Blue Apron: When The Whole Company Needs A “Weight Gain”

2Q ’18 Earnings report for Blue Apron could have been better. How can the company regain it’s popularity again?

Advertisements
  • Blue Apron continues to lose more customers in each earnings report.
  • Company cash flow is depleting and investors are seeking other quality investments.
  • From its beginning IPO price of $10, the stock price has lost more than 75% of its value.
  • Where do we go from here?

APRN (Blue Apron Holdings, $2.16) is one of America’s leading meal-kit companies, yet it’s a delivery service offering more than just meal kits signature wines, kitchen utensils, and high-quality pantry items. APRN has the opportunity of reaching a large audience considering meal-kits have become increasingly popular since the company began in 2016.

Image Credit

Despite their many qualities, the company is operating in a dangerously competitive field of meal subscription services. Some investors compare APRN to AMZN (Amazon) as they have created their own meal subscription service developed when AMZN acquired Whole Foods– services now called AmazonFresh. Unfortunately, APRN has lost a painful amount of subscriptions. Customers declined by 786,000 in three months ending on March 31st, 2018 from this time last year of 1,036,000.

(5yr chart view of APRN. The stock slumped down from its original IPO price of $10.00-Image Credit From FinWiz)

Fast Analysis: General Electric: The More Money The Better

There is much speculation that APRN should be bought out by a large corporation to gain more revenue and save their current customers. Around the beginning of the year, rumors were led that WMT (Walmart) would be an excellent acquisition/merge for APRN. Investors see that APRN’s high marketing expenses could be supported as well as regaining long-term customers through the partnership with WMT.

CEO, Brad Dickerson stated in a recent interview,

“With fulfillment center operations strengthening, we are increasing focus on the priorities we expect will propel revenue performance and return the business to a growth trajectory, including evolving and expanding our product portfolio, enhancing our overall customer experience, and launching our retail and on-demand offerings.”

Read: Stock Investing 101: What Are Dividends?

It’s clear that this company is an excellent leading meal-kit brand, but when will they expand in partnerships to grow their business? At this time there is not a stable stock analyst recommendation for APRN being a long-term hold or “Buy”, yet shareholders have a bright outlook for the future plans within the company.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNN.com ,PYMNTS.com,Sec.gov,Yahoo!Finance.com

Advertisements

Pandora: An Emotional Roller Coaster

Pandora is slowly slipping away from investors portfolios. Are they able to regain their popularity again?

P (Pandora Media Inc.,$7.87) has been making bearish trends within the past few years and if you’re still riding the emotional roller coaster you may want to consider getting off the ride if you don’t know how to handle it.

Acquisitions and Mergers

Along with a history of lawsuits, Pandora acquired Rdio in 2017 for $75 million in efforts to expand their business, revenue, and listeners. This acquisition may have been helpful since they reported in their second quarter that listening hours have improved and rose to 5.66 billion from 5.52 million.

On May 29th, 2018, Pandora improved their advertisements by acquiring Adswizz, a specialized audio advertisement program for $145 million.

On the other hand, Pandora rejected a large merge deal this year from Liberty Media for $3.40 billion. This large offer may have been tempting as to solve their financial problems, but anyone could imagine that this may have been slightly embarrassing since Pandora was once a prominent music company.

What Are Shareholders Looking For?

Shareholders are looking for more listening hours and more subscribers for Pandora. Pandora is in a very competitive field and with their current situation of bad financials investors are turned away from their lack of gains. Some investors compare Pandora with APPL (Apple Music) and SPOT (Spotify) as a better investment, yet Pandora is an affordable stock that may have more potential with swing trades if performed correctly.

Shareholders are hoping Pandora will continue to beat quarterly estimates and exceed their expectations for building more revenue.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

SEC.gov, JournalTranscript.com

Top 3 Retail Stocks For Your Watchlist

Don’t miss out on these companies, you may regret it later.

If you’re looking for a high performing retail company, check out these three companies and see if they have a place in your watchlist


Kohl’s Corporation

KSS (Kohl’s Corporation,$82.22) has made reasonable gains this year. With a history of consistent dividends now at $0.61 cents, many investors claim they stock is currently “expensive” and should be bought near its 52-week low of $37.97 from a price above $70.00. However, KSS beat recent 2Q ’18 earnings at $0.64 from expected earnings of $0.50. Some of the companies leading brands are Sonoma, Craft & Barrow, and APT. 9 consists of a net worth of over $19 billion. KSS has great potential to end the year strong.

Five Below Inc.

Five (Five Below Inc.,$114.64), a retail company originally aimed towards kids and teens, has opened over 30 new stores this year and ended their first quarter with a total of 658 stores in 32 states. As said in their recent annual report,

As we continue to pursue our growth strategy, we expect that a significant percentage of our net sales will continue to come from new stores not included in comparable sales. Accordingly, comparable sales is oarey one measure we use to assess the success of our growth strategy.

Though FIVE doesn’t have a dividend, investors like the stock for its consistent growth and stability it’s maintained throughout the years.

Fast Analysis: General Electric (GE): The More Cash The Better

Callaway Golf Company

ELY (Callaway Golf Company,$22.65) made a bold acquisition last year in 2017 of a well-known golf brand Travis Matthew for $125.5 million. Though some investors aren’t pleased with their low dividends, others are impressed with their operating cash flow operating cash flow that increased by 51.46% in 2017. Analysts currently consider ELY currently as a Buy.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

SEC.gov ,MSN.com/Money, Wikipedia.com,MarketWatch.com

General Electric: The More Cash The Better

Fast analysis for GE (General Electric). They need more money, and they need it fast.

  • General Electric is scratching for more revenue this year to keep their investors.
  • Action is taken by making fundamental changes to hold cash flow.
  • 2018 2Q results were not very impressive, can they finish the year strong?

GE (General Electric Co.,$13.41), is constantly being surveyed by investors for their performance. Investors are looking for GE to increase their cash flow- create effective projects to strengthen their total revenue.

(General Electric has made a strong downtrend within a year. Screenshot from Stocktwits.com)

Seeking immediate action to correct financials, GE plans to “sell key parts of its digital business” to make further improvements. So far this year, industrial, structural costs have been reduced by $1.1 billion– impressively completing a halfway mark for their 2018 goal of $2 billion.

Yet in the second quarter of 2018, their orders for their “Power” category were down a hefty 28% as well as orders for “Renewable Energy” down 15%. The company stated in regards to their “Power” operations,

The team continues to focus on right-sizing footprint and structural cost and maximizing the value of Power’s installed base.

Read: Hazardous Habits For Stock Investors

On the other hand, their orders for “Oil & Gas” reached 95% ($6 billion) as well as increased organic orders by 2%. Revenue for this category was also up 85% to $5.6 billion, a positive approach from their revenues this time last year at $3 billion.

GE is often compared to other corporations such as HON (Honeywell International INC.), UTX (United Technologies Corp.), and MMM (3M Co.). This year, GE is expecting to make fundamental changes to improve their corporation. Their current ratio remains fair at 1.8% from last year and 2Q earnings were beat at a low price of$0.19 cents a share from the projected price of $0.17 cents a share.

Shareholders are continuing to look for consistency in growth throughout the entire corporation. GE presses forward with a stronger partnership this year with Microsoft by enhancing and standardizing Microsoft’s Azure cloud capabilities. Sales for Microsoft’s Azure topped $5.5 billion in 2015 and continues to strengthen in time. Despite rumors and negative reports, loyal shareholders remain to have a positive for GE this year.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

MSN.com/Money, NASDAQ.com, GE.com,GE.com (Investor Relations)

Snapshots

Snapshots

Hazardous Habits For Stock Investors

These habits could be keeping you from building wealth.

Perhaps your portfolio was going great until you noticed you have been losing more money more than keeping it. Do you find yourself selling more than you need to? here a few bad habits every investor needs to recognize and how you can avoid them if you pick them up again.

Save More, Withdraw Less

Money Here, There and Everywhere

There are a lot of stock investors in chat groups who like to boast about how much money they took out from their growing stock accounts, but why are your harvesting your crops early? Unless your investing as a hobby, save more and withdraw less. You’ll make money in the long-term if you leave your account alone.

Panic Selling

This is the most common disease to an investor, but we are human after all. It’s hard to notice when your favorite stock goes down 15% and you know the only simple thing you have to do is sell. However, have a plan. Set a “stop loss” or have a written rule as to when you need to sell. Most of the time the stock goes back up and you’ll then regret that you had sold your shares in the first place (ouch). Keep in mind that whenever you sell, you always invite the “taxman” to your party.

Fast Analysis: Bed, Bath & Beyond: Only Time Will Tell

Financial News

It’s important for every investor to keep up with financial news, but these articles can destroy your portfolio if you listen to their every move. Be relieved and know that you don’t have to react to the financial news, they don’t your portfolio (necessarily), you do.

Unlike going to a job work for money, investing lets your dollars go to work for you. If you find a good investment strategy, be committed and stick to it. Continue to stash money into your account and sell when its necessary.

Please See About Me & Disclaimer for additional information about Black Tea.

Facebook: 20% Discount!

Will Facebook be able to make a comeback from their historic fall? Don’t Miss out!

  • Facebook didn’t beat earnings this quarter and had their biggest drop in market value ever.

  • What’s the excuse?

  • Can they rebound from public humiliation?


FB (Facebook, $174.00) I have one word for you…ouch.

F.A.A.N.G lovers are not happy with FB missing estimates and the company is still expecting a decrease in revenue in the next quarter. After the earnings call, their stock fell a whopping 23% in after-hours trading. Yet, what kept FB for beating earnings?

(Image from Yahoo!Finance. After-hours trading plummets from the Q2 call)

Related: Earning Week: What To Look For In The Next Earnings Report

GDPR (General Data Protection Regulation)

FB is still fighting with issues associated with GDPR. And due to the sole fact that it’s not yet completed, their ads aren’t all up and running it’s interfering with their revenue.

Facebook Stories

FB is concentrating on adding more value to their FB stories feature on their website. Though they have updated their feature multiple times this year, this doesn’t satisfy their shareholder’s feelings for missing over $100 million in revenue. This focus led them to less monetization.

Just before the earnings call, FB hit an all-time high of $218.63 in stock price. FB also announced at the beginning of their earnings call that at least 1/3 of the world’s population now use at least one of FB’s products each month.

Though this was a tough pill to swallow, will the stock be able to rebound a few days after this disaster?

Investors are already seeing FB on a 20% discount, yet others are banishing them from their portfolios. But does this make FB a bad company? This is a historic fall from their early years in 2012 from a drop of only 12%. Many agree FB will eventually recover from their loss, but investors have very high expectations.

But before they move forward, FB has to clear the GDPR issues with Europe. The company has already told their shareholders that the next quarter will not be appealing to them either. We hope FB can quickly solve these issues before they are run down again by more rumors. I think they have felt with enough this year.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Yahoo!Finance.com

Stock Investing 101: What Are Dividends?

Find out what dividends are and how you can use them to make you wealthy!

Stock analysts talk about them often and investors love them, yet what exactly are they? Let’s have a crash course on what dividends are and how they can help you and your stock portfolio.

A dividend is a specific amount of money paid to you on an annual or quarterly basis from the company’s profits. Think of it as…well, sharing the wealth.

Types

Though there are several types of dividends, the two most common uses in the stock market are cash dividends and stock dividends.


Cash Dividends

  • A cash dividend is when the company pays their shareholders in the form of cash payments (most common).

Stock Dividends

  • A stock dividend is given to the shareholder by the company increasing the current amount of shares by percentage.

Find more details about cash and stock dividends here.


Dividends are paid to investors on a quarterly basis (four times a year). Yet, depending on the company’s board of directors they can be scheduled to be paid once a month, semi-annually (twice a year), or annually (once a year). There are also times when a company may choose to not set a particular schedule and may randomly, this is also known as “irregular dividends”.

But Wait…There’s More

Dividends within a company are managed at the discretion of the board of directors and may be increased, decreased or eliminated at a time of their choosing. Dividends are also taxed at long-term capital gain rates.

Please see a certified tax consultant for additional information on taxes and if your dividends are “qualified or “non-qualified”. View more tax information here.

Dividends to some investors are a sign of “financial health” for a company. Investors can create a customized dividend schedule or algorithm to support their current income or support their income for retirement. This schedule is customized to receive dividend payments from companies in a systematic fashion (payments made daily).

If you want to buy a stock in time to catch their dividend payment, you must buy before the company’s ex-dividend date. Find more information here.

Related: 5 High-Yield Dividend Stocks You Might Love

Not For Everyone

Though most investors enjoy dividends, not every investor concentrates on having a dividend portfolio. It’s also not common for startups and higher-growth companies to have dividends. Startup companies are in their “new years” and revenue will fluctuate from quarter-to-quarter. This may be a time when these new businesses need to keep their profits to reinvest. And higher-growth companies (big corporations) may not use dividends so they can reinvest and use the extra cash flow to fund new projects.

Dividends are a wonderful tool and when used responsibly, they can make you very wealthy. Be wise about all of your investments and enjoy the wealth.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

Dividend.com, Investopedia.com, USANews.com, Intuit.com

Snapshots