Archer Midland Daniels CEO Juan Luciano joins Yahoo Finance’s On the Move to talk about the company’s Q2 results and its outlook amid the COVID-19 pandemic.
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Investing in penny stocks is primarily the domain of highly risk-averse market participants. The risk profile of penny stocks is, of course, a double-edged sword: investors could lose a lot of money on them, yet could also reap massive returns. Many investors do consider penny stock purchases, but there are significant differences between trading them and higher-priced stocks. We reached out to Finance Professor Andrei Simonov at the Eli Broad College of Business at Michigan State University. We wanted to know whether he believes penny stocks to be a worthwhile investment, or if they are simply too risky to merit a position within one's respective portfolio. Simonov wrote:InvestorPlace – Stock Market News, Stock Advice & Trading TipsBy 'Penny Stocks', different people understand different things. Mostly, it is the term used for "microcaps" or "nanocaps" sometimes not listed on any national exchange, mostly illiquid with high trading cost (Bid-Ask Spread) and high price impact of the trade. That would be OK, but in many cases, this is paired with a lack of verifiable fundamental information. That makes Penny Stocks prone to manipulation and different kinds of fraud. I believe that most small individual investors should avoid those stocks. However, there are other examples. In 2009, Citigroup was formally a penny stock. Granted, it was a highly speculative investment at a time. But "fallen angels" like that are worth looking at.Professor Simonov clearly falls nearer the conservative end of the investor spectrum, which is understandable given his position. It's true that penny stocks often lack the transparency and long financial track records of large-cap stocks. And yes, penny stocks will remain subject to unscrupulous businessmen who maliciously issue penny stocks with fraudulent intent. Thus, investors do need to tread carefully and conduct as much due diligence as possible in this asset class. With common sense and due diligence penny stock investors can succeed.Volatility is high across markets. Interest rates are low. Investors are facing risk no matter where they look, and the investment landscape isn't what it was a few years ago. It may be time to give penny stocks another look. Nevertheless, there are not only 'fallen angels' as Simonov suggests, but also emerging champions within the sector also worthy of investor speculation. For the risk-averse investor here is a list of seven penny stocks worth the risk: * Boxlight Corporation (NASDAQ:BOXL) * Biocept Inc. (NASDAQ:BIOC) * Ampio Pharmaceuticals (NYSEAMERICAN:AMPE) * eMagin Corporation (NYSEAMERICAN:EMAN) * Lynas Corporation Limited (ASX:LYC) * Ucore Rare Metals Inc (OTCQX:UURAF) * Byrna Technologies (CNSX:BYRN) * 7 Dividend Stocks to Buy for Beginners to Income Investing Bear in mind that these stocks all have catalysts making them worth a look. In many cases, a single macroeconomic catalyst alone will trump all other factors when evaluating penny stocks. For example, the stock of a company that benefits from a new federal mandate may provide massive returns after years of lackluster performance. Therefore, an appetite for risk, some luck, and calculated hedging of bets can equate to massive windfalls in penny stocks. Boxlight Corporation (BOXL)Source: Shutterstock Education is undergoing a big transformation around the world. And technology has been the darling of the pandemic. Fotunately, EdTech sits squarely at the confluence of these two sectors. Investors are curious to know what stocks exist therein. Boxlight Corporation is one such company. Like most small-cap stocks, they aren't a household name. The company develops and services eLearning software for the classroom. Essentially, this firm will seek to establish itself as a leader in this burgeoning sector. Their solutions include interactive digital software, 3D printing and robotics STEM-related assets, and certifications to name a few. Among them is its MimioConnect cloud platform for remote teaching and learning.In early July the company announced the appointment of two board members who should provide great direction. They have multiple decades of experience at highly respected forms in the industry. The firm also recently won two excellence awards from Tech & Learning magazine. Boxlight corporation has developed a lot of software and resources which give it many avenues to rise. BOXL shares eclipsed $4 per share in early July after having traded around $1 for the previous year. Current shares are near $2.65. Biocept Inc. (BIOC)Source: Shutterstock Given the search for a Covid-19 vaccine, this list could have easily been all biotech penny stocks. There are many exciting sectors and stocks elsewhere, but here I will focus on two of them.Biocept is a company involved with a Covid-19 vaccine. Primarily, the company deals with cancer diagnostics. The firm is undertaking a vote in order to do a reverse split of its stock to raise its price above the NASDAQ $1 minimum closing bid requirement. It will be delisted if shareholders vote against the reverse split. Clearly it is a volatile stock, yet it serves a noble cause in an important market. * 10 Gaming Stocks That Will Power Through the New Normal Biocept's involvement with a vaccine is bound to pique the interest of speculative investors. The company has assembled a Covid-19 testing kit which will be available in Q3 2020. It is clear the company is attempting to remain relevant with these two latest moves. Ampio Pharmaceuticals Inc. (AMPE)Source: Iryna Imago / Shutterstock.com Ampio Pharmaceuticals is another biotech company that is throwing its hat in the Covid-19 ring. Its primary business is the development of anti-inflammatory drugs against disorders including osteoarthritis and diabetic eye issues. Ampio Pharmaceuticals has been active in the news in the last week as it relates to the pandemic. Additionally, Ampio's drug Ampion is being touted as a treatment against inflammatory syndromes related to Covid-19. The company published a study to that effect on July 20. On July 23 it enrolled patients into its Ampion Covid-19 Program. Should the results prove positive, this stock could rocket upwards from its current $1.17 price. eMagin Corporation (EMAN)Source: Shutterstock eMagin produces OLED microdisplay technology. Its organic light emitting diodes have application in military, consumer, medical, and industrial markets. The company's share price has been marching solidly upward in a consistent channel pattern for the past year, having risen from 32 cents to roughly $1.20. Such a 300% price increase is certain to entice more investors. * 7 Cybersecurity Stocks Hard At Work While We Work From Home Unlike some other penny stocks, EMAN shares have lots of financial information with which to conduct due diligence. Lynas Corporation Limited (LYC)Source: Shutterstock Lynas Corporation is a rare earths miner. There are many such companies, but what sets Lynas apart is one powerful catalyst: its strategic partnership with the U.S. Government. The U.S. Government is worried about its ability to produce strategically important minerals. It is particularly worried about its over-reliance on China for strategic minerals used across industries. To that end it has given a contract to Lynas, an Australian company with significant operations in Malaysia. The contract will allow Lynas to begin building a heavy rare earth separation facility in Texas. When completed, the facility will be the only plant which can separate such metals outside of China. This should make clear the strategic importance of the contract. This looks like a potentially huge business with massive growth potential. Shares currently trade in the $2.50 range but jumped on the news. The Texas facility design will be ready sometime in 2021. U.S.-China tensions will dominate headlines perhaps for several decades. Thus, shares in companies like Lynas, which benefit from that reality, have great potential to grow for a long period. Ucore Rare Metals Inc. (UURAF)Source: Shutterstock Ucore Rare Metals may rise for the same reason that Lynas has risen. However, this seems to be much more speculative. Lynas is clearly a legitimate company with real operations. Ucore has much less transparency behind it. Its website is very thin on information. Nevertheless, it is a stock to keep an eye on. * 10 Gaming Stocks That Will Power Through the New Normal The company has supposedly developed a new, efficient process for separating and purifying rare earth elements. If it indeed aligns itself with U.S. national defense and can deliver, it should rise exponentially. Byrna Technologies (BYRN)Source: Shutterstock Byrna Technologies is attempting to fill a void in the self-defense market. The company produces what looks like a gun that fires bullets but actually fires chemical irritant projectiles. Basically, pepper spray paint balls. The company is trying to fill the void between close-range pepper spray, and longer-range guns which fire lethal bullets. Further, the projectiles are non-lethal and are intended to disarm attackers, or give users ample time to flee. Byrna may have cornered a large market of American self-defense consumers. Many Americans do not want the responsibility and potential liability associated with gun ownership. However, they do want to protect themselves. Byrna's products neatly provide a solution for these consumers. Therefore Byrna may have identified a lucrative revenue base. Byrna's shares have traded below 50 cents CAD since 2013. Shares only recently rose to around 1.70 CAD in June. It may be time to give a few of these penny stocks a serious look. Investors are facing volatility with most any stock. Therefore, now may be as good a time as any to take a risk. These shares are a good place to start.As of this writing, Alex Sirois did not own shares of any of the stocks above. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 7 Penny Stocks Worth the Danger as Pandemic Catalyzes Growth appeared first on InvestorPlace.
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As expected, General Electric's (NYSE:GE) second-quarter earnings were dismal, sending GE stock lower by 4.35% on July 29, the day the report was delivered.Source: Sergey Kohl / Shutterstock.com The industrial conglomerate lost 15 cents a share in the June quarter though revenue of $17.75 billion beat Wall Street estimates of $17.12 billion. Although revenue was better than expected, these numbers represent regression from a company that desperately needs to show it can make progress. A year earlier, GE earned 16 cents a share on sales of $23.41 billion. Its Q2 2020 operating loss ballooned to $2.14 billion from $115 million.Broadly speaking, the industrial sector is a dud this year. The S&P 500 Industrial Index, a basket of large-cap industrial names, including GE, is lower by almost 11% year-to-date. The S&P 500 is up 1%.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBy any measure, GE is an industrial offender with a 2020 loss of almost 41%.Yes, there could be sequential improvements in the third and fourth quarters for GE. But there are also reasons to be leery of the stock and strongly consider deploying elsewhere. * 7 Dividend Stocks to Buy for Beginners to Income InvestingLet's explore some of the potential pitfalls GE faces. GE Stock Beset by Boeing WoesSome analysts and market observers insist on being bullish on GE stock, noting that the second-quarter results could have been worse. "Could have been worse" or "less bad" generally aren't reasons to buy a stock. But, there are credible explanations behind the woeful April through June results delivered by GE.Put simply, Boeing (NYSE:BA), a prime customer of the GE aviation business, is still struggling. The aerospace giant reported a second-quarter loss of $4.79 a share on revenue of $11.81 billion. Analysts expected a loss of $2.54 on turnover of $13.16 billion. A supplier, whether it's selling widgets or jet engines, doesn't want numbers from one of its most important customers to look like that."We're working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side," Boeing CEO Dave Calhoun said in a statement.One way of interpreting that statement is Boeing is having difficulty forecasting when demand for passenger aircraft will rebound. Worse yet for Boeing, and thereby GE's aviation business, is the dreadful second quarter may not be the worst stretch for Boeing. Translation: things could get worse before they get better.Boeing said manufacturing volume will be reined in, which some analysts believe is a sign that cash flow margins could be crimped in the coming quarters.Boeing and GE are right to be concerned about the state of the airline industry. Any ebullience accrued following the U.S. economic reopening is gone because of surges of the novel coronavirus. This scenario is pressuring airlines, which are cutting summer routes. And with conserving cash the order of the day for the industry, adding new jets while so many are grounded is out of the question over the near term. Looking for Good News?If an investor is desperate for good news regarding GE, the company's cash burn rate declined in the June quarter.Being cash flow negative at $2.1 billion, which GE was, was far better than the $3.29 billion cash flow negative mark analysts expected the company to post.GE could be cash flow positive again sometime in 2021.To get there, costs have to be reduced. The company already divested an array of businesses, so the easiest way to boost cash is to lower headcount. That means thousands of job cuts could be on the way. Bottom Line on GE StockBottom line: Covid-19 is a hurdle for plenty of companies across myriad industries, but it's especially burdensome for GE.Here's why. Prior to the pandemic, the company was working on shoring up two units – GE Power and GE Capital. Now, aviation is another issue for a management team dealing with problems that plagued the stock for several years.Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post The Worst May Not Be Over for General Electric appeared first on InvestorPlace.
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(Bloomberg) — Wealthy countries have already locked up more than a billion doses of coronavirus vaccines, raising worries that the rest of the world will be at the back of the queue in the global effort to defeat the pathogen.Moves by the U.S. and U.K. to secure supplies from Sanofi and partner GlaxoSmithKline Plc, and another pact between Japan and Pfizer Inc., are the latest in a string of agreements. The European Union has also been aggressive in obtaining shots, well before anyone knows whether they will work.Although international groups and a number of nations are promising to make vaccines affordable and accessible to all, doses will likely struggle to keep up with demand in a world of roughly 7.8 billion people. The possibility wealthier countries will monopolize supply, a scenario that played out in the 2009 swine flu pandemic, has fueled concerns among poor nations and health advocates.The U.S., Britain, European Union and Japan have so far secured about 1.3 billion doses of potential Covid immunizations, according to London-based analytics firm Airfinity. Options to snap up more supplies or pending deals would add about 1.5 billion doses to that total, its figures show.“Even if you have an optimistic assessment of the scientific progress, there’s still not enough vaccines for the world,” according to Rasmus Bech Hansen, Airfinity’s chief executive officer. What’s also important to consider is that most of the vaccines may require two doses, he said.A few front-runners, such as the University of Oxford and partner AstraZeneca Plc and a Pfizer-BioNTech SE collaboration, are already in final-stage studies, fueling hopes that a weapon to fight Covid will be available soon. But developers must still clear a number of hurdles: proving their shots are effective, gaining approval and ramping up manufacturing. Worldwide supply may not reach 1 billion doses until the first quarter of 2022, Airfinity forecasts.Investing in production capacity all over the world is seen as one of the keys to solving the dilemma, and pharma companies are starting to outline plans to deploy shots widely. Sanofi and Glaxo intend to provide a significant portion of worldwide capacity in 2021 and 2022 to a global initiative that’s focused on accelerating development and production and distributing shots equitably.The World Health Organization, the Coalition for Epidemic Preparedness Innovations, and Gavi, the Vaccine Alliance are working together to bring about equitable and broad access. They outlined an $18 billion plan in June to roll out shots and secure 2 billion doses by the end of 2021.The initiative, known as Covax, aims to give governments an opportunity to hedge the risk of backing unsuccessful candidates and give other nations with limited finances access to shots that would be otherwise unaffordable. If governments put their own interests first, it could result in a worse outcome for everyone, allowing the virus to continue to spread, some officials warn.Tangle of DealsCountries would need to strike a series of different agreements with vaccine makers to raise their chances of getting supplies, as some shots won’t succeed, a situation that could lead to bidding battles and inefficiencies, Seth Berkley, Gavi’s CEO, said in an interview.“The thing we worry about most is getting a tangle of deals,” he said. “Our hope is with a portfolio of vaccines we can get countries to come together.”Some 78 nations have expressed interest in joining Covax, he said. In addition, more than 90 low- and middle-income countries and economies will be able to access Covid vaccines through a Gavi-led program, the group said Friday. There’s still concern the rest of the world might fall behind.“That is exactly what we’re trying to avoid,” Berkley said.Biggest InvestmentAstraZeneca in June became the first manufacturer to sign up to Gavi’s program, committing 300 million doses, and Pfizer and BioNTech signaled interest in potentially supplying Covax. Brazil, the nation with the second-highest number of coronavirus cases, also reached an agreement to secure doses of the Oxford vaccine with AstraZeneca.The Trump administration agreed to provide as much as $2.1 billion to partners Sanofi and Glaxo, the biggest U.S. investment yet for Operation Warp Speed, the nation’s vaccine development and procurement program. The funding will support clinical trials and manufacturing while allowing the U.S. to secure 100 million doses, if it’s successful. The country has an option to receive an additional 500 million doses longer term.The European Union is closing in on a deal for as many as 300 million doses of the Sanofi-Glaxo shot and is in advanced discussions with several other companies, according to a statement Friday.“The European Commission is also committed to ensuring that everyone who needs a vaccine gets it, anywhere in the world and not only at home,” it said.In China, home to some of the fastest-moving programs, President Xi Jinping pledged to turn any vaccine developed by the country into a global public good.The U.S. has invested in a number of other projects. Pfizer and BioNTech last week reached a $1.95 billion deal to supply their vaccine to the government, should regulators clear it. Novavax Inc. announced a $1.6 billion deal, while the U.S. earlier pledged as much as $1.2 billion to AstraZeneca to spur development and production.U.S. investment to speed up trials, scale up manufacturing and boost vaccine development is “great news for the world,” assuming vaccines are shared, Berkley said.“It helps drive the science forward,” he said. “On that I’m very positive. My concern is that we need global supply.”(Updates to add Brazil doses in 14th paragraph, China position in 18th)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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On Friday, Deutsche Bank analysts led by Lloyd Walmsley raised their price target on shares of Amazon from $3,333 to $4,000, just one day after the e-commerce giant reported a blowout second quarter, which would the value it at $2 trillion. The firm said “it’s tough to see anything this quarter that was not positive”, although it did cite key risks to its call including higher competition and regulation. The Final Round panel discusses the bullish call.
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Nvidia (NASDAQ:NVDA) stock is on a high once again, doubling in value after falling to $196.40 a pop in mid-March. Panic induced selling hit the tech sector hard after the novel coronavirus struck, but several stocks have bounced back. NVDA stock is no different.Source: JHVEPhoto / Shutterstock.com Its recent quarterly results reinforce the fact that the chipmaker is a tour de force in its industry. Date centers and AI services remain the lynchpins of future growth, and the company also has other segments like its automotive business that can become significant contributors in the future.Looking ahead, Nvidia forecasts second-quarter revenue of $3.58 billion to $3.72 billion. Analysts are expecting $3.25 billion.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Data Center Growth Pushes NVDA Stock HigherIn the 2021 first quarter, Nvidia's data center business unit recorded year-on-year revenue growth of 80%, with sales topping $1 billion for the first time. Along with the company's gaming business, data centers contributed the most to overall revenue, which was up 39% from the year-ago period.The growth in data centers far outpaced the 27% year-over-year growth in the gaming business unit. That goes to show the evolution of the business from a graphics-chip maker for code games and consoles, to a more diversified tech giant.It must be a bittersweet moment for management when they see these results. Gaming is what brought Nvidia to the dance. But data centers will have a larger part to play in its future. With more people sheltered in their homes during the Covid-19 pandemic, the segment will only grow. * 7 Dividend Stocks to Buy for Beginners to Income InvestingThat's why the company paid $6.9 billion to acquire Mellanox, a high-performance computing chip maker. The acquisition, although draining on cash reserves, will serve as a catalyst for the data center business. CEO Has Skin in the GameJensen Huang is the founder and chief executive officer of Nvidia. The executive still has a 3.8% stake in the company. That may not seem like a lot. But Huang is a visionary businessman who oversaw the company's rise from a nascent startup to a Silicon Valley giant. The fact he remains invested in the company should come as a sigh of relief.Warren Buffett is a legend in the investing world. When quizzed about how he picks stocks, there is one thing he often states: management is key to growth and profitability.Buffet eschews the mantra of picking cheap shares in the market in the hopes of striking gold. Instead, he goes for companies with strong, efficient management that successfully drive results for several years.Hence, NVDA stock would be right up his alley. Potential in the Automotive SegmentNvidia's automotive segment was not as successful as its other counterparts, falling 7% year-over-year due to Covid-19.However, the segment does offer some excellent long-term potential. The firm's focus is on semi-autonomous and fully autonomous vehicles that will use AI-enabled products.NVIDIA DRIVE AGX is a full end-to-end solution for fully autonomous vehicles, providing hardware, software, and sample applications. Granted, it will not be a significant moneymaker in the forthcoming quarters, but it's a segment that could become a significant tailwind in the future. Is NVDA Stock Appropriately Valued?One thing is for sure, NVDA stock is not cheap by any means. Trading at 77.94x trailing price to earnings, shares of the semiconductor firm are highly-priced. That's why you didn't see a massive surge in share price even though the quarterly results were excellent.In its peer group, Advanced Micro Devices (NASDAQ:AMD) and NXP Semiconductors (NASDAQ:NXPI) are the only two companies that have a P/E ratio higher than NVDA.You know the market is bullish when Intel and Nvidia both have valuations of more than $200 billion. Analysts' estimates are for Nvidia to touch revenues of $14.64 billion this fiscal year, while Intel will reach $75.12 billion.However, considering the high rate of revenue growth the company is experiencing, I believe the premium valuation is justified. I prefer pouring capital into a company that is led well and has a strong vision for growth because that will ultimately draw returns and profitability.Nvidia's data center segment and AI solutions will drive growth rates higher. Gaming will remain a substantial contributor to overall revenues, and share prices will continue to skyrocket. Simply put, you can't go wrong investing in NVDA stock.Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. He has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan Farooque does not directly own the securities mentioned above. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Why Nvidia Shares Will Top $500 appeared first on InvestorPlace.
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Bitcoin and Ethereum crashed by 12% and 20% respectively in about 6 minutes as more than $1 billion of positions were liquidated. Bitcoin’s price went from $11,930 to $10,550. By press time, the price has now recovered to about $11,400. Ethereum crashed from $408 to $326. By press time, the price has now recovered to […]The post Bitcoin and Ethereum crash by more than 12% in 6 minutes as more than $1B of positions gets liquidated appeared first on The Block.
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