📉 The Stock Market’s Good, Bad, & Ugly.

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Go grab yourself some 🥤and🍔while you read or listen to this. Enjoy!

What’s happening in the markets? 📈🤒

Global Markets as of 11:00am Monday 9/05/22.
Global Markets data as of Monday, 9th of May, 2022 (11:00am GMT+1).

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⚡ Could Oxy replicate Shell’s Success?

Shell ($SHEL) blew our minds last week when the energy company beat analysts’ revenue prediction by an astounding 87%! This was the company’s highest quarterly profit since 2008.

Although, with high oil and gas prices, partly due to uncertainty about supplies from Russia, we expected high earnings from oil and gas companies. They’ve fed inflation and shook the global economy greatly, this is the least they could do for stockholders. And we’re expecting the same uptrend for Warren Buffett’s Occidental Petroleum ($OXY).

What are we expecting for Oxy?

$OXY has consistently beat earnings estimates in the last 4 quarters, with the highest Earnings Per Share beat being 1,101.5% in Q2 2021. The oil & gas company is set to report its Q1 2022 earnings on Wednesday, 11th of May.

Here’s what analysts are expecting:

  • Revenue: $7.96 Billion, representing a 45.3% year-over-year increase.
  • Earnings per share: $1.97/share, up 1413.3% year-over-year.

It is expected that this stock will gain some short-term uptrend if it surpasses analysts’ estimates. We’re definitely keeping an eye on this one.

🐻 The Stock Market’s Good, Bad, and Ugly.

Analysts predict that the bear market may stay till August 2022. How can investors be well-positioned amid interest rate hikes, looming recession…

  • Short The Stock Market: One option is for you to load up on inverse ETF. An inverse ETF is set up so that its price rises (or falls) when the price of its target asset falls (or rises). If you buy an inverse ETF that bets on the fall of Nasdaq, that ETF will rise if the Nasdaq eventually falls.

Opportunities: ProShares UltraPro Short QQQ ($SQQQ), Direxion Daily Small Cap Bear 3X Shares ($TZA), ProShares UltraShort 20+ Year Treasury ($TBT).

  • Buy Only Value: Value stocks trade for less than they are intrinsically worth, as such, in volatile times, investors trust their fundamentals to keep them afloat compared to their growth stocks counterpart.

Opportunities: Vanguard Value Index Fund ETF ($VTV), the iShares Russell 1000 Value ETF ($IWD), and the iShares S&P 500 Value ETF ($IVE).

  • Stock up on Utilities: Companies in the utilities sector provide basic services like electricity, natural gas, and water. If you’re a newbie investor or an investor looking for stability amid this hubbub, utilities may be a great choice, since they provide dividend income and stability. When economies grow weaker, utilities stocks tend to be a strong defense for investors.

Opportunities: Some ETFs include Vanguard Utilities ETF ($VPU), Utilities Select Sector SPDR ETF ($XLU); Some Value Utilities Stocks include NRG Energy ($NRG), Brookfield Renewables ($BEPC); Some Fast-Growing Utilities Stocks include DTE Energy ($DTE), OGE Energy ($OGE).

🍻 Global Bears vs. Nigerian Beers.

As opposed to other markets plunging into an unending red sea🔻 due to interest rate hikes and record-breaking inflation, the Nigerian Stock Market actually had a pretty good week.

Why did NGX see a bull run?

With improved local performance and great financial performance of many Nigerian companies, last week, the Nigerian Stock Exchange (NGX) crossed the 50,000 basis points threshold for the first time in 14 years!

Brewing companies wore the crown during the bull run, being the top performers in the week. Champion Breweries (CHAMPION — N3.67/share) increased by 32.52% in only 3 trading days! Today, Nigerian Breweries (NB — N77/share) is also trading up by about 10%! This year, GUINNESS increased by about 155%.

Wait! 32% in Three Trading Days?

Champion experienced this rally because of its excellent financial performance during Q1 2022. The company grew its revenue by 39.76% to N3.3bn year on year, with profit from operating activities up by about 139%.

Earlier this year, Heineken through its subsidiary, Raysun Nigerian Ltd. increased its stake in the local brewer to 24% for about N5bn. Last August, the same company also increased its stake in Nigerian Breweries to about 56%.

As for us, we’ll closely watch these high-performing stocks.

Notable companies reporting earnings💸:

Your largest holding or favourite stock may be sharing its financial performance for Q1 2022 this week.

  1. Monday: Before the market opens — Palantir Technologies Inc. ($PLTR), BioNTech ($BNTX), Duke Energy ($DUK). After the market closes— Upstart Holdings ($UPST), AMC Entertainment ($AMC), Suncor Energy ($SU), Novavax ($NVAX), Clover Health ($CLOV), Aterian ($ATER), Lemonade ($LMND).
  2. Tuesday: Before the market opens — Peloton ($PTON), Aurinia Pharmaceuticals ($AUPH), Village Farms ($VFF). After the market closes SoFi Technologies ($SOFI), Roblox ($RBLX), Occidental Petroleum ($OXY), Trade Desk ($TTD), Unity Software ($U), Coinbase ($COIN).
  3. Wednesday: Before the market opens — Fiverr ($FVRR), Krispy Kreme ($DNUT), Wendy’s ($WEN). After the market closesWalt Disney ($DIS), Rivian Automotive ($RIVN), Beyond Meat ($BYND), Bumble ($BBL).
  4. Thursday: Before the market opens — Veru ($VERU), Tapestry ($TPR), Bakkt Holdings ($BKKT), Cyberark Software ($CYBR). After the market closesAffirm Holdings ($AFRM), Aurora Cannabis ($ACB), Indie Semiconductor ($INDI), Motorola Solutions ($MSI).
  5. Friday: Before the market opens — Hippo Holdings ($HIPO).

That’s all for this week, savvy investor. See you soon! 😉

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