Tag: Eurozone

The ‘R’ word scare – Recession

Currently, “Recession” is the most discussed topic among economists and traders alike. While some say we are about to hit a recession far worse than 2008, some believe that the recession is almost about over.

Boom and bust have been an integral part of the economic cycle. For every 4 to 7 years of bull Market, we have experienced a bear at an average of 14.4 months (since 1900). We already witnessed a ‘ Market Correction’ in 2015. Though technically, we do not have 2 straight quarters of negative GDP yet, we are witnessing an earnings recession in the U.S. We have a fourth straight quarter of negative sales for S&P 500, According to FactSet, the longest since 2008. While the government has announced that the employers added about 242000 workers, many remain skeptical about the numbers. Since we are in an earnings recession, many companies have cut jobs. According to CNN money, compared to December 2015, January 2016 job cuts were up by 216%! These are bound to show up in the numbers soon enough. And then, people would spend lesser, companies would have even lower sales, thus lesser profits (read:more losses), more job cuts, and thus the vicious cycle would continue. (The paradox of thrift)

What may be the possible recession catalysts?
Well, there are numerous possibilities. Be it Global slowdown, The oil crisis, Chinese stock market turmoil , the still unresolved Euro-crisis, the end of petrodollar regime, rising Student loan debts, to a U.S. economic slowdown, or it may be something totally un-thought of! It’s as though the bubble is there, just waiting for a pin prick.

The question is, Are we ready for the recession? If we are in a recession starting today, assuming the bear continues for the next 14-15 months, are we prepared for it?


Disclaimer: The information contained within this blog contains segregated views of analysts and the author’s opinions and is provided for informational purposes only. It not intended as professional financial advice. See http://stockal.com/legalities/

Yelp and DB may have negative sentiments

Yelp, Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company provides local business review sites.With its CFO, Rob Krolik’s resignation and the announcement of losses in the Q4 Earnings analysts see a short term bearish sentiment for the stock.

YELP – Yelp, Inc
Fundamentals Previously closed at 16.06
Day’s high 18.84
Day’s low 15.5
P/E ratio 54.63
EPS 0.29

 

Analyst opinion Analysts have upgraded the rating for the stock to “Buy” yet the prices have slumped due to target cuts.
Sentiments The financial outlook of the company is weaker than expected. In the quarterly earnings call, on Tuesday, reported a 46% revenue growth. Yet, they lost $33 Million in 2015 compared to a profit of $37 Million in 2014.
With the news of a Q4 Loss and Yelp’s CFO Rob Krolik’s resignation, there seem to be negative sentiments regarding the stock
On Monday, the shares had plunged to  their lowest closing price since 2012, and analysts believe there may be a new low for the stock.
Revenue prediction  For Q1 of 2016, the stock has an EPS estimize consensus of -0.06 and revenue of 155.95.
Social pulse Social Media pulse is 32% lower than normal, lesser social chatter.

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