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Could the bears take over MarineMax Inc. (NYSE: HZO) ?

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We turn our attention to the charts today. Technical analysis. It?s the artistic side of the analysis. Here, we deal with lines and angles and patterns. Here, we try to listen to the market; to hear its opinion of a stock, quite independent of the seeming facts of the business. Here, we look to paint a picture, as it were. Todays subject in this exercise is MarineMax, Inc. (HZO).

Let?s start with a quick evaluation of relative volume measures. Here, we want to examine the degree to which traders, investors, and money managers are more or less interested over the past month in transacting in this security. At this point, this stock has been showing weak relative volume, which indicates lack of interest among those participating in the market for shares of HZO over the past month. That sets us up to look at relative performance of the stock along with range and volatility measures. This boils down to the concept of what is known as ?beta?.

First off, we can readily state the facts on relative performance. HZO has moved +1.85 over the past month or so. Over the trailing 100 days, the stock is underperforming the S&P 500 by 6.74. As to the point of beta, we can see the stock has been generally moving less than the rest of the market on a day to day basis. That is according to the 36-month beta score. Another way to look at this is through taking the standard deviation of returns calculated as representing a hypothetical buyer of the stock at a random point at a given average price during the specified period. That gives us a historical volatility score of 82.52%. Finally, in this class of data, we can look at the 20-day ATR as a percentage of the 20-day moving average, which gives us a natural volatility score of 4.3%.

Now, it?s time to look at trend and extent of movement. From a certain point of view, these are the natural opposites in technical analysis. On the one hand, we know experienced traders and technical manuals teach us that ?the trend is your friend.? However, at the same time, we know it?s wise to fade extreme, overdone movement. That posits a natural tension for analysts, and unfortunately, the best we can do is to look at the facts.

In the first place, the broad impact of money flows should be viewed through the tried-and-tested lens of moving average analysis. In this case, we look at the relative positioning of the 50-day and 200-day simple moving averages. In other words, if the 50-day moving average is trading above the 200-day, it is traditionally seen as a bullish chart trend. Conversely, if the 50-day moving average is trading below the 200-day, it is traditionally labeled a bearish trend or bearing. For HZO, that adds up to a bearish designation, which suggests that flows have been working in an overall negative direction on the chart.

To counter that notion, we now turn to a look at mean reversion oscillators. Our key indicators of note attempt to score the action as to whether or not a security has pushed too far too fast, leading to a likelihood of some kind of reversion to the mean movement becoming highly probable.

There is a host of oscillating indicators that can offer up such an analytic perspective. We have learned to rely most on RSI and stochastics. Specifically, we look at the 14-day Relative Strength Indicator (RSI) and the 20-day ?fast stochastic?. For both of these measures, if we see a score above 75 (overbought) or below 25 (oversold), history suggests one is wise to expect some reversion to the mean. For HZO, the 14-day RSI shows a score of 67.67%, while the 20-day fast stochastic shows a score of 31.13%.

We close today?s analysis with a quick check of key levels. For our means, we like to quickly check the key Fibonacci retracement zone as well as the primary institutional long-term moving average (the 200-day simple average). In the case of is MarineMax, Inc. (HZO), the critical 38.2% level drawn off the 52-week low of $13.80 sits at $17.56. HZO also has additional resistance above at the stock?s 200-day simple moving average, which sits at $ 18.72.

Hopefully, this analysis has offered up some useful perspective. We will catch up with this stock again soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Could investors throw in the towel on Melco Resorts & Entertainment Limited (MLCO)

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Melco Resorts & Entertainment Limited (MLCO) has been stirring up interest among traders, and the company’s financials and technicals may explain some of that focus. The stock is a player in the cannabis space, which puts it in a bit of a spotlight as well. All of these trends and figures deserve some scrutiny, so we thought it was a good idea to take a closer look at the stock today.

In a fast-growth market segment, such as anything even remotely related to the marijuana and cannabis space, the story is always about potential for robust top-line growth and strong flows of cash from principal operations. That means we need to focus on the balance sheet first and foremost, then turn our attention to sales data. Finally, we will take a look at the chart and get a sense of how this stock is being treated by investors and traders in recent action.

The company is currently sitting on 1.51B in cash and cash-equivalent securities at the present time. In a high-ROI market like the cannabis space, cash is king because it allows a company to deploy it with a high expected rate of return on that investment. And investors, in turn, are usually willing to pay up for access to that high rate of return.

Naturally, we also have to point out that the company is sitting on 3.86B in total standing liabilities right now. Any major growth in debt can handicap a company in the cannabis space because most of these companies already function in the high-risk quadrant of the portfolio template given their inherent legislative risk, and debt further distances that potential leap to institutional flows given the implicit additional risk of dilution that generally accompanies excessive debt.

So, how has the market been treating the stock? For that, we must turn to the technicals. As most traders know, the cannabis space has been a speculative darling, but volatility is particularly high in these stocks. Melco Resorts & Entertainment Limited (MLCO) has been no exception, with a beta of 2.15. With a market cap of 15.406B, shares most recently closed at 28.210. For some perspective, consider that it has traded as high as 30.49 over the past year, and as low as 18.78, but the stock’s current 50-day simple moving average is tracking right now at 27.79.

One of the reasons so many of these stocks have such wide swinging volatility is because the risks are large but so is the potential for huge growth given that most businesses in the cannabis-related space are in some way tethered to the upward growth potential of a new and emerging market. But another reason is that many are still trading with relative small outstanding cap tables. In this case, Melco Resorts & Entertainment Limited (MLCO) is pulling around 544.3M in outstanding shares.

Even so, liquidity is always important. At this point, the stock has a 3-month average for shares changing hands in a given session of 2.72M. If you’re curious about whether or not folks are becoming more or less focused on the name, consider that its most recent 10-day average trading volume stands at 2.96M by comparison.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Are Investors Wary Of NetApp, Inc. (NTAP)?

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NetApp, Inc. (NTAP) has been stirring up interest among traders, and the company’s financials and technicals may explain some of that focus. The stock is a player in the cannabis space, which puts it in a bit of a spotlight as well. All of these trends and figures deserve some scrutiny, so we thought it was a good idea to take a closer look at the stock today.

In a fast-growth market segment, such as anything even remotely related to the marijuana and cannabis space, the story is always about potential for robust top-line growth and strong flows of cash from principal operations. That means we need to focus on the balance sheet first and foremost, then turn our attention to sales data. Finally, we will take a look at the chart and get a sense of how this stock is being treated by investors and traders in recent action.

The company is currently sitting on 5.63B in cash and cash-equivalent securities at the present time. In a high-ROI market like the cannabis space, cash is king because it allows a company to deploy it with a high expected rate of return on that investment. And investors, in turn, are usually willing to pay up for access to that high rate of return.

Naturally, we also have to point out that the company is sitting on 2.17B in total standing liabilities right now. Any major growth in debt can handicap a company in the cannabis space because most of these companies already function in the high-risk quadrant of the portfolio template given their inherent legislative risk, and debt further distances that potential leap to institutional flows given the implicit additional risk of dilution that generally accompanies excessive debt.

So, how has the market been treating the stock? For that, we must turn to the technicals. As most traders know, the cannabis space has been a speculative darling, but volatility is particularly high in these stocks. {{companyAbbr_1}} has been no exception, with a beta of 1.87. With a market cap of 16.322B, shares most recently closed at 59.16. For some perspective, consider that it has traded as high as 65.58 over the past year, and as low as 37.43, but the stock’s current 50-day simple moving average is tracking right now at 61.39.

One of the reasons so many of these stocks have such wide swinging volatility is because the risks are large but so is the potential for huge growth given that most businesses in the cannabis-related space are in some way tethered to the upward growth potential of a new and emerging market. But another reason is that many are still trading with relative small outstanding cap tables. In this case, NetApp, Inc is pulling around 267.92M in outstanding shares.

Even so, liquidity is always important. At this point, the stock has a 3-month average for shares changing hands in a given session of 3.24M. If you’re curious about whether or not folks are becoming more or less focused on the name, consider that its most recent 10-day average trading volume stands at 2.96M by comparison.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Could investors throw in the towel on Lam Research Corporation (LRCX)

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Stock of Lam Research Corporation (LRCX) opened at $197.92 and last traded at $195.83 x 200. More than 1,966,106 shares exchanged hands compared to an average daily volume of 3,904,340 shares. At the current pps, the market capitalization stands at 32.283B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Lam Research Corporation (LRCX) currently has a Beta value of 1.44 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Lam Research Corporation (LRCX) current P/E ratio. Lam Research Corporation (LRCX) currently has a PE ratio of 21.76. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Lam Research Corporation (LRCX) beta and P/E ratio, the EPS cannot be ignored. Lam Research Corporation (LRCX) EPS for the trailing twelve months was 9.10. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Lam Research Corporation (LRCX) is estimated to release its next earnings report on 6 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Lam Research Corporation (LRCX) has received an average target price from analysts of $258.70 amounting to a recommendation rating of Buy. That comes from 22 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 12.12. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 12.43 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 18.00. That shift to 18.00 heading into next quarter.

Other Stocks in same sector as Lam Research Corporation (LRCX):

Other notable stocks in similar sector as to Lam Research Corporation (LRCX) to consider are {{companyAbbrExt_1}}, {{companyAbbrExt_2}}, {{companyAbbrExt_3}} that last traded at ${{Bid_1}}, ${{Bid_2}}. ${{Bid_3}} respectively.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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