In three issues of Modern Trader, beginning with the December 2016 issue and ending with the April 2017 issue, Paul Cretien detailed the response of six currencies – euro, Swiss franc, Australian dollar, Canadian dollar and Japanese yen – to the pound’s price decline following the Brexit vote. He suggested their central bank would defend export markets by weakening the currencies, which also would strengthen the U.S. dollar.
Sentieo is a producer of an intuitive, powerful financial data platform with document search, research management, equity data terminals and more. The product is web-based, but also has apps for desktop, iPhone, iPad, android and an excel plugin. It wasn’t enough to simply review the product. We asked to see it in action. During our discussion, we quickly discovered that Sentieo had developed a tool that helped investment professionals and anyone in the research industry generate ideas and tell a story.
While the restaurant sector is robust, it is facing many risk factors, chief of which are expectations of growth that harken back to the dot-com bubble. In addition to the unreasonable expectations, our restaurant sector focus dives into the key threats and opportunities affecting the bottom line of restaurant companies in the United States. As explained by former McDonald’s President and CEO Ed Rensi, the decline in retail mall traffic has been a major factor in the ongoing decline in chain restaurant sales. From the third quarter 2015 to the fourth quarter of 2016, chain restaurant sales fell by 2.4%.
During Ed Rensi’s 14-year term as president and CEO, McDonald’s experienced phenomenal growth. U.S. sales doubled to more than $16 billion, the number of the U.S. restaurants grew from nearly 6,600 to more than 12,000, and the number of U.S. franchisees grew from 1,600 to more than 2,700. Under Rensi’s leadership, McDonald’s became the most recognized brand in the world, the next being Coca-Cola.
Over the years as we have covered various sectors — from energies to stocks and stock indexes to fixed income to forex; and different asset classes from futures to equities to exchanges traded funds — trading has grown more complex.
Texas Roadhouse (TXRH) is a best in breed restaurant play, which has rallied by 6% year-to-date and 13% during the last 12 months, sporting a dividend yield of 1.6%. Earnings have struggled, though the May 2, Q1 report showed growth of 11.6% following three consecutive negative reports.
According to Chemical Engineering News, chemical firms releasing Q1-2017 financial results reported strong demand for a broad range of products including seeds, electronic materials and textile dyes. Several firms posted Q1 earnings growth that exceeded expectations.
Technology is becoming a key component of who survives in the current landscape, with mobile applications and touch screen kiosks helping to reduce staff, and creating a more efficient ordering and pickup process. Starbucks (SBUX) is without doubt the pioneer in this space, with mobile payments making up 29% of all transactions at this point.
ViaSat considers itself a leader in satellite technology, capable of producing bandwidth economics competitors can’t match. For the sliver of revenue generated from delivering broadband to an airplane, that may be true. Unfortunately, its technology is no match for terrestrial internet providers today, let alone during the next few years as terrestrial competitors dramatically increase speed, capacity and coverage through rapid technological advancements.
Akcea Therapeutics, a wholly-owned subsidiary of Ionis Pharmaceutical, is a $6.54 billion market cap firm that is expected to IPO on June 30. Akcea Therapeutics recently initiated a strategic partnership with Novartis Pharmaceuticals and has begun receiving related payments.
McDonald's has been on a tear since the election and has entered hyper drive this spring, rallying more than 20% in the second quarter alone. This pushed the world’s most famous fast food restaurant into overbought territory in the CPO. This creates a good selling opportunity as the CPO expects McDonalds to correct in the third quarter.
Even with record inflows into exchange-traded funds and dozens of publicly traded names to choose from, there’s only one ETF devoted to the restaurant industry, the aptly tickered USCF Restaurant Leaders Fund.
In October of 2015, MCD began serving breakfast all day. MCD then had a breakout during the next eight months, closing at $131.60 on May 10, 2016. MCD was obviously out of its rut. By Oct. 20, 2016 MCD corrected to $110.57, and has been a moonshot ever since, closing at $156.58 on July 12, 2017. That’s a 41% gain in less than 10 months.
As the FOMC said in mid-June after raising the Federal Funds rate for the second time this year, but just the fourth time since leaving the zero lower bound in December 2015, “monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2% inflation.”
Dallas-based Warrington Asset Management has operated its Strategic trading program for more than 20 years, however, it has only recently, since April 2015, offered it directly to customers outside of the wirehouse network. Warrington founder Scott Kimple created his unique options strategy while working with Shearson-Lehman Hutton, which would ultimately be acquired by Morgan Stanley.