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Telecom Stocks & ETFs To Watch

A. Lawrence

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The largest change in Wall Street’s broad sectors since 1999 just happened in September, with a readjustment of the technology and media sectors. Last year, S&P Dow Jones and MSCI had announced big changes to the Global Industry Classification Standard (GICS) that widened the outdated telecommunication sector and renamed it to communication services sector, effective Sep 24, 2018.

The change essentially reclassifies some of the popular, high-growth tech and media stocks, with telecom stocks, lumping that all into a newly-created communication services sector. This is the first sector change on the S&P 500 since real estate was cut from the financial sector to become the 11th sector two years ago.

The telecommunications sector, known for defensive bets based on the inclusion of highest-dividend yield stocks, has now gotten riskier and cyclical with a new coat of paint. This is especially true as the newly created sector has increased from three to more than 20 companies, adding some key names from the technology and the consumer discretionary sectors.

Media stocks such as Walt Disney (DIS), Comcast (CMCSA), CBS (CBS) and News Corp. (NWSA) have also left the consumer discretionary space to join the new sector. Meanwhile, Amazon (AMZN) remains in the consumer discretionary space, with increased weightings to 25%. With the big change to the components, tech stocks now account for half of the communication services sector, while consumer stocks led by Netflix make up another 28%. Telecom stocks will represent less than 20% share in the sector.

The new communications sector will now hold 61% or the majority of growth stocks versus 100% value stocks in the old grouping and much higher than 47% growth stocks for the information technology post sector shift, according to State Street Advisors. Further, the new sector has a forward price-to-earnings ratio of 19.3, nearly double the former telecom sector. CFRA estimates that the forward-earnings P/E multiple for the new sector could be as high as 28x versus under 11x for the old telecom.

ETFs To Focus On

Communication Services Select Sector SPDR (XLC) is a newly created ETF focusing on the new communication sector. It was started in June and has built up $968.2 million in its asset base since then. Facebook and Alphabet are the top two firms, representing about 42% of the portfolio. Expense ratio comes in at 0.13%.

Vanguard Communication Services ETF (VOX) also focuses on the communication service sector with Alphabet and Facebook as the top two holdings at 22.3% and 14.7%, respectively. It has AUM of $1 billion and charges 10 bps in annual fees.

The very popular Technology Select Sector SPDR Fund (XLK) and Vanguard Information Technology (VGT)    has now morphed into pure-play technology ETFs with leading constituents such as Apple, Microsoft, Visa and Cisco. XLK has AUM of $26.6 billion and charges 13 bps in fees per year from investors, while VGT has AUM of $22.5 billion and comes with an expense ratio of 0.10%.

Consumer Discretionary Select Sector SPDR Fund (XLY) will also change to reflect the GICS adjustments. Cable and entertainment stocks like Comcast and Walt Disney as well as streaming stocks like Netflix (NFLX) are being moved to XLC. The ETF has been able to manage $18.3 billion and charges 13 bps in annual fees.

Vanguard Consumer Discretionary ETF (VCR) has already been making changes using the transition benchmarks. The weightage to Comcast, Walt Disney and Netflix (NFLX) has already been lowered. VCR has amassed $3.2 billion in AUM and charge s10 bps in annual fees.

Stock Market Affect

A big sector adjustment that goes along with the quarterly expiration of futures and options resulted in a burst of volumes in the last 15 minutes of the trading session on Sep 21. About 10.87 billion shares changed hands on the U.S. exchanges on Friday, the highest volume since Feb 9 and one of the highest-volume sessions of the year, according to Thomson Reuters.

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4 Security Penny Stocks To Watch

A. Lawrence

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As Threats Arise, Security Stocks Take Center Stage In 2019

With the Federal Reserve’s meeting coming, the general market is bracing for anything. Meanwhile, penny stocks are continuing to climb at absurd rates. Trading penny stocks as of late has brought many investors fruitful profits and they look to continue this trend. Here are some security penny stocks to watch for the remainder of June 2019:

Security Penny Stock #1
Liberty Defense Holdings (SCAN.V)
Market Cap: $46.404M

Liberty Defense Holdings Ltd. (SCAN.V) is a security company looking to take the industry into the next century. Liberty’s HEXWAVE product is a 3-dimensional scanning device that can detect weapons and threats of any kind. The product can do this both with speed and discretion ensuring privacy for citizens.

Liberty signed a Memorandum of Understanding with the soccer team FC Bayern München to beta test HEXWAVE in their arena. They join an ever-growing list of places that have signed MOU’s to beta test Liberty’s product. This MOU expands its ability to comply with and test the market requirements for their product internationally.

“The reception to our HEXWAVE product has been fantastic and we are excited about working alongside FC Bayern Munich, a team that is a household name in both Europe and North America, […] Our ability to deploy in both indoor and outdoor settings, with covert and overt applications, sets us apart and has also been driving increasing interest from the market.” 

Bill Riker, CEO of Liberty

Security Penny Stock #2
Magal Security Systems (MAGS)
Market Cap: $101.371M

Magal Security Systems Ltd. (MAGS) provides security solutions both online and physical. Some services provided include identifying potential security problems, integrating new systems, and custom designs for any type of security needs.

Recently, Magal received a $5.5 million contract for its advanced perimeter intrusion detection system. The system prevents people from illegally crossing border fences and walls.

Dror Sharon, CEO of Magal, stated, “Magal is a world leader in perimeter intrusion technologies. Our growing wins of orders such as this – providing sensors for active international borders, is due to the decades of experience that we have in providing systems that have more than proven themselves in-the-field.”


Security Penny Stock #3
Rekor Systems (REKR)
Market Cap: $27.502M

Rekor Systems Inc. (REKR) is a company that has developed surveillance technology to enhance public safety, banking, and traffic management. Primarily, the company takes their advanced software, which utilizes machine learning and upgrades IP cameras to the next level. This reduces the cost when collecting highway tolls and helps manage traffic congestion.

REKR stock chart

Throughout June, Rekor Systems has been gaining recognition and application across the US. On June 3rd Rekor obtained a contract to start deploying its Mobile LBR-2 vehicle recognition systems. After this deployment on the 3rd, the LPR-2 system North Carolina law enforcement placed an order. On June 12th, Colorado highway authorities chose Rekor’s cloud system called NUMERUS to read enhance their license plate reading.


Security Penny Stock #4
BIO-key International (BKYI)
Market Cap: $18.03M

BIO-key International Inc. (BKYI) is a security technologies company that is pushing past the limits of fingerprint scanning. BIO-key provides a plethora of finger scanning products that provide security for your computer, hard drive, and the government. They have a partnership with Microsoft to develop biometric sign-in for Windows 10.

The company recently announced that a foreign defense ministry ordered more BIO-key deployment for secure access to Microsoft applications.

“We were delighted that such a capable and prestigious technology team determined that BIO-key met their security and scalability requirements and have now made follow-on investments to grow their user base.  Defense Ministries are constant targets of cyber-attacks, and we are glad to help them step up authentication to the highest assurance with NIST-verified accuracy and FIPS compliance.”

Jim Sullivan, SVP of BIO

security stocks
Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and Liberty Defense Holdings Inc. Midam was hired for a period from 04/15/2018 – 5/15/2019 to publicly disseminate information about Liberty Defense Holdings Inc. including on the Website and other media including Facebook and Twitter now extended through June 21, 2019. We were paid $350,000 (CASH) for & were paid “0” shares of restricted common shares. We may buy or sell additional shares of Liberty Defense Holdings Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. FULL DISCLAIMER HERE

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Stock Price Pre Market Update – June 19, 2019

Joe Samuel

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Big Investments Are Signaling The Green Light For A ‘Hot Market’ With Cancer-Fighting Stocks

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How Tech Is Making Life Easier?

The Answer Is ONE CLICK Away


Healthcare Penny Stocks To Watch

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Is Palatin Technologies (PTN) A Penny Stock To Buy Or Sell?

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Biotechnology

Is Palatin Technologies (PTN) A Penny Stock To Buy Or Sell?

Joe Samuel

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Will Shares Of Palatin Technologies (PTN) Head Higher As Biotech Stocks Rally This Month?

Biotech stocks are rallying this month.  Despite the “pop and drop” this sector saw earlier in the year, June has been a big month for biotechnology companies and people investing in this sector. 

IBB ETF chart

In fact, the iShares Trust Biotechnology ETF (IBB) has climbed by more than 8% since the start of June. This sector has been famous for producing volatile returns for investors. Furthermore, biotech penny stocks have increased that potential.

Palatin Technologies (PTN) Is A Biotech Penny Stock To Watch

One of the best performing penny stocks in the biotechnology sector this month has been Palatin Technologies Inc. (PTN). On January 2, this penny stock opened the year at $0.71 and has seen a 2019 high of $1.74. What’s more is that even though PTN stock has consolidated, it has continued to trade above $1.20.

So what’s all the excitement about? Palatin Technologies, Inc. is a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential.

The company’s main strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize their commercial potential.

[New Research] Big Investments Are Signaling The Green Light For A ‘Hot Market’ With Cancer-Fighting Stocks

The recent excitement seems to have started in April after the company reported positive top-line results of its oral clinical study of PL-8177. The treatment is designed to address ulcerative colitis and other inflammatory bowel diseases.

“The main objective of the study was to demonstrate release of polymer-bound PL-8177 in the lower gastrointestinal tract after oral administration. Top line data showed favorable pharmacokinetics, and demonstrated PL-8177 was released in the lower gastrointestinal tract, supporting oral administration of PL-8177 using the delayed release polymer formulation.”

New Milestones From Palatine Technologies (PTN) Triggers New Highs

After hitting new highs on May 17th after posting quarterly earnings, shares of PTN stock have consolidated. Regardless, the company continues to progress. Earlier this month the company obtained orphan drug designation for PL-8177. Yes, this is the same one that I talked about above when the company received positive topline results earlier in the year.

Why is orphan drug designation important? This is a good question especially if you’re newer to biotech penny stocks or biopharmaceutical stocks, in general. In the exact words of the FDA:

“The Orphan Drug Act (ODA) provides for granting special status to a drug or biological product to treat a rare disease or condition upon request of a sponsor. This status is referred to as orphan designation (or sometimes “orphanstatus”).”

Essentially it gives companies incentives above and beyond competitors. These incentives include a partial tax credit for clinical trial expenditures, waived user fees, and eligibility for 7 years of marketing exclusivity. The obvious response would be favorable, which has been seen in the market over the past few trading sessions.

Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies, said in a press release, “Unlike corticosteroids, immunosuppressive agents, and biological therapies targeting specific cytokines or receptors, melanocortin receptor 1 peptides work to resolve chronic inflammations and restore normal immune function. We look forward to initiating clinical trials with PL-8177 for non-infectious uveitis, a high medical need disease with limited treatment options.”

But Here’s Why Palatin Might Be Set For More Excitement

It’s all about sex drive. You read that right. And something that hasn’t really been fully publicized is this “big FDA date.” You see on June 23rd, the application for Vyleesi (bremelanotide), a drug developed by Palatin and licensed to AMAG Pharmaceuticals (AMAG) will be up for review by the FDA as a New Drug.

Vyleesi is a novel melanocortin 4 receptor agonist under evaluation for restoring a natural sexual desire in premenopausal women with HSDD. Think of this like female Viagra. Will this become the sexiest biotech penny stock this month or will stock traders get blue balled?

Like This Article? Check Out: Small Cap Biotech Stocks See Boost From Large Cap M&A

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