Tag: Estimize

The plunging ‘Cloud’ – Palo Alto and Salesforce may have further bearish sentiments

Palo Alto Networks, Inc., a cloud-based internet security company fell as much as 15% on Friday despite a lack of any kind of news. We saw a free fall of cloud-based tech stocks on Friday, despite positive earnings reports and “Buy” recommendations from brokers.

PANW – Palo Alto Networks, Inc
Fundamentals Previously closed at 127.51
Days high 139.89
Days low 123.8
P/E ratio N/A
EPS -2.09

 

Analyst opinion Despite “Buy” broker rating, analysts believe the stocks might plunge further, unless the quarterly report to be released on 25th Feb acts as a bullish catalyst.
Sentiments The fundamental indicators for the stock are negative. With the P/S and P/B of 10.61 and 19.95 respectively. Analysts expect a mean price of ~$209.
With 3 insiders i.e, the CFO, CTO and CMO, selling more than 150 shares each on Jan 21st, the stock prices have plunged.
While the business itself is doing well, Analysts believe that there are good times ahead for the stock.
Revenue prediction With a revenue of $928.05 Million revenue for the year 2015, PACW has had a substantial growth in the last year despite troublesome market conditions and it is expected to perform well through 2016.
Social pulse Social Media pulse is 100% higher than normal, with a lot of social chatter.

 

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How To Identify The Most Suitable Companies To Invest In

Getting into a trade is perhaps the toughest part about investing because of the level of research it takes. You get tips and suggestions from so many people, coming from so many directions that it’s difficult not to get utterly confused. And if you are an amateur at finance, there are dozens of “technical-sounding” terms about stocks that are not easy to wrap your head around.

There’s TV news coming from the likes of CNBC and Bloomberg with dozens of analysts constantly talking about their favourite bets. There are thousands of business and finance websites – most of them reporting the same popular news. There are umpteen newsletters and then there are hundreds of tip-giving services.

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How to know what the market is saying about your stocks

In the last of couple of years you might have noticed multiple instances of people (mostly, media) talking about traders and trading houses making winning stock market bets based on what they read on Twitter or some discussion forum. While cases like these are few and far between, it is certainly a reality that you “cannot follow the stock market enough“!

Traditionally, investors have depended on analyst opinion, who, in-turn, often base their reports on technical analysis. But off-late the unpredictability of the market has amplified because of the reduced time-to-market of stock moving news & information. While deep-pocketed institutional investors have started making significant investments in technology to stay ahead of the social information and analysis curve, smaller traders and retail investors need to find innovative ways getting their hands on similar information, fast enough.

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Student? Looking to Invest in Stocks? Read on …

Are you an active stock investor or looking to follow the markets closely? Signup early for Stockal to get 1 year of free intelligence and insights on NASDAQ/NYSE stocks and lifetime free upgrades.

Off-late, we have been getting many questions from young folks (especially students) on whether they should invest in stocks and how they can make informed calls as they go about doing it. With the presence of apps like Robinhood and stock diversification mechanisms such as Motif Investing it has become exponentially easier to invest in stock markets than it ever was. And we believe this is a good thing. Investing could give you extra cash in the short run so it’s obviously useful. But more importantly, it teaches you discipline, forces you to keep track of your finances and broadens your horizons.

Successful investing is a long-term game. Fortunes are rarely, if ever, made “overnight”. Most successful investors will tell you about how they had several good and several bad investments over time and how their good investments outnumbered their bad ones to give them nice returns. So in essence, one has to invest often and invest actively to get to their ROI targets. This, of course, does not hold for passive investors who put their money in tax saving investments for the sake of “saving money” and not for “making money” from the markets.

In this context, as a student interested in stock investing, you are at just the right age since you have enough time to make more good than bad investment decisions. But, your path is also paved with many pitfalls and risks that can be avoided by being extra careful and knowledgeable about what to do. Here are a few quick thoughts that could help you make fewer mistakes and hit some homeruns as you go about investing actively. Do take it with a pinch of salt and feel free to add more points in the comments section, based on your personal experience if you have any.

Start early

It’s great that you’re interested. Don’t let your interest linger for a few years. Do your research and start investing early. More time on your hands will mean more potential for growth and longer-lasting appetite for investing. Considering that interest earned gets compounded over time, even a small investment will go a long way into giving you hefty returns.

Research

This cannot be stressed enough. Today, you have research tools in your hands that just didn’t exist a few years ago. From reading organized media research and opinion – WSJ, MorningStar, Benzinga et al – to surfing through StockTwits, Twitter, Estimize and SeekingAlpha you can understand your stocks really well. Thousands of traders and analysts are talking on these networks, you just have to develop a mechanism to filter out the noise – which you will if you keep observing for a couple of months.

Interact

Investing is turning social. While there have been concerns in the past about people sharing information for the sake of their vested interests only, gradually investing as a lifestyle has managed to turn social – much like everything else in life. You do have to be extra careful not to get influenced by malicious elements (‘coz there are some) but you can avoid that by broadening your “follwings” and listening to more people than less.
Also, once you identify some genuinely good investors it’s good to discuss, build a rapport and share. Much can be learned in the process. As you develop your optimal investing strategies, share with peers to fine-tune them and get more out.

Accounting Discipline

Keep a tight leash on your finances. This is not to say that you should spend carefully. This just means that if you keep track of your moneies, you will know exactly how much or how little to put in your next investment. Active investing entails several small to large investments, so unless you’re super-rich already it’s imperative that you know your incoming and outgoing very well. If you are super-rich you still have to track, though, just that your byte sizes will be bigger!

Avoid margin trading

One deterrent for margin trading is, anyway, that small ticket investors find it difficult to get-in so that you should keep you protected. But in general, as a student you want investing to fun and rewarding and not burdensome. Taking on debt is never a good idea unless you are very experienced and sure of your methods.

 

So, there you go. Didn’t realize this will turn out to be a “5 points for X” post! Feel free to reach out to us at research@stockal.com or drop a note in comments in case you want to discuss investing.