.

• [By Shane Hupp]

  ValuEngine upgraded shares of NRG Energy (NYSE:NRG) from a hold rating to a buy rating in a report published on Saturday morning.

  A number of other research firms also recently issued reports on NRG. Citigroup downgraded shares of NRG Energy from a buy rating to a neutral rating and set a $33.00 price target on the stock. in a research note on Monday, July 30th. Zacks Investment Research downgraded shares of NRG Energy from a strong-buy rating to a hold rating in a research note on Tuesday, June 26th. Macquarie upped their target price on shares of NRG Energy from $40.00 to $41.00 and gave the stock an outperform rating in a research note on Thursday, September 20th. Finally, Bank of America upped their target price on shares of NRG Energy from $40.00 to $42.00 and gave the stock a buy rating in a research note on Thursday, September 27th. One analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average target price of $37.00.

• [By Jon C. Ogg]

  NRG Energy Inc. (NYSE: NRG) was started with a Buy rating and assigned a $37 price objective (versus a $33.15 close) at Merrill Lynch.

  Oasis Petroleum Corp. (NYSE: OAS) was reiterated as Overweight and the target price was raised to $17 from $13 at Morgan Stanley.

Top 10 Penny Stocks For 2019: First Financial Northwest Inc.(FFNW)

Advisors' Opinion:

• [By Max Byerly]

  First Financial Northwest (NASDAQ:FFNW) will be announcing its earnings results on Tuesday, July 24th. Analysts expect the company to announce earnings of $0.26 per share for the quarter.

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Logan Wallace]

  Get a free copy of the Zacks research report on First Financial Northwest (FFNW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Penny Stocks For 2019: Sanderson Farms Inc.(SAFM)

Advisors' Opinion:

• [By Ethan Ryder]

  Shares of Sanderson Farms, Inc. (NASDAQ:SAFM) have been assigned an average rating of “Hold” from the thirteen brokerages that are currently covering the company, MarketBeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $111.75.

• [By Lisa Levin]

  Check out these big penny stock gainers and losers

  Losers Recro Pharma, Inc. (NASDAQ: REPH) fell 50.3 percent to $6.17 in pre-market trading after the company received a Complete Response Letter from the FDA. The FDA declined to approve the company’s New Drug Application for IV meloxicam. Westell Technologies, Inc. (NASDAQ: WSTL) shares fell 16.5 percent to $2.89 in pre-market trading after the company announced Q4 results. Melinta Therapeutics, Inc. (NASDAQ: MLNT) fell 16.5 percent to $5.20 in pre-market trading after reporting pricing of public offering of common stock. Westmoreland Resource Partners, LP (NYSE: WMLP) fell 11 percent to $3.49 in pre-market trading after surging 194.03 percent on Wednesday. Petróleo Brasileiro S.A. - Petrobras (NYSE: PBR) shares fell 11 percent to $13.45 in pre-market trading. Petrobras announced plans to lower the cost of diesel by 10 percent. Sanderson Farms, Inc. (NASDAQ: SAFM) shares fell 9.4 percent to $97 in pre-market trading after the company reported weaker-than-expected results for its second quarter. Zealand Pharma A/S (NASDAQ: ZEAL) fell 6.9 percent to $15.55 in pre-market trading after rising 2.71 percent on Wednesday. L Brands, Inc. (NYSE: LB) shares fell 6.7 percent to $31.76 in pre-market trading after the company reported weaker-than-expected earnings for its first quarter. The company issued weak second quarter and FY18 earnings guidance. ReTo Eco-Solutions, Inc. (NASDAQ: RETO) shares fell 5.9 percent to $4.78 in pre-market trading. Qiwi plc (NASDAQ: QIWI) fell 5.9 percent to $17.52 in pre-market trading. Eiger Biopharmaceuticals Inc (NASDAQ: EIGR) fell 5 percent to $13.25 in pre-market trading after reporting a proposed offering of common stock. Best Buy Co Inc (NYSE: BBY) shares fell 4.3 percent to $72.66 in pre-market trading. Best Buy reported better-than-expected earnings for its first quarter. NetApp Inc. (NASDAQ: NTAP) fell 4.1 percent to $64.
• [By Max Byerly]

  State of Wisconsin Investment Board lessened its holdings in shares of Sanderson Farms, Inc. (NASDAQ:SAFM) by 28.2% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 12,700 shares of the company’s stock after selling 5,000 shares during the quarter. State of Wisconsin Investment Board owned about 0.06% of Sanderson Farms worth $1,335,000 at the end of the most recent reporting period.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Sanderson Farms (SAFM)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Penny Stocks For 2019: New York Mortgage Trust Inc.(NYMT)

Advisors' Opinion:

• [By Ethan Ryder]

  Bank of New York Mellon Corp cut its position in shares of NY Mtg Tr Inc/SH (NASDAQ:NYMT) by 2.1% during the 2nd quarter, according to the company in its most recent filing with the SEC. The firm owned 1,265,207 shares of the real estate investment trust’s stock after selling 27,565 shares during the quarter. Bank of New York Mellon Corp owned 1.13% of NY Mtg Tr Inc/SH worth $7,604,000 as of its most recent filing with the SEC.

• [By Max Byerly]

  ValuEngine cut shares of NY Mtg Tr Inc/SH (NASDAQ:NYMT) from a hold rating to a sell rating in a report issued on Thursday morning.

  Several other research firms also recently commented on NYMT. LADENBURG THALM/SH SH downgraded shares of NY Mtg Tr Inc/SH from a buy rating to a neutral rating in a research note on Monday, August 6th. BidaskClub downgraded shares of NY Mtg Tr Inc/SH from a hold rating to a sell rating in a research note on Saturday, September 15th. Zacks Investment Research upgraded shares of NY Mtg Tr Inc/SH from a sell rating to a hold rating in a research note on Wednesday, July 25th. Finally, Maxim Group restated a buy rating and issued a $6.75 price target (up previously from $6.25) on shares of NY Mtg Tr Inc/SH in a research note on Friday, August 3rd. One investment analyst has rated the stock with a sell rating, six have given a hold rating and one has issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $6.35.

• [By Shane Hupp]

  NY MTG TR INC/SH (NASDAQ:NYMT) has been given a consensus recommendation of “Hold” by the seven research firms that are covering the company, MarketBeat reports. Five investment analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $6.38.

• [By Logan Wallace]

  SOTHERLY HOTELS/SH SH (NASDAQ:SOHO) and NY Mtg Tr Inc/SH (NASDAQ:NYMT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on NY Mtg Tr Inc/SH (NYMT)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Penny Stocks For 2019: Patni Computer Systems Limited(PTI)

Advisors' Opinion:

• [By Chris Lange]

  Proteostasis Therapeutics Inc. (NASDAQ: PTI) saw its shares slide early on Thursday after the company reported that it had positive data from its early stage trial in cystic fibrosis (CF). These results come from the firm's ongoing Phase 1 dosing study of PTI-801 in CF patients on background Orkambi (lumacaftor/ivacaftor) therapy.

Top 10 Penny Stocks For 2019: Smith Micro Software Inc.(SMSI)

Advisors' Opinion:

• [By Ethan Ryder]

  Connecture (OTCMKTS: CNXR) and Smith Micro Software (NASDAQ:SMSI) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

• [By Stephan Byrd]

  These are some of the news stories that may have impacted Accern’s scoring:

  Get Smith Micro Software alerts: Short Interest in Smith Micro Software (SMSI) Increases By 51.9% (americanbankingnews.com) Smith Micro Software’s (SMSI) CEO Bill Smith on Q1 2018 Results – Earnings Call Transcript (seekingalpha.com) Smith Micro Software (SMSI) Reports Q1 Loss of $0.10 (streetinsider.com) Smith Micro Reports First Quarter 2018 Financial Results (finance.yahoo.com) Smith Micro announces above market USD 7.0m private placement offering (financial-news.co.uk)

  Separately, ValuEngine upgraded shares of Smith Micro Software from a “sell” rating to a “hold” rating in a report on Friday, February 2nd.

• [By Shane Hupp]

  Okta (NASDAQ: OKTA) and Smith Micro Software (NASDAQ:SMSI) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

The Average Social Security Benefit Won't Even Cover Rent in These 8 States

For nearly eight decades, Social Security has been a financial rock for our nation's retired workforce. Today, according to an analysis conducted by the Center on Budget and Policy Priorities, more than a third of all beneficiaries (including survivors of deceased workers and the long-term disabled) are lifted out of poverty solely as a result of their guaranteed monthly payouts.

However, it's also a program that beneficiaries tend to lean on much more than they should. At last check, the Social Security Administration (SSA) found that 62% of retired workers were deriving at least half of their monthly income from Social Security, with 34% netting 90% to 100% of their income from the program.

Image source: Getty Images.

Trusting in Social Security as a primary income source is dangerous

This overreliance on Social Security is worrisome for two reasons. First, Social Security is in some pretty deep trouble over the long run. Since 1985, the Social Security Board of Trustees' annual report has been cautioning that the program wouldn't generate enough long-term revenue -- "long-term" is defined as the next 75 years -- to cover expenditures. In simpler terms, the program is going to spend way more money by issuing benefits to eligible recipients than it's going to collect from its payroll tax on earned income, the taxation of benefits, and interest income on its nearly $2.9 trillion in asset reserves.

Possibly beginning in 2019 or sometime very soon, Social Security will expend more than it collects for the first time since 1982. Ongoing demographic changes that include the retirement of baby boomers, increased longevity over many decades, lower fertility rates, and growing income inequality are all playing a role in weakening Social Security and making the current payout schedule unsustainable. Assuming the Trustees' forecast is correct, the program will have burned through its asset reserves by 2034. If Congress does nothing to raise additional revenue, this could lead to a 21% across-the-board benefit cut for then-current and future retirees.

Secondly, even if lawmakers come to the rescue of the program, just as they did in 1983, it doesn't change the fact that the average Social Security benefit isn't all that impressive on a nominal basis. As of January 2019, per the SSA, the average beneficiary -- which includes all 63 million beneficiaries and not just retired workers -- was receiving $1,344.38 per month, or $16,132.56 per year. That's only 29% more than the federal poverty level in 2019, or $12,490 for a single individual. If this is your sole source of income as a senior, you could seriously struggle to make ends meet. 

Image source: Getty Images.

Where you live matters

Of course, where you live can play a big role in determining how far your Social Security dollars will stretch -- in more ways than one.

For example, owning your own home and having that home paid off before entering retirement is often a big weight lifted off the shoulders of senior citizens. However, more than 15% of seniors over the age of 65 today are renting, but a separate study from national mortgage banker American Financing found that 44% of seniors between the ages of 60 and 70 are still paying a mortgage when they retire. Chances are that $1,344.38 per month for the typical beneficiary isn't going to get you very far.

According to data released earlier this year by apartment research site Abodo, national median rent in the country for a one-bedroom apartment hit $1,025 in 2018. This means 76% of the average Social Security benefit is being gobbled up by rent on the national level. When broken down further, eight states had a higher average monthly rent for a one-bedroom apartment than the typical Social Security beneficiary would receive in a month:

Massachusetts: $2,139 Rhode Island: $1,732 Hawaii: $1,676 New York: $1,633 California: $1,608 Maryland: $1,504 Vermont: $1,411 New Jersey: $1,355

Chances are that if you're a senior and Social Security is your sole or major source of income, you'll struggle to simply pay for shelter in the above eight states. There are an additional seven states that have an average one-bedroom apartment rental price of between $1,013 and $1,331, which wouldn't be affordable, either. 

Image source: Getty Images.

You could be taxed, too

The state you choose to call home could also tax a portion of your Social Security benefits.

At the federal level, half of your benefits become taxable at the federal ordinary income rate if your modified adjusted gross income plus one-half of your benefits exceeds $25,000 as a single taxpayer or $32,000 as a married couple filing jointly. Should a single taxpayer or married couple filing jointly surpass $34,000 or $44,000, respectively, 85% of their benefits can be exposed to taxation at the federal level.

If and when you give Uncle Sam his due -- an estimated 51% of senior households are paying tax on their Social Security benefits today, per The Senior Citizens League -- you may also be taxed on your benefits by your state. Currently, 13 states tax Social Security benefits to some varied degree.

For example, Missouri has a relatively low cost of living, but it's one of the 13 states that imposes tax on Social Security benefits. Thankfully, the exemption levels are high, with individuals and couples allowed to earn $85,000 and $100,000, respectively, before any state-level tax on Social Security benefits kick in. Meanwhile, states like Vermont and West Virginia mirror the federal tax schedule, meaning it's pretty easy for even moderate-earning Social Security beneficiaries in these states to fall victim to double taxation.

Image source: Getty Images.

Abide by the guidelines

As much as we might be born to break the rules, abiding by the SSA's recommendation of not counting on Social Security to replace more than 40% of the average worker's wages in retirement is a smart move. Even with the program lifting so many people out of poverty, a looming cash crunch, coupled with the fact that Social Security dollars continue to lose purchasing power over time, is all the more reason today's nonretirees should be focused on minimizing their reliance on the program.

To build on this point, it would also be a wise decision to consider the cost of living when you retire. If you're going to be somewhat reliant on your Social Security income, living in the Midwest, for instance, can allow your income to stretch much farther than if you were living in the Northeast or on the West Coast. Being mindful of the states that tax Social Security benefits, as well as the cost of living, can go a long way to help make your Social Security dollars count.

Before Taking Social Security, Ask These 4 Questions

Today, more than three out of every five retired workers receiving a benefit from Social Security lean on that payout to account for at least half of their monthly income. Aside from being overly reliant on Social Security, what this data point from the Social Security Administration (SSA) shows is that there's no decision more important to seniors than deciding when to take their benefits.

The 411 on how the Social Security Administration calculates your benefit

Generally speaking, there are four major components that determine your monthly benefit at full retirement age (i.e., the age where you become eligible to receive 100% of your monthly payout). The first two -- your work history and earnings history -- are inextricably linked.

When determining your monthly benefit, the SSA will account for your 35 highest-earning, inflation-adjusted years. Or in simpler terms, you'll want to work at least 35 years and make as much as you can in those years (up to the maximum taxable earnings cap), in order to boost your eventual payout. If you work fewer than 35 years, you'll receive a zero ($0) for income earned in each of those years, and that will be averaged into your monthly benefit calculation.

Image source: Getty Images.

The third factor is your birth year, which is what helps determine your full retirement age. Baby boomers will have a full retirement age of 66, 67, or somewhere in-between, while all future generations of retirees born in or after 1960 will have a full retirement age of 67. If you decide to begin taking benefits at any point prior to your full retirement age, your monthly payout will be permanently reduced. Conversely, waiting until after your full retirement age can lift your monthly stipend above 100%.

The fourth and final factor is your claiming age. Benefits can begin at age 62 or any point thereafter, and there's an incentive to wait. For each year you hold off on taking benefits, your payout grows by approximately 8%, up until age 70. This means, all things being equal (work history, earnings history, and birth year), a person claiming at age 70 could net 76% more per month than an individual claiming as early as possible at age 62.

A crash course on claiming Social Security

Of course, maximizing your lifetime benefits, not necessarily your monthly benefits, is what truly matters. With this being said, before you take Social Security benefits, here are four questions you'll want to ask yourself.

Image source: Getty Images.

1. Am I healthy?

To begin with, you'll want to ask yourself, "Am I healthy?" Although none of us knows our expiration date with any certainty (thankfully!), we can take clues from our own health history and that of our immediate family members to paint a picture of what might lie ahead.

For instance, if you have one or more chronic diseases, such as diabetes or heart disease, the odds would seemingly be in your favor to claim your benefit check earlier rather than later. Though waiting will net a higher monthly benefit, it also means forgoing years without any income from the program. The inflection point for Social Security -- i.e., where total benefits received becomes equal, regardless of the age you claimed benefits -- tends to be between ages 78 and 80. Thus, if you don't believe you'll hit this age range, you'll be better off claiming your payout earlier rather than later.

Comparatively, if your parents have longevity on their side and you've been given a clean bill of health by your doctor, holding off could lead to a much larger monthly and lifetime benefit.

Image source: Getty Images.

2. Is there anyone else my claiming decision could impact?

There's no doubt that deciding when to take your Social Security benefit is a major personal decision. But in some instances, it may not be a decision that impacts only you. Before taking your payout, ask yourself, "Is there anyone else my claiming decision could impact?"

If you're a single individual with no young children, then your claiming decision is truly your own. But if you're married, your claiming decision could financially affect your spouse. If you were to begin taking benefits prior to reaching your full retirement age and you happen to be the household breadwinner, your spouse won't be able to maximize his or her survivor benefit if you pass away first. Conversely, waiting until at least your full retirement age to begin your payouts will ensure that your spouse has the option of maximizing their survivor benefit if you pass away.

Image source: Getty Images.

3. Do I really need the money right now?

A third question you should ask yourself before claiming your Social Security payout is, "Do I really need the money right now?" While the prospect of adding guaranteed monthly income is bound to make some folks wide-eyed, there are longer-term implications that should be accounted for.

As an example, baby boomers with little or nothing saved for retirement might be tempted to claim benefits early in order to have two sources of income (i.e., working wages and their monthly benefit). The concern with this scenario is twofold.

First, the SSA can withhold some or all benefits for recipients who've yet to reach full retirement age and are earning more than $17,640 a year (as of 2019). This would offset any opportunity of double-dipping with two income streams. And secondly, if you'll be counting on Social Security as a major source of income during retirement, you'd want to maximize your monthly payout, not minimize it by claiming early.

On the other hand, if you've been let go by your employer and have no other sources of income, then taking your Social Security benefit, even early, might be the only prudent course of action.

Image source: Getty Images.

4. Do I understand the tax implications?

Lastly, ask yourself, "Do I really understand the tax implications of taking my Social Security benefit?"

Whether you realize it or not, you're more likely than not to owe some federal tax on your Social Security benefit when you retire. An analysis from The Senior Citizens League estimates that 51% of senior households receiving benefits will owe tax on those benefits this year. Single taxpayers whose modified adjusted gross income plus one-half of their benefits exceeds $25,000, and married couples filing jointly in excess of $32,000, will be taxed on a portion of their benefits.

Likewise, 13 states also tax Social Security benefits to some varied degree. Missouri, Rhode Island, and Kansas, for instance, have high individual exemptions of $85,000, $80,000, and $75,000, respectively, meaning few folks will actually be subjected to state-level tax on their benefits. Meanwhile, Vermont, West Virginia, and North Dakota mirror the federal tax schedule, meaning it's easy to become a victim of double taxation in these states.

Understanding your tax implications is important before taking your benefit.

7 Stocks That Should Be Worried About a Data Dividend

Big technology companies have been under a lot of political and social pressure recently, mostly because said technology companies have become the be-all, end-all of society. The worry is that these companies are gaining too much power, and that too much power is never a good thing. Big technology companies that provide “free” services by monetizing user data have borne the brunt of it, as such companies are coming under heavy scrutiny for the way they use personal data to make money.

A lot of these concerns haven’t materialized into anything other than talk. But there’s one potential legislation which big tech investors should be aware of, if not concerned about: the data dividend.

The concept is simple: tech companies should pay you for your data. Your data is valuable. It’s being monetized broadly. Since you technically own your own data, when your data does get monetized broadly, you should get a piece of those rewards. That piece is the data dividend, and it would essentially amount to a percent of the company’s data-derived revenues.

The idea isn’t new. The academic world has been discussing the idea for some time. Washington state tried to pass data dividend legislation in 2017. But attempts to implement a data dividend have been too far and few between to mean anything. Until now. California Governor Gavin Newsom recently proposed the idea, and the proposition carries weight both because of when (amid heightened data privacy concerns) and where (California is home to many of the world’s tech giants, and is ahead of the curve when it comes to data protection laws) it was proposed.

As such, while it’s still far from a sure thing, a data dividend is now closer to reality than ever before. That’s bad news for any big tech company which uses consumer data to make money.

Which stocks are most affected by a potential data dividend? Let’s take a deeper look.

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Facebook (FB)

Data-Related Revenue (% of Total Revenue): $55 billion (99%)

At the top of this list is a social-media giant which essentially makes all of its money from consumer data, meaning that essentially all of its revenues are theoretically subject to a data dividend.

Facebook (NASDAQ:FB) rakes in over $55 billion (and growing) in ad revenue per year. This money comes from advertisements across its four social media apps — Facebook, Instagram, Messenger and WhatsApp — and is all the byproduct of leveraging user data to incorporate relevant and targeted ads. Facebook is arguably the best in the business at using this data to create effective ad campaigns. They also have more data than pretty much anyone in the world.

But those positives also mean that Facebook could be a big loser if the data dividend idea gains national and global traction. Even if a data dividend amounts to just 2% of revenues, that would equate to over $1 billion per year for Facebook. And, that extra cost would come at a time when costs are dramatically rising for improved data protection.

In the big picture, the data-dividend risk isn’t a reason not to own FB stock. FB stock is a long-term winner supported by the stickiest digital ecosystem in the world. But it is something to be aware of and monitor.

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Twitter (TWTR)

Data-Related Revenue (% of Total Revenue): $3 billion (100%)

The second of the possible data dividend stocks is another social media company, which makes essentially all of its money through either leveraging consumer data to create ad campaigns or just straight-up selling that consumer data.

Twitter (NYSE:TWTR) rakes in about $3 billion per year in data-related revenue. Roughly $2.6 billion of that is from ads — Twitter leverages user data to create targeted ad campaigns. The other $400 million-plus comes from Twitter’s data licensing business, which is essentially Twitter just selling user data. Thus, if a data dividend were to be introduced on a global scale, all of Twitter’s revenues would theoretically be subject to that dividend.

That’s not a great thing. But it’s not a deal breaker, either. Much like Facebook, Twitter has created an ultra-sticky digital service. That service is only getting stickier, as Twitter is increasingly becoming a go-to and irreplaceable platform for consumers of all shapes, sizes, and backgrounds to voice their opinion. Thus, while the data-dividend risk should be monitored, it isn’t a reason to sell TWTR stock.

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Snap (SNAP)

Data-Related Revenue (% of Total Revenue): $1.2 billion (almost 100%)

Third of the data dividend stocks is yet another social media company that makes essentially of its money through digital advertising, which comprises leveraging user data for targeting purposes: Snap (NYSE:SNAP).

To be sure, Snap does have a hardware business through Spectacles. But that business has struggled to gain traction, and revenue from Spectacles thus far has been immaterial. Thus, of Snap’s $1.2 billion in revenue last year, almost all of it was from digital ads. That means almost all of it would be theoretically subject to a data dividend.

Again, this isn’t a deal breaker for Snap. But it is a bigger concern for Snap than it is for Facebook and Twitter. Why? Because Facebook and Twitter are already profitable, and they can absorb a 2% hit on revenues without materially impacting profitability. Snap cannot. The company is far from profitable, and needs a lot more scale in order to be profitable. Thus, the data dividend risk is much bigger for SNAP stock, than it is for FB or TWTR stock.

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Alphabet (GOOGL,GOOG)

 Data-Related Revenue (% of Total Revenue): $116 billion (85%)

The first non-social media company on this list also happens to be the world’s largest digital advertiser, and therefore bears substantial exposure to a potential data dividend.

Alphabet (NASDAQ:GOOG,GOOGL) isn’t all digital advertising. The company has hardware, cloud, and AI-related businesses which aren’t built on the back of user data. But Alphabet is mostly digital advertising. Of the company’s near $140 billion in revenue last year, about 85% of it came from digital advertising through Google, YouTube, and other online ad networks and properties. Thus, if a data dividend were to be implemented, Alphabet would have to pay a large sum back to consumers.

This isn’t a big deal for GOOG stock. For starter’s, Google is the backbone of the internet, and YouTube is very sticky in the free, online entertainment world. Neither of those ad businesses will be hit that hard by a data dividend. Also, of all major digital advertising players, Alphabet is the one of the most diversified, with burgeoning businesses in cloud, hardware, and AI.

Overall, then, any negative impact on GOOG stock from a data dividend will be mitigated by growth drivers elsewhere in the business.

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Yelp (YELP)

 Data-Related Revenue (% of Total Revenue): $907 million (96%)

Another company impacted by a potential data dividend isn’t known as a digital advertising giant, yet still derives a majority of its revenue from digital ads that leverage user data.

Yelp (NASDAQ:YELP) reported net revenue of roughly $943 million last year. About $907 million of that, or 96%, was from digital advertising. Thus, although Yelp doesn’t serve consumers ads in the same way that Facebook, Twitter, or Snap do, the company still runs ads based on user data, and those ads are the big driver of the company’s business. Consequently, a data dividend would theoretically be applied to Yelp’s entire business.

A data dividend is just another risk to add to the long list of things not to like about YELP stock, including valuation, competition, slowing growth, lack of scale, and lack of a moat. As such, there’s simply too much not to like here. The data dividend risk is just another reason to stay away from YELP stock.

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Amazon (AMZN)

 Data-Related Revenue (% of Total Revenue): $10 billion (~4%)

Although the next company on this list also isn’t known as a digital advertising giant, it is quickly building out a giant digital advertising business which is theoretically subject to a data dividend.

Amazon (NASDAQ:AMZN) isn’t known for digital ads. The company is known as an e-commerce and cloud giant. Nonetheless, Amazon is leveraging its huge user-base and reach across Amazon, IMDb, and other digital properties to create a huge and rapidly growing digital ad business. That digital ad business generated $10 billion in revenue last year. To be sure, that’s less than 5% of Amazon’s total revenues. But it’s a much bigger portion of profits (digital ad sales have way higher profit margins than e-commerce sales).

That fact alone is why the data dividend is actually a sizable risk for AMZN stock. Amazon has been counting on ramp in the digital ad business to drive profits higher, while margins in the e-commerce business remain largely weak due to competition. If the digital ad business gets set back due to a data dividend, that would be a set back to the whole Amazon profit growth narrative. As such, while the data dividend risk isn’t a deal-breaker, it is something which AMZN investors should closely monitor.

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Microsoft (MSFT)

 Data-Related Revenue (% of Total Revenue): More than $12 billion (more than 11%)

Last, but not least, is another big tech company which isn’t known for digital ads, but which nonetheless is one of America’s largest digital advertisers, and consequently has broad exposure to a potential data dividend.

Microsoft (NASDAQ:MSFT) isn’t known for digital advertising or using personal data to generate revenue. Still, the company has a big digital ad business. Microsoft’s search advertising revenues measured $7 billion last year. LinkedIn revenues were around $5.3 billion. The company also makes ad revenue through other segments, but doesn’t break that out. Thus, Microsoft’s total data-related ad revenues measured in excess of $12 billion last year, and likely closer towards $15-20 billion. That would represent about 15% of Microsoft’s total revenues.

Because Microsoft isn’t known for digital advertising, the data dividend risk isn’t a big deal for MSFT stock. The big growth narrative here is cloud, not digital ads. Thus, Microsoft can afford a set back in the digital ad business, so long as the cloud business remains healthy. At the end of the day, as go the cloud businesses, so goes MSFT stock.

As of this writing, Luke Lango was long FB, TWT