WSTNN, Author at WStNN.com™ WallStreetNewsNetwork® Stockerblog™ WSNN®

Why Shorting Puts May Be the Safest Way to Invest or Trade Stocks

by Fred Fuld III

Did you know that one of the safest ways to invest in a stock or trade a stock is to short a put? But wait a minute, you may ask. Doesn’t shorting mean unlimited risk? Yes, if you short a stock, no if you short a put.

Let’s get some terminology out of the way.

When you short something, you sell it even though you don’t own it, hoping that it will drop in price so that you can buy it back at that lower level to lock in your profit. However, if the price of that investment goes up, you lose money on your trade.

Stock options are the right to buy or sell a stock at a particular price within a specific amount of time. A call is the right to buy and a put is the right to sell. The buyer of the put expects the stock to drop in value so that he can buy the stock at a lower price, and put it to you at a higher price (or just sell the put at a profit).

The investor who shorts a put hopes that the price of the stock either stays the same or goes up, causing the put to become worthless and giving a profit of the amount the put was sold for.

So why would someone short a put instead of just buying the stock?

Let’s look at an example. Assume a stock is currently trading for $50 a share and the put option with a strike price of 50 (the price the put can be exercised at) is trading for 2, with 45 days to go. That means it is trading at $200 for the right to sell 100 shares of the stock at $50 per share.

The buyer of the put hopes that the stock will tank. So if the stock drops to 40, the intrinsic value of the put is 10, giving the put buyer a profit of 8, or $800.

So let’s look at the seller of the put.

If the stock stays at 50 by the expiration date, the put becomes worthless and the put seller makes $200. If the stock is above 50 at expiration, the put seller still makes $200. If the stock is at 48 after the 45 day period, the put seller breaks even. And if the stock does drop to 40, the put seller is out $800.

However, suppose the seller of the put, who is bullish on the stock, just buys 100 shares of the stock instead. If the stock dropped to 40 from 50 over that time frame, the buyer would be out $1,000 instead of $800.

Therefore by selling the put instead of buying the stock, you reduce your risk by the amount you sell the put for. There are some traders who continue to sell puts on the same stocks every two or three months over long periods of time.

When would you not want to sell puts?

If the puts are rarely traded and the spread on them, the amount between the bid and asked prices (what you can buy and sell the put for), is very wide, then it may not be worth it to short the put.

If the stock pays a high dividend and you are interested in owning the company for the dividend, then it’s probably not worth selling the puts on it.

If you are concerned about missing out on the opportunity cost of the stock going significantly higher in the time frame, then you are better off buying the stock instead of shorting the puts. In the same example, if the stock goes to 60, the seller of the put still gets $200, however the owner of 100 shares of stock will make $1,000.

So before you buy your next stock for a swing trade, you may want to check out the puts to see if they are worth shorting.

Congressman Accused of Insider Trading Under the STOCK Act

by Fred Fuld III

You may have read recently that New York Congressman Chris Collins has been charged with insider trading, relating to Innate Immunotherapeutics Limited (INNMF) which failed a drug trial.

Once the news was out, the stock dropped by a huge amount. Collins was on the Board of Directors of this company and the largest shareholder.

But wait a minute. Aren’t members of Congress exempt from the Insider Trading Laws? Well that was true, beginning around the time of the Civil War. However, on April 4, 2012, the STOCK Act was passed and signed into law by President Obama, to no fanfare.

First, what is inside trading? It buying or selling a stock based on news about a company that you become aware of prior to the dissemination of the news to the public. It is illegal.

Members of Congress Now Subject to Insider Trading Laws

OK, so now the STOCK Act. It is the Stop Trading on Congressional Knowledge Act which basic overturned the ability of Congresspeople to freely trade stocks on inside information while being exempt from insider trading laws. The STOCK Act put an end to this governmental bonus.

Details of the STOCK Act:
Answers the President’s Call to Ban Insider Trading for Members and Congressional Staff: The STOCK Act expressly affirms that Members of Congress and staff are not exempt from the insider trading prohibitions of federal securities laws and gives House and Senate ethics committees authority to implement additional ethics rules. The Act makes clear that Members and staff owe a duty to the citizens of the United States not to misappropriate nonpublic information to make a profit.

Increases Transparency in Financial Disclosure Reporting: The STOCK Act amends the Ethics in Government Act of 1978 to require a government-wide shift to electronic reporting and online availability of public financial disclosure information. The STOCK Act provides additional transparency for Members of Congress, legislative staff and other government employees currently required to make public financial disclosures:
• Trade Reporting: requires that Members of Congress and government employees report certain investment transactions within 45 days after a trade.

• Online Availability: mandates that the information in public financial disclosure reports (currently made available on request) be made available on agency websites and ultimately through searchable, sortable databases.

New Ethics Requirements:
• Expands Pension Forfeiture for Corrupt Members: the STOCK Act requires forfeiture of federal pension if a Member of Congress commits one of several corruption offenses while serving as an elected official. Current law forfeits a Member’s pension for conviction of offenses committed while serving in Congress. The STOCK Act expands forfeiture to apply to misconduct by Members committed in other federal, state and local elected offices and adds further federal crimes, including insider trading, for which forfeiture will be required.

• Requires Disclosure of Terms of Mortgages: the STOCK Act will require Members and certain high level government officials to disclose the terms of personal mortgages.

• Bans Special Access to Initial Public Offerings (IPOs): the STOCK Act limits participation in IPOs by Members and senior government employees to purchases available to the public generally.

• Requires Report on Political Intelligence in the Financial Markets: the STOCK Act requires GAO and CRS to produce a report on the role of political intelligence firms in the financial markets.

• Requires Job Seekers to Disclose: the STOCK Act requires that Members of Congress and senior federal employees file a written notification with their ethics office when starting a job negotiation to leave the government.

Bans Bonuses for Fannie & Freddie Executives: the STOCK Act bars senior executives at Fannie Mae and Freddie Mac from receiving bonuses during any period of conservatorship after enactment.

How to Invest in Bitcoin & Cryptocurrencies Through Stocks

by Nkem Iregbulem

Bitcoin is a cryptocurrency, or electronic cash, that works independently of a central bank or administrator and can be transferred electronically from one user to another from anywhere in the world. Through the process of Bitcoin mining, Bitcoin is created and brought into circulation by giving them to computers that help maintain the network by keeping track of all Bitcoin transactions. These mining computers race to solve a complex mathematical puzzle. As of today, those with the fastest computers can be rewarded 12.5 Bitcoins– though this number will be cut in half every 4 years. This process will continue until there are around 21 million Bitcoins in the world, which is predicted to occur in 2140.

Similar to the way the price of a stock is determined by bidding on exchanges, the price of Bitcoin constantly changes and is determined through bidding on Bitcoin exchanges. Some treat Bitcoin as an investment rather than a currency due to the cryptocurrency’s volatility. Bitcoin is valued at approximately $7000 today, but this price will likely change tomorrow and has ranged from close to $0 to nearly $20,000 in its history. There are many other cryptocurrencies also in circulation, including but not limited to Ethereum, Litecoin, and Ripple. But these coins do not have as many followers and are therefore not worth as much as Bitcoin is.

Blockchain is the technology behind cryptocurrencies and can be used to make transactions faster and more secure. It is a digital, shared, decentralized public ledger of all cryptocurrency transactions where new transactions — called blocks — are automatically downloaded to every computer, or node, in the network. This technology thus gets rid of the need for a centralized authority because it allows the validity of transactions to instead be checked by users of blockchain. Nowadays, this technology is mainly used to verify transactions.

If you’re looking to invest and gain exposure to Bitcoin and other cryptocurrencies, there are a number of investment opportunities: Advanced Micro Devices (AMD), Bitcoin Investment Trust (GBTC), Bitcoin Services Inc (BTSC), BTCS Inc. (BTCS), First Bitcoin Capital Corp (BITCF), Global Blockchain (BLKCF), HIVE Blockchain Technologies (HVBTF), Intel (INTC), Marathon Patent Group (MARA), MGT Capital Investments (MGTI), NVIDIA Corp (NVDA), Nxt-ID (NXTD), Overstock (OSTK), and Riot Blockchain (RIOT). These are all traded on the NASDAQ exchange except for MGTI, HVBTF, BITCF, BTCS, GBTC, and BTSC, which are traded over the counter.

Your first option is Advanced Micro Devices, a company that makes semiconductor equipment for mining bitcoin. Founded in 1969 and based in California, the company designs and produces microprocessors and low-power processor solutions for customers within the computer and consumer electronics industries. Most of the company’s sales come from its involvement in the computer market. Advanced Micro Devices has a market cap of $18.36 billion and does not pay a dividend. The stock has a price-to-sales ratio of 3.48, making it slightly overpriced. It trades at 118.38 times trailing earnings and at 41.15 times forward earnings. The company’s stock also has a price-to-book of 25.68. It faces a negative 3-year revenue growth rate of -1.08% and a negative 5-year revenue growth rate of -0.35%.

Bitcoin Investment Trust is another bitcoin investment opportunity to consider. The trust provides the opportunity for investors to bet on bitcoin and speculate on its price. It holds bitcoins on its investors’ behalf, so a share represents ownership of a fraction of a bitcoin. The trust has $1.39 billion in total assets and has a NAV of 6.99. It currently trades above its NAV.

Bitcoin Services is a bitcoin company also involved in the mining of other cryptocurrencies. It was incorporated in 1997 and is headquartered in Michigan. The company provides bitcoin escrow and mining services and also develops and sells blockchain software. Its bitcoin escrow service operates as a neutral intermediary between buyers and sellers in online transactions. Bitcoin Services Inc has market cap of $34.3 million and pays a dividend yield of 3.84%. This low market cap makes the company’s stock speculative.

Another options is BTCS Inc., a company based in Maryland and founded in 2013 that is heavily involved in blockchain technologies and digital currencies. BTCS Inc. operates an online e-commerce platform that allows customers to buy products using bitcoin and other digital currencies. The company has also designed a beta secure digital currency solution called the BTCS Wallet. BTCS Inc. has a market cap of $24.2 million and does not pay a dividend. The company’s very low market cap makes its stock very speculative. The stock has an extremely high price-to-sales ratio of 19817.7, putting it well into the overpriced range. The stock trades at 0.15 times trailing earnings and has a price-to-book ratio of 138.52. The company faces a negative 3-year revenue growth rate of -51.06% and negative 5-year revenue growth rate of -67.77%.

Based in Vancouver, Canada and founded in 1989, First Bitcoin Capital Corp is a company involved in developing digital currencies, blockchain technologies, and the digital currency exchange called CoinQX. The company also operates a cryptocurrency and bitcoin news site and another site than provides mining pool management services. Through its partnership with GoCOIN.com, the company is working to create a beta e-commerce marketplace, BITessentials.com, which accepts various digital currencies. First Bitcoin Capital Corp has a low market cap of $81.50 million, so its stock is considered speculative. The stock does not pay a dividend yield.

You might also consider Global Blockchain Technologies Corp, an investment company involved in identifying and investing in a diversified portfolio of public and private companies for capital growth. These companies primarily come from the cryptocurrency and blockchain industries. Global Blockchain aims to make it easier for investors to gain exposure to the world of cryptocurrencies. The company was incorporated in 2010 and is headquartered in Vancouver, Canada. Most of the company’s revenue comes from its business in Canada. Global Blockchain has a very low market cap of $21.16 million and does not pay a dividend yield. Its low market cap makes its stock speculative. The stock has a price-to-book ratio of 0.58, and the company boasts a 3-year revenue growth rate of 26.51%.

HIVE Blockchain Technologies Ltd is a cryptocurrency mining company that provides infrastructure solutions within the blockchain sector. It mines cryptocurrencies such as Ethereum, Monero, and ZCash. The company aims to bridge the gap between the blockchain sector and traditional capital markets. The company is based in Vancouver, Canada and was founded in 1987. HIVE Blockchain Technologies Ltd has a market cap of $221.56 million, putting its stock into the speculative range. The stock also pays a dividend yield of 2.36%. With a price-to-sales ratio of 10.37, the stock is considered overpriced. It trades at 6.72 times forward earnings and has a price-to-book ratio of 1.47.

Another option is Intel, one of the largest chipmakers in the world. The company was founded in 1968 and is based in California. It designs, builds, and sells microprocessors as well as computer, networking, data storage, and communication platform solutions around the world. Intel aims to find a more reasonable and cost effective way to mine bitcoins than methods that are currently used and has therefore filed a patent for a Bitcoin mining chip accelerator. In May of 2017, the company partnered with PokitDok to help bring blockchain technology to the healthcare industry. Intel has a market cap of $222.19 billion and pays a dividend yield of 2.52%. The stock’s price-to-sales ratio of 3.58 puts the stock in the overpriced range. It trades at 25.79 times trailing earnings and at 11.74 times forward earnings. The stock also has a price-to-book 3.17. With revenue values that have been increasing each fiscal year since 2015, the company has a 3-year revenue growth rate of 3.95% and for 5-year revenue growth rate of 3.31%.

Headquartered in Los Angeles and founded in 2010, Marathon Patent Group is heavily involved in the mining of digital assets. It owns and operates cryptocurrency mining machines as well a data center for mining digital assets. Marathon Patent Group has a very low market cap of $24.05 million, so its stock is very speculative. The stock does not pay a dividend. With a high price-to-sales ratio of 15.67, the company’s stock is overpriced. It trades at 3.05 times forward earnings and has a price-to-book ratio of 2.85. The company faces a negative 3-year revenue growth rate of -71.04%, which was largely caused by its revenue falling from $36.63 million in 2016 to $0.52 million in 2017.

MGT Capital Investments is involved in bitcoin mining activities. The company was founded in 1979 and is based in North Carolina. It has facilities in both northern Sweden and Washington State where it owns and operates numerous bitcoin mining rigs and machines. As one of the largest U.S. based Bitcoin miners, MGT Capital Investments has a market cap of $56.90 million and its speculative stock pays a yield of 2.25%. Its stock has a price-to-sales ratio of 10.53, making it overpriced. It also has a price-to-book ratio of 6.25. The company a high 3-year revenue growth rate of 221.85% and a 5-year revenue growth rate of 50.27%. Its revenue has been increasing since 2014, taking a big jump between 2016 and 2017 from $0.31 million to $3.13 million.

You might also consider NVIDIA Corp, a company based in California and founded in 1993. NVIDIA Corp makes cryptocurrency-specific graphics processing units. The company is also a leading designer of graphics chips for PC graphics applications such as gaming, data centers, artificial intelligence, and autonomous driving. NVIDIA Corp has a market cap of $148.19 billion and pays a dividend yield of 0.24%. Given its high price-to-sales ratio of 14.42, the company’s stock is considered overpriced. It trades at 41.93 times trailing earnings and at 33 times forward earnings. The stock also has a price-to-book ratio of 19.82. With its revenue increasing each fiscal year since 2014, the company enjoys a 3-year revenue growth rate of 27.54% and a 5-year revenue growth rate of 17.81%.

Founded in 2011 and based in Florida, Nxt-ID is a security technology company involved in developing products and solutions for security, healthcare, financial technology, and Internet of Things (IoT) markets. The company operates Flip, a contactless payment device that will allow people to use cryptocurrency to buy products at millions of retail locations. Nxt-ID has a market cap of $39.97 million and its speculative stock does not pay a dividend yield. The company’s stock has a decent price-to-sales ratio of 1.31 and a price-to-book ratio of 2.51. With its revenue increasing since 2015, the company enjoys a 3-year revenue growth rate of 34.88% and an even better 5-year revenue growth rate of 147.44%. Its revenue took big jumps between 2015 and 2017, going from $0.62 million in 2015 to $7.74 million the next year and then to $23.32 million the year after that.

You may have heard of Overstock, the US-based online retailer responsible for Overstock.com, a site that provides various products and services. Based in Utah and founded in 1997, the company offers a number of products, including furniture, home decor, jewelry, clothes, electronics, and many other items. In 2014, Overstock became the first major retailer to adopt Bitcoin as a payment method through its partnership with Coinbase. Overstock has a market cap of $1.04 billion and does not pay a dividend. The company’s stock has a favorable price-to-sales ratio of 0.55 and a price-to-book ratio of 5.98. The company enjoys a 3-year revenue growth rate of 5.24% and a 5-year revenue growth rate of 9.68%.

Another option is Riot Blockchain, a company that builds, supports, and operates blockchain technologies through its cryptocurrency mining operations. The company is based in Colorado and was founded in 2000. It focuses largely on Bitcoin and general blockchain technology. Riot Blockchain also engages in the buying and selling of cryptocurrencies, provides accounting, audit, and verification services for cryptocurrencies, and operates TessPay, a blockchain solution for supply chain settlements. Riot Blockchain has a market cap of $102.68 million. Its stock is considered speculative due to the company’s low market cap and overpriced due to its high price-to-sales ratio of 51.48. The stock also has a price-to-book ratio of 2.71. With its revenue increasing each fiscal year since 2016, the company has a 3-year revenue growth rate of 0.88% and a much higher 5-year revenue growth rate of 34.12%.

Disclosure: Author didn’t own any of the above at the time the article was written.

Apple is Now Officially a Trillion Dollar Company

by Fred Fuld III

It’s official. At the time I am writing this, Apple (AAPL) is trading at 206.87. The company has 4,842,917,000 shares issued and outstanding, according to the latest Form 10-Q filed with the Securities and Exchange Commission.

If you multiply these two numbers, you get a market capitalization of $1,001,854,239,790. That’s over a trillion dollars.

This makes Apple the first American company to reach the trillion dollar level.

Apple is actually the second stock to reach a trillion dollar valuation. The first was PetroChina (PTR), that hit that level in 2007.

Disclosure: Author owns AAPL.

Legacy in the Making: Building a Long-Term Brand to Stand Out in a Short-Term World

Review by Fred Fuld III

The book, Legacy in the Making: Building a Long-Term Brand to Stand Out in a Short-Term World, discusses the importance of branding your your business and the legacy that goes along with it. It is written by Mark Miller, the founder of the Legacy Lab, and Lucas Conley, the author of Obsessive Branding Disorder.

The book is captivating and engaging for several reasons. First, it gives real life examples of extremely successful brands. And the brands are not just limited to businesses, it includes non-profits, sports teams, and film festivals.

Second, the book delves into detail about how and why certain successful brands were created, with specific illustrations. For example, in the chapter “Empower Your Believers” on the Ritz-Carlton Hotel Company, the authors talked about how the employees are empowered to create the “Wow Factor” for their guests.

Some of the organizations that are examined include The Honest Company, Grey Goose, The San Diego Zoo, The Toronto Maple Leafs, and The Tribeca Film Festival.

In terms of the structure of the book, it is filled with pictures, diagrams, blurbs, and quotes. The book is a brand all its own.

If you own a business or are involved with an organization, I suggest you get Legacy in the Making and make your brand the best that it can be.

Companies Reporting Earnings This Week

by Fred Fuld III

Many traders like to look at upcoming earning announcements to plan their trades. A substantial amount of money can be made trading on earnings, but a significant amount of money can be lost. (Remember Facebook (FB) last week?)

Some of the most heavily traded stocks that are reporting include Apple (AAPL), Tesla (TSLA), Wynn (WYNN), MGM (MGM), and CBS (CBS). Here is a list of the popular stocks that are reporting earnings:

Monday Pre-Market

Monday After-Market

ATHN
DENN
NTRI
RIG

Tuesday Pre-Market

Tuesday After-Market

AAPL
APC
BIDU
CAKE
H
P
QYLS

Wednesday Pre-Market

ADP
GRMN
HUM
SODA

Wednesday After-Market

CRUS
CZR
FEYE
HLF
MET
MRO
PRU
RAIL
SQ
TRIP
TSLA
WYNN
X

Thursday Pre-Market

Thursday After-Market

CBS
ED
TTWO
WU

Friday Pre-Market

CBOE
WELL

Stocks Going Ex Dividend for the Month of August 2018

Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.

PetMed Express, Inc. (PETS)	8/2/2018	0.27	2.96%
Pfizer, Inc. (PFE)	8/2/2018	0.34	3.58%
Citigroup Inc. (C)	8/3/2018	0.45	2.51%
Intel Corporation (INTC)	8/6/2018	0.30	2.29%
Boeing Company (BA)	8/9/2018	1.71	1.92%
Walmart Inc. (WMT)	8/9/2018	0.52	2.37%
Consolidated Edison Inc (ED)	8/14/2018	0.72	3.70%
Target Corporation (TGT)	8/14/2018	0.64	3.20%
Visa Inc. (V)	8/16/2018	0.21	0.59%
Goldman Sachs Group, Inc. (GS)	8/29/2018	0.80	1.35%
Johnson & Johnson (JNJ)	8/27/2018	0.90	2.80%
Molson Coors Brewing Company (TAP)	8/30/2018	0.41	2.51%
Lockheed Martin Corporation (LMT)	8/31/2018	2.00	2.47%

The additional ex-dividend stocks can be found here at wstnn.com. (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at HERE or WStNN.com. Most of the lists are free.

Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Business and Investment Books On Sale

This is a list of the finance, investment, and business books that are currently on sale, and available on the Amazon (AMZN) Kindle. If you have any interest in these books, you should order them right away, as these sales don’t last long.

The Camino Way
By Victor Prince
Learn to tackle each new management hurdle with seven practical leadership lessons .
$0.99 Retail: $10.99

The Leader Habit
By Martin Lanik
22 essential, teachable leadership secrets with practice exercises.
$1.99 Retail: $12.99

A Team of Leaders
By Paul Gustavson and Stewart Liff
Cultivate the leadership potential of each employee.
$0.99 Retail: $14.99

Lead Right for Your Company’s Type
By William E. Schneider
How management can produce tangible results using the four types of enterprise.
$1.99 Retail: $14.99

Dot Complicated
By Randi Zuckerberg
A definitive guide to the digital age including best practices for using tech at work and at home.
$1.99 Retail: $7.99

Born for This
By Chris Guillebeau
From the New York Times bestselling author of The $100 Startup.
$1.99 Retail: $13.99

Your Creative Career
By Anna Sabino
Use creativity and artistic passion to lead to business success.
$0.99 Retail: $15.99

Head Strong
By Dave Asprey
A New York Times bestseller: Upgrade your brainpower and supercharge your productivity just with simple adjustments to your lifestyle.
$1.99 Retail: $12.99

The Conflict Resolution Phrase Book
By Barbara Mitchell and Cornelia Gamlem
This guide will empower you with the vocabulary to navigate even the most difficult professional situations.
$0.99 Retail: $14.99

Diamonds and Diamond Stocks as an Investment

Diamond and Jewelry Stocks

by Nkem Iregbulem

Did you know that about 250 tons of the Earth is mined in order to produce a single one-carat diamond? Diamond is a pure element — nearly 100% carbon. It is also the hardest natural substance present on Earth. In fact, the only thing that can scratch a diamond is another diamond. A large amount of heat and pressure below the Earth’s surface cause carbon atoms to uniquely bond together and form the diamond’s rare and strong crystalline structure. These diamonds form around 100 miles below Earth’s surface and are brought up by volcanic eruptions. In ancient times, people wore diamonds because they believed that they promoted strength, invincibility, and courage. Nowadays, diamonds are well-known for their use in jewelry. But you may be surprised to learn that close to 80 percent of diamonds are actually not suitable for use in jewelry. Because of their hardness, most diamonds are used industrially to cut, grind, and drill different materials.

If the diamond and jewelry industries are of interest to you, there are a number of diamond mining companies and jewelry retailers that you can choose to invest in: Anglo American plc (AAUKF), Rio Tinto plc (RTPPF), Etsy Inc. (ETSY), DGSE Companies, Inc. (DGSE), Birks Group Inc. (BGI), BHP Billiton Ltd. (BHP), BHP Billiton plc (BBL), Tiffany & Co. (TIF), and Signet Group plc (SIG). The BHP, BBL, TIF, and SIG stocks are all traded on the New York Stock Exchange, the DGSE and BGI stocks can be found on the NYSE American, and the ETSY stock can be found on the NASDAQ exchange. Meanwhile, both the RTPPF and AAUKF stocks are traded over the counter.

Headquartered in the United Kingdom and founded in 1917, Anglo American plc is primarily involved in the exploring, mining, and processing of different metals and minerals around the world. Among other substances, these include rough and polished diamonds, copper, platinum group metals, coal, nickel, iron and manganese ores. Anglo American PLC boasts a fairly large market cap of $32.27 billion and pays a dividend yield of 4.39%. Its stock has a normal price-to-sales ratio of 1.15. It trades at 9.88 times trailing earnings and at 8.81 times forward earnings. It also has a price-to-book ratio of 1.42. It faces a negative 3-year revenue growth rate of -1.03% and a negative 5-year revenue growth rate of -1.76%.

Rio Tinto plc is a mining and metals company that explores, develops, produces, and processes minerals and metals such as diamonds, aluminum, copper, gold, coal, and industrial minerals around the world. The company was founded in 1873 and is headquartered in the United Kingdom. As one of the world’s largest metals and mining companies, Rio Tinto plc boasts a large market cap of $97.3 billion and pays a high dividend yield of 5.31%. Its stock has a price-to-sales ratio of 2.50, making it somewhat overpriced. The stock trades at 12.12 times trailing earnings and at 10.79 times forward earnings. The company’s revenue fell each fiscal year from 2013 to 2016 but has been rising each fiscal year since. It therefore faces a negative 5-year revenue growth rate of -4.71% and a negative 3-year revenue growth rate of -5.65%.

You may have heard of Etsy Inc., the company that operates Etsy.com, a popular commerce platform where people can buy and sell goods online and offline. Buyers and sellers who use the site mainly come from the United States, Australia, Germany, the United Kingdom, Canada, and France. The company’s seller services and tools are especially helpful to entrepreneurs looking to start and grow their business. The company’s top selling product is jewelry. The company was founded in 2005 and is headquartered in New York. Etsy Inc. has a market cap of $5.28 billion but does not pay a dividend yield. With a high price-to-sales ratio of 11.94, the stock is considered very overpriced. The stock also has a high trailing P/E ratio of 71.93 and a similarly high forward P/E ratio of 72.99. Its stock also has a price-to-book ratio of 13.83. The company’s revenue has been increasing each fiscal year since 2013 as the company enjoys a very high 3-year revenue growth rate of 31.15% and an even better 5-year revenue growth rate of 42.69%.

DGSE Companies, Inc. was founded in 1965 and is headquartered in Texas. The company buys and sells jewelry such as bridal jewelry, fashion jewelry, custom-made jewelry, diamonds, other gemstones, watches, and jewelry components. Among other items, the company also offers gold, silver, private mint medallions, platinum, and art bars. Its customers range from individual customers to dealers to institutions around the United States. DGSE Companies, Inc. has a small market cap of $20.99 million, so its stock is very speculative. The company does not pay a dividend yield, and its stock has a price-to-book ratio of 2.59. The stock trades at 11.13 times trailing earnings and at 56.18 times forward earnings. It has a very favorable price-to-sales ratio of 0.35. The company’s revenue fell each fiscal year from 2013 to 2016 before rising in 2017. It has a negative 3-year revenue growth rate of -4.30% and a negative 5-year revenue growth rate of -13.48%.

Founded in 1879 and based in Canada, Birks Group Inc. designs, develops, produces, and sells fine jewelry, timepieces, and silverware around the United States and Canada. It has two operating segments — namely, Retail and Other. Under its various brands, the company offers designer jewelry, diamonds, charms, necklaces, bracelets, rings, wedding bands, and earrings. Birks Group Inc. has a large market cap of $93.31 billion and pays a decent dividend yield of 5.31%. The stock trades at 12.78 times trailing earnings and at 11.51 times forward earnings. With a price-to-sales ratio of 2.50, the stock is considered overpriced. The stock also has a price-to-book ratio of 2.18. The company’s revenue fell each fiscal year from 2013 to 2016 before rising in 2017. It therefore faces a negative 3-year revenue growth rate of -5.65 % and a 5-year revenue growth rate of -4.71%.

You might also consider BHP Billiton Ltd. and BHP Billiton plc. Together, they form a natural resource company that explores for resources including diamonds, copper, silver, nickel, and gold and stands as the second largest mining company by revenue in the world. It was founded in 1851 and is headquartered in Australia. The company has four main operating segments: Petroleum, Copper, Iron Ore, and Coal. BHP Billiton Ltd. has a large market cap of $130.35 billion and pays a dividend yield of 4.49%. The stock has a price-to-sales ratio of 3.31, so it is overpriced. The stock has a trailing P/E ratio of 28.01 and a forward P/E ratio of 13.83. It has a price-to-book ratio of 2.39. BHP Billiton Ltd. faces a negative 3-year revenue growth rate of -12.30% and a 5-year revenue growth rate of -11.49%. Meanwhile, BHP Billiton plc has a fairly high market cap of $45.96 billion and pays a substantial dividend yield of 5.06%. With a price-to-sales ratio of 2.96, its stock is somewhat overpriced. It trades at 26 times trailing earnings and at 13.74 times forward earnings. The stock also has a low price-to-book ratio of 0.85. BHP Billiton has seen a negative 3-year revenue growth rate of -12.30% and a negative 5-year revenue growth rate of -11.49%.

Tiffany & Co. designs, manufactures, and retails luxury goods including jewelry and other items around the world. It not only offers jewelry collections, engagement rings, and wedding bands, but it also wholesales diamonds and offers eyewear, stationary, sterling silver, fragrances, and timepieces. The company was founded in 1837and is headquartered in New York. Its business is separated into geographical segments: Americas, Asia-Pacific, Japan, Europe, and Other. Tiffany & Co. has a market cap of $16.25 billion and pays a dividend yield of 1.66%. The company’s stock has a price-to-sales ratio of 3.84, so it falls into the overpriced category. It trades at 39.33 times trailing earnings and 29.94 times forward earnings. It also has a price-to-book ratio of 4.98. The company has a negative 3-year revenue growth rate of -0.63% but a positive 5-year revenue growth rate 1.91%.

Founded in 1950 and based in Bermuda, Signet Jewelers Ltd. is a company involved in the retail sale of diamond jewelry, watches, and various other products. The company operates through its Sterling Jewelers, Zale, UK Jewelry segments, and Other segments. The Sterling Jewelers division operates stores in malls and off-mall locations in the United States. The Zale division operates jewelry stores and kiosks in shopping malls the United States, Canada and Puerto Rico. The UK Jewelry division operates stores in the United Kingdom, Republic of Ireland and Channel Islands. The Other segment includes the operations of subsidiaries involved in diamond sourcing and polishing activities. Signet Jewelers Ltd. has a market cap of $3.55 billion and pays a dividend yield of 2.49%. Its stock has a price-to-book ratio of 1.86 and a very favorable price-to-sales ratio of 0.64. It trades at 7.78 times trailing earnings and at 10.01 times forward earnings. The company’s revenue increased each fiscal year from 2014 to 2016 as it enjoys a 3-year revenue growth rate of 2.92% and a better 5-year revenue growth rate of 9.44%.

Maybe one of these stocks can make your portfolio sparkle.

Disclosure: Author did not any of the above stocks at the time this article was written.

Stocks with Big Movements

There were some major movers today in the stock market. Here are some of the stocks with the biggest movements.

Reata Pharmaceuticals, Inc. (RETA) 76.55 +30.15 +64.98%

LifePoint Health, Inc. (LPNT) 64.90 +17.00 +35.49%

Hasbro, Inc. (HAS) 106.04

NETGEAR, Inc. (NTGR) 65.53

Ryanair Holdings plc (RYAAY) 106.70 -10.00 -8.57%

Halliburton Company (HAL) 41.54 -3.66 -8.10%