I Know First Weekly Newsletter Investment Selection Using AI Predictive Algorithm July 3, 2018
This Week's Top Article: The AI Renaissance: 5 Top AI Stocks To Consider Read More | Related News
This Week's Top Stock Prediction: High Risk High Reward Stocks Based on Big Data 143.08% Return | 3 Months
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Drying Out Dark Pools and Forecasting Trading Volume Trading volume of a stock is the quantity of shares or contracts exchanged over a given time period, typically one day. While this number may not seem very significant, it can show a stock’s momentum, confirm a current trend, and can help to indicate whether an investor should buy or sell a stock. If an investor sees that trading volume has been increasing progressively over the past year and is now at the highest volume the company has experienced, this shows the stock is continuing on an upwards trend. On the other hand, low activity can also indicate low interest in the stock and may be a signal to sell that security.
While trading volume seems to be easily calculable, there are obstacles that make it not as simple as it seems. In the 1980s, the SEC allowed brokers to connect many buyers and sellers to facilitate the trading of large blocks of shares in private exchanges to avoid the transparency of a public exchange which could lead to stock volatility. These off the books block trades are known as dark pools and are only announced publicly after their completion when the stock price will not be affected anymore.
There has been a lot of controversy over dark pools lately. In December 2016, Deutsche Bank admitted to misleading clients about how their dark pool trades worked and agreed to pay $37 million in response. This is now the only big bank involved in dark pool scandals, Barclays and Credit Suisse were fined over $100 million for similar reasons. The SEC is considering implementing stricter regulations on dark pools similar to those recently established in Europe. Read More about Dark Pools and How I Know First Forecasts Trading Volume
On May 2nd, Apple Inc. (NYSE: AAPL) released its quarterly report. Apple’s net sales have grown 15.58% quarter over quarter, and 13.85% compared to the last 6 months. Although the gross profit margin dropped by 61 basis points, net income and EPS jumped up by 25.32% and 28.44%, respectively. A major contribution for the strong growth is iPhone sales. Despite of the fact that Wall Street considered iPhone X to be pricey, its performance is still very impressive. iPhone unit sales slightly increased by 3% but thanks to the increase in price, the total sales increased by 14%.
More about iPhone, it has been more than 7 years from the day that Steve Jobs left Apple. In fact, with remarkable successes of the first four iPhone generations, Steve Jobs has set a very high bar for his successor, Tim Cook. Since then, every time Apple released their new iPhone, users have not been surprised the way they had been in the first 4 iPhones. There were not many developments since iPhone 6S. The most significant improvement is the Face ID technology in iPhone X. However, both of the sales and number of unit sold have continued to grow year over year. Since 2012, after Steve Job left Apple, it has grown 13.8% in sales and 10.8% in unit sold. Since it was release, iPhone X has been considered to be too pricey and Wall Street expected the slow down of the revenue. It turned out that iPhone revenue still grew at 14% in the first two quarters.
About virtual assistant, Apple HomePod’s market share is far below Amazon Echo and Google Home. According to Fortune, HomePod only has 3% of the market share while this number of Amazon Echo and Google Home are 55% and 23%, respectively. Apple is also struggling with HomePod marketing. When Amazon Echo is considered an online shopping assistant and Google Home can answer almost all of your questions, Apple tries to market HomePod as a music reinvention. However, so far, Apple has not succeeded with this strategy. Read More about the War of AI between Apple and its peers as well as our forecast for AAPL
Destination Maternity Corp. Turns Management Around and Returns up to 161.73% in 3 Months Destination Maternity Corporation is a maternity apparel designer and retailer. Incorporated on October 23, 1980, the company operates over 1815 retail locations between the United States and England. The company also sells its merchandise through it’s Canadian website, MotherhoodCanada.ca, and through Amazon.com.
Since 2011, share price of DEST fell by up to 90%. So, on May 23rd, investors took control of the board of DEST and replaced all four directors. The new board adds diversity to the company as it includes the co-founder of Skullcandy, a clothing analyst, a retail executive, and an investor. Stockholders were satisfied and forward looking with this new board, as stock price rose 6.6%
On May 30, Destination Maternity Corp. announced Marla A. Ryan will be taking the position of CEO. Ryan has great experience in the apparel and retail business. Formerly, she was the CEO of a Lola Advisers LLC, a apparel consultancy, and VP of J.Crew’s children apparel division. Ryan looks to focus on improving shareholder value, accelerate revenue growth, and improve profitability. Anne Windal, Chair of the Board of Directors, stated, “The entire Board is confident in Marla’s experience and ability, and will work closely with her to drive growth, increase sales and help return the Company to its historic success and profitability. We believe that Marla is the ideal leader to drive immediate change at Destination Maternity.” Read More about Why did DEST see such a tremendous return?
Twenty-First Century Fox, Inc. is a media and entertainment company. Incorporated on October 23rd, 2003, the company takes part in cable network programming, television, and filmed entertainment. With 28 broadcast television stations, the company operates in the United States, the United Kingdom, Continental Europe, Asia, and Latin America.
Last year, The Walt Disney Company announced a bid to acquire 21st Century Fox for $52.4 billion in stock. To make this deal work, Disney said they would spin-off Fox Broadcasting network and stations to its shareholders, currently called “New Fox”. Upon completion of the deal, Disney would own numerous assets, such as 21st Century Fox’s film and television studios, stake in Hulu and Sky News, and, yes, ownership of The Simpsons. This deal would greatly stretch the Walt Disney Company’s footprint across the world since Sky operates in 23 million homes in the UK, Fox Network International in 170 countries, and Star India which is in more than 100 countries. FOXA price rose 7.5% and volume increased 154.86% following this news.
On June 13th, the second biggest broadcasting and cable company, Comcast, announced a $65 billion cash deal to acquire 21st Century Fox. Comcast counter offered the Walt Disney Company and was looking to buy the same assets as Disney. The deal would provide a 19% premium to the value of Disney’s all stock offer. Comcast stated in a letter to 21st Century, “Our new proposal offers 21CF shareholders $35.00 per share in cash and 100% of the shares of New Fox after giving effect to its proposed spinoff, providing superior and more certain value as compared to Disney’s all-stock offer.” Stock price jumped 7.7%.. Read More about how did Walt Disney respond to Comcast's offer and our forecast for FOXA
Micron Technology Inc. (NASDAQ: MU) reported strong performance for the third quarter in 2018 on 21st June. The fourth-quarter forecast was given positively based on a “more consistent and stable supply/demand outlook”. The stock price surged by some 4% in the following day, reaching to the level that peaked after the significant rally ended in March. As a major manufacturer producing memory and storage products that sold to various markets, it continued to benefit from strong demand for semiconductors, creating a total revenue of $7.8 billion in Q3, up 6% sequentially and 40% higher from the same period in the prior year.
After acquiring Japanese chip vendor Elpida Memory Inc. in 2013, Micron doubled its share in the market for DRAM (dynamic random-access memory). It still faced the dominant market power from Samsung and SK Hynix with a combined percentage of nearly 75. Smaller vendors have been squeezed out in recent years. Micron saw its market share shrink in the second half of last year due to the gas pollution accident in Taiwan, cutting mobile DRAM sales. However, it started to show the largest increase among competitors since the beginning of this year due to new product releases and demand recovery.
Micron used its assets more efficiently than the industry average level with the company’s ROA of 25%. The company’s long-term obligations are well covered by the cash and other short-term assets and the interest coverage ratio is 25.7x. The third quarter’s revenue and gross margin demonstrated the company’s strong profitability during the stage of expansion. Read More about the potential of MU as well as our prediction for the company.
Continuing our expasion trend to Asian market, today, we would like to announce the launch of I Know First's AI-Predictive system for the Indian Stock Market. As of May 15th, 2018, we finished the implementation and the training period of its AI-based ranking and forecasting model for the main equities listed on the National Stock Exchange (NSE) of India, specifically a selection of 366 equally-weighted stocks. On this date, I Know first published the first Indian stock forecast for the subscribed investors in the local Indian market, as the timing of the data feed and the forecast generation was adjusted to the respective time zone.
According to our forecast evaluation results, the predictions generated returns greatly surpassing that of the benchmark we have utilized, namely, the sample of equally-weighted 366 most liquid stocks from the National Stock Exchange held by I Know First. Our AI systems can be used by both investors and traders to improve their investment decisions, I Know First's algorithms can identify promising opportunities in the Indian stock market and implement custom screens as overlay to support their research and investment process.
After primarily focusing on the U.S. stock market, the implementation of I Know First deep-learning model for the Indian stock market and its outstanding results since the launch this March highlight the superiority of I Know First’s approach and exemplifies the adaptability and high scalability level of the system to markets across the globe.
Despite concerns about the trade war between the U.S. and China, gold price didn’t act as the traditional safe haven this time and unexpectedly got a 0.56% setback over the past week. Its $1,267.20 per ounce closing price on Thursday reached the lowest since last December. On the one hand, the rising demand caused by the heightened risk aversion in one single market may not be sufficient to lift up the price. On the other hand, Japanese Yen may be preferable serving also as a haven in turbulent times due to the much lower transaction costs required.
Because of the negative correlation between US dollar and gold price, the movements of US dollar can be a major driver and predictor of those of gold. Over the past few months, US Dollar has gained solid support from the overall positive short-term fundamentals of the U.S. economy, especially compared with Europe’s economic slowdown. On June 14, the US Dollar Index, measuring the value of US dollars against a basket of foreign currencies, made a jump and further rose to a seven-month high last Tuesday closing at 95.08.
After a strong climbing since the mid-April, the US Dollar Index (DXY) surged to a level of 95 last Thursday, breaking out the November high. The index then had a pullback in the following days and reached to a low of 94.18 on June 26th, alleviating the short-term overbought that happened weeks before. The escalation in the trade tension involving the US-China-the European Union trade front threatened the demand for dollars during this slump. The index is expected to gain a rebound support at this point since along with the country’s economy and hawkish monetary policy, market also holds optimism in the positive impact that the trade restrictions brings to US economy, that is to lead a surge of domestic investment.
APPLE STOCK NEWS
Apple News: Upcoming Product Updates Build On Predecessors July 01 |Read More
Apple News: Apple Admits to Faulty MacBook Keyboard June 24 | Read More
Apple News: Apple Takes Action to Protect Users’ Privacy June 17 |Read More
As Always Apple Tops Expectations and Stays Different – WWDC 2018 June 06 |Read More
Apple News: What to Expect – Apple WWDC 2018 June 03 | Read More
Apple News: Privacy is a fundamental human right May 27 |Read More
When Apple Maps was launched in 2012, it was met with nationwide controversy as the GPS service was imprecise and users were ending up at the wrong destination. Apple plans to change this as they have been rebuilding Apple Maps from the ground up for four years. The iOS map app currently uses third party data for mapping, which is unsatisfactory for Apple’s ability to make the best mapping platform possible. Thus, the new Apple Maps will rely on first person data collected from iPhone user data, providing more accurate and precise directions. The use of iPhone data allows Apple Maps to find the quickest routes possible, since it uses user data to locate traffic and how individuals get to their destination. Also, to provide accuracy, the company has deployed Apple vans across the country to take photos and map out roads.
Rebuilding Apple Maps is the only way the company believes it could create the best mapping software possible. Apple SVP, Eddie Cue, stated, “We have been working on trying to create what we hope is going to be the best map app in the world, taking it to the next step. That is building all of our own map data from the ground up.” The new Apple Maps will first be available to San Francisco on iOS 12, followed by a U.S. roll-out.
