Tax reform is on every analyst’s mind right now. Changes in the corporate tax rate are a significant development. Many analysts are revising their earnings models to reflect the lower rates. In many cases, this will result in higher earnings per share.

But, the changes to the tax rules will have effects beyond the rate that companies pay. The reforms will also change business plans. Some companies made headlines within an hour of the bill becoming law by announcing bonuses for all workers.

Other companies announced new wage policies. There is little doubt that more companies are preparing plans in private. One area that is likely to see changes is capital spending.Capital spending involves the purchase of large items or new buildings. The tax code changes the facts behind many decisions.
For example, in the past it might have been profitable for a company to build a factory overseas. Lower wages would offset the higher shipping costs and higher taxes. But, now, with lower taxes, the math might change. It could be best to pay higher wages to save shipping costs with low taxes.

A Winner Could Be a Company That Doesn’t Pay High Taxes

Just like capital spending decisions are indirectly influenced by the passage of tax reform, some companies will be indirectly affected even though they pay relatively low tax rates already. One of the companies this could affect is U.S. Steel (NYSE: X).X pays just a small amount of taxes. In the last full year, the company paid just 0.2% of its revenue in income taxes. Labor expenses, the cost of raw materials and depreciation account for more than 90% of revenue. That’s unlikely to change.

What is likely to change is the company’s customers’ tax bills. It’s true that many manufacturers show income statements that are similar to U.S. Steel’s. But, analysts still expect a benefit from the new law.Manufacturers already benefit from a relatively low effective tax rate, but it will likely drop more under the plan — about six or seven points in 2018 — according to a new financial report from the Penn Wharton Budget Model.Plus, government does do more than set tax rates. They also implement trade policies and on this front, it seems that U.S. Steel could receive a boost next month.

A Trade Ruling Is Due

It is a correct time to plan your options trading strategies.An analyst with Axiom noted “The reason why we got out of the way now is because you have a Section 232 case that is going to be determined by January 15, 2018—Trump is going to make a decision,” according to the analyst.A section 232 investigation “focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security.” It is conducted by the Secretary of Commerce who makes a recommendation to the President.
The President can concur or not with the Secretary’s recommendations, and take action to “adjust the imports of an article and its derivatives” or other non-trade related actions as deemed necessary.
President Trump has ordered an investigation into the potential risk that U.S. steel imports pose to national security. A decision could allow him to implement what are known as “Section 232 powers” to restrict steel imports.

The research report advised investors that the underlying fundamentals of the U.S. steel market remain weak, but there’s too much Section 232 upside risk at the moment to sell the stock.“We want to get clarity on this Section 232 case…and I think then we’ll be in a better position to reevaluate how we feel on the stock,” according to the report.

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Last week, the group of oil producing nations that make up the Organization of the Petroleum Exporting Countries (OPEC) cartel agreed to extend production cuts through the end of 2018. The production limits are an effort to increase the price of oil and generate badly needed revenue for the OPEC nations.
According to Bloomberg, the meeting of OPEC nations was a success. The news service noted that the growing global economy and production cuts have helped push up oil prices. But the problem now is how to keep prices high without stimulating further growth in US shale oil production.
Many analysts believe shale production will increase when oil tops $60 a barrel since that is the level where the wells are profitable. These analysts also believe there are a number of well heads ready to be turned on whenever prices are high.
Or as an oil analyst with the Boston Consulting Group, said, “For now, the OPEC-Russia bromance continues.”
The outlook for oil now is that prices are likely to remain in a range. This is the pattern that has existed for nearly two years now.
That means we are likely to see a similar pattern in US shale producers since oil and gas companies tend to show a high degree of correlation with the price of oil.
Among the large cap shale producers is Hess Corporation (NYSE: HES). Hess has made significant investments in these unconventional oil and gas plays. The company first moved into the Bakken Formation in North Dakota, one of the premier U.S. tight oil plays.
More recently, Hess has expanded into the Utica Formation in Ohio, an emerging shale gas play. Oil and gas from these plays now constitutes about 45% of Hess’ total operated production.
One options strategy that benefits from a stock in a trading range is an iron condor. This strategy has the added benefit of carrying limited risk.To open an iron condor trade, the investor sells one call while buying another call with a higher exercise price and sells one put while buying another put with a lower exercise price. Typically, the exercise prices of the calls are above the market price of the stock and the exercise prices of the put options are below the current price of the underlying stock.
In an iron condor, the difference between the exercise prices of the two call options will be equal to the difference between the exercise prices of the two put options. The final requirement for this strategy is that all of the options must have the same expiration date.
The iron condor is an example of how options are a versatile tool and could meet many of your trading objectives. In this trade, options provide income and defined risk that should be lower than owning the stock.
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In a recent article, we looked at the traditional approach to a trading strategy known as the Dogs of the Dow. Several readers have questioned how a simple strategy like the Dogs can work. In this article, we will explain why the Dogs of the Dow can work and look at a variation of the  Stock trading tips that can be implemented at a relatively low cost.
A common question among investors is how a strategy can work when a large number of investors already know about it. Researchers have shown that if a strategy is based on sound investing principles, it can work no matter how well known it is. This idea applies to the Dogs theory which has been well known for many years. Although most investors believe the theory dates back to the 1991 book Beating the Dow by Michael B. O’Higgins, we showed in our earlier article that the strategy was actually first written about in the June 1951 issue of the Journal of Finance. Although the strategy has been available to investors for more than 65 years, it still works because it is based on sound investing principles. Those principles are diversification, time and value.
First, the Dogs is a diversified strategy with five or ten holdings. It is important to hold several stocks within a strategy because any one stock can deliver a loss. On the other hand, any stock can deliver a gain. By diversifying, investors increase the probability of owning a stock that delivers a gain.

Second, this strategy gives stocks time to go up. Over the past twenty years, as the internet allowed investors to obtain real-time quotes and place trades quickly, expectations for rapid returns seem to have become common. During the bubble of the late 1990s, some day traders believed they could consistently achieve triple-digit gains and retire after just a few years of trading. Many of these traders lost large portions of their portfolios when the bubble ended and the market crashed. Since that time, general expectations of investors seem to have become more realistic but there are still many traders targeting large gains in short time frames. This is possible with some strategies but for many investors, it could be best to take a longer term perspective like the one-year perspective of the Dogs strategy.

A longer term perspective, expecting to hold positions for months or even a couple of years, can provide individual investors with an edge over Wall Street firms. Big firms are often highly leveraged and to manage risk, they need to trade short-term strategies. They might spend millions of dollars and devote thousands of hours to develop high frequency trading strategies. Then, they spend even more money to obtain detailed market data that allows them to execute trades in less than a second. As individual investors, we simply cannot compete with Wall Street firms in this time frame. By slowing down and looking at longer term opportunities, we can compete and find market-beating returns with sound strategies.

The rules of the Dogs of the Dow holds positions for a year, providing enough time for a stock to deliver a significant gain. And, perhaps more importantly, the rules of the strategy also prevent the mistake of taking profits early and missing out on big moves. This is a common mistake of individual investors who take profits too quickly on winning trades.

Third, the Dogs strategies are all based on value. As Warren Buffett notes, “price is what you pay, value is what you get.” We need to focus on value as investors to obtain market-beating results.

In the long run, value strategies applied with discipline and patience have been shown to outperform the market. Studies have shown this is true no matter which measure of value is used. Investors have found success buying stocks with high dividend yields, low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, low price-to-sales (P/S) ratios and other valuation metrics.

For the Dogs strategies, investors often use the dividend yield to define value. This has the added benefit of providing income while waiting for capital gains to develop when the stock price rises. Dividends also decrease the downside of losses since the income offsets a portion of the loss.

But, the 1951 Journal of Finance article used P/E ratios and demonstrated any valuation tool could be used. This week, we looked at using the price-to-free cash flow (P/FCF) ratio and developed a low-cost Dogs strategy.
Free cash flow is the amount of cash a company has left over after paying for the cost of operations and making required reinvestments in the business. It is not a widely-followed measure like earnings or the dividend yield but FCF may be important than those metrics. FCF measures how much money the company has left over to pay for growth opportunities and to reward investors. Potential acquisitions or construction of new factories can be funded by FCF. Dividends and share repurchase programs can also be funded with FCF. Because FCF is used to fund the items that increase long-term shareholder value, it may be among the most important fundamental values even if it isn’t widely followed.

In the opinion of some analysts, FCF is the only forward-looking measure of value since earnings, book value and other items in the financial statements are all determined by what happened in the past. FCF can be thought of as determining the future. Not surprisingly, given this fact, P/FCF has been shown in academic studies to be a reliable predictor of future stock market performance.

 

Last week, the group of oil producing nations that make up the Organization of the Petroleum Exporting Countries (OPEC) cartel agreed to extend production cuts through the end of 2018. The production limits are an effort to increase the price of oil and generate badly needed revenue for the OPEC nations.
According to Bloomberg, the meeting of OPEC nations was a success. The news service noted that the growing global economy and production cuts have helped push up oil prices. But the problem now is how to keep prices high without stimulating further growth in US shale oil production.
Many analysts believe shale production will increase when oil tops $60 a barrel since that is the level where the wells are profitable. These analysts also believe there are a number of well heads ready to be turned on whenever prices are high.
Or as an oil analyst with the Boston Consulting Group, said, “For now, the OPEC-Russia bromance continues.”
The outlook for oil now is that prices are likely to remain in a range. This is the pattern that has existed for nearly two years now.
That means we are likely to see a similar pattern in US shale producers since oil and gas companies tend to show a high degree of correlation with the price of oil.
Among the large cap shale producers is Hess Corporation (NYSE: HES). Hess has made significant investments in these unconventional oil and gas plays. The company first moved into the Bakken Formation in North Dakota, one of the premier U.S. tight oil plays.
More recently, Hess has expanded into the Utica Formation in Ohio, an emerging shale gas play. Oil and gas from these plays now constitutes about 45% of Hess’ total operated production.
One options strategy that benefits from a stock in a trading range is an iron condor. This strategy has the added benefit of carrying limited risk.To open an iron condor trade, the investor sells one call while buying another call with a higher exercise price and sells one put while buying another put with a lower exercise price. Typically, the exercise prices of the calls are above the market price of the stock and the exercise prices of the put options are below the current price of the underlying stock.
In an iron condor, the difference between the exercise prices of the two call options will be equal to the difference between the exercise prices of the two put options. The final requirement for this strategy is that all of the options must have the same expiration date.
The iron condor is an example of how options are a versatile tool and could meet many of your trading objectives. In this trade, options provide income and defined risk that should be lower than owning the stock.

There are number of investment banks in UAE and in the Middle East to select for investment purposes and when you are finally selecting the one, there are several things which you have to think about before taking the final decision about your wealth management in Dubai. There are foreign as well as local banks in the Middle East and almost all are considered under the category of investment banks in UAE. Now the main tasks of these investment banks in UAE is to take care of your capital and where invest the money for better profit. Because a trader cannot deal with the typical strategies that investment banks in UAE adopt to cater the problems of financial solutions. The Middle East finance and especially Dubai region is on the boosting stage due to increasing economy. The market of Dubai is considered as global market and it deals with all types of investment projects so in this regard there are always opportunities to make private equity in Middle East through investment banks in Dubai. Investment banks in UAE are considered world’s best investment banks. This is because the banking sector of Dubai now has grown into a big giant and it is giving a tough time to all other banks in the world. The choice of the investment banks in UAE for putting aside the capital is a serious resolution as investors are looking forward many invest opportunities in Dubai region. Actually investment banks in UAE are a golden chance for all the expats as well as for locals to take best investment solution to enhance their wealth. The Middle East and especially Dubai is like a paradise for the investors from all over the world who want to have their money increased twice or thrice. But for this purpose one should have to opt services of investment banks in UAE and by using guidelines from the official websites of the investments banks in UAE. Here we discuss one of the best bank of Dubai that lies under the category of investment banks in UAE. This is Mashreq bank of Dubai that proposes different type of services such as deposits, loan, credit cards, investment in real estate, etc. Mashreq bank of Dubai also offers marketable Islamic bank services like asset administration, account administration, portfolio management and best relationship managers for good relations with the bank. In the same way, Mashreq Bank of Dubai offers investment solutions to its clients which includes investment advice-giving, life and commodity insurances, etc. there are many other services like the deposits, loan and mortgage, credit cards, investment suggestions, accounts and asset management. Now that’s why investment banks in UAE especially services of Mashreq bank are incredible and people prefer to approach Mashreq bank for investment solution. Further Mashreq bank is like a monetary organization that works as a stock agent. It serve the customers who are interested in making the investment in trade public stocks like stock markets and forex trading for investment. If we talk about best investment banks in UAE which are world renowned, there everyone can find maximum investment solutions for their wealth. Currently Mashreq bank of Dubai also gives Forex trading, micro trading, Islamic investment and online brokerage to the clients globally. Most of the investment banks in UAE provide Islamic investment solutions to its clients or customers. As majority of population in Dubai is based on expatriates and they are not interested in traditional and commercial investment solutions so in this regard investment banks in UAE provide investment banking services that are completely according to the Islamic teachings and sharia law. If you want to know more about the Islamic banking system you can visit the website of any Islamic bank. But here a question raise that what if someone want to take both services like commercial as well as Islamic investment solutions and wealth management. So first you should search about investment bank Dubai that provide both services at the same time. Well just leave I will tell you again the Mashreq bank of Dubai is among those investment banks in UAE that are providing traditional and Islamic serves at the same time.

If you’re searching for a guaranteed payday loan, be confident that you do not come under the trap of using a loan provider who depends on “credit checks.” The credit rating is a notoriously mysterious beast, one that could indicate different things to various lenders regardless of the standards that prevail throughout the finance sector. A mortgage that demands a credit check is by no means guaranteed, since it may be derailed at any sort of point in the method based on an interpretation of your credit score. When you need to have funds to take care of an unexpected emergency, this kind of unpredictability is the survive thing you want to manage!

There is another thing to understand about the distinction in between a guaranteed payday loan as well as one that is subject to high-level approval the permission procedure itself could in fact make it a lot more hard for you to have loans in the future. Picture that, rather of utilizing a single advance lender, you undergo a roster of 2, three, or also four other advance lenders. Each payday creditor does its very own “credit check” given that they may not share details with one another, nor are they about to take your word for it. By the time you have to the fifth creditor, your credit rating looks a mess!

A truly guaranteed payday loan implies that you will certainly never ever have to suffer via this kind of an indignity. The very process of obtaining an ” normal” payday loan threatens your financial future, which a guaranteed mortgage from a legitimate creditor does not. As an alternative, we base our choice not on your history, however on your capacity to pay back. The considerable majority of those that request a payday advance are sincere, upstanding, completely applied people who actually need to have the cash on an immediate basis simply to weather an emergency. As long as you could bringing proof of some basics, such as present employment, we have no explanation to scrutinize your private life.

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