That is like a sports team having some good players, but no coaching staff, no discipline on the field, and no leadership in the locker room. October could be the last time the stock market offers easy money as November and December look to be riddled with uncertainty. PACV stock (OTC pink: PACV) of Pacific Ventures Group has been having a wonderful month and this penny stock has rallied 5.88% in the last three months. In a single session on Oct 9, PACV jumped […] There’s a funding stream that supports China’s military growth that most Americans are unaware of — American citizens and Wall Street. This marks the second investment by TPG in a subsidiary of Reliance Industries, after a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year. Reliance Retail has so far raised Rs 32,197.5 crore from a clutch of global investors in exchange for a combined 7.28 percent stake.
Covid-19 temporarily put most professional sports on hiatus. When they came back, we were again treated to world-class athleticism, performed at speeds well beyond what most of us can do. But there is a lot that goes into that on-field product, behind the scenes.
It is not enough for a coach to just send the players out there to do their thing. And as a former coach myself (OK, it was only 10 years of Little League baseball), and a fan of organization and investment markets, I see the value of something called a “Depth Chart.”
The Depth Chart is what organizes the team’s roster of players. It varies by sport, but generally speaking, it is divided as follows:
* Starting players at each position
* The first backup at each position
* The second backup at each position
* Others in the organization, but further down the list. These players are either younger and in development, or older and filling in spots as emergency replacements due to injury.
The Depth Chart keeps it all together, so that the organization can function smoothly, and move key pieces of the roster in and out. That allows them to always have the best players on the field.
Investing is just like that! At least, if you are serious about it. Picking stocks based on whatever idea came to you today is like rolling the dice.
A better way to manage your portfolio and maintain a consistent “scouting” process for investments to occupy the portfolio is to do what sports teams do. Use a depth chart. This is the case whether you are investing professionally or on your own.
In the case of an investing depth chart, you aren’t looking for a starting Quarterback or your starting Catcher. The positions are up to you.
I have used Depth Charts in many forms over the years. As the markets evolve, the format of the Depth Chart has evolved with it. There was a time when my Depth Charts had many different types of stocks in different segments. These days, with so many stocks moving in sync, up and down, that is less of a priority.
To illustrate the concept, here is a generic version of what this might look like. The securities are “tiered” vertically, according to investment attractiveness. I included some data columns that might be helpful. Depending on what data sources you access, you can fill in your favorite analytics, stats, etc.
Tier 1 securities are current holdings. 1A are not under serious consideration to be sold, but securities classified as 1B are.
What would replace them? Likely something from Tier 2, securities which are “On the Bubble.” In other words, they are on the verge of being “portfolio-worthy.” However, they are either not quite ready (in the opinion of the investor), or the portfolio is too full to let another security in. I have seen both extremes plenty of times: more attractive securities than slots available, and periods in which I did not come close to filling up the portfolio (i.e., nearly everything looked expensive to own).
The Hedged Investor (Rob Isbitts)
Tier 3 is the next level down. I refer to this here as “on the radar” because they have caught my eye, but it’s too early to give them immediate consideration. If they get closer, they can “graduate” to Tier 2.
Tier 4 is where the rest of the depth chart securities hang out. These have qualified to be considered, but are so far away from where they’d be priced well, they just sit on the list. A good example of how the status of a 4 can quickly change? If a stock misses earnings, the price falls heavily, and we surmise that the big decline is overdone, that could move it out of 4-territory fast, and up the list toward being a portfolio holding.
I start with 3 broad categories. These can be combined into one depth chart, or you can separate them out. Think of this as my answer to the old Stocks/Bonds/Cash mix, which I believe is seriously outdated.
This could be a group of 20-30 stocks that form the core of the portfolio. Or, we can easily substitute 1, 2 or 3 equity ETFs instead. These form the long-term nucleus of the portfolio.
This category includes straight attempts at hedging the equity market, like single-inverse ETFs. But it is not entirely about defense. I have expanded it over the years to include a wide variety of lower-correlation styles.
This segment is a fairly long list of sectors, industries, and anything that I’d prefer to “rent” instead of “own” in the portfolio. As I see it, they are best deployed as “bench players” I can move in and out of the lineup when I think they can help the team, er, portfolio.
The Depth Chart is a starting point. I think it’s a necessary one for serious investors. And with all of the technology we have at our fingertips, and the constant flow of data and investment information, its a lot to keep track of. Creating and maintaining your own investment Depth Chart can help.
Comments provided are informational only, not individual investment advice or recommendations. Rob Isbitts provides Advisory Services through Dynamic Wealth Advisors
Author: Rob Isbitts
October Could Be Your Last Chance to Profit from the 2020 Stock Market
- After the September selloff, October offers investors an opportunity.
- Monumental vaccine developments could boost share prices this month.
- October is the final month before election chaos becomes a reality.
So far this year, investors have had a wild ride—but for those who hung on through the March dip, it’s been mostly positive. September brought on a wave of selling as the stock market started to respond to rising tension ahead of the U.S. elections. This week, the president’s positive coronavirus test left some wondering if Q4 could bring on more selling.
The answer to that question is likely yes—Q4 looks like it’s going to be a bloodbath for investors. Between the pandemic uncertainty and the likelihood of a contested presidential election, profitable trades will be few and far between.
Before you panic and shift to cash, consider this: October is historically kind to investors. According to Bespoke Investment Group, the Dow Jones Industrial Average has finished October on a high 70% of the time over the past two decades.
While there have been some exceptions to the rule, the underlying message is clear: seasonality favors the bulls.
September’s selloff has opened up some enticing entry points into quality companies that took off following the March dip. Microsoft is one big name in this category that comes to mind. While MSFT stock has had a bumper year so far overall, the stock is down 10% from its August highs.
But that’s not the only reason investors should consider remaining in the market over the next four weeks. This month also holds several potentially market-moving milestones on the vaccine-front, as well.
Donald Trump heads to the hospital for coronavirus treatment in the video below.
First of all, there’s Donald Trump’s recent diagnosis. If he’s successfully treated using remdesivir, it could boost optimism regarding doctors’ ability to combat the virus with effective treatments. Watch the video below:
On top of that, this could be the month we see a coronavirus vaccine successfully complete clinical trials. Pfizer has consistently said it expects to see results from its coronavirus vaccine in October. If successful, the drug would go from testing to production and distribution. While it would take time to sort out logistics, it would mark a significant turning point in the fight against coronavirus. It would also inject a massive shot of optimism into the stock market.
While Pfizer is the only drugmaker likely to conclude clinical trials in October, its failure to do so wouldn’t necessarily collapse the stock market. Others, including Moderna, AstraZeneca, and Novavax, are all slated to reach important milestones this month.
If nothing else, October is the last month investors will see election uncertainty as a possibility rather than reality. Come November 3, there’s a good chance the world won’t know who the next president will be. If vote tallying and disputes drag on through December, unrest among Americans could become overwhelming and spook investors.
Even if a clear winner is determined, investors should expect some short-term volatility through the end of the year. If Joe Biden wins, investors’ thoughts will immediately shift to whether the Democrat candidate will make good on his promises to raise the corporate tax rate. A Trump victory could be met with unrest and protests across the nation, an outcome that could add to the market’s uncertainty.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com and should not be considered investment or trading advice from CCN.com. Unless otherwise noted, the author has no position in any of the securities mentioned.
Author: By: Laura Hoy
Another Penny Stock, PACV, Rallies 5.88%
The company’s net income stands at -1.35M while its revenue per share is given as 0.01. The company has shown a gross profit of 1.30M in its income statement. PACV has not declared any dividend in the last one year or more. The company’s market cap is $1.67M is and its shares outstanding are 275.86M. The company’s number of public floats is 248.15M.
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Tom Jurkowsky: Wake up America, we must stop investing in China | COMMENTARY
While Americans have been consumed with a range of serious issues domestically — the pandemic and its associated financial and emotional fallout; violence in our cities; the upcoming elections; and our polarized political system, to name just a few — we’ve become blind to the military threat that China poses to us and the world.
For years China has been patiently positioning itself economically and politically for global domination. Its progress has been shocking, and it’s clear that its goal is global domination by 2049.
While China’s economic growth has been exponential, so has its military capability. In fact, China is clearly outpacing us. China is clearly a global power and is a threat to our national interests. China’s military can now operate far beyond its own shores. In fact, it’s even building port facilities in virtually every area of the world.
The Defense Department recently released its annual report of the status of the Chinese military, Military and Security Developments Involving the People’s Republic of China 2020. The report says China has “marshaled the resources, technology and political will over the past two decades to strengthen and modernize [its military] in nearly every respect … China is already ahead of the United States in certain areas:”
- Land-based conventional ballistic and cruise missiles
- Integrated air defense systems
For purposes of this discussion, let’s just focus on the Chinese navy.
China now has the largest navy in the world, with an overall battle force of approximately 350 ships and submarines. The Navy fleet is currently composed of 295 ships. More importantly, China is engaged in a robust shipbuilding program that includes a whole range of ships. It’s additionally developing advanced weapons.
It’s important to note that the quality of the equipment being built is formidable.
Obviously, the funding for China’s military growth stems in large part from the wide range of goods China manufactures and sells to countries around the world. The U.S. is at the top of the list.
There’s another funding stream to support China’s military growth that most Americans are unaware of. But they should be because the funds actually come from us — American citizens and Wall Street.
This past August the State and Commerce departments sanctioned the China Communications Construction Co., five subsidiaries and 18 other Chinese firms. Despite the sanctions, these companies raise money from U.S. capital markets from Wall Street investment firms.
CCCC and its subsidiaries, for example, raise money by being listed by Wall Street index providers such as Morgan Stanley Capital International and the Financial Times Stock Exchange. These indexes are important because large investors such as pension funds track them. Several MSCI and FTSE Russell funds include CCCC or its subsidiaries.
Some of CCCC’s subsidiaries build everything from Chinese warships to military telecommunications facilities. The CCCC is also important to the China’s Belt Road Initiative, a huge infrastructure project in which the Chinese are investing in projects from Asia to the Middle East and Europe, including port facilities for the Chinese navy.
Additionally, several major Wall Street banks — Bank of America, Goldman Sachs, JP Morgan Chase and Morgan Stanley — are among underwriters selling bonds worth several billion dollars to help state-owned Chinese companies. Many of these companies support the Chinese military.
In essence, U.S. investors are unknowingly investing in China’s military growth when these bonds are purchased through index and pension funds and other vehicles. But the Wall Street banks know exactly what they are doing. It appears, though, that greed takes precedence over loyalty to country.
If there’s any doubt about the intention of China and its goal of world domination, we should be reminded of a 2013 item in China’s state-run national media about one of its then-new missiles: “If the Dongfeng 31A is launched above the North Pole, it can easily destroy a series of cities on the East Coast…”
Included in that list of cities was Baltimore.
Wake up America. It’s time for us and our political leaders to re-think the sinkhole we are headed into by our own ignorance.
Rear Adm. Tom Jurkowsky, U.S. Navy (Ret.), serves on the board of the Military Officers Association of America (HANDOUT)
Annapolis resident Tom Jurkowsky is a retired Navy rear admiral who served on active duty for 31 years. He is the author of “The Secret Sauce for Organizational Success: Communications and Leadership on the Same Page.” Visit tomjurkowsky.net
Author: Capital Gazette | Oct 04, 2020 at 5:20 PM
TPG-Reliance Retail deal: Global investment company to inject Rs 1,837.5 crore for 0.41% of RIL unit
Global investment firm TPG will inject Rs 1,837.5 crore in the retail division of Reliance Industries (RIL) for a 0.41 percent stake, marking the seventh investment in recent weeks as global investor interest in the company ascends by the day.
The latest investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore, RIL said in a late night statement (October 3), moments after it announced that Singapore investment company GIC will invest Rs 5,512.5 crore in the company.
TPG is making the investment from its TPG Capital Asia fund.
This marks the second investment by TPG in a subsidiary of Reliance Industries, after a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year.
Reliance Retail has so far raised Rs 32,197.5 crore from a clutch of global investors in exchange for a combined 7.28 percent stake.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”
Jim Coulter, Co-CEO, TPG, said, “Reliance Industries has utilised technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader. We are excited to join with them as they seek to create a more inclusive retail industry that allows kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform.”
On October 2, Singapore investment company GIC said it will invest Rs 5,512.5 crore in exchange for 1.22 percent stake.
On October 1, Abu Dhabi state fund Mubadala Investment Co said it will invest Rs 6,247.5 crore to secure 1.4 percent in the retail unit of RIL.
This investment — with Silver Lake’s co-investors and General Atlantic, the seventh in three weeks — too valued Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.
Reliance Retail operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.
TPG is a leading global alternative asset firm founded in 1992 with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.
Over TPG’s nearly 30-year history, the firm has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives, and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.