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Payment Data Systems, Inc. (PYDS) could lose another bull

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Payment Data Systems Announces Transaction Growth for the Third Quarter of 2017 Payment Data Systems Achieves an All-Time Record in Total Dollars Processed and Credit Card Transactions Processed in a Quarter

Stock of Payment Data Systems, Inc. (PYDS) opened today at $2.61 and are currently trading at $3.95 x 5800. More than 7,745,910 shares have exchanged hands compared to an average daily volume of 476,675 shares. At the current pps, the market capitalization stands at 55.1M. Analyst are currently predicting a target of $8.00 for Payment Data Systems, Inc.

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Payment Data Systems, Inc. (PYDS) currently has a Beta value of 1.31. 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 Payment Data Systems, Inc current P/E ratio. Payment Data Systems, Inc. (PYDS) currently has a PE ratio that is not determined yet. For the novoices, 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 Payment Data Systems, Inc beta and P/E ratio, the EPS cannot be ignored. Payment Data Systems, Inc EPS for the trailing twelve months was -0.20. 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. Payment Data Systems, Inc is estimated to release its next earnings report on May 18, 2017 – May 19, 2017. It would be interesting to see how the earnings fair out considering the recent developments.

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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Alibaba Group Holding Ltd. ADR (NYSE:BABA) rally could be short lived

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It’s time to take an in-depth technical look at Alibaba Group Holding Ltd. ADR (NYSE: BABA) . Our goal here today is to examine how the stock is behaving so we can use that examination as a lens through which to evaluate the stock as a possible investment opportunity.

Technical analysis is predicated on the idea that all important information is already interpolated by buyers and sellers of a security, so the only thing left to really interpret and predict the action is that behavior itself. For market timers, one of the most important tools we have at hand is the key indicators that show whether the stock is stretched in one direction or the other too much, too far, or too fast. In other words, is the stock overbought, oversold, or somewhere in the middle?

For that, we first turn to the RSI measure. The 14-day RSI is the standard flag-bearer for this type of analysis. Right now, for Alibaba Group Holding Ltd. ADR, the measure stands at 53.22%. That shows where the stock is as far as the degree to which it is becoming overbought or oversold relative to its price history.

If we look at other overbought/oversold oscillators, we can get even more perspective. The stochastic measure is a good example. Right now, the stock over the past month of action shows a score of 51.91% on the 20-day fast stochastic.

In an even broader sense, NYSE: BABA has recently been showing trading action that suggests an overall bullish posture on the chart according to trend-related measures such as a major moving average. In this case, we are looking at the relative positions of the 50-day and 200-day simple moving averages. The implication, of course, is that money is generally treating this stock in a positive manner in terms of capital flows.

Next, we want to look at participation levels. Our conviction on a stock in terms of its technicals is almost entirely subject in the end to the type of volume of trade we see going on in the stock. Patterns of action gain meaning strictly through volume levels. In other words, you need plenty of people playing the game for the score to matter. At this point, relative volume measures have been strong, indicating interest among traders, investors, and money managers for the stock over the past month. As it stands at present, the stock might find important action around key levels on the chart, which is something else we like to take a close look at.

One of the best ways to define key levels is through derivations built off of the Fibonacci series. This is widely used by professional firms in the market. The Fibonacci series is a set of numbers derived from adding the prior number to the next one: 0,1,1,2,3,5,8,13,21,34, etc. You will note that each number is the sum of the prior two numbers. The series has been found to exemplify the mathematics underlying many growth systems. The ratio of one number to the next in the series approaches 61.8% (or 38.2%, depending on which direction you move) as a limit. In markets, the key levels are often played at retracements defined by this ratio and its associated connections. In this case, the critical 38.2% level drawn off the 52-week high of $206.20 sits at $166.13. NYSE: BABA also has additional resistance above at the stocks 200-day simple moving average, which sits at $ 166.12.

So far, we have looked at oscillators, moving average trends, and participation levels. However, sometimes, there is information carried in simply the degree of movement in a stock. For example, over the past trading month, NYSE: BABA has made a move of -6.78. By comparison, over the trailing 100 days, the stock is outperforming the S&P 500 by 2.86, and its gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange.

Obviously, that tells us a ton about this name. To even drill down deeper into the movement, we can see that the stocks recent action has come on a historical volatility score of 41.48%. That number is derived from the standard deviation of returns of some hypothetical trader buying the stock at a given average price during the specified period. If we want to look at range of action in a simplistic sense, the best way is to use the average true range over the most common reference time period, so we are staying on the same page with the market. In this case, the 20-day ATR as a percentage of its 20-day moving average comes in at 3.23%.

We plan to update our take on this stock as its pattern of behavior progresses from here.

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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eBay Inc. (NASDAQ:EBAY) is up for the next big collaboration ?

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Well-rounded due diligence on a stock should take into account a basic analysis of core company trends such as top-line and bottom-line performance, margins, analyst views, cash flows, and overall balance sheet health. But that’s not all. One must also take a dispassionate, professional survey of a stocks technical characteristics.

For that, we must turn to the chart. Today?s object of technical analysis is eBay Inc. (EBAY).

We will start our analysis by examining overall direction of trend. In the most basic sense, we can see that EBAY has been working in a bullish posture on a larger timeframe, as indicated by 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. As noted, for EBAY, that adds up to a bullish designation the main point being that we have money flows leaning in a generally positive direction for the stock.

Next, we will turn to our analysis of the primary oscillating indicators to assess the degree to which the stock is stretched in its movement at present. The key tools for this analysis are the 14-day Relative Strength Indicator (RSI) and the 20-day fast stochastic. In each case, the point is to measure overbought or oversold behavior ie, whether the stock has gone too far too fast in one direction or the other. 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 EBAY, we can see that our 14-day RSI shows a score of 57.63%, while the 20-day fast stochastic reports a score of 47.61%.

Next, we will turn to key levels of interest on the chart, with an emphasis on Fibonacci retrace points, range extremes, and major moving averages. In this case, the critical 38.2% level drawn off the 52-week high of $46.99 sits at $41.22. EBAY also has additional resistance above at the stocks 200-day simple moving average, which sits at $ 37.06.

We also want to look at relative performance and overall volatility scoring to understand value and risk in play. EBAY has moved $+3.01 over the past month or so. Over the trailing 100 days, the stock is outperforming the S&P 500 by 5.51%. This movement has come on a more volatile bearing from one day to the next relative to the broader market, according to the stocks 36-month beta.

Similarly, we can see that the stocks recent action has come on a historical volatility score of 53.70%. To get that score, one has to take the standard deviation of returns for a random trading input assuming buying the stock at a given average price during the specified period. On a more basic level, one might look at the 20-day ATR as a percentage of its 20-day moving average. That measure gives us a volatility score of 2.6%.

Finally, we?ve spent some time looking at price as a factor in many forms and from many angles. But what about volume? Notably, many chartists see volume as more indicative for conviction in bearing or pattern than price measures, averages, or oscillators. Volume records the true degree of participation involved in a stock. If price pattern is like a word written on a word processor, volume is like the font size and punctuation. In this case, we want to examine relative volume measures to get a feel for interest in the stock of late. Right now, this stock has been showing strong relative volume, which indicates interest among those making a market for shares of the stock, and that should be seen as a key factor in drawing conclusions about your level of interest as well.

That wraps up todays analysis, but we will be sure to check back on 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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JD.com Inc. ADR (NASDAQ:JD) buy out on the horizon ?

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Well-rounded due diligence on a stock should take into account a basic analysis of core company trends such as top-line and bottom-line performance, margins, analyst views, cash flows, and overall balance sheet health. But that’s not all. One must also take a dispassionate, professional survey of a stocks technical characteristics.

For that, we must turn to the chart. Today?s object of technical analysis is JD.com Inc. ADR (JD).

We will start our analysis by examining overall direction of trend. In the most basic sense, we can see that JD has been working in a bullish posture on a larger timeframe, as indicated by 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. As noted, for JD, that adds up to a bullish designation the main point being that we have money flows leaning in a generally positive direction for the stock.

Next, we will turn to our analysis of the primary oscillating indicators to assess the degree to which the stock is stretched in its movement at present. The key tools for this analysis are the 14-day Relative Strength Indicator (RSI) and the 20-day fast stochastic. In each case, the point is to measure overbought or oversold behavior ie, whether the stock has gone too far too fast in one direction or the other. 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 JD, we can see that our 14-day RSI shows a score of 59.47%, while the 20-day fast stochastic reports a score of 65.33%.

Next, we will turn to key levels of interest on the chart, with an emphasis on Fibonacci retrace points, range extremes, and major moving averages. In this case, the critical 38.2% level drawn off the 52-week high of $50.68 sits at $42.73. JD also has additional resistance above at the stocks 200-day simple moving average, which sits at $ 41.83.

We also want to look at relative performance and overall volatility scoring to understand value and risk in play. JD has moved $+1.07 over the past month or so. Over the trailing 100 days, the stock is outperforming the S&P 500 by 15.69%. This movement has come on a more volatile bearing from one day to the next relative to the broader market, according to the stocks 36-month beta.

Similarly, we can see that the stocks recent action has come on a historical volatility score of 42.93%. To get that score, one has to take the standard deviation of returns for a random trading input assuming buying the stock at a given average price during the specified period. On a more basic level, one might look at the 20-day ATR as a percentage of its 20-day moving average. That measure gives us a volatility score of 3.57%.

Finally, we?ve spent some time looking at price as a factor in many forms and from many angles. But what about volume? Notably, many chartists see volume as more indicative for conviction in bearing or pattern than price measures, averages, or oscillators. Volume records the true degree of participation involved in a stock. If price pattern is like a word written on a word processor, volume is like the font size and punctuation. In this case, we want to examine relative volume measures to get a feel for interest in the stock of late. Right now, this stock has been showing weak relative volume, which indicates lack of interest among those making a market for shares of the stock, and that should be seen as a key factor in drawing conclusions about your level of interest as well.

That wraps up todays analysis, but we will be sure to check back on 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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