Author: Jerry

The Chinese equity market has been on a streak recently, although it has experienced a huge pullback recently due to the over-leveraged market thanks to margin trading. The Chinese Central government announced the opening of margin accounts back in January 2015 but has suddenly placed strict limitations at the end of June 2015 to control … Continue reading US vs. China – Economic Stimulation Policy

One of the biggest winners in the market over the past twelve months is chip maker Ambarella ($AMBA). The company that provides high definition chips and supports names like GoPro ($GPRO) has shown explosive revenue and earnings growth. The company was everyone's radar after GoPro's IPO. AMBA delivered an impressive 1800% run since it went … Continue reading Ambarella (AMBA) – Wearable Tech – Regression Analysis

In the broad financial world, 10-year Treasury rate is often denoted as "risk-free" rate. The strength of the dollar and rate is highly dependent on "good faith"/credibility. Technically-speaking, central government like the Fed can still function on a loss. The recent Swiss National Bank situation well supported this fact. On January 15 of this year, when … Continue reading Does the Federal Reserve Need ROI?

Workday is an enterprise resource planning (ERP) service provider which helps medium to large enterprises alleviate their day-to-day operational burdens. Essentially, Workday provides a central platform of interaction for users of interest. The company had an IPO back 2012, and quite a stellar one. Roughly 23 million shares exchanged hands for about $620 million, the largest tech IPO … Continue reading Workday – Short the Discrepancy

The Shanghai Stock Exchange managed to add 2% gain to the seven-year high it reached on May 26th. However, the winning streak snapped on May 28th 2015 when the overall Chinese equity index fell ~6.5%, and the Shenzhen index dropped 5.5%. However, even with this massive one-day index decline, Shanghai index was still over ~130% … Continue reading Chinese Equity Rally: Bubble or Beast?

Dividend stocks at this time around due to the following reasons: 1) Company cash are at all-time highs, meaning they will (some already have) spend a huge portion of that on buyback as a mean of increasing their EPS on the relatively flat Y-Y revenue growth. Data have shown that the increase in overall buyback is … Continue reading Rental Properties or Dividend Stocks

The major 3D printing companies, 3D Systems (DDD) and Stratasys (SSYS), all lowered their 2015/2016 fiscal year outlook several times this year already. This either signal a slowed growth and/or the outlook before was glorified beyond reality. Moreover, both 3D Systems and Stratasys had been fueling their earnings and/or EPS via M&A (organic growth) rather … Continue reading Crash of 3D Printing Stocks – Opinion (30 May 2015)

One major difference between the two companies is how they derive and drive their revenue growth. Tesla makes all their revenue from consumers from both primary (sell cars directly to consumers) and secondary (Tesla is starting a second-hand market for Tesla) market. Tesla now utilizes a B2C model, and is diversifying to B2B model through … Continue reading Tesla Vs SpaceX – IPO

Lumber Liquidators (NYSE: LL) is a classic opportunity to catch a falling knife.  It was recently scandalized by news that some flooring products sourced in China had unlawfully toxic levels of formaldehyde.  The CEO just resigned.  The stock is down to 20 from a high 0f $119 in 11/13.  It was at $70 last February.    … Continue reading Lumber Liquidation (LL) Opinion

Throughout my work and school, I learned several methods of property valuation. Estimating the value of a property is important because it provides the framework and foundation for a variety of endeavors, including real estate financing, investment analysis, tax and property insurance. Bear in mind that regardless of how “accurate” the valuation is, it does … Continue reading 3 Methods of Property Valuation

Dividend Reinvestment Plan, also known as DRIP, is a way for investors, shareholders and employees to reinvest the dividend back into the company’s shares. Most shareholders utilize this strategy for solid, stable company such as Pfizer, AT&T and Chevron. There are tons of companies that provide this strategy for investors (majority of DRIP stocks can … Continue reading Dividend Reinvestment Plan (DRIP) Good Investment or Not?

Homeownership is often a sign that dictates how an individual (general public) is doing. Below are some of the pros and cons of homeownership vs renting. Let me know in the comment section below if you are add/reinforce any point. Rentership - Pros and Cons + mobility + lower upfront cost + not personally liable for … Continue reading Homeownership vs. Rentership

Volatility is often denoted as VIX (ticker symbol for Chicago Board Options Exchange Market Volatility Index). VIX measures the implied violability of the S&P500 index. As depicted in the chart below, implied volatility peaked at 2008/2009 Great Recession. Investors and traders alike are less confident in the market. Since Janet Yellen from the Federal Reserve … Continue reading Market Volatility Back in 2015? [CBOE Inspired]

Leveraged ETFs are known for their natural decay. As my previous post emphasized, leveraged ETFs are meant for day trading. As depicted by the chart below, a traditional ETF in a volatile downward trending market will return 0% at the end of Day 3, resulting in a portfolio value of $$9680. However, in a 2x leverage … Continue reading Leveraged ETF Decay

Compounding is the black magic behind the financial world. “Compounding is the financial equivalent of a snowball rolling downhill: With each revolution, the snowball gets bigger because it picks up more snow [Franklin Templeton Investment].” Below shows the effect of compounding (excluding inflation rate and assuming the S&P500 will bear 8.13% annualized return in the … Continue reading Compounding in Traditional vs Leveraged Funds [ProShares Inspired]