Archives for August 2018

August 2018 - Page 4 of 19 - Money Morning - Only the News You Can Profit From

Why I Love to See This Extreme Shape in My Charts

Aristotle is traditionally credited with the concepts behind the familiar idiom "nature abhors a vacuum."

It's just a way of saying, "when something is moved out of a space, something else will move in," or, "there is no truly empty space."

Some incredible minds have grappled with the ramifications of this concept over the 23 centuries since Aristotle.

To name a few: Galileo, Blaise Pascal, Thomas Hobbes, Robert Boyle, and even calculus co-inventors Sir Isaac Newton and Gottfried Leibniz have all weighed in.

Modern science has answered this question… with a few equivocations.

From a quantum perspective, there is no true empty space – it would still be filled with quantum fields. Nonetheless, there's a good deal of mostly empty space and plenty of partial vacuums.

Just like nature, the markets find a few things abhorrent – most of all the parabola.

A parabola is, at its essence, an exponential function. Galileo in his final, 1638 work, "Discourses on Two New Sciences," proved that the trajectory of a projectile traveling through a non-resisting medium is a parabola.

Like a cannonball or bullet dropping back to the ground, trading patterns that look like parabolas inevitably come back to earth as well.

For investors, the results can be disastrous. But for nimble traders on the right side of the "landing," a parabola can be extremely lucrative...

The Top Penny Stocks of the Week Include This Blockchain Firm's 175% Surge

Last week's 10 top penny stocks were led by a little-known blockchain firm that just closed a $24 billion contract to revolutionize China's public transportation system.

On Friday (Aug. 24), Seven Stars Cloud Group announced a $24 billion deal to finance China's nationwide push to replace all gas-powered public buses with electric ones by 2021.

According to a press release, Seven Stars will offer two financing campaigns for the initiative through its regulatory-compliant blockchain network. The first campaign intends to raise $8.75 billion over the next three years. The second campaign hopes to generate an additional $15 billion by 2025.

Sorry, Tim Cook - the First $1 Trillion Company "IPO'd" in 1602

We recently gave you our own spin on Apple Inc.'s historic move up through the $1 trillion market-value threshold.

I say "historic" because Apple was the first company to pierce that trillion-dollar barrier.

Or was it?

In an intriguing (and kinda cool) piece in its August issue, Money magazine argues the iDevice king wasn't the world's first trillion-dollar company.

Indeed, the magazine said five other companies hit the trillion-dollar mark before Apple. It referred to these five other firms as charter members of the "Four-Comma Club."

"When you search globally and historically, you'll find plenty of examples of dominant corporations that actually dwarf Apple's market size – after you inflation-adjust their value to today's dollars," Money reporter Ryan Derousseau writes. "Once you do that, several dominant companies have already made it into the four-comma club."

I know what you're thinking: "C'mon, Bill, by adjusting for inflation, this writer is playing games with the numbers."

True, but we should be used to games of that ilk: I mean, Wall Street plays games with numbers all the time.

So do most public companies.

This "game" is actually pretty scintillating. And it doesn't change the fact that Apple (which has given you a 266% gain since Zenith Trading Circle Editor Shah Gilani recommended Apple in July 2013 at a split-adjusted price of $60.10 a share) continues to be one of our "Accumulate" stocks.

So let's take a look at the charter members of Money's "Four-Comma Club" companies. Then we'll circle back and tell you why the stock is still on our "Accumulate" list.

Let me share with you why I find this so fascinating...