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  • 15 Cheat Codes for Life: Jump 7 Years Ahead of People

    15 Cheat Codes for Life: Jump 7 Years Ahead of People

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    When you played video games as a kid, you would likely often look for cheat codes to help you gain a competitive advantage. Specific cheat codes would help you get to the next level of the game when you feel stuck.


    Due – Due

    Suddenly, this cheat code would unlock a new achievement and allow you to save yourself a significant amount of time. Did you know that there are cheat codes to life that could put you ahead of others?

    We’re going to look at 15 cheat codes that will put you years ahead of 95% of people out there.

    1. Become comfortable with getting rejected. The sooner you stop fearing rejection, the sooner you can become unstoppable.

    Every successful entrepreneur or person has been through a laundry list of failures. As much as we love to glamorize risk-takers, we can’t ignore how much they’ve failed on the road to success. One could even argue that the road to success is paved with failures and crushed dreams.

    The good news is every rejection or failure brings you one step closer to a yes that could change your entire life. They say that when one door closes, another one opens. This may not seem like the case at the moment, but those rejections will help you become more tenacious so that you’re ready for whatever life throws at you.

    2. Pay attention to how people treat service workers because this reveals their true colors.

    How someone treats those who can’t do something for them accurately indicates character. You can learn plenty from how someone treats service people.

    There’s one quote that summarizes this best, and we really can’t argue with the greatest of all time:

    “I don’t trust anyone who’s nice to me but rude to the waiter. Because they would treat me the same way if I were in that position.” ―Muhammad Ali

    3. Embrace adversity because it will help you grow more than being stuck in your comfort zone.

    Your comfort zone is the worst place you can spend any time if you want to see growth in your life. The comfort zone is where dreams go to die because nothing remarkable ever came from playing it safe.

    How can you embrace adversity?

    • Don’t be afraid to suck at something new.
    • Challenge yourself constantly.
    • Try a new sport regardless of your age.
    • Seek feedback from people who aren’t afraid to hurt your feelings.
    • If it scares you, then it means that you need to do it.
    • If your goals aren’t intimidating, then they’re not bold enough.

    4. Take action first and then figure it out as you go.

    So many of us want to know everything upfront before taking action. Taking action when you don’t know all of the answers is a true superpower. The stars will never align, and the universe won’t conspire to give you the perfect conditions for starting. You have to take action first and then watch how everything conspires in your favor once you start to build momentum on your own.

    This Ryan Holiday quote from “The Obstacle is The Way’” summarizes this notion best:

    “We often assume that the world moves at our leisure. We delay when we should initiate. We jog when we should be running or better yet, sprinting. And then we’re shocked –shocked!—when nothing big ever happens, when opportunities never show up, when new obstacles begin to pile up, or the enemies finally get their act together.” 

    Instead of waiting for the perfect conditions to start, focus on progress over perfection. Your future self will thank you for the risks you take today when you don’t feel fully prepared.

    5. Know what you want out of life, or you’ll never get what you want.

    They say that no road will take you there when you don’t know where you’re going. You must figure out what you want from life to start planning to make it happen. So many people walk through life aimlessly without a plan, and they wonder why they never seem to get lucky.

    Knowing what you want out of life is the ultimate cheat code. Once you know what you’re after, you can craft a plan to go after it. The best part is that no matter what you want to accomplish, chances are that someone out there has already done it, so you can learn from them by buying a book, taking a course, or paying for coaching.

    6. Never stop investing in yourself because this is the most important thing you can do.

    Making yourself a priority isn’t selfish; it’s actually the most important thing that you can do because you can’t pour from an empty glass. Every investment you make in yourself today will pay dividends for years.

    How can you invest in yourself right now?

    • Learn a new skill. The more that you learn, the more that you earn.
    • Buy a book on a topic that fascinates you. Everything that you could want to learn about has been written about. You can spend $20 on a book to acquire a lifetime of knowledge.
    • Spend money on your health. Always spend the money on eating better and the best physical training you can get. You want to ensure that you’re physically and mentally prepared for whatever life brings you.
    • Take someone out for coffee or lunch. You can learn something from someone who’s a few steps ahead of you by offering to take them out for lunch.
    • Attend an event or conference in your field. They say that your network is your net worth. You want to do what you can to get around those who are already where you want to be one day.

    7. Focus on one thing at a time because multi-tasking is the biggest trap.

    Multi-tasking is a recipe for doing a mediocre job on a bunch of random tasks. If you want to see remarkable results, you must focus on one thing at a time to give it your full attention. When you chase two rabbits, you end up catching none of them. While social media is filled with people bragging about how much they do, the reality is that we’re all better off focusing on one important task at a time.

    You owe it to yourself to read “The One Thing” by Gary Keller if you struggle with focusing on one task at a time. Here’s a quote that simplifies the entire book into one sentence.

    “It is not that we have too little time to do all the things we need to do, it is that we feel the need to do too many things in the time we have.”

    Most of us don’t have an issue with time management. We struggle with figuring out the one thing that deserves our focus, so we try to complete multiple different tasks simultaneously.

    8. Stop lying to yourself if you want to become unstoppable.

    You have to know yourself and be self-aware enough to accept your limitations. There’s no sense in lying to yourself because you’re only going to set yourself up for disappointment. As tempting as it is to make audacious statements about what you plan on doing, you’re better off setting small and attainable goals that will help you get to the finish line.

    9. Focus on quality friendships to build deeper relationships.

    How many times have you seen a documentary about an athlete, musician, or celebrity who ended up losing everything they had? These people were always surrounded by an entourage, yet it seemed like they didn’t have any real friends. You don’t want this to happen to you.

    A few quality friendships with deep connections are worth more than many acquaintances who don’t care about you. You want to surround yourself with people on a similar mission so that you don’t get sidetracked or brought down by anyone’s misery.

    10. If you want to achieve greatness, you have to accept suffering.

    You won’t get anywhere in life if you avoid all suffering. There’s a reason why so few people end up building a successful business or can get into amazing physical shape. Most of us will give up on suffering because we’re not sure if the short-term discomfort is worth the long-term results.

    Knowing that suffering today for a better tomorrow is worth it is a cheat code that very few will accept. Whatever you’re going through today will be worth it when you get to the other side. Nothing worth doing has ever been easy.

    11. How you react is much more important than what happens to you.

    Life isn’t about what happens to you. It’s about how you react to what happens to you. Instead of blaming the world for your problems, you have to get into the habit of taking accountability for your situation.

    You can’t choose what happens to you, but you can choose how you react to it. How you respond to conflict and challenges will say plenty about you.

    12. Choose to change your life if you want it to change by tomorrow.

    Your life won’t change until you change. This means you have to decide to change your life because nobody else can do it for you.

    You can hire coaches, pay for mentorship, and join a mastermind, but none of that will mean anything if you don’t decide that you’re going to change. The choices you make today will be reflected in the results you get tomorrow.

    13. To become successful, you’ll have to make many sacrifices.

    While it’s easy to admire successful people when you see what they’ve accomplished, you don’t know what they went through to get to where they are.

    Many sacrifices are required if you want to get to the next level. The good news is that every sacrifice you make today will be evident in the rewards you receive in the future.

    14. You become more powerful when you don’t worry about what others think of you.

    So many of us worry about the opinions of others when in reality, those people don’t even know what’s best for us. It would be best if you didn’t worry about the opinion of those who don’t know what you’re going through.

    The truth is that most people will judge you because they’re jealous that you’re not afraid of taking risks. You’ll never be criticized by someone who’s doing better than you. Criticism tends to come from those who aren’t doing as well as you.

    This quote about worrying about what others think always makes me think…

    “When you’re 20, you care what everyone thinks. When you’re 40, you stop caring what everyone thinks; when you’re 60, you realize no one was ever thinking about you in the first place.”

    This quote was originally attributed to Winston Churchill, but the original author hasn’t been verified. Regardless of who said this, we spend far too much time worrying about what others think of us when their opinions don’t pay our bills.

    15. Your vibe attracts your tribe.

    Smiling may not seem like a big deal at the moment, but your energy will attract many opportunities. You may have heard how your vibe attracts your tribe, but you don’t realize how accurate this is until you try it. How you present yourself to the world will determine what kind of energy you attract into your life. It’s important to remember this when you step out into the world.

    Those are 15 cheat codes that will help you get ahead in life. Save this list and refer to it when you’re looking for some inspiration or when you’re just feeling stuck.

    Work Hard to Win at the Game of Life

    Why cheat at video games? Because you want to win! Old-school gamers will remember the days of pressing Down Up, Right, Left, Left, A, B, B, A, B, Up, Down, and similar combinations to unlock unlimited health, wealth, and more. If you can find a cheat code for life, you’re better positioned to find yourself winning at your goals.

    The post 15 Cheat Codes for Life: Jump 7 Years Ahead of People appeared first on Due.

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    Deanna Ritchie

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  • What is “Active Investing”?

    What is “Active Investing”?

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    Long term investing is not an easy path to top the stock market (SPY). On the other hand most active trading approaches miss some key elements that lead to outperformance. So let’s talk about a best of both worlds approach called “Active Investing”. Read on below for more.


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    The world is moving faster by the day.

    Not just technological change…but the speed in which industry peers find ways to beat their competitors. This makes buy and hold investing more difficult than ever as stocks that once looked fundamentally promising can sour quickly and become a drain on your portfolio.

    This calls out for each of us to consider the virtues of “Active Investing” which leads you to closely and continuously purge weak stocks at the earliest possible stage to avoid undue harm.

    Note that I am drawing a clear distinction between “Active Investing” and “Active Trading”. Meaning this is not a call to becoming a day trader…or slave to the market guzzling Red Bull all day long while watching 8 computer monitors.

    Rather it is about proactively making sure that you stay in the healthiest stocks to give yourself the best chance to outperform. That’s because at the end of the day fundamentals are what truly drives stock prices.

    Why?

    Because we are actually buying an ownership stake in a company (not just random stats or a chart pattern on a screen…but a real living/breathing entity with a clearly definable value).

    My goal for this article is two-fold.

    First, to convince you that it is in your financial best interest to become a more active investor.

    Second, to give you free access to a set of tools that provides a fountain of profitable picks for active investors.

    The Importance of Timeliness

    Some investors are more focused on preserving capital. While most have their eyes set on outperforming the market.

    The only way to accomplish the latter task is to have timely stocks. The ones ready to rise now.

    The #1 ingredient of timely stocks is improving fundamentals. That’s because the attractiveness of that healthier growth profiles is what leads investors to bid up shares.

    On the surface this sounds like an overwhelming task as there are literally thousands of fundamental factors to consider.

    Gladly, members of StockNews already know that the POWR Ratings gives them a leg up in this journey. That’s because this proven stock rating model narrows down to 118 unique factors that have historically pointed to stocks likely to outpace the market.

    These impressive gains come from the computers doing the heavy lifting crunching these numbers daily in order to make our lives easier. But there is still 1 more problem to solve…

    1,300 Buy Rated Stocks is Too Many

    The POWR Ratings does a phenomenal job scanning over 5,300 stocks to narrow down to the top 25% ready to outperform (A & B rated).

    However, that is still a whopping 1,300 stocks to consider on any given day.

    No matter how much you love picking stocks…reviewing 1,300 is still a daunting and unwelcome task.

    It is for this reason that we created several unique portfolio recommendation services to narrow down to the very best stocks.

    In fact, right now we only have 41 total active recommendations across our popular portfolio trading services:

    • Reitmeister Total Return
    • POWR Growth
    • POWR Stocks Under $10
    • POWR Trends
    • POWR Value
    • POWR Breakouts
    • POWR Options

    Even better, 34 of those 41 trades are winners…not easy to do with so much market volatility.

    However, it does make clear the benefit of the POWR Ratings system in the hands of veteran investors who manage these newsletter portfolios for the benefit of our customers.

    What to Do Next?

    Remember what I said about the goal of this article up top:

    …give you free access to a set of tools that provides a fountain of profitable picks for active investors.”

    And that is exactly what we will do now.

    Look again at the above list of seven market topping newsletter portfolio services. The bundle of all those newsletters is what we call POWR Platinum.

    Now you can enjoy a free 7 day test drive of POWR Platinum to see all of these services including the ability to see all 41 of our top trade ideas.

    All you have to do is click the link below to get started:

    7 Day Free Trial to POWR Platinum to See All 41 Trades >

    p.s. Please note that this offer is only available until Sunday November 27th @ midnight.

    Wishing you a world of investment success!


    Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
    CEO, Stock News Network and Editor, Reitmeister Total Return


    SPY shares were trading at $402.27 per share on Friday afternoon, down $0.15 (-0.04%). Year-to-date, SPY has declined -14.32%, versus a % rise in the benchmark S&P 500 index during the same period.


    About the Author: Steve Reitmeister

    Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.

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    The post What is “Active Investing”? appeared first on StockNews.com

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    Steve Reitmeister

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  • Inflation weighs on shoppers despite Black Friday deals

    Inflation weighs on shoppers despite Black Friday deals

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    Inflation weighs on shoppers despite Black Friday deals – CBS News


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    This holiday weekend, a record amount of money will be spent, but many shoppers are being picky and looking for bargains. The economy and inflation are at the top of shoppers’ minds, according to the National Retail Federation. Elise Preston has more.

    Be the first to know

    Get browser notifications for breaking news, live events, and exclusive reporting.


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  • 1 Stock to Buy for Your Retirement Account and 1 to Keep Out

    1 Stock to Buy for Your Retirement Account and 1 to Keep Out

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    Following October’s favorable inflation data, the Fed is expected to slow down its rate hike aggression. While there’s a surge in investors’ optimism, uncertainty remains. Therefore, investors looking to strengthen their retirement portfolio could consider buying quality dividend-paying stock Kroger (KR). However, fundamentally weak Carvana (CVNA) might be avoided. Keep reading….


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    The stock market has been volatile this year, as is evident from the CBOE Volatility Index’s 18.6% year-to-date gains, as high prices, and consequent rate hikes continue to concern the broader markets.

    However, October’s favorable inflation data has garnered substantial optimism among investors. As the central bank is making progress, a slower pace of rate hikes is expected in the coming months.

    Moreover, CNBC’s Jim Cramer believes that the S&P 500 will witness a December Rally. He said, “The charts, as interpreted by the legendary Larry Williams, suggest that the Santa Claus rally is coming to town next month and you’ve got to get ready for it, or else you may be left behind.”

    While uncertainty remains, investors’ interest in dividend stocks is evident from the SPDR S&P Dividend ETF’s (SDY) 12% gains over the past month. Therefore, investors looking for investments for their retirement portfolio might consider The Kroger Co. (KR), which possesses a solid dividend-paying record. However, fundamentally weak Carvana Co. (CVNA) might be best avoided now.

    Stock to Buy:

    The Kroger Co. (KR)

    KR operates as a retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses.

    On October 14, 2022, KR and Albertsons Companies, Inc. (ACI) entered a definitive agreement. This collaboration is expected to vastly expand customer reach while aiming to deliver fresh and affordable food to nearly 85 million households.

    KR has paid dividends for 16 consecutive years. Its dividend payouts have increased at 16.1% CAGR for the past three years. Its current dividend yield is 2.17%, and its four-year average dividend yield is 1.97%.

    For the second quarter that ended August 13, 2022, KR’s sales came in at $34.64 billion, up 9.3% year-over-year. Its net earnings came in at $731 million, up 56.5% year-over-year. Also, its adjusted EPS came in at $0.90, up 12.5% year-over-year.

    Analysts expect KR’s revenue to increase 7.5% year-over-year to $148.20 billion in 2023. Its EPS is expected to increase 10.6% year-over-year to $4.07 in 2023. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 9.7% to close the last trading session at $47.84.

    KR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

    KR has a B grade for Value and Quality. It is ranked #6 out of 39 stocks in the A-rated Grocery/Big Box Retailers industry. Click here for the additional POWR Ratings for Growth, Momentum, Stability, and Sentiment for KR.

    Stock to Avoid:

    Carvana Co. (CVNA)

    CVNA and its subsidiaries operate an e-commerce platform for buying and selling used cars in the United States.

    On November 4, 2022, Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC, announced an investigation into CVNA. The investigation has been initiated to discover if CVNA’s officers and/or directors breached their fiduciary duties to its shareholders or violated state or federal laws.

    CVNA’s net sales and operating revenues came in at $3.39 billion for the third quarter that ended September 30, 2022, down 2.7% year-over-year. Its net loss came in at $283 million, up 784.4% year-over-year, while its loss per share came in at $2.67, up 602.6% year-over-year.

    CVNA’s revenue is expected to decrease 14.5% year-over-year to $3.21 billion for the quarter ending December 2022. Its EPS is expected to decrease 102.9% year-over-year to negative $2.07 for the same period. It missed EPS estimates in all four trailing quarters. Over the past month, the stock has lost 43% to close the last trading session at $8.12.

    CVNA’s POWR Ratings reflect its poor prospects. The stock has an overall F rating, equating to a Strong Sell. It has an F grade for Stability, Sentiment, and Quality and a D for Growth.

    Click here to access the additional POWR Ratings for CVNA (Value and Momentum). CVNA is ranked last among 58 stocks in the F-rated Internet industry.


    KR shares were trading at $48.55 per share on Friday morning, up $0.71 (+1.48%). Year-to-date, KR has gained 9.38%, versus a -14.23% rise in the benchmark S&P 500 index during the same period.


    About the Author: Riddhima Chakraborty

    Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentaries.

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    The post 1 Stock to Buy for Your Retirement Account and 1 to Keep Out appeared first on StockNews.com

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    Riddhima Chakraborty

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  • Is This Inexpensive EV Stock Worth Buying in 2022?

    Is This Inexpensive EV Stock Worth Buying in 2022?

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    While solid EV demand and favorable government incentives are significant tailwinds for the EV industry, EV manufacturer Mullen Automotive (MULN) is still far from starting its deliveries. The company is expected to struggle amid high inflation, supply chain issues, rising raw material costs, and stiff competition. Thus, is it worth buying the stock just because of its low price? Read more….


    shutterstock.com – StockNews

    As the world moves toward a cleaner and greener future, electric cars will play a pivotal role in reducing greenhouse emissions. The growth prospects of electric vehicles have drawn the interest of the existing automakers and several new-age automobile manufacturers. Electric cars have seen demand soaring over the past few years, with people increasingly dumping IC-engine vehicles.

    Analysts at BCG estimate that worldwide battery-powered EVs will amount to 20% of global sales by 2025 and 59% by 2035. The U.S. President has set an ambitious target: Half of the car sales will be EVs by 2030. Electric vehicle (EV) manufacturers like Mullen Automotive, Inc. (MULN) are expected to benefit from the demand increase.

    However, MULN has had a difficult 2022, with the stock declining 96.1% in price year-to-date and 97.6% over the past year to close the last trading session at $0.20.

    The company operates in various verticals of businesses within the automotive industry. The company owns some synergistic businesses, including CarHub and Mullen Energy. It is developing Mullen FIVE, a fully electric SUV, and Mullen DragonFLY, an electric sports car.

    During its “Strikingly Different” EV Crossover Tour, MULN received higher-than-expected pre-bookings for the Mullen FIVE. On September 8, 2022, the company announced the acquisition of a 60% controlling interest in EV truck innovator Bollinger Motors. The acquisition will help MULN enter the medium-duty truck classes 3-6 and B1 and B2 sport utility trucks.

    On November 2, 2022, MULN announced eliminating $13 million in company debt. The company has reduced its debt from more than $30 million last year to a current estimate of less than $10 million. Also, on November 17, 2022, MULN announced that it had received $150 million, a part of which will be used to close ELMS assets and accelerate EV production and delivery.

    On September 21, 2022, MULN CEO David Michery received 9.62 million shares as part of its performance stock award agreement. However, Michery sold 750,000 shares at an average price of 40 cents per share the very next day. Michery has sold shares on seven different occasions this year, bringing the total sold shares to 2.53 million.

    Although the demand for automobiles recovered significantly after the pandemic restrictions were lifted, automobile demand has been affected this year by high inflation, supply chain disruptions, and lingering chip shortage.

    However, the soaring gasoline prices this year led to many prospective car buyers shifting to EVs as the operating costs of gasoline-powered vehicles rose substantially.

    The third quarter of 2022 saw EV sales of over 200,000 in the United States, setting a new record. Electric car sales grew faster than any other auto industry segment. According to the Electrified Light Vehicle Sales Report, Americans bought 67% more electric vehicles in the third quarter than in the year-ago period.

    However, the high borrowing rates may deter prospective EV customers. Also, despite the investments, charging infrastructure still needs to be improved. Moreover, the proposed tax credits for EVs under the Inflation Reduction Act come with various restrictions, proving counterintuitive.

    Here’s what could influence MULN’s performance in the upcoming months:

    Weak Financials

    MULN’s loss from operations widened 184.5% year-over-year to $18.22 million for the second quarter ended June 30, 2022. The company’s net loss widened 289.9% year-over-year to $59.47 million. Moreover, its net loss per share narrowed by 94.5% from the prior-year quarter to $0.16.

    Weak Profitability

    MULN’s trailing-12-month ROTC is negative compared to the 6.65% industry average. Likewise, its trailing-12-month ROA is negative compared to the 4.45% industry average.

    POWR Ratings Reflect Bleak Prospects

    MULN has an overall F rating, equating to a Strong Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

    Our proprietary rating system also evaluates each stock based on eight distinct categories. MULN has a D grade for Quality, in sync with its weak profitability.

    MULN is ranked #57 out of 64 stocks in the D-rated Auto & Vehicle Manufacturers industry. Click here to access MULN’s Growth, Value, Momentum, Stability, and Sentiment ratings.

    Bottom Line

    MULN is trading below its 50-day and 200-day moving averages of $0.34 and $1.05, indicating a downtrend. Although the company has reduced its debt, it is still far from profitability, as its Mullen FIVE vehicle is slated for delivery in 2024.

    Despite the bright prospects of the EV industry, MULN is unlikely to capitalize on the industry’s tailwinds due to its poor financials and weak profitability. Moreover, given the uncertain macroeconomic environment, investors should avoid buying MULN.

    How Does Mullen Automotive, Inc. (MULN) Stack up Against Its Peers?

    MULN has an overall POWR Rating of F, equating to a Strong Sell rating. You might want to consider investing in the following Auto & Vehicle Manufacturers stocks with an A (Strong Buy) or B (Buy) rating: Subaru Corporation (FUJHY), Isuzu Motors Limited (ISUZY), and Volkswagen AG (VWAGY).


    MULN shares were trading at $0.19 per share on Friday morning, down $0.01 (-5.51%). Year-to-date, MULN has declined -96.37%, versus a -14.40% rise in the benchmark S&P 500 index during the same period.


    About the Author: Dipanjan Banchur

    Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.

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    The post Is This Inexpensive EV Stock Worth Buying in 2022? appeared first on StockNews.com

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    Dipanjan Banchur

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  • A Step-by-Step Guide to Developing the Right Marketing Budget

    A Step-by-Step Guide to Developing the Right Marketing Budget

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    Opinions expressed by Entrepreneur contributors are their own.

    Whether your business is a new kid on the block or has been around for a decade, you know you need consistent marketing to reach and resonate with your target customers. Without marketing, you cannot hope to hit optimal sales figures or grow as a brand.

    But how much should you ideally spend on it? And how do you set a budget for marketing based on your current revenue run rate?

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    Mark W Lamplugh Jr

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  • Is This Internet Stock Too Cheap to Ignore Right Now?

    Is This Internet Stock Too Cheap to Ignore Right Now?

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    Shares of ContextLogic (WISH) have had a free fall this year, with the stock declining more than 77% year-to-date. Although the stock is trading at a discount to its peers, the uncertain macroeconomic conditions add further gloom to the company’s growth prospects. So, will it be wise to invest in the stock now? Read on to learn our view….


    shutterstock.com – StockNews

    Mobile e-commerce company ContextLogic Inc. (WISH) has declined 77.6% in price year-to-date and 82.4% over the past year to close the last trading session at $0.70. The stock is trading 83% below the 52-week high of $3.99, which it hit on November 29, 2021.

    WISH’s forward Price/Sales of 0.84x is 2.8% lower than the industry average of 0.87x. Its forward Price/Book of 0.92x is 64.8% lower than the industry average of 2.61x.

    In the third quarter, the company’s monthly average users (MAUs) declined 60% year-over-year to 24 million. Its LTM (Last Twelve Months) active users also fell 65.2% year-over-year to 16 million. The company’s marketplace revenue decreased 77% year-over-year to $51 million, while its logistics revenue fell 50% year-over-year to $74 million.

    WISH’s revenue decline for the third quarter can be attributed to lower marketing spending amid the high inflation and rising interest rate environment and the new pricing practice implemented by the company, which was fully effective during the last quarter. The company expects an adjusted EBITDA loss of between $90 million to $110 million in the fourth quarter.

    With inflation remaining uncomfortably high and the Fed’s final interest rate expected to be higher, the economy is expected to enter a recession by the start of next year. This is expected to affect consumer spending significantly, further straining WISH’s financials.

    Furthermore, the company also received a non-compliance letter from NASDAQ on October 28, 2022, as the NASDAQ Listing Rule requires listed securities to maintain a minimum bid price of $1 per share.

    Here’s what could influence WISH’s performance in the upcoming months:

    Weak Financials

    For the fiscal third quarter ended September 30, 2022, WISH’s revenue declined 66% year-over-year to $125 million. Its adjusted EBITDA loss widened 216.7% year-over-year to $95 million. The company’s total assets declined 29% to $911 million, compared to $1.28 billion for the fiscal year ended December 31, 2021.

    Its gross profit declined 79.6% year-over-year to $34 million. Also, its net loss widened 93.7% year-over-year to $124 million. In addition, its loss per share widened 80% year-over-year to $0.18.

    Unfavorable Analyst Estimates

    WISH’s EPS for fiscal 2022 and 2023 is expected to remain negative. Its revenue for fiscal 2022 is expected to decline 71.2% year-over-year to $600.02 million.

    Low Profitability

    WISH’s trailing-12-month levered FCF margin is negative, compared to the 1.35% industry average. Likewise, its trailing-12-month net income margin is negative compared to the 5.12% industry average. Also, its trailing-12-month EBITDA margin is negative compared to the 11.05% industry average.

    POWR Ratings Reflect Bleak Prospects

    WISH has an overall F rating, equating to Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

    Our proprietary rating system also evaluates each stock based on eight distinct categories. WISH has a D grade for Quality, consistent with its poor profitability.

    It has a D grade for Sentiment, in sync with the weak analyst estimates.

    WISH is ranked #54 out of 58 stocks in the F-rated Internet industry. Click here to access WISH’s ratings for Growth, Value, Momentum, and Stability.

    Bottom Line

    WISH is trading below its 50-day and 200-day moving averages of $0.79 and $1.54, respectively, indicating a downtrend. Despite trading at a cheap valuation, consumer-facing businesses like WISH are expected to be hit badly by the expected recession next year.

    Analysts look bearish on WISH’s prospects. Given the company’s weak financials and low profitability, the stock could be best avoided now.

    How Does ContextLogic Inc. (WISH) Stack up Against Its Peers?

    WISH has an overall POWR Rating of D, equating to a Sell rating. Therefore, one should consider investing in other Internet stocks with a B (Buy) rating, such as Yelp Inc. (YELP), trivago N.V. (TRVG), and Expedia Group, Inc. (EXPE).


    WISH shares were trading at $0.70 per share on Thursday morning, up $0.02 (+2.51%). Year-to-date, WISH has declined -77.49%, versus a -14.29% rise in the benchmark S&P 500 index during the same period.


    About the Author: Dipanjan Banchur

    Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.

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    The post Is This Internet Stock Too Cheap to Ignore Right Now? appeared first on StockNews.com

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    Dipanjan Banchur

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  • 3 Strong Buy Stocks to Continue to Hold Onto in 2023

    3 Strong Buy Stocks to Continue to Hold Onto in 2023

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    As the Fed’s aggressive monetary policy resulted in slightly cooled inflation last month, investors are hopeful of smaller rate hikes ahead. However, since a recession is expected to hit the economy next year, we think fundamentally sound stocks Pfizer (PFE), Flowers Foods (FLO), and Xperi (XPER), which are rated Strong Buy in our proprietary rating system, might be worth owning. Continue reading.


    shutterstock.com – StockNews

    The central bank’s benchmark overnight lending rate currently sits in a target range of 3.75%-4.00%. Investors overwhelmingly expect a rate increase of 50 basis points at the Fed’s next policy meeting as inflation showed signs of cooling.

    The Fed’s most aggressive monetary tightening campaign since the 1980s has so far had a fairly limited effect on demand overall. However, recent data shows that business activity contracted for a fifth month in November, and applications for unemployment benefits rose last week to a three-month high. This indicates that some more resilient parts of the economy have started to soften.

    In addition, as debate broadened over the implications of the U.S. central bank’s rapid tightening of monetary policy, a substantial majority of policymakers at the Federal Reserve’s meeting early this month agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes.

    Given this backdrop, we think fundamentally strong stocks Pfizer Inc. (PFE), Flowers Foods, Inc. (FLO), and Xperi Inc. (XPER) might be worth owning as we head into 2023. These stocks are rated Strong Buy in our proprietary rating system.

    Pfizer Inc. (PFE)

    PFE discovers, develops, manufactures, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas. The company serves wholesalers, retailers, hospitals, clinics, government agencies, as well as disease control and prevention centers.   

    On November 4, PFE and BioNTech SE (BNTX) announced updated data from a Phase 2/3 clinical trial demonstrating a robust neutralizing immune response one month after a 30-µg booster dose of the companies’ Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine.

    These data highlight the potential benefit of the bivalent vaccine for all populations regardless of previous SARS-CoV-2 infection. This marks a significant achievement for the companies in developing the Covid-19 vaccines.

    On November 3, 2022, PFE’s investigational cancer immunotherapy, elranatamab, received Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for treating people with relapsed or refractory multiple myeloma.

    Chris Boshoff, M.D., Ph.D., Chief Development Officer, Oncology and Rare Disease, Pfizer Global Product Development, said, “This marks Pfizer’s twelfth FDA Breakthrough Therapy Designation in Oncology, a testament to our relentless commitment to developing transformational cancer medicines in areas of high unmet need.”

    On September 22, PFE declared a quarterly dividend of $0.40 per share on its common stock, which was payable to shareholders on December 5. Its annual dividend of $1.60 yields 3.26% on current prices. The company’s dividend payouts have increased at a 5.5% CAGR over the past three years and a 5.7% CAGR over the past five years. The company has a record of 12 years of consecutive dividend growth. 

    In terms of forward EV/EBITDA, PFE is currently trading at 6.11x, which is 54.1% lower than the industry average of 13.31x. Its forward non-GAAP P/E multiple of 7.53 is 57.7% lower than the industry average of 17.79.

    During the fiscal third quarter ended September 2022, PFE’s income from continuing operations improved 5.8% year-over-year to $8.65 billion. Its non-GAAP net income attributable to Pfizer Inc. common shareholders rose 39.7% year-over-year to $10.17 billion, while its non-GAAP EPS grew 40.2% year-over-year to $1.78.

    Street expects PFE’s EPS for the current fiscal year ending December 2022 to be $6.46, indicating a 46.2% improvement year-over-year. The company’s revenue is likely to increase 23.2% year-over-year to $100.15 billion in the same year. Additionally, PFE has topped consensus EPS estimates in each of the trailing four quarters.

    The stock has gained 8.7% over the past month to close its last trading session at $48.8. 

    PFE’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

    PFE is rated an A in Value and a B in Growth, Sentiment, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #2 out of 162 stocks. Click here to see additional POWR Ratings for Stability and Momentum for PFE. 

    Flowers Foods, Inc. (FLO)

    FLO is a producer and marketer of packaged bakery foods. The company offers fresh bread, buns, rolls, snack cakes, tortillas, frozen bread, and rolls. Its portfolio includes brands such as Nature’s Own, Dave’s Killer Bread (DKB), Wonder, Canyon Bakehouse, Tastykake, and Mrs. Freshley’s.

    On November 18, FLO declared a quarterly dividend of $ 0.22 per share, an increase of 4.8% over the same quarter last year. This is the 81st consecutive quarterly dividend paid by the company and is payable on December 16, 2022.

    Its annual dividend of $0.88 yields 2.98% on current prices. The company’s dividend payouts have increased at a 5.1% CAGR over the past three years and a 5.4% CAGR over the past five years. The company has a record of 8 years of consecutive dividend growth. 

    FLO’s forward EV/Sales multiple of 1.49 is 11.7% lower than the industry average of 1.69.

    FLO’s sales rose 12.7% year-over-year, $1.16 billion for the third quarter that ended October 8, 2022. Its net income improved 4.3% year-over-year to $40.53 million, while its EPS grew 5.6% year-over-year to $0.19.

    Analysts expect FLO’s revenue for the fiscal fourth quarter ending December 2022 to increase 12.3% year-over-year to $1.10 billion, while its EPS for the ongoing year is expected to grow 18% year-over-year to $0.24.

    FLO has gained 9.6% over the past month to close the last trading session at $29.59.

    It’s no surprise that FLO has an overall rating of A, equating to a Strong Buy in our POWR Ratings system. The stock has a B grade for Growth and Quality. It is ranked #9 out of 82 stocks in the B-rated Food Makers industry.

    To access the additional ratings for FLO for Value, Momentum, Stability, and Sentiment, click here.

    Xperi Inc. (XPER)

    XPER provides software and services in the United States. It offers consumers a seamless end-to-end entertainment experience, from choice to consumption, in the home, in the car, and on the go. The company has three business categories: Pay- TV, Consumer Electronics; Connected Car; and Media Platform.

    On October 10, XPER celebrated its first day of trading as an independent company on the New York Stock Exchange.

    Jon Kirchner, CEO of XPER, said, “Today we stand as an independent company with a strong balance sheet, an executive team with substantial tenure, and an exciting path to significant growth and profitability. The realization of this strategic milestone is the result of years of continuous effort.”

    In terms of forward Price/Sales, XPER is currently trading at 0.88x, which is 64.9% lower than the industry average of 2.50x. Its forward EV/Sales multiple of 0.70 is 73.1% lower than the industry average of 2.59.

    XPER’s revenue increased 3.3% year-over-year to $121.64 million for the third quarter that ended September 30, 2022. For the nine months ended September 30, its net cash from financing activities rose 115.3% from the same period last year, while its cash and cash equivalents at the end of the nine months grew 68.3% year-over-year.

    XPER’s revenue is likely to increase 7.7% year-over-year to $535.32 million in the next fiscal year ending December 2023. Its EPS is estimated to grow 88% year-over-year in the next year.

    Its shares dipped marginally intraday to close the last trading session at $10.32.

    XPER’s strong fundamentals are reflected in its POWR Ratings. The stock’s overall A rating indicates a Strong Buy in our proprietary rating system. It has a B grade in Growth, Sentiment, and Quality. Within the B-rated Semiconductor & Wireless Chip industry, it is ranked #3 out of 92 stocks.

    In addition to the POWR Ratings above, XPER is also rated for Value, Stability, and Momentum. Get all XPER ratings here.


    PFE shares were unchanged in premarket trading Thursday. Year-to-date, PFE has declined -14.59%, versus a -14.29% rise in the benchmark S&P 500 index during the same period.


    About the Author: Kritika Sarmah

    Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor’s degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.

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    The post 3 Strong Buy Stocks to Continue to Hold Onto in 2023 appeared first on StockNews.com

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  • Expensive Cars Have DLC Now, And It’s Taking The Piss

    Expensive Cars Have DLC Now, And It’s Taking The Piss

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    Image for article titled Expensive Cars Have DLC Now, And It's Taking The Piss

    For a few years now some car companies have been experimenting with an idea ripped straight out of video games. Someone somewhere figured that hey, if people are willing to pay for a game then spend more money inside the game they already bought, then they might do the same for cars—a far more expensive and lucrative business.

    BMW, for example, offers a subscription service where for $18 a month you can get heated seats, or pay to unlock adaptive cruise control. Tesla has a pricey ($99-$199 a month!) subscription service for its self-driving software in some cars, and Volkswagen, Toyota and GM have all trialled similar subscription-based unlocks or features as well.

    Making headlines this week, though, is an example that’s the most outrageous since Tesla used to lock battery range behind a paywall. Mercedes has announced a digital purchase for its all-electric vehicles called an “Acceleration Increase, which costs $1,200 a year and when bought, “can improve an EQ vehicle’s acceleration by 0.8 to 1.0 seconds.”

    While cars have always featured expensive add-ons—it’s a pillar of the whole business model—those have previously been tangible purchases. If you paid for bigger wheels you got bigger wheels. Parting with a few thousand extra for leather seats got you fancy leather seats.

    What’s happening with these car subscription services, though, is far more ominous. You’re not really getting anything. Instead, thanks to advances in the operating systems and communications found in modern cars, what you’re buying is a vehicle with certain features limited or locked off, which can then be then enabled remotely.

    It’s the same argument video games went through over a decade ago—and which we have collectively just shrugged at and moved on from—when people found out the DLC they were buying was already on the disc they bought. It’s the same story here; the motors in these Mercedes vehicles could always go that fast, and locking certain elements of their performance away behind a digital paywall is taking the absolute piss.

    One common factor among all the very worst of these examples is that they’re limited to expensive, luxury vehicles, targeting rich people who probably don’t give a shit about spending (what’s for them) a few extra bucks a month, when they’ve dropped $100,000 or more on a car. The danger, of course, is that if those rich people start buying this stuff, and it becomes a successful business model, then it won’t be too long before we start seeing it in a Toyota Corolla and…oh. Great.

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    Luke Plunkett

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  • How Blockchain Will Change Traditional Finance

    How Blockchain Will Change Traditional Finance

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    Opinions expressed by Entrepreneur contributors are their own.

    Since the inception of organized commerce, centralized financial systems have dominated the market, generally operating as a black box in the eyes of their customers. Aside from a lack of transparency, they have conducted business in a monopolistic manner, building empires along the way by simply serving as an intermediary.

    However, as the next iteration of the internet unfolds, these conventional economic and financial systems are being reimagined like never before. With this next-gen internet, known as Web3, concepts such as blockchain, cryptocurrency and decentralization are making rapid headway into the mainstream economy. This paradigm shift marks the advent of a new commerce arena that can fundamentally restructure our global financial system as we know it today, making it a more transparent, inclusive and safe place to transact. Below are five examples of how blockchain can improve and replace legacy financial systems that we have grown so heavily reliant upon today as a society.

    Related: The Future is DeFi: Going Beyond the Traditional Norm

    1. Trade finance

    Trade finance is a foundational part of the global financial system to mitigate risks, broaden credit and ensure that importers and exporters can engage in cross-border trade. Like most industries, trade finance suffers from logistical bottlenecks stemming from old, antiquated manual documentation systems. For example, physical letters of credit are often still issued and transferred between various intermediaries to ensure payment.

    The versatile nature of blockchain can enable exceptional support for international trade transactions that would otherwise be far too costly due to trade and documentation processes. By storing and securing these processes on-chain (on the blockchain), companies can digitally prove transaction details such as country of origin and product information in a reliable, cost-efficient method. This would drastically increase trust between exporters and importers in the marketplace on the strength of exceptional transparency and security of data. Further, this could mitigate the most significant risks present to trade parties today, including discrepancies in documentation and oversight surrounding the flow of goods, among various other uncertainties.

    Related: The Blockchain Is Everywhere: Here’s How to Understand It

    2. Decentralized identity

    To onboard customers, TradFi (traditional finance) institutions need to verify their identity in a process called “Know Your Customer” or “KYC,” which requires customers to submit personal information such as their passport, driver’s license and various proof documents. TradFi systems take an average of 24 days on this KYC process, resulting in a terrible customer experience and reducing user retention rate. Banks store customer information on centralized systems, making that data vulnerable to various hacks.

    Conversely, customers could upload their KYC information to a blockchain just once and grant permission for institutional access on an ongoing basis. The KYC process could be executed in just a few seconds by storing KYC information on-chain as a “Decentralized Identity” or DID. Additionally, financial institutions would no longer be responsible for the long-term security of customer data, which would decrease costs and liability.

    3. Settlement infrastructure

    Today, transferring funds across the globe is a logistical nightmare. A simple bank transfer from one country to another must pass through a cumbersome set of intermediaries, ranging from custodial services to correspondent banks before it reaches its destination. Each intermediary adds its costs, increasing the processing time and introducing another security risk. On top of all this, the two account balances have to be reconciled across a complex, fragmented financial system.

    In contrast, institutions could leverage blockchain technology to serve as a decentralized ledger to securely keep track of all transactions. This single source of truth could effectively eliminate the network of intermediaries used today by allowing for the settlement of transactions directly on-chain — a 10x improvement over SWIFT. Further, this could allow for “atomic” transactions that clear and settle instantaneously with a verified payment, thus eliminating the multi-day transfer time on international transfers and 24-hour transfer time for domestic transfers imposed by financial service providers.

    4. Modernized bookkeeping

    TradFi institutions such as Mastercard, JP Morgan and Blackrock handle massive amounts of sensitive financial data daily that needs to be transferred, reviewed and audited. Today, it is costly and difficult to maintain and reconcile ledgers with absolute certainty securely.

    Instead, institutions can post this data to a private blockchain which would fundamentally improve internal processes by allowing the flow of information in a chronological, immutable and transparent manner. This could drastically improve security due to the traceability feature of the blockchain that can help detect fraud and develop a credible audit trail.

    Related: 6 Ways Cryptocurrency and Blockchain Are Changing Entrepreneurship

    5. Personal finance

    Today, banks offer a negligible 0.21% APY interest on customers’ savings accounts. Meanwhile, behind the scenes, banks are making significantly more interest in customers’ money, keeping the lions share of profits earned.

    On the other hand, blockchain is predicated on creating a user-first market. When users instead place their savings in blockchain applications such as Aave or Compound, they can earn 8-15% APY or more in some cases.

    One of the primary reasons people have purchased cryptocurrency to date is to combat the rampant inflation that most countries face. Today, the global inflation average is a staggering 8.8% and almost certainly growing. With inflation far outpacing the APY provided by banks, people have little choice but to find better alternatives or watch their money dwindle.

    For both reasons, the general public will likely transfer more of their savings into crypto in the long term, decreasing savings stored in banks and ultimately leading to a decline in TradFi revenues.

    Conclusion

    Many expect blockchain to replace the TradFi industry altogether. Others believe blockchain technology will simply serve as supplementary infrastructure to existing TradFi systems. Overall, it remains to be seen precisely how and to what extent the finance industry will embrace blockchain technology. However, one thing is sure; blockchain will bring about a new era of transparency, fairness and safety to finance.

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    Arnav Pagidyala

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  • Holiday Stock Rally is an “Optical Illusion”

    Holiday Stock Rally is an “Optical Illusion”

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    Holiday sessions like this week have a naturally bullish bias for stocks (SPY). That’s because the joy of Thanksgiving typically leaks over to higher stock prices. The risk is giving this upward movement any significance when the long term trajectory is still decidedly bearish. Let’s do a roll call of recent events that continues to point the compass to more downside action ahead along with our game plan to profit as stocks make new lows in the weeks ahead.


    shutterstock.com – StockNews

    Yes, stocks closed above notable resistance at 4,000 for the S&P 500 (SPY) on Tuesday. But with more holiday sessions to go this week…then likely prices will continue to creep higher a little while long.

    The key at this stage, as it comes to price action, is whether stocks really have what it takes to clear the hurdle of the 200 day moving average (now at 4,062).

    Remember that this moving average (red on the S&P 500 chart below) is considered the long term trend line that really helps delineate bullish from bearish times.

     

    As you can see that market got bearish in a hurry this year with many failed attempts to break back above. This time will be no different.

    Why?

    The storm clouds are forming for a recession to start in the first half of 2023 as the after effect of the Fed raising rates to tamp down the flames of inflation.

    Remember the Fed has already told investors that their long term approach will come with a measure of economic pain. Whereas they “hope” to avoid a recession, they begrudgingly have to admit that it is not likely.

    That message was served up loud and clear by Chairman Powell from his 11/2 press conference following the most recent 75 basis point hike. He was asked if the “window to create a soft landing for the economy had narrowed”.

    The look on his face was even more powerful than the words where he admitted that with inflation barely budging at this point, that it would take a lot more Fed ammo to win the inflation battle. And thus indeed very unlikely to create a soft landing.

    If no soft landing, then it means hard landing (recession).

    Remember the famous words: Don’t fight the Fed!

    So if they are telling you that they are far from done on their fight against inflation. And that the odds of a soft landing are closing in on zero. Then probably best to believe them and prepare for a recession which comes hand in hand with lower stock prices.

    Economists surveyed by the Wall Street Journal see the odds of recession coming in the next year is up to 63% from the mid October reading. This view falsely offers a bit of hope with 37% chance of it not happening.

    And now I will pull the rug out by informing you that economists have a terrible track record. That’s because the average recession has come on the scene when the average probability was only 40%. In that light you appreciate how daunting that 63% probability of recession is for our future outlook.

    Wall Street analysts are also beating the recessionary drums as the most recent weak earnings season has led to a significant drop in estimates for the future. Q4 is nearing in on zero earnings growth. Whereas the first 2 quarters of 2023 are decidedly negative.

    What’s worse is that earnings experts, like Nick Raich of EarningsScout.com, expect there to be even steeper cuts in the earnings outlook ahead. That’s because Wall Street is always too optimistic at the start of a recession.

    The roll call of foreboding indicators continues with the Chicago Fed National Activity Index this week falling into negative territory once again. This is a fairly broad reading of the economy which is at the lowest level in 4 months. The change in trend back to negative usually points to even lower readings ahead.

    Next we have the hit parade of 3 different regional Fed reports all pointing the wrong direction. That starts with the Richmond Fed reading on Tuesday going from a positive of 5 for manufacturing down to -9. Services also tipped over to negative at -3.

    Thursday was no better with the Philly Fed Manufacturing index falling to -19.4. New Orders was also pointing south at -16.2 which points to more bad times ahead.

    Lastly as we scan across the country to the Kansas City Fed we see the composite index (manufacturing & services) at -10.

    All of this begs the question; Why have stock prices been going up for about 6 weeks in the face of such an obviously negative outlook?

    Because a bear market is a long term process made with lower lows and lower highs on the bounces. Not just a smooth elevator ride to the bottom. That point comes through loud in clear with the S&P 500 price chart I shared above.

    And also comes through loud and clear for past bear markets like 2008-2009 below:

    And for the previous 2000 to 2003 bear market:

    This recent rally will probably top out soon as foolish bulls get thwarted at the 200 day moving average.

    Wise investors will appreciate the lessons from history and that you should not get bullish running INTO the recession. That is when it pays to bet on more market downside.

    Once inside the recession, with stocks pressing lower, that is when it is wise start betting on bottom as the next bull market should be right around the corner. Not beforehand.

    So please enjoy the holiday season. Just don’t get fooled by the optical illusion of this holiday rally.

    What To Do Next?

    Discover my special portfolio with 9 simple trades to help you generate gains as the market descends further into bear market territory.

    This plan has been working wonders since it went into place mid August generating a robust gain for investors as the market tanked.

    And now is great time to load back as we deal with yet another bear market rally before stocks hit even lower lows in the weeks and months ahead.

    If you have been successful navigating the investment waters in 2022, then please feel free to ignore.

    However, if the bearish argument shared above does make you curious as to what happens next…then do consider getting my updated “Bear Market Game Plan” that includes specifics on the 9 unique positions in my timely and profitable portfolio.

    Click Here to Learn More >

    Wishing you a world of investment success!


    Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
    CEO, Stock News Network and Editor, Reitmeister Total Return

     


    SPY shares rose $0.02 (+0.01%) in after-hours trading Tuesday. Year-to-date, SPY has declined -14.83%, versus a % rise in the benchmark S&P 500 index during the same period.


    About the Author: Steve Reitmeister

    Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.

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  • After Nixing its 13% Dividend, Is Lumen Technologies Okay To Own?

    After Nixing its 13% Dividend, Is Lumen Technologies Okay To Own?

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    CenturyLink merged with Qwest to become the third-largest telecommunications company in the U.S. in 2010. The Company continued to gobble up technology companies like Savvis, a cloud infrastructure company in 2012 and broadband provider Level 3 Communications in 2017. The Company changed its name from CenturyLink to Lumen Technologies (NYSE: LUMN) on Sept. 18, 2020. Legacy copper-based services would continue under CenturyLink and fiber-based products and services would service under the Quantum Fiber brand. The Company provides cloud, IT, voice, TV, infrastructure, internet, and broadband services to enterprise, small business, and residential customers. It’s Quantum Fiber is the growth engine as it expands in over 30 U.S. cities and metro areas expanding access to millions of new consumers. Value investors may be interested in its assets which include over 400,000 route fiber miles serving customers in over 60 countries. Google Fiber (NASDAQ: GOOG) has deployed 50,000 miles of fiber in 60 markets at a cost of over $14 billion, twice the market cap of Lumen stock. The cheap price-to-book ratio of 0.5 makes it an asset play if it continues to sell off more pieces of the whole, gets acquired, or goes private. Can the new CEO effectively change its downward trajectory?


    MarketBeat.com – MarketBeat

    Raising Cash and Fending Off Competition

    The Company has been shedding some of its businesses to pay down debt which will be reduced to $20.4 billion after paying it tax bill between $900 million to $1 billion for its 20-state ILEC sales of its LATAM business to Apollo for $7.5 billion. The Board of Directors made the decision to eliminate the $1.00 annual dividend and implement a stock buyback program up to $1.5 billion with a two-year time. The Company expects an inflation impact for the full-year next year. Further focus on the digitization of front and back office functions is a top priority. Lumen faces competition from the big broadband providers like AT&T (NYSE: T), Verizon (NYSE: VZ), and Comcast (NASDAQ: CMCSA) as well as cloud service and applications providers including Amazon Web Services (NASDAQ: AMZN), Microsoft Azure (NASDAQ: MSFT), and Google Cloud (NASDAQ: GOOG).

    Top and Bottom Line Downward Trajectories

    Lumen reported its Q3 2022 earnings on Nov. 2, 2022. The Company reported earnings-per-share (EPS) of $0.14 missing consensus analyst estimates for $0.35 by (-$0.21). Net income was $578 million versus $544 million in the year-ago period. Special items of (-$527 million) and (-$31 million) dropped EPS from $0.57 to $0.14. Revenues continued to drop (-10.2%) year-over-year (YoY) to $4.39 billion missing analyst estimates of $4.41 billion. Adjusted EBITDA fell to $1.688 billion compared to $2.078 billion in the year ago period. The Company completed the $2.7 billion divestiture of its Latin American business Stonepeak. The Company generated $620 million in free cash flow. Lumen completed its $7.5 billion divestiture of its 20-state ILEC business to Apollo on Oct. 3, 2022. The Company eliminated its stock dividend and authorized a two-year and up to $1.5 billion share buyback program. Entered into an exclusive arrangement to sell its EMEA business to Colt Technology for $1.8 billion. Incoming Lumen President and CEO Kate Johnson who commented, “The opportunity for Lumen is significant, and I am eager to leverage today’s announcements and the adjusted capital allocation priorities to drive profitable growth and shareholder value. Jeff, the Lumen Board, and I are fully aligned on these decisions. I look forward to hitting the ground running on November 7.” The Company expects adjusted EBITDA in the range of $6.9 billion to $7.1 billion for fiscal full-year 2022.

    Department of Defense Contract

    On Nov. 1, 2022, Lumen announced it won a $1.5 billion cap 10-year defense contract from the Defense Information Systems Agency. Lumen will provide essential network transport and communications services to enable the U.S. Department of Defense (DOD) to recognizes its national security objectives in the Asia Pacific region and Alaska. The contract services range from internet, ethernet, and wavelength to protect America’s interests. Lumen’s dark fiber has been used exclusively for government contract services and is posted under the CenturyLink segment.
    After Nixing its 13% Dividend, Is Lumen Technologies Okay To Own?

    Breakdown After a Breakdown

    The LUMN weekly candlestick chart illustrates the descending triangle breakdown occurring in August 2022 as each preceding bounce was lower until the $10.07 support finally gave in. Shares managed to fall to a swing low of $6.34 before triggering the weekly market structure low (MSL) for a rally back up to $7.60 in October to Nov. 1, 2022. On Nov. 2, 2022, LUMN shares collapsed over (-17%) on in reaction to its Q3 2022 earnings report and dividend elimination triggering the weekly bear flag breakdown. The weekly 20-period exponential moving average (EMA) resistance hasn’t tested yet as it continues to fall to $8.27 followed by the 50-period MA at $10.40. The daily MSL trigger sets at $6.03 after making a new swing low of $5.68. Pullback support levels sit at the $5.68 swing low to $5.54, $4.94, $4.44, $3.62, and $3.01.

        

    Alphabet is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

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    Jea Yu

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  • Understanding The Rise And Fall Of FTX, FTT And Alameda Research

    Understanding The Rise And Fall Of FTX, FTT And Alameda Research

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    The rise and fall of FTX and Sam Bankman-Fried revealed holes in the crypto space that industry peers, the media, and government officials either chose to overlook or refused to question further.

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  • Santa Claus Rally? Here’s What Needs to Happen

    Santa Claus Rally? Here’s What Needs to Happen

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    We are approaching that time of year when the stock market gets into a holiday mood triggering a Santa Claus rally into the new year. With the S&P 500 index (NYSEARCA: SPY) trading down (-17%) and Nasdaq (NASDAQ: QQQ) down a naughty (-29%) for the year, investors are left to ponder if markets have the wherewithal to stage a Santy Claus Rally. The biggest concern for the markets is rising interest rates. The U.S. Federal Reserve will have its final meeting for the year concluding on Dec. 14, 2022. They will determine the final interest rate hike and provide commentary and a question-and-answering session detailing their thoughts heading into next year. Leading up to the rate decision, there are two crucial economic reports and a slew of other factors to be aware of. Here’s what needs to happen for the Santa Claus rally to occur.


    MarketBeat.com – MarketBeat

    The Fed: Grinch or Santa?

    Will the U.S. Federal Reserve (Fed) be a hero or villain in its final Federal Open Market Committee (FOMC) meeting of the year on Dec. 14, 2022? The October CPI report indicated that inflation was falling as headline CPI came in at 7.7% versus the 7.9% expectations. This sent markets skyrocketing higher as Wall Street figured that would be enough for the Fed to ease up on the gas pedal and slow down its rate hikes. The Fed confirmed that it is possible to slow down the rate hikes but they could go on for longer than expected. They would rather overshoot on the rate hikes and then implement rate cuts than undershoot and have inflation rise later. Markets are already expecting a slowdown to 0.25 to 0.50 rate hikes, not 0.75, to end the year at a target rate of 4% to 4.5% by year’s end. The language of the decision is also important as the market expects the Fed to even go so far as to pause interest rate hikes in early 2023. This has caused the SPY and QQQs to rally ahead of time into December. The next two key economic reports are scheduled ahead of the final FOMC meeting.

    Jobs Report

    The first of the two critical economic reports remaining is the U.S. Bureau of Labor Statistics (BLS) are the Employment Situation Report (aka Jobs Report) on Dec. 2, 2022. Incidentally, the October jobs report actually came in stronger at 263,000 than the 205,000 expect which indicates a still strong labor market, but unemployment ticked higher to 3.7%. The rate of job growth actually slowed down to the lowest in two years. This still should have sent markets lower, but they actually moved up on the report. The November jobs report could actually come in below expectations with the high profile lay-offs from Twitter of over 3,500 jobs, Meta Platforms (NASDAQ: META) of over 11,000 workers, and nearly 10,000 workers at Amazon (NASDAQ: AMZN), Cisco Systems (NASDAQ: CSCO) of 4,000 workers, Lyft (NASDAQ: LYFT) of 700 workers,  and a hiring freeze from Disney (NYSE: DIS).

    CPI Report

    The most important economic report ahead of the FOMC is the Consumer Price Index (CPI) report on Dec. 13, 2022, at 8:30 am EST, the day before the FOMC rate decision. This is the inflation gauge. The last report for October 2022 surprised the markets by coming in at 7.7% versus 7.9% expectations indicating the lowest inflation since January 2022. This was the report that prompted the rally heading into December. The next CPI report which will be a reading for the prior month November is expected to come in at 7.6%. That’s the line in the sand. If the CPI comes in under 7.6% then markets should rally higher. The magnitude of the rally depends on how far below 7.6% the number actually comes in at. On the flipside, if the CPI comes in higher than 7.6%, then markets may likely sell-off unless there is dovish language in the report.

    Sell the News?

    There is one more caveat to be aware of. Since the markets are forward-thinking, it often likes to anticipate an event ahead of time resulting in the opposite effect afterward. This is often coined as “Buy the Rumor, Sell the News”. If the markets expect the Fed to slow down its rate hikes due to falling inflation, as it does now, then markets may actually rally ahead of time into the FOMC meeting. If the market rallies too hard ahead of the rate decision, then it may actually sell off on the rate decision regardless. It’s prudent to give it until the next day’s reaction to gauge if the market will follow through higher. Since the Fed decision is in the middle of the month, it still leaves enough time for a Santa Claus rally to occur since it usually takes place near the end of the month and year. It’s prudent to have a shopping list of stocks ready in the event it takes place this year.    

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    Jea Yu

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  • Do You Have the Right Insurance for Your Business? Here’s How to Understand Your Options

    Do You Have the Right Insurance for Your Business? Here’s How to Understand Your Options

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    Opinions expressed by Entrepreneur contributors are their own.

    You’ve likely pursued traditional business insurance. But when it comes to protecting your business from a myriad of outside threats in today’s complex and ever-changing environment, is traditional insurance enough — or even the right fit?

    With the hardening of the insurance market and costly premiums, it’s a timely question, especially as more and more businesses are looking to alternative risk transfer. And an increasingly trending option is captive insurance as worldwide more than 100 captives formed last year as reported by Business Insider.

    Related: 4 Ways to Protect Your Business From Inflation

    Background of traditional and captive insurance

    Traditional insurance has built up a portfolio of coverage offerings and options for businesses. Some components of traditional insurance include risk distribution, tax deductibles on premiums and many blanket insurance coverages such as general liability insurance, business income insurance and worker compensation insurance.

    Captive insurance is a wholly owned subsidiary that exists to protect your business from unique threats and provide the dynamic and unique plan your business needs. Captive insurance may be right for your business if it can’t receive the insurance coverage it needs from the traditional insurance market.

    For instance, business interruption insurance is a coverage that insulates your business from disasters such as floods and earthquakes. This coverage does not, however, protect businesses from fires or tornadoes — and to activate this insurance, there must be an event that “triggers” your policy.

    Businesses that shut down during the pandemic lost money while they were closed, and they needed to be fully shut down to trigger their business interruption policies. With captive insurance, however, businesses can access their stored cash reserves and cover losses during instances of extended partial shutdowns that are not covered in a traditional insurance policy. Unlike this policy language with its many coverage exclusions, captive policy language is geared to protect the business owner.

    Captive insurance also doesn’t penalize for other firms’ bad behavior and the cost you pay for insurance isn’t based on other similar businesses filing claims. Other considerations for possibly leaving traditional insurance are in the hardening of premiums, and companies looking to have less expensive coverage.

    Keeping that in mind, companies seeking more control over their current coverages and insurance programs can craft a bespoke insurance plan built around their business’s unique risk profile with their captive plan.

    Related: How Businesses Can Navigate the Treacherous Waters of Trade Wars

    Premiums aren’t a sunk cost with captives

    High premiums with traditional insurance providers can handcuff your business to hardening monthly rates and can leave your business feeling the impact of those high expenses. With captive insurance, however, your business can retain profits when claims aren’t paid.

    These retained profits see deferment of taxes on loss reserves as well, allowing for the accumulation of a larger pool of funds for investment or unforeseen financially impactful situations such as litigation. These funds can also be utilized to insulate your business from losses during economic downturns or similarly fiscally challenging situations.

    For a small business, this can help with scalability as expensive premiums paid with traditional providers can mean less money spent on expanding your business. Additionally, as your business scales in size and needs, so do the coverages required for your business to be adequately protected. Comparatively, Kiplinger pointed out that captive insurance can provide these necessary adaptive coverages as the need for them comes up along the way.

    Related: 5 Trending Captive Insurance Considerations for 2022

    Policy differences and FAQs

    If your business faces potential cyberattacks, medical malpractice suits and many other costly risks, the deductibles associated with these protections are growing with traditional providers. Premiums for cyber insurance have increased by as much as 50% and 100%.

    Relating back to the earlier example, flexibility in captive insurance policy language would help. As evidenced by the civil unrest of 2020, whereby areas of the country experienced protests, riots and sit-ins that destroyed neighborhoods. If the area around a business was damaged and inaccessible, but the business itself was not, again, the traditional insurance policy would not be triggered, meaning your business can be left paying out of pocket.

    Related: 5 Ways to Protect Your Business Against Cyber Attacks

    So how much time does it take to create a new policy?

    With constant changes in what businesses need in their insurance protections, traditional insurance providers can often be behind the curve. Where new threats form, it also means new policies need to be made to cover vulnerable parts of your business.

    According to Deloitte, traditional insurance takes 12 to 18 months to create and release new insurance products. With the rate at which threats arise and can potentially harm your business, that is not an acceptable timeframe.

    Additionally, when buying traditional insurance coverage, startup costs are limited to the premium. Starting a captive insurance company, however, requires start-up costs and capitalization requirements with formation fees including legal costs. This is because a captive insurance company is a legally formed corporation. Additionally, with captive insurance, you are building upon your risk mitigation strategies to accrue funds for potential losses.

    While forming a captive may be daunting to a non-insurance professional, there are many captive management companies that will serve as a business owner’s insurance front office, that help companies form and manage their own wholly owned captives.

    Captive insurance can be a viable option for businesses large and small. Businesses best served by implementing captive insurance are those with complex, evolving, difficult or costly risks to insure through traditional plans and those who would benefit from increased cash flow, liquidity and profitability. Traditional insurance and captive insurance both have distinct features and one isn’t necessarily a better fit than the other. Regardless of what you choose, protecting your business with the right insurance plan is a necessity.

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    Randy Sadler

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  • 5 Retail Stocks That Could Boom on Holiday Retail Sales

    5 Retail Stocks That Could Boom on Holiday Retail Sales

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    There are preps all around for the holiday season. Consumers eye discounts, and retail stores increase their in-store workforce. With inflation finally showing signs of slowing down and consumer demand remaining robust, it could be wise to pick up fundamentally strong retail stocks Walmart (WMT), Dollar General (DG), Dillard’s (DDS), Torrid Holdings (CURV), and J.Jill (JILL) to capitalize on the holiday retail sales boom. Continue reading….


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    The Fed has aggressively increased interest rates this year to tame the multi-decade-high inflation. After six consecutive interest rate hikes, inflation seems to have started cooling off, as evidenced by October’s lower-than-expected Consumer Price Index (CPI).

    Moreover, Federal Reserve Vice Chair Lael Brainard indicated that the central bank could soon slow down the pace of its interest rate increases. According to the National Retail Federation (NRF), holiday retail sales are expected to grow by 6% to 8% this year.

    According to the U.S. Bureau of Economic Analysis, the personal consumption expenditure index shows an average increase of 6.2% year-over-year. NRF Chief Economist Jack Kleinhenz said, “Consumer demand really remains intact even though we are seeing rising interest rates, persistent inflation, (and) certainly political uncertainty.”

    According to NRF and Prosper Insights & Analytics, holiday shoppers will spend an average of $832.84 on gifts and holiday items this year, in line with the 10-year average. Senior Director of Industry and Consumer Insights Katherine Cullen said, “Almost regardless of what’s going on in the economy, consumers want to celebrate holidays. They want to give gifts to their loved ones, and they want to make this time of year feel special.”

    Several major retailers are directing the majority of their holiday hires to work on store floors this year as Americans shift from mainly shopping online to shopping in physical stores. According to the annual holiday purchase intentions survey from The NPD Group, the number of consumers planning to shop online for the holidays fell from 85% last year to 80% this year.

    Amid this backdrop, investors could look to capitalize on the holiday retail sales boom by investing in the fundamentally strong retail stocks Walmart Inc. (WMT), Dollar General Corporation (DG), Dillard’s, Inc. (DDS), Torrid Holdings Inc. (CURV), and J.Jill, Inc. (JILL).

    Walmart Inc. (WMT)

    WMT engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S, Walmart International, and Sam’s Club.

    Over the last three years, WMT’s dividend payouts have grown at a 1.9% CAGR. Its four-year average dividend yield is 1.72%, and its forward annual dividend of $2.24 per share translates to a 1.49% yield. It is expected to pay a quarterly dividend of $0.56 per share on January 3, 2023.

    On October 31, 2022, Popable, a pop-up shop marketplace platform, and WMT announced a strategic partnership that allows small businesses to rent retail space in WMT stores across the country for short-term leasing.

    The partnership is believed to help small business owners thrive, keeping excess inventory moving and creating greater built-in foot traffic. WMT will benefit from the utilization of its store space.

    For the fiscal third quarter ended October 31, 2022, WMT’s total revenues increased 8.7% year-over-year to $152.81 billion. Its adjusted operating income increased 3.9% year-over-year to $6.02 billion. In addition, its adjusted EPS came in at $1.50, representing a 3.4% increase from the year-ago quarter.

    WMT’s revenue for the quarter ending January 31, 2023, is expected to increase 4.2% year-over-year to $157.91 billion. Its EPS for the quarter ending April 30, 2023, is expected to grow 10.1% year-over-year to $1.43. The company has an impressive earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters. The stock has gained 3.8% year-to-date to close the last trading session at $150.23.

    WMT’s POWR Ratings reflect solid prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

    Within the A-rated Grocery/Big Box Retailers industry, it is ranked #12 out of 39 stocks. The company has an A grade for Sentiment and a B for Stability and Quality.

    Click here to see the additional POWR Ratings of WMT for Growth, Value, and Momentum.

    Dollar General Corporation (DG)

    DG is a discount retailer providing various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, packaged food, perishables, health and beauty products, pet supplies, pet food, and tobacco products. It also provides apparel and accessories.

    Over the last three years, DG’s dividend payouts have grown at an 18.3% CAGR. Its four-year average dividend yield is 0.79%, and its forward annual dividend of $2.20 per share translates to a 0.85% yield. It paid a quarterly dividend of $0.55 per share on October 18, 2022.

    On August 17, 2022, DG donated an additional $1 million to Feeding America to commemorate its one-year partnership anniversary. The donation intends to support community food banks and help provide increased access to nutritious food resources through Feeding America. 

    DG’s CEO, Todd Vasos, said, “We are proud to leverage our unique store footprint to help increase access to a variety of nutritious foods that help provide meals to individuals facing hunger.”

    For the fiscal second quarter ended July 29, 2022, DG’s net sales increased 9% year-over-year to $9.43 billion. The company’s gross profit increased 11.3% from the year-ago period to $3.04 billion. Its net income increased 6.4% year-over-year to $678.03 million. Additionally, its EPS came in at $2.98, representing a 10.8% increase from the prior-year quarter.

    Analysts expect DG’s EPS and revenue for the quarter ended October 31, 2022, to increase 21.9% and 10.7% year-over-year to $2.53 and $9.43 billion, respectively. The company has a commendable earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters. The stock has gained 9.3% year-to-date to close the last trading session at $257.70.

    DG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. In addition, it has a B grade for Stability. It is ranked #26 in the same industry.

    We have also given DG grades for Growth, Value, Momentum, Sentiment, and Quality. Get all DG ratings here.

    Dillard’s, Inc. (DDS)

    DDS operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States. Its stores offer merchandise, fashion apparel, accessories, cosmetics, home furnishings, and other consumer goods.

    Over the last three years, DDS’ dividend payouts have grown at a 21.1% CAGR. Its four-year average dividend yield is 2.14%, and its forward annual dividend of $0.80 per share translates to a 0.22% yield. It is expected to pay a quarterly dividend of $0.20 per share on January 30, 2023.

    For the fiscal third quarter ended October 29, 2022, DDS’ net sales increased 4% year-over-year to $1.57 billion. The company’s total assets increased 1.4% year-over-year to $3.79 billion. Its EPS came in at $10.96, representing an 11.7% increase from the prior-year period.

    DDS’ EPS and revenue for fiscal 2023 are expected to increase 6.5% and 5% year-over-year to $42.64 and $6.96 billion, respectively. It has an impressive earnings surprise history, surpassing the consensus EPS estimates in each of the trailing four quarters. The stock has gained 46.6% year-to-date to close the last trading session at $359.20.

    DDS’ POWR Ratings reflect solid prospects. The company has an overall rating of B, which equates to a Buy. It is ranked #9 out of 66 stocks in the Fashion & Luxury industry. In addition, it has an A grade for Quality and a B for Value.

    Click here to see the other ratings of DDS for Growth, Momentum, Stability, and Sentiment.

    Torrid Holdings Inc. (CURV)

    CURV is a company providing women’s plus-size apparel and intimates. The company designs, develops, and merchandises its products under the Torrid and Torrid Curve brand names. It is involved in selling apparel products, including tops, bottoms, dresses, sleepwear, swimwear, and non-apparel products comprising accessories, footwear, and beauty products.

    CURV’s net sales for the second quarter ended July 30, 2022, increased 2.4% year-over-year to $340.87 million. The company’s income from operations increased 198.4% year-over-year to $39.42 million. Moreover, its total liabilities declined 5% to $795.21 million compared to $836.82 million for the fiscal year ended January 29, 2022.

    Analysts expect CURV’s EPS for the quarter ending April 30, 2023, to increase 7.8% year-over-year to $0.25. The company has a commendable earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters. Over the past month, the stock has fallen 12.6% to close the last trading session at $4.16.

    CURV’s positive outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. It is ranked #4 out of 46 stocks in the Specialty Retailers industry. It has an A grade for Growth and a B for Quality.

    In total, we rate CURV on eight different levels. Beyond what we stated above, we have also given CURV grades for Value, Momentum, Stability, and Sentiment. Get all CURV ratings here.

    J.Jill, Inc. (JILL)

    JILL operates as an omnichannel retailer of women’s apparel under the J.Jill brand. The company offers knit and woven tops, bottoms, dresses, sweaters, outerwear, footwear, and accessories, including scarves, jewelry, and hosiery.

    On August 4, 2022, JILL launched Welcome Everybody, a new online shopping experience in stores celebrating all women’s totality and marking a transformative moment in the brand’s evolution. 

    Claire Spofford, CEO and President of JILL, believes that this venture could modernize the company’s value proposition, introduce new customers to relevant and compelling products, and clearly communicate what it offers.

    JILL’s net sales for the second quarter ended July 30, 2022, increased marginally from the year-ago period to $160.34 million. The company’s gross profit rose 2.8% year-over-year to $112.47 million. Also, its adjusted EBITDA gained 8.8% year-over-year to $35.57 million.

    Its adjusted net income increased 34.6% year-over-year to $17.69 million. Its adjusted EPS came in at $1.24, representing a 33.3% increase from the prior-year quarter. In addition, its adjusted income from operations increased 16.8% year-over-year to $28.19 million.

    Analysts expect JILL’s EPS and revenue for fiscal 2023 to increase 26.8% and 4% year-over-year to $2.70 and $608.80 million, respectively. JILL has an impressive earnings surprise history, surpassing the consensus EPS estimates in each of the trailing four quarters. The stock has gained 31.5% year-to-date to close the last trading session at $25.23.

    It is no surprise that JILL has an overall rating of A, which equates to a Strong Buy. It is ranked first in the Fashion & Luxury industry. In addition, it has an A grade for Sentiment and Quality and a B for Value.

    To see the other ratings of JILL for Growth, Momentum, and Stability, click here.


    WMT shares were trading at $152.06 per share on Monday afternoon, up $1.83 (+1.22%). Year-to-date, WMT has gained 6.34%, versus a -15.93% rise in the benchmark S&P 500 index during the same period.


    About the Author: Malaika Alphonsus

    Malaika’s passion for writing and interest in financial markets led her to pursue a career in investment research.

    With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.

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  • 3 Big Reasons Why The Dow Jones Industrial Average Is Priming For A Pullback

    3 Big Reasons Why The Dow Jones Industrial Average Is Priming For A Pullback

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    The Dow Jones Industrial stocks (DIA) have barely budged this year even with so many stocks cratering in the stock carnage of 2022. Look for the mighty Dow to eventually fall fast as 2023 begins.


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    Stocks have certainly bounced strongly off their recent lows. NASDAQ 100 (QQQ) is now up just over 12% from the October lows. S&P 500 (SPY) added on almost 15% in the same time frame. The Dow Jones Industrials (DIA) has been the star performer, gaining nearly 18% in the past two months.

    Lower interest rates and not so terrible earnings have certainly provided some fuel for the recent red-hot rally. Now that earnings season is winding down and rates are finding a floor, look for stocks to have trouble gaining ground from here. This is especially true for the Dow 30 stocks which have gotten too far ahead of themselves on a comparative and actual basis. Plus, the Dow is about to enter a seasonally bearish period as 2023 starts. Traders and investors looking to short stocks may be wise to consider doing it with DIA for these three reasons just mentioned.

    Comparatives

    The Dow Jones Industrials (DIA) have undoubtedly been the best performing of the three major indices so far in 2022. DIA is down just under 4% year-to-date while the S&P 500 (SPY) has lost over 14% and the NASDAQ 100 (QQQ) dropped nearly 29% this year. Factor in the higher dividend yield of the DIA versus SPY or QQQ and that overall performance gap widens a little more.

    Normally these three indices tend to move in unison – or be much more highly correlated to use a fancier term. Look for both the SPY and QQQ to be relative out-performers, and the DIA the weakest of the three, in ‘23 to close this performance gap back to a more traditional relationship.

     

    The Dow Jones has gotten somewhat cheaper from a P/E valuation perspective. The current P/E stands at just under 21 today versus just over 22 a year ago, or a drop of roughly 5%.

    Compare that relative drop to similar metrics on both the S&P 500 and NASDAQ 100. Both indices have seen their current valuations fall by well over 30% on a P/E basis. In fact, SPY is now trading at a significantly lower P/E multiple than DIA. 12 months ago SPY was trading at almost a 7 point premium to DIA.

     

    Technicals

    DIA is once again hit overbought readings on the chart that have corresponded with tops in the past. Shares are hovering around 70 on a 9-day RSI basis. Bollinger Percent B breached 100 but has since softened. MACD got to an extreme but is poised to go negative and generate a sell signal. DIA is trading at a big premium to the 20-day moving average and has stalled out at $340 overhead resistance once again. A pullback towards the $328 area to test the 20-day moving average seems the most likely course.

     

    Seasonality

    The calendar suggests the Dow will start to slowdown as the New Year approaches. January has been the worst performing month over the past 20 years with gains less than half of the time and an average loss of -0.70%. November, conversely, has been one of the best months while December checks in at just above average.

    Stock traders looking to position for a weak start to 2023 may want to consider shorting DIA near the end of 2022.

    Option traders could elect to put on a bearish calendar spread trade by buying January puts and hedging by selling December puts to position for an eventual pullback in January but perhaps further consolidation in December. This is especially true given that implied volatility (IV) has fallen to comparatively cheap levels at just 31%, especially versus historic volatility of twice that at 62%.

    POWR Options

    What To Do Next?

    If you’re looking for the best options trades for today’s market, you should check out our latest presentation How to Trade Options with the POWR Ratings. Here we show you how to consistently find the top options trades, while minimizing risk.

    If that appeals to you, and you want to learn more about this powerful new options strategy, then click below to get access to this timely investment presentation now:

    How to Trade Options with the POWR Ratings

    All the Best!

    Tim Biggam

    Editor, POWR Options Newsletter


    shares closed at $396.03 on Friday, up $1.79 (+0.45%). Year-to-date, has declined -15.65%, versus a % rise in the benchmark S&P 500 index during the same period.


    About the Author: Tim Biggam

    Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade Network “Morning Trade Live”. His overriding passion is to make the complex world of options more understandable and therefore more useful to the everyday trader.

    Tim is the editor of the POWR Options newsletter. Learn more about Tim’s background, along with links to his most recent articles.

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  • 9 Trades to Tame the Bear Market

    9 Trades to Tame the Bear Market

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    More economists are pointing out the recessionary storm clouds that do not portend well for stock prices. Gladly the stock market (SPY) offers the opportunity to make profits no matter of direction…if you apply the right strategies. This article will give more details on the market outlook along with a trading strategy with 9 picks to come out on the right side of the action. Read on below for more….


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    Let me jump to the vital conclusion of this week’s commentary.

    Not only do I believe we have a much steeper bear market in front of us, but I have hand selected 9 trades to set you up for gains as the market tumbles to new lows.

    More on that a little later. First, it’s important that you appreciate the gathering storm clouds for recession in the next 12 months and why stocks will soon tumble much lower…

    Earlier this week I put forward my most consequential commentary to help explain why a recession and steeper bear market are on the way. In fact, I shed light on why the Fed very much wants, and even needs, this to happen.

    Yes, that sounds pretty conspiratorial on the surface. However, I think as you read through it the verity of the case will emerge quite easily.

    I will share the link below in case you have not read it yet as it forms a good back drop for what we discuss next:

    The Fed WANTS a Bear Market & Recession

    One of the key points in there is about the Feds array of tools to help reign in demand to bring down inflation. The least talked about, and yet still powerful tool, is the idea of “talking down the market”.

    Here is the key section from the article on that topic:

    “So “talking down the market” is about creating a pessimistic atmosphere that leads to lower demand. That can best be understood by appreciating that the people who own the most stocks are also the wealthiest people in the country who spend the most as consumers. Those very same people are also the captains of industry who control corporate purse strings.

    With that in mind now consider this chain reaction:

    More Bearish on Stock Market > More Pessimistic Economic Outlook > Less Spending (consumer and business) > Lower Demand > Lower Inflation

    Once again it seems that I am going the conspiratorial route with this conversation. But do consider the STERN comments made by Fed officials every time we have had a spike in stock prices over the last few months. This is the very essence of talking down the markets.”

    With that backdrop in place consider the speech made by Fed Governor Bullard Thursday morning that got stocks heading lower in a hurry. Here is a link to a more complete article on what he discussed. And here is what I believe to be the key eye-opening comment:

    “However, Bullard’s presentation argued that 5% could serve as the low range for the where the funds rate needs to be, and that upper bound could be closer to 7%. That is well out of sync with current market pricing, which also sees the fed funds rate topping out around 5% by mid-2023.”

    Let me reframe this vital conversation.

    Many traders thought that the potential signs of peaking inflation found in the CPI report this month was good cause to start the next bull market. This had them believing that the previously understood 5% level for Fed Funds rate was never going to be achieved because not necessary.

    Not only is Bullard saying that 5% is still in play. Rather, it is at the low end of the range of what is needed to corral inflation with 7% a real possibility. That level of hawkishness is comes hand in hand with a recession.

    Let me assure you that the leaders of the early November rally up to 4,000 did not appreciate this vital fact. Heck, even the bears pushing stocks down to 3,491 in early October did not appreciate this possibility which now doubt will have detrimental effects on the economy and stock market by extension.

    Once again, the recession and bear market thesis is still in full swing with lower lows on the way this year. That is why a recent Wall Street Journal survey showed that market experts now have a 65% expectation of a recession coming within the next 12 months.

    Note that the average recession and bear market came with only a 40% expectation of that negative outcome. So, this shows you a very marked increase in negativity of what the future holds for investors.

    For these reasons, and many more, I still believe that the 2,800 to 3,200 is the basic range of this bear market’s bottom for the S&P 500 (SPY). And if you stuck a gun to my head to pick the precise level I would say a little under 3,000 would probably be the proper cause for panic and capitulation that should mark the true and lasting bottom.

    However, we are getting way ahead of ourselves as that is like happening 3-6 months from now.

    Simply stated, you should expect more stock market downside in the weeks and months ahead. Thus, best to prepare your portfolio accordingly to not just survive…but thrive in that market environment.

    What To Do Next?

    Discover my special portfolio with 9 simple trades to help you generate gains as the market descends further into bear market territory.

    This plan has been working wonders since it went into place mid August generating a robust gain for investors as the market tanked.

    And now is great time to load back as we deal with yet another bear market rally before stocks hit even lower lows in the weeks and months ahead.

    If you have been successful navigating the investment waters in 2022, then please feel free to ignore.

    However, if the bearish argument shared above does make you curious as to what happens next…then do consider getting my updated “Bear Market Game Plan” that includes specifics on the 9 unique positions in my timely and profitable portfolio.

    Click Here to Learn More >

    Wishing you a world of investment success!


    Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
    CEO, Stock News Network and Editor, Reitmeister Total Return


    SPY shares were unchanged in after-hours trading Friday. Year-to-date, SPY has declined -15.65%, versus a % rise in the benchmark S&P 500 index during the same period.


    About the Author: Steve Reitmeister

    Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.

    More…

    The post 9 Trades to Tame the Bear Market appeared first on StockNews.com

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    Steve Reitmeister

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  • More CFOs are ditching back-to-back video meetings to curb employee burnout

    More CFOs are ditching back-to-back video meetings to curb employee burnout

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    Employee burnout is real and can be heightened by inefficient work processes. And since hiring and retaining talent remains a top concern for CFOs, some are working toward curbing the stress levels of their team members—by also curbing daily video meetings.

    This week, Gina Mastantuono, CFO of the software company ServiceNow, shared a LinkedIn post with her thoughts about research on brain wave activity, which found back-to-back video meetings increase stress levels. “Those of us working in a hybrid model feel it,” Mastantuono writes. “It’s why I changed it up and set some new guidelines for our ServiceNow finance employees.”

    “Our Zoom meetings are no longer 30 or 60 minutes,” she writes. “The majority of our meetings in finance now last 20-25 minutes with a five-minute buffer to stretch and  take a mental break before the next meeting starts,” Mastantuono writes. “We’ve been at it for the last several months and see a stark difference.”

    “We’ve also instituted Friday WIN (What’s Important Now) time,” she explains. “Every Friday from 1-5 p.m. (local time), everyone in finance blocks their calendars and is discouraged from having video meetings. The purpose is an intentional focus. It gives us space to catch up on reading, writing, and whatever is essential to get your job done healthily, without constant interruption.” Mastantuono added, “Listening to your employees’ feedback is pure gold.”

    The last time I chatted with Xihao Hu, CFO at TD Bank in the U.S., he shared with me best practices in data storytelling. This time Hu shared his thoughts on making meetings less stressful. “I’ve read several articles and stories recently about companies encouraging employees to cancel all meetings or cut back on their meetings throughout the day,” he told me. “This has definitely sparked my interest and influenced my way of thinking.” As a company, TD has encouraged employees to hold 20-to-25-minute meetings vs. 30-minute time blocks, and “We practice well-being by taking screen breaks or walking meetings,” Hu says. 

    Regarding employee engagement, TD’s “Training Days,” which include a full day of workshops and panel discussions, “gives employees the flexibility to dive into a variety of interesting topics mapped to their career development or areas of interest,” Hu says. “We block out the calendars well in advance to avoid meeting conflicts on Training Days,” he says. 

    Hu also told me what he does personally to combat burnout. “As a leader, it’s important that I practice what I preach because everyone needs support from leadership when finding work-life balance,” he explains. “I block ‘me’ time in the calendar where I enjoy spending time with my parents or watching soccer. I also share how I spend my time through open, honest, and frequent communication with my entire team. It starts at the top and creates a positive ripple effect which hopefully helps avoid meeting fatigue.”

    I asked Alka Tandan, CFO at tech company Gainsight, her thoughts about video meetings. “We’re very aware that our remote-first workplace can easily lead to virtual meeting fatigue,” Tandan told me. Gainsight makes use of the “speedy meetings” setting in Google Calendar, which “limits meetings to 25 or 50 minutes and helps us avoid back-to-back calls when possible,” she says. Tandan encourages department leaders to identify certain days of the week that are “focus days” where internal departmental meetings are discouraged, she says. “It gives us the time and energy to focus on getting work done and forces us to ask if a meeting is truly necessary to accomplish our goals,” she explains. “We still meet externally with other departments, vendors, or customers.”

    “Gainsight has strict rules on weekend emails,” she says. “We ask employees to try and avoid work emails on Saturdays so everyone can take some well-deserved time off.” And in addition to regular unlimited PTO, weekends and public holidays, employees get an extra day off each month called “Recharge Days.”

    Chalk time and meeting management up to yet another line item CFOs are having to become experts at balancing.


    Try to unplug and have a good weekend.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Big deal

    The 2022 U.S. Bank CFO Insights Report, gauges the priorities of finance leaders as they navigate uncertain times. Regarding inflation risks, the top practices are identifying opportunities to cut costs (57%), evaluating the credit risk of major customers (35%), evaluating working capital practices (32%), and pricing (32%). However, CFOs surveyed view the talent shortage as the top risk, more so than high inflation, according to the report. Ways finance leaders plan to cut costs include investing in technology, discontinuing low-margin/low-growth business lines, and outsourcing certain business functions. The results are based on a survey of 750 senior finance leaders who work in U.S. businesses across multiple sectors.

    Courtesy of U.S. Bank

    Going deeper

    Here are a few weekend reads:

    A crypto security CEO did business with Sam Bankman-Fried and sent a team to the Bahamas. He was shocked by the lack of interest in security controls and FTX’s grand ideas: ‘Maybe we’ll buy Goldman Sachs’ by Shawn Tully

    3 reasons why the huge tech layoffs don’t mean a recession is around the corner, Goldman says by Prarthana Prakash

    Introducing the chief remote officer: Corporate America’s response to a hybrid workforce that’s here to stay by Trey Williams

    Early birds for the win. Here’s why working out before noon is key to your health by L’Oreal Thompson Payton

    Leaderboard

    Here’s a list of some notable moves this week:

    Donald R. Kimble, CFO and chief administrative officer at KeyCorp (NYSE:KEY) will retire on May 1, 2023. He will be succeeded by Clark H.I. Khayat, currently chief strategy officer. Khayat joined KeyCorp in 2012, leading corporate strategy and then serving as group head of commercial payments. He established Key’s enterprise payments and fintech partnership strategies. Khayat led the company’s strategy to build scale through a series of investments in capabilities such as digital and analytics as well as successful niche acquisitions, including Laurel Road, Cain Brothers, and Pacific Crest.

    Nancy Walsh was named CFO at Katapult Holdings, Inc. (Nasdaq: KPLT), an omnichannel point-of-sale payment platform, effective Dec. 12. Former CFO Karissa Cupito is transitioning into a senior advisory role to support the transition through the first quarter of 2023. Walsh most recently was EVP and CFO of LL Flooring Holdings, Inc., a retailer of hardwood flooring and hardwood flooring accessories. Before joining LL Flooring Holdings, Walsh was EVP and CFO of Pier 1 Imports, Inc. She has also held senior finance and risk management roles at The Bon-Ton Stores, Inc., Tapestry, Inc., Viacom, and Timberland.

    John Klinger was promoted to EVP and CFO at The TJX Companies, Inc. (NYSE: TJX), an off-price retailer of apparel and home fashions, effective Jan. 29, 2023. Klinger joined TJX in 2000 as a manager of business analysis at Marmaxx. He held various finance positions within HomeGoods and Marmaxx before being promoted to VP, divisional CFO for AJWright. Klinger then held the positions of VP of corporate finance and SVP, divisional CFO, TJX Europe. He later became EVP and corporate controller. 

    Andrew Murphy was promoted to CFO at Duos Technologies, Inc., a subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT), effective Nov. 15. Since 2020, Murphy has served as VP of finance at Duos. Before joining Duos, Murphy held progressively senior finance roles within APR Energy. Before his time with APR, Murphy worked in corporate and public accounting with a focus on tax and business services.

    Donald C. Templin was named EVP and CFO at Voya Financial, Inc. (NYSE: VOYA), a health, wealth, and investment company. Templin most recently served as EVP and CFO of Marathon Petroleum Corp. He also served as CFO of MPLX LP, a diversified, large-cap master limited partnership formed by Marathon Petroleum. Before joining Marathon Petroleum in 2011, he held several roles at PwC, including serving as a partner at the firm.

    Jason Conley was promoted to CFO at Roper Technologies, Inc. (NYSE: ROP), a producer of engineered products for global niche markets, effective Feb. 1, 2023. Conley will succeed Rob Crisci as EVP and CFO. Conley, 47, is currently VP and chief accounting officer at Roper. He joined the company in 2006 as head of financial planning and analysis and investor relations. Conley also served as SVP of finance and HR at Roper’s Managed Health Care Associates business. 

    Overheard

    “Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments. Those decisions will be shared with impacted employees and organizations early in 2023.”

    —Amazon CEO Andy Jassy wrote in a memo to workers on Thursday that the company will continue to lay off employees in the coming year, CNBC reported.

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    Sheryl Estrada

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