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HEWLETT PACKARD ENTERPRISE (HPE) – My thoughts

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HEWLETT PACKARD ENTERPRISE (HPE)

I spent a good few hours looking into HPE on friday. its one of the few tech stocks which is still hanging about its post covid lows. Used to trade aound $15 per share pre Covid and after dropping to $8 in march its still just at $9.50, about 36% down.

I have a thing for stocks which are underperforming, i feel like im getting a good deal. I take a look at the price over the past years and love to buy something at an all time low. In truth this is a behavioural bias and in no way provides better returns. In fact, an underperforming stock will likely continue to underperform and an outperforming stock will contiue to outperform. Having said that, every so often you come accross a gem, so long as you can rationalise the reasons the stock keeps dropping and can see the situation changing.

Back to HPE, i like the sector, i like the current price level. Whats next?

Time to look at some research and numbers.

Price earnings ratio is 8.3

Dividend is 5% – not bad, not great, but certainly not bad.

Revneue – dropping year on year – very bad sign

Credit Rating – BBB – Company has a low chance of going bankrupt – Google credit ratings for more info

a few more numbers, a bit more complex so i wont go into details now, but i also look at

How much equity in the company

Intangible assets as a % of total assets

Free Cash Flow

Cash from from operations

All in all the company has ok fundemental numbers, its certainly not a growing company but it wont go bankrupt. The main thing which should be a flashing warning sign is the falling revenue.

Companies where revenue is decreasing year on year indiciates that the company isnt performing well. Will probably not grow and provides little reason for the stock price to increase down the line.

Time to look at what people are saying on the interenet about HPE.

There are quite a few investing forums on the interenet so you should be able to google the company and see what people are saying about the stock. usually peoples opinions are biased depending on whether they are invested in the stock or not, so take what you read with a pinch of salt.

I did read one thing on reddit which was another red flag for me. It was an employee who spoke about work ethic at the company. It seems many of the employees there beleive they arent working for a leading tech company and have the attitde that they are only 'HP' not Apple/Amazon/Cisco so employees arent going the extra mile.

Also people on the HPE reddit were saying that their support is terrible and their products arent that great. Seems to me they are surviving by selling to their existing client base and provide few reasons for new clients to choose them.

Finally i take a look at the professional analysts recomendations, usually analyst recomendations are biased and hardly anyone would say a stock is crap and should not be bought. There are quite a few reasons for this but i wont go into it now.

Ive attached a screen shot of the analyst recomendations for HPE. In short the red/yellow/green bar shows the number of analysts recomending you to sell/hold/buy the stock atm. Currently the stock is showing 26% of anaylsts say buy it, 65% say hold it (dont buy it if if you dont have it but dont sell it if you already hold it), and 9% say sell it. https://imgur.com/tkVwH3Z (bloomberg)

In the end this stock is probably worth buying if you want to hold onto it for a month or two only as it might pull back to previous levels. Its not a good long term buy though, in my opinion. Revenue falling, lots of competition and bad employee work ethic.

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RRSP Investors: How to Buy the Best Dividend Stocks

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Retirement stocks are meant to be reassuring. But choosing stocks that one can comfortably forget about isn’t always an easy task. As pundit Jim Cramer would say, “Don’t act on your emotions, and don’t go against your homework.” Of course, this mantra, while useful, relies on two things: one, that investors can emotionally detach from their assets; and two, that investors have actually done their homework.

But it’s not always that simple. For instance, take the low-risk forever investor with an RRSP packed with dependable dividend stocks such as Fortis (TSX:FTS)(NYSE:FTS). This type of later-years investment vehicle represents a large part of what constitutes a comfortable retirement. And that’s something that a lot of shareholders will find themselves invested in in more ways than one.

However, so long as a prospective stakeholder in a company has done their due diligence, those forever stocks should be fairly safe, or, at least, as safe as a basketful of equities can ever be during times of economic crisis. That’s why Canadian investors need to peek under the hood of every company they plan to go long on. Doing so will allow investors to sleep a little easier at night.

Do your homework and know what you’re holding

An overall health score can be achieved by looking at a handful of characteristics. Would-be Fortis shareholders should consider the company’s balance sheet, its track record, and its outlook. They should also look into a company’s dividend. Another key facet of a solid buy-and-hold stock is its value for money. Within each of these categories, investors will find a number of sub-factors to weigh up.

Fortis scores high on two fronts: dividends and track record. However, its balance sheet could be a little healthier, and its valuation could be a touch more appealing. Utilities stocks tend to operate in a saturated market, though, so the outlook is less of an issue with this asset type. However, earnings are still set to be positive for the foreseeable future, which tips the overall balance in Fortis’s favour.

Buy stocks that reliably outperform the market

Consumer staples stocks are always a good play for all-weather investing. Utilities have also proven stubbornly defensive. Gold never goes out of fashion during times of uncertainty, and some names are still undervalued. Investors should also consider other strongly diversified business types, such as infrastructure stocks. Supply chains have become must-have assets to buy and hold during the pandemic.

Another way to gauge which dividend stocks are the best ones to buy and hold for the long term is to go back and consider the market itself. Income investors should peruse the TSX and see which names are up from last year. Despite the bullishness and the headline blur, there aren’t many names that have seen strong returns in the last year. A higher number have managed to remain flat, though. This resilience to market uncertainty is key to building a sleep-easy portfolio.

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Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

The post RRSP Investors: How to Buy the Best Dividend Stocks appeared first on The Motley Fool Canada.



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Manic Monday – S&P 3,000 Holds as We Pass 10M Infections, 500,000 Deaths

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I guess people ignore stuff all the time.

There were 165,534 NEW cases of Covid-19 YESTERDAY – that's double China's TOTAL number of cases yet President Trump still calls it the China virus while China calls it the President's total failure to contain the virus like they did more than 2 months ago.

ALL Donald Trump had to do was do what the Chinese did and what most of Asia did to contain the virus and this never would have happened.  Instead the President ignored the experts, denied the virus was a thread, did not react fast enough or appropriately when he finally did act and TO THIS DAY, he still isn't doing what needs to be done to contain this Global threat and 38,845 people were infected in the US alone yesterday -  HALF of China's TOTAL infections from the "Kung Flu" as the President likes to call it.

Florida, where I live, had a 6.4% rise in infections on SUNDAY – that's pretty much a doubling rate of 10 days!  We are back to a state of emergency a month after opening but everyone knows it's too late – there's really no going back now.  On Thursday, Trump’s administration asked the Supreme Court to throw out the Affordable Care Act, including its protections for people with pre-existing health conditions, in its entirety — despite the president’s frequent insistence that he will always protect such patients. He has never offered a plan to replace the law known as Obamacare.

On Saturday, Trump said on Twitter that he’d win re-election, once again proclaiming that a “silent majority” supports him. He boasted about high television ratings for his recent campaign events and said “these are the real polls, the Silent Majority, not FAKE POLLS!”  Trump has repeatedly said, falsely, that the U.S. has more cases of Covid-19 because it’s conducting more testing for the disease. He’s also expressed skepticism that some of the reported cases are real.  “You’re going to have a kid with the sniffles, and they’ll say it’s coronavirus,” he said Thursday.

DURING a White House coronavirus task force briefing Friday — its first in two months, held at Health and Human Services headquarters and without Trump — the president tweeted a wanted poster for 15 people who allegedly
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The IPOX® Week, July 6, 2020

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  • Key IPOX Indexes surge. IPOX 100 Europe, (ETF: FPXE) and IPOX International (ETF: FPXI) close week at all-time high.
  • IPOX 100 U.S. (ETF: FPX) adds +3.79% to +6.33% YTD. IPOX International (ETF: FPXI) surges +4.21% to +31.10% YTD. IPOX 100 Europe (ETF: FPXE) gains +3.81% to +10.92% YTD.
  • Hong Kong set for flurry of deals this week.

Key IPOX Indexes surge. IPOX 100 Europe, (ETF: FPXE) and IPOX International (ETF: FPXI) close week at all-time high. The key IPOX Indexes surged last week as: 1) U.S. technology stocks staged another strong technical reversal with the Nasdaq 100 (NDX) closing the week at an all-time high amid 2) Stable U.S. yields despite strong U.S. unemployment numbers with U.S. equity risk declining sharply (VIX: -20.30%). In the U.S., e.g., the diversified, broad-based, FANG-free IPOX 100 U.S. – underlying for the $1.4 billion “FPX” ETF – added +3.79% to +6.33% YTD, lagging the S&P 500 (SPX) by -23 bps. on the week. Here, 81/100 portfolio holdings rose, with the average (median) equally-weighted stock adding +3.20% (+3.35%). Gains extended to the IPOX Indexes focusing on non-U.S. domiciled stocks trading in the U.S. and/or abroad: On the international level, e.g,. the IPOX International (ETF: FPXI)- underlying for the fast-growing $141 million “FPXI” ETF – added another +4.21% to +31.10% YTD, a fresh all-time high, and now a massive +4270 bps. YTD ahead of the MSCI International (ex. U.S.) (MXWOU), the funds benchmark. A big week for the IPOX China Core (CNI) and IPOX Europe (ETF: FPXE) drove the strong

Rotation matters: IPOX International (ETF: FPXI) since 2015

showing in the “FPXI” ETF with continuing gains in the “New Generation” of stocks underweight or ignored in the stale global equity benchmarks, including recent IPO Swiss-based biotech ADC Therapeutics (ADCT US: +18.31%), Sweden’s B2B live casino solutions provider Evolution Gaming (EVO SS: +14.31%), Saudi Arabias health care services provider Riyad-traded 03/20 IPO Dr. Sulaiman Al Habib Medical Services Group (SULAIMAN AB: +13.01%) or H.K. traded “hot pot” restaurant supplier Yihai International (1579 HK: +12.13%). Health care services provider 1 Life Healthcare (ONEM US: +20.09%), CA-based insurance provider Palomar Holdings (PLMR US: +11.34%), drug discovery software maker Schrodinger (SDGR US: +9.66%) and Spin-off refrigeration solutions provider Carrier (CARR US: +9.25%) ranked amongst the best performing portfolio holdings in the IPOX 100 U.S. (ETF: FPX) last week.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.69 27.93 26.44
IPOX® International (IPXI)* (USD) (ETF: FPXI) 4.21 31.37 31.10
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.79 29.60 6.33
IPOX® ESG (IPXT) (USD) 4.83
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 4.33 34.55 22.00
IPOX® Nordic (IPND) 4.99 38.52 28.80
IPOX® 100 Europe (IPOE)* (USD) 3.81 30.97 10.92
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.23 4.41 14.49
IPOX® China (CNI) (USD) 5.01 26.31 35.33
IPOX® Japan (IPJP)** (JPY) -1.14 37.91 -2.25

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
TESLA (FPX) 25.94 JOHN LAING (FPXE) -15.37
ZUR ROSE GROUP (FPXE) 20.42 ZOOMINFO TECH (FPX) -12.64
1 LIFE HEALTHCARE (FPX) 20.09 CLOUDERA (FPX) -10.37
ADC THERAPEUTICS (FPX) 18.31 ASTON MARTIN (FPXE) -7.27
EVOLUTION GAMING (FPXE) 14.13 SLACK (FPX) -6.82
SHOPIFY (FPXI) 13.18 WUXI BIOLOGICS (FPXI) -5.75
DR SULAIMAN (FPXI) 13.01 MYOKARDIA (FPX) -4.43
YIHAI INTERN’L (FPXI) 12.13 KOOLEARN TECH. (FPXI) -4.25
SHOP APOTHEKE (FPXE) 11.92 FJORDKRAFT (FPXE) -4.04
SEA (FPXI) 11.81 MEDACTA GROUP (FPXE) -3.73

IPO Deal-flow Review and Outlook: Dun & Bradstreet, Lemonade, and Accolade kick-off July with strong debuts. After holiday, U.S. IPO market set to slow, while Hong Kong sees flurry of deals. At least 9 sizable IPOs commenced trading across the global regions last week, with the average (median) equally weighted deal adding +80.70% (+55.68%) based on the difference between the final offering price and their respective market’s close. Data and analytics veteran Dun & Bradstreet (DNB US: +23.18%) returned to the public with a solid debut just 16 months after taken private by private equity. Unicorns Softbank-backed insurtech Lemonade (LMND US: +139.34%) and health benefits platform Accolade (ACCD US: +35.00%) also soared, while Korean biotech SK Biopharmaceuticals (326030 KS: +236.73%) and massively oversubscribed Chinese medical device maker Kangji (9997 HK: +112.54%) more than doubled abroad. Amid the 4th of July week-end, no deals are scheduled for the U.S. market , while H.K. enters the busiest week since the pandemic with 9 IPOs scheduled with e-cigarette vaping device maker Smoore (6969 HK) lined up. Other IPO news include: 1) Apple device software management company Jamf and fintech unicorn nCino filed for U.S. IPO 2) Brazilian online education platform Uniasselvi revives U.S. IPO plan 3) China Bohai Bank to raise $1.85B in HK’s biggest offer YTD followed by beverage giant Wahaha‘s $1B IPO plan; 4) Online used-car seller Shift to go public in reverse merger.

The post The IPOX® Week, July 6, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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