Stocks and Securities

Global stocks are showing signs of stemming Tuesday’s selling, in which investors  reacted to President Trump’s threat to impose $200 billion of new tariffs on Chinese goods. On Wednesday, traders will focus on another housing-related report in the form of  existing home sales. On Tuesday, Housing starts climbed to an 11-year high in May.

Headlining yesterday’s news is that for the first time in 110 years, General Electric (GE) will not be a member of the elite Dow Jones Industrial Average. Dow Jones Indices announced on Tuesday that the iconic maker of light bulbs and jet engines will be replaced in the 30-stock index by Walgreens Boots Alliance (WBA).  GE was an original member of the Dow in 1896 and has been in it continuously since November 7, 1907. Not much we can add to this story except… nice job Jeff Immelt.

On a positive note, shares of Netflix (NFLX)  bucked the trend yesterday as the shares of Netflix rose nearly 4% to just above $400 a share, closing at an all-time high. Why are investors and analysts still infatuated with Netflix? Under CEO Reed Hastings, the company has launched one hit show after another — “Stranger Things,” “The Crown,” “Unbreakable Kimmy Schmidt,” “Orange is the New Black” among many others.And Netflix is using its financial muscle to strike more programming deals around the world. The company announced a new exclusive deal Tuesday with the creators of “Dark” – a hit German language show. The company is also making it easier for people to watch their favorite shows on the go. Netflix announced a deal this week with Dish Network (DISH)  that will allow people to stream Netflix shows in hotel rooms that have TVs using Dish’s Evolve service. Netflix will report its second quarter results on July 16. Analysts are predicting that sales will increase more than 40% from a year ago and that profits will more than double. They also are forecasting a 5 million jump in global subscribers, which would bring Netflix’s total subscriber count to more than 130 million. We expect continued upside momentum in the shares.

marijuana stocks to buy

In other news, Canada’s upper house of parliament approved a revised bill to legalize recreational marijuana setting the stage for the country to become the first Group of Seven nation to legalize cannabis.

The Senate voted 52-29 in favour of the revised bill from the elected House of Commons, paving the way for a fully legal cannabis market within eight to 12 weeks. Canadian marijuana companies like Canopy Growth, Aphria, and Aurora Cannabis have been at the center of investor interest surrounding attempts to legalize marijuana for recreational use nationwide.

Blockchain and cryptocurrencies

In the struggling crypto space, Bitcoin fell from about $6,718.35 to as low as $6,561.79, following news that cryptocurrency exchange Bithumb was temporarily suspending deposit and withdrawal services after about $30 million worth of cryptocurrency was stolen.

The Seoul-based operator said on Twitter that the stolen coins would be covered from Bithumb’s own reserves and that all users’ assets are being transferred to safer “cold wallet.” After news of the hack was announced, Litecoin creator Charlie Lee warned crypto users to “be smart” and not to leave coins on exchanges. The decline also coincided with a broader crypto sell-off that followed a report that U.S. regulators were investigating potential price manipulation at four major cryptocurrency exchanges.

 

Stocks on the radar

CannTrust (TRST)

CannTrust (TRST)  – In light of the recent senate ruling that resulted in legalization of marijuana in Canada, we have decided to highlight an somewhat unknown company, CannTrust Inc. This is a long-term hold and we will discuss reason as though why in a more detailed report in the coming days. One of CannTrust’s positive attributes is the fact that unlike most, they are not losing money. In their companies Q1 they reported earnings of $11.4m CND which was their third consecutive profitable quarter. They are also focused mainly in the medicinal marijuana sector (rather than the recreational) which goes well with the theme of the stocks we like to cover.

 

Netflixt (NFLX)

Netflix (NFLX)  [stock_quote symbol=”NFLX”] – as discussed above, we believe that Netflix will continue to gain momentum in light of expected positive earnings mid-July.