Archive for July, 2017
Blue Apron Holdings Inc.’s (NYSE:APRN) days, despite first debuting on the NYSE as recently as June 28th, may be numbered.
Amid rumors of the company having to go public to raise desperately-needed cash, they made their debut exactly when tech stocks were tumbling. As if that wasn’t hard enough, they also collided with the announcement that Amazon.Com Inc. (NASDAQ:AMZN) was buying Whole Foods, knocking the company’s pre-IPO valuation down from $3.2 billion to $1.9 billion.
Since the stock began trading in the open market, it’s down a whopping 36%.
A big chunk of that loss came this week, some might say out of left field.
Left field is, of course, where Amazon lurks before pouncing onto center stage and upending whatever game everyone’s playing. The business that Blue Apron thought it controlled got punched in the gut by what Amazon just did.
Here’s what it means for Blue Apron, and how to profit from their almost inevitable end…
Blue Apron Holdings Inc. (NYSE:APRN), the meal kit delivery company named for the uniform that apprentice chefs wear in France, is seeing red, as in huge losses.
But it gets worse. Blue Apron’s stock, which just debuted on June 28th, is losing ground even faster than the company’s losing subscribers.
Initially founded in 2012, Blue Apron’s business model of delivering prepackaged ingredients and recipes to subscribers’ doorsteps for them to prepare at home, sounded sexy.
The theory was sound. Talk of how the smart business model would disrupt traditional grocery shopping and pose a new challenge to restaurant businesses drew a lot of attention and garnered the young Blue Apron some neat headlines.
But there are headlines, and then there’s the story.
Here’s how Blue Apron doomed themselves, and what makes them a really bad investment…
As far as the markets go, they’ve had an incredible run since 2009.
That’s because the Federal Reserve bought more than $4 trillion worth of bonds and securities in the open market to flatten interest rates and buoy said markets.
But going forward, starting in September, the Fed’s stopping its monthly purchases of billions of dollars’ worth of bonds… And that could send the markets into a tailspin.
Today, I’m covering what Fed Chair Janet Yellen said in her Humphrey-Hawkins testimony to Congress this week. More importantly, I’m covering what she didn’t say, and what could happen starting in September.
If you own stocks, you’re going to want to take this seriously…
On June 7, I laid out the case for buying put options on Fossil Group.
I started the piece with, “According to Wikipedia, fossils (from Classical Latin fossilis; literally, “obtained by digging”) are the preserved remains or traces of animals, plants, and other organisms from the remote past. The totality of fossils, both discovered and undiscovered, and their placement in fossil-containing rock formations and sedimentary layers is known as the fossil record. That’s amazingly close to the definition I’d give the once-trendy watch and accessories purveyor turned dinosaur crap retailer, Fossil Group Inc. (NASDAQ:FOSL).
At least we can give them foresight credit for getting their name right.”
You can read, or re-read, the dirt on Fossil right here, and you should. We made a 100% gain on our FOSL puts position in my Zenith Trading Circle member newsletter service, and you should have made a bundle on the puts I recommended for you too.
Well, we’re going to do it again.
Here’s what I recommended to Zenith members, and how you too can trade FOSL…
If you want to know exactly where the growth in the economy is now (and where it will be for the foreseeable future), look no further.
On his latest appearance on Varney & Co., Shah Gilani talks about why two specific companies in the Fab 5 are his favorite. Shah covers which of his predictions have come true so far, and he shares new ones about just how our tumultuous politics and Federal Reserve maneuvers will hit the market. Click now to watch…
Last week, I gave you the bare facts of why the UK’s Serious Fraud Office charged Barclays Plc. (NYSE:BCS) and four former top execs with conspiracy to commit fraud.
I also asked my readers, as part of the jury in the court of public opinion, if they found Barclays guilty or innocent.
Your verdict was a resounding… guilty as charged.
There were five times as many cries of “Guilty!” than there were defenses of innocence in the comments thread of last week’s article. It seems as though the majority of my readers have little patience for fraudsters wielding power.
Some of your comments about Barclays stood out to me particularly, as well as a few comments from earlier, and I want to address them now.
Here’s how you judged Barclays, and my response to some of your best recent comments…
The market has shrugged off everything, whether it’s geopolitical or domestic politics – even slow growth is being shrugged off. It looks like primary growth areas are now shifting from the technology sector to banks through a healthy rotation, proving to everyone that this market just wants to go higher. We have clear skies ahead.
On his latest appearance on Varney & Co., Shah made it clear that though talk of a rate hike is going to continue to rattle, there’s nothing that’s going to really affect the market long-term. This is normalization in the works.
He also covered tech stock pullback, Microsoft Corp. (NASDAQ:MSFT) recent layoffs, and what could finally put Tesla Inc. (NASDAQ:TSLA) under some real pressure. Click now to watch…
There’s a type of trade I don’t think I’ve introduced to Insights & Indictments yet, but this is too perfect of an opportunity to pass up.
This company that I’m about to recommend you move in on is about to make a major move. The only problem is that it’s set up to swing either way.
That’s why we’re getting creative.
First, I’ll explain what I plan we do, and then I’ll lay down the dirty details on this company. It’s struggling with some major lawsuits over a recent acquisition, but the stock has been steadily rising over the past week. Position yourself right and you stand to make serious gains no matter what happens next.
Here’s a quick trading lesson, and our next big play…