No matter how often someone tries to frame the subject, penny stocks are inherently risky. As the name suggests, these speculative investments are typically priced below a buck (although this isn't a hard-and-fast rule). More importantly, they feature low volume and subterranean market capitalization due to their all-or-nothing nature.With the broader markets still under pressure due to the novel coronavirus, you'd assume the case for penny stocks would have died down. And in many cases, that's exactly what happened. As valuations for virtually every sector declined at the onset of the global crisis, many gamblers took their money and ran.But as major U.S. indices have trekked their way northward following their March lows, penny stocks have also attracted attention. For one thing, the down and dirty side of this investing business may run on their own fundamentals. That could be advantageous in some respects, especially as rising coronavirus cases wreak havoc...
The claws are coming out already, with some industry onlookers questioning the government's rationale behind making a huge loan to less-than-truckload (LTL) carrier YRC Worldwide, Inc. (NASDAQ: YRCW), a perpetually struggling company and one that the government's own Defense Department alleges overcharged it for services. The loan's placement under the umbrella of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is intended to help businesses survive the economic downturn caused by COVID-19 and maintain employment for their workers, is only drawing more scrutiny.On Wednesday, YRC Worldwide announced its latest lending agreement, a $700 million, two-tranche program that will allow it to make delinquent health and welfare and pension payments as well as fund capital expenditures for its tractors and trailers. As part of the deal, YRC will be required to issue the Treasury Department shares of common stock, which YRC expects will equate to a 29.6% equity stake in...
The S&P 500 just wrapped up its best quarterly performance since 1998. The index surprised and delighted many by rising 20% during the past three months. Now the question is…what does the third quarter have in store?We're anticipating the third quarter is going to start in the same way the second quarter ended: with consolidation.This gives us a great opportunity to generate some additional income by selling another covered call against Cisco Systems (NASDAQ:CSCO).InvestorPlace - Stock Market News, Stock Advice & Trading TipsCSCO is likely to see strong underlying fundamental strength as the company benefits from increased 5G development and spending around the world, but the growing concerns about COVID-19 in the United States are likely to temper bullish enthusiasm in the short term. Action from the White HouseOne of the global leaders in the 5G race is Huawei, but you might recall the company has been under investigation for participating...
Microsoft (NASDAQ:MSFT) stock is up almost 30% this year and nearly twice as much off its March lows, but even with a $1.55 trillion market capitalization, Microsoft can still deliver for investors.Source: NYCStock / Shutterstock.com The software giant is jostling with rivals Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) to be the first company to enter the $2 trillion club. While that illustrious distinction is far away for all three, Microsoft still offers ample appreciation potential.Yes, investors buying Microsoft today will be paying a forward earnings multiple of 31.25 and a sales multiple of 11. Those are growth stock multiples because, well, Microsoft is a growth stock. It's the largest component in the S&P 500 Growth Index at a weight of 10%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Utilities Stocks to Buy With Reassuring DividendsThat status shouldn't be off-putting to investors. They should embrace it because over the...
Stock futures surged as investors awaited a slew of critical employment data on the state of the U.S. labor market set for release later Thursday morning....
(Bloomberg) -- A London judge delivered a blow to Venezuelan President Nicolas Maduro’s attempt to retrieve $1 billion of gold in Bank of England vaults, ruling that opposition leader Juan Guaido should be recognized as the country’s interim president.In deciding the ownership of the gold, the court should accept the U.K. government’s “unequivocal” recognition of Guaido, Judge Nigel Teare said Thursday. The decision dismisses the attempt by Maduro-appointed executives at Venezuela’s central bank to set aside the comments.The bank sued the BOE to get the gold that it says is urgently needed in a joint effort with the United Nations Development Fund to fight the Covid-19 pandemic. The bullion has been in limbo since U.S. officials successfully lobbied their British counterparts last year to block Maduro from withdrawing the gold.The U.K. government last year said it recognizes Guaido as Venezuela’s interim president until new, credible elections can be held.“Today’s decision recognizes...
