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17 DecWeekend Rounds: Focusing on Regulated Utilities | Water stocks Part 1


This past week I have become interested in Utilities, more specifically, Water stocks. If you’re asking why or how would you invest in water then keep reading. If you’re wondering why would you invest in water, then let me explain. There is an increasing demand for water for various purposes such as personal, commercial and industrial use. Water is used to generate power in the majority of global power-generating entities and it is used extensively in agriculture. Freshwater supply is increasingly declining and the world population is increasing. There is no doubt that there is an investment opportunity here.

The water issues of Flint, Michigan may no longer be present in the News cycles, but I assure you they still haven’t solved the city’s water problem. Americans, among other countries with scares water supply need to wake up and realize that there is going to be significant scarcity in the coming decades. Sticking to the US alone, recent water quality reports have indicated that about half of US streams, akes and one-third of bays are polluted. Every year there is about 4 trillion Litters of untreated sewage, industrial waste and groundwater are introduced to US waters. The “quick shower” that we’ve become accustomed to every morning uses more water than a person would use in the whole day in a developing country. Get the picture? There is increasing demand, decreasing supply.

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10 DecWhat does the Allergan Implant Debacle (BIA-ALCL) Mean For Sientra?


It is hard to imagine that breast implants could cause cancer. It is even harder to imagine that they can cause other symptoms such as alopecia, fogginess, irritable bowel syndrome, pain, and migraines.

Well, there has been a slow and steady build-up of evidence that suggests that specific type of breast implants – textured – can increase the risk of a specific rare form of cancer. Use of textured implants has been shown to be associated with a form of cancer called Breast Implant-Associated Anaplastic Large Cell Lymphoma (BIA-ALCL).

Perhaps, the 47-year-old Edmonton woman who was recently featured in several news articles is a rare case, however, no one who has undergone a double mastectomy – for the eradication of risk of breast cancer – should then develop breast cancer due to the implants. However, this news was accompanied by others like her, such as the 44-year-old Terri McGregor, who ultimately required eight rounds of chemotherapy after doctors discovered that not only had her implants ruptured, but they had also provided grounds for cancer to metastasize from her capsule to lymph nodes and abdomen.

Here we compare the three manufacturers of breast implants, Sientra, Allergan and Mentor. 

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04 DecWhat can the US-China Trade War Ceasefire Mean for Stocks


The S&P 500 extended last week’s rally by 1.1% on Monday, as investors breathed a sigh of relief that U.S.-China trade relations did not worsen over the weekend. Meanwhile, the Dow Jones Industrial Average gained 1.1%, the Nasdaq Composite gained 1.5%, and the Russell 2000 gained 1.0%.

President Trump and President Xi agreed at their Saturday dinner meeting to delay further tariff actions for 90 days, during which time further negotiations will be carried with an aim of trying to settle disagreements over fundamental trade issues. National Economic Council Director Larry Kudlow told reporters the 90-day clock will start with the start of the new year and expects changes across a broad range of issues to happen “very quickly.”

Stocks retreated from their best levels, though, reined in by an underlying sense that the morning’s positive reaction to the Trump-Xi agreement to suspend further tariff actions was probably an overreaction since nothing concrete was achieved in terms of resolving the most important fundamental trade issues between the two countries. Also, the spirit of moving the tariff rate to 25% (from 10%) on $200 billion of Chinese goods continues to hang there like a stick in the event an acceptable deal to the U.S. is not struck within the 90-day deadline. What does this 90-day cease-fire really mean? Perhaps, it provides the grounds for some fruitful discussion between the two parties. 

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30 NovAdvance Auto Parts (AAP): Slow and Steady Growth Expected


Advance Auto Parts stock analyisA new addition to our focus list is Advance Auto Parts (AAP).  Most perceive the auto parts as a necessary but mundane industry that typically experiences slow growth. But the business remains a solid one. Cars always break down, and consumers will almost always buy new parts when necessary regardless of the shape of the economy. Also, let’s face it — most shoppers in this industry focus more on getting their car working than on finding the lowest price. Hence, Advance and peers often avoid the intense price pressure faced by other types of retailers.

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19 NovStocks continue to tumble as they follow Tech


The S&P 500 tumbled 1.7% on Monday, as a rout in widely-held tech stocks led the broader market lower. A lack of leadership and the continued inclination to sell into strength have translated into a lack of buying interest. Meanwhile, the Dow Jones Industrial Average dropped 1.6%, the Nasdaq Composite dropped 3.0%, and the Russell 2000 dropped 2.0%.

The S&P information technology sector (-3.8%) was the main problem on Monday. It has been prone to liquidation efforts that have aimed to reduce exposure to a crowded sector running into concerns about a cyclical slowdown, valuations, and increased regulatory scrutiny. The tech group leads all 11 S&P sectors lower in November with a monthly loss of 5.5%.

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12 NovAurora Cannabis (ACB) Earnings Analysis and Price Prediction


The S&P 500 lost 0.9% on Friday, with the pullback suggesting a natural consequence of an overreaction to this week’s election spike. The Dow Jones Industrial Average lost 0.8%, the Nasdaq Composite lost 1.7%, and the Russell 2000 lost 1.8%. For the week, the S&P 500 advanced 2.1%.

Aurora Cannabis (ACB) reported Monday fiscal first-quarter net earnings that rose to $105.5 million from $3.6 million a year ago, and from $79.9 million in the previous quarter. Total revenue rose 260% from a year ago and 55% from the previous quarter to $29.7 million, while cannabis revenue jumped 236% from last year and 65% from last quarter to $24.6 million. The average selling price per gram of dried cannabis grew 15% from a year ago to $8.39, while the cash cost per gram fell 12% to $1.90. For cannabis extracts, the net selling price per gram fell 26% to $12.12, while costs declined 22% to $1.45. Active registered patients rose 250% to 67,484.

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