Archive for July, 2017

Goldman Sachs’ Latest Move Is More Frightening Than You Realize

14 | By Shah Gilani

Imagine Goldman Sachs, the most powerful, most successful, money-making machine in the history of Wall Street.

Now, can you imagine them getting out of the business of lead market-making in ETFs, the most successful, fastest growing trading and investment products ever manufactured by Wall Street?

Me either. But they are.

There’s only one reason, in my opinion, why Goldman would give up valuable turf it paid billions of dollars to own.

And it’s frightening.

Here’s what Goldman does as an ETF LMM (lead market-maker), and why them wanting out is so frightening…

Facebook’s High and the VIX Is Low – Here’s What That Means Big Picture

0 | By Wall Street Insights and Indictments Staff

Yesterday’s Facebook Inc. (NASDAQ:FB) earnings threw investors for a loop, but it wasn’t long before they caught up and pushed FB to a new record high.

On his latest appearance on Making Money, Shah Gilani dissects what gave FB their boost. He also shares the best way to play the VIX while it’s plumbing its low levels. Click to watch now

Kors’ Splurge on Jimmy Choo Won’t Save Them from Retail’s Ice Age

3 | By Shah Gilani

Michael Kors Holdings Ltd. (NYSE:KORS) is buying high-end shoe retailer Jimmy Choo for $1.17 billion.

On the surface, it looks like a smart acquisition to add the high-profile, high-heeled fashion darling to the Kors stable of upscale offerings.

But there’s a lot more to it.

The acquisition is a huge gamble on a new old strategy that Kors initially succeeded in executing… then royally screwed up.

Based on what Kors’ management said about their plans for Jimmy Choo (and their own uphill battle in the retail Ice Age), any wrong moves now could sink Kors stock and any hope of reclaiming the high ground and fat profit margins the brand once commanded.

Here’s where Kors is headed, and how acquiring Jimmy Choo could be the final nail in the coffin…

The Only Way to Make Money off Blue Apron

7 | By Shah Gilani

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: A Recipe for Disaster

2 | By Shah Gilani

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…

The Fed’s New Plan Could Kill the Market as Soon as September

8 | By Shah Gilani

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…

A Look Into My Exclusive Service and Your Next Trade

5 | By Shah Gilani

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…

Shah Calls This Company “Brilliant” – Do You Own It?

2 | By Wall Street Insights and Indictments Staff

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…

The Verdict Is In – Here’s How You Judged Barclays

3 | By Shah Gilani

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…

Markets Continue to Shrug Off Resistance – Just As Predicted

0 | By Wall Street Insights and Indictments Staff

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…