FaithMight - Page 23 of 78 - Market commentary and analysis insights. Brought to by FM Capital Group.

December 15, 2021December 16, 2021

What Is The Fate Of Pepsico Investors?

The share price of one of America’s multinational food, snack, and beverage corporation, PEPSICO, hit a new all-time high at $171.47 on the 13th of December, 2021. Just like many other stocks, PepsiCo had a dip during the global lockdown in 2020. Price fell from the February 2020 all-time high at $147.24 to $101.54, which was a 31% loss in value. As countries began to ease the lockdown, the price of $PEP recovered over 90% of the losses during the lockdown. Despite the lockdown, in 2020, Pepsico made $70.37 billion in revenue surpassing the 2019 revenue of $67.16 billion. After the lockdown was eased, for the most part of 2020, the price of $PEP was in a range until price broke out to the upside in December 2020.

Price has maintained the bullish trendline since the ease of lockdown in 2020 . There are a few times that price had a correction before the rally continued. The 4hr chart has a pattern of higher highs and higher lows since the lockdown. A reversal might occur after a new all-time has been reached above $171.47. The holidays are coming and investors might decide to take out some cash from investments. This might negatively affect the price of $PEP. Price is currently at $169.31. A correction might devalue the share price to $152, which is the next support level.

Some of these ideas are in our clients’ portfolios. To understand which ones can work for you or for help to invest for your own wealth, talk to our advisors at FM Capital Group. Would you like more information on Investment Advisory, Portfolio Services, and VC? Schedule a meeting with us here.

December 14, 2021December 15, 2021

Amazon’s Price in a Range

Amazon is an American multinational conglomerate that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. The stock has done well for investors in the last decade, as an investment in $AMZN has generated over 19X. The share price of Amazon has maintained a resistance level at $2044 since September 2018, but the price broke out the resistance level to the upside in February 2020 to a new all-time high at $2913.18. After the break-out, there was a price correction before a major rally began to a new all-time high at $3770.49 and the support level is maintained at $2883.53.

Since a support level was formed at $2883.53, the price of $AMZN has failed to break the support level to the downside as the price has been ranging between the support level and the all-time high at $3770.49 since mid-2020. Unfortunately, an Amazon warehouse was hit by a tornado, this week killing six, and an activist group targeting Exxon. In July and November of this year, $AMZN has formed a double top, could this be an indication of a correction. Using Amazon to shop could be a major option for shoppers if covid cases increase with the new variant ‘Omicron’, as the lockdown may be re-imposed.

RSI has shown that price has been overbought since the ease of lockdown in 2020. Despite the rally around to the all-time high at $3770.49, the price has crossed to the lower region of the Bollinger bands this month. For long-term investors, Amazon could be a good deal, just as it has done in the last decade.

December 10, 2021December 14, 2021

Apple Investors Continue To Make Profit

This week is the best week so far for Apple since the beginning of the year. The share price appreciated on Wednesday by over 2.8%. It has been up 8% this week and about 6% this month. The supply chain shortages are getting worse though as Apple completely stops iPhone production in China for the first time in a decade.

Just like many other stocks, Apple’s share price dipped during the lockdown from then $81.53 to $53.65, which was a 34% loss in value at that time. As the lockdown was eased last year, the price has continued to rally from the lowest price level at $53.65 to a new all-time high this month at $176.65. That is over 2X gain since the ease of lockdown. The last year has been the best year for the Apple investors as more gains are made. The current market cap for Apple is $2.86 trillion. Apple could be the first company to reach the $3trillion market cap.

Now that Apple has completely stopped the production of Iphones in China, this might lead to the share price taking a break from the rally. Apple has been sued over Apple watch defect that poses hazards to customers. RSI has shown that the price has been overbought twice between November and December. Price is currently in the upper region of the Bollinger bands, a correction might occur if the Omicron virus poses a major threat to the global populace.

December 7, 2021December 12, 2021

Price Of Dow Jones Heads To A New All-Time High

During the sharp drop in the price of Dow Jones in 2020, which was majorly caused by the global lockdown, the price fell from $29,473 to $18,000. Since the ease of lockdown, the price has continued to rally as most of the months in 2021 had a new all-time high. There was a breakout of the previous all-time high at $29,473 towards the latter part of the year 2020. Since this breakout, the bulls have been relentless. The opening price of Dow Jones at the beginning of the year was $30,489. Price has been able to reach a new all-time high at $36,598. There was a major dip in November 2021 when the price from the all-time high at $36,598 to $34,000. Then a rally occurred which is a result of a gap up. The 4hr chart clearly shows the price is currently in the upper region of the Bollinger bands.

There are likely possibilities of price reaching a new all-time high above $36,598, which could lead to a breakout of the resistance level. Almost all losses last month have been recovered with December’s price reversal. The gap down from $35,800 to $34,800 in November 2021 has been covered up with this bullish run this month. RSI was able to show that the price had been overbought in the previous all-time high in November 2021. As the price dips in November before consolidating, RSI also shows that price has been oversold, which was an indication of a price reversal. On the daily chart, the candlesticks crossed to the lower region of the bands in November as the price fell. Yesterday’s candlestick closed in the upper region of the Bollinger bands. This move could push the price to the next psychological level at $37,000.

December 6, 2021December 8, 2021

Why Did Pfizer Lose 5% In Value?

Pfizer is an American multinational pharmaceutical and biotechnological corporation. The company was established in 1849 and went public at the beginning of 1968 at an opening price of $0.42. Over the years, the share price of Pfizer has appreciated in several multiples. The Pfizer investors have enjoyed a rally over the years as the price keeps appreciating. The previous all-time high at $44.01 was reached in 2018 and maintained until the price broke out to the upside to new all-time highs in August 2021 and December 2021 respectively. Pfizer was licensed to produce the vaccine as a result of the necessity caused by the spiking cases of coronavirus across the world. Despite the share price of Pfizer going low as $26.37 in 2020, after it reached the all-time high in 2018 at $44.01, millions of persons worldwide got vaccinated with the Pfizer vaccine which must have led to the share price appreciating.

The most recent all-time high of $PFE was reached in November 2021 at $55.83. Some scientists might have been saying that the Omicron variant of the coronavirus is of less concern. Just like many vaccine-producing companies, $PFE’s share price dropped 5.14% yesterday. Despite a few lockdowns across the world and some countries restricting flights from some other countries, there seems to be a correction occurring with the price of $PFE. The share price of Pfizer might drop to $41.93 which is around the previous support level at $41.10, as some scientists have said the Omicron variant is not of major concern.

December 3, 2021December 7, 2021

Will The Name Change of Square To Block Affects Its Share Price?

After 6 years of Square being listed on the stock exchange, the CEO Jack Dorsey, who owns 24.4% of the company, changes its name to Block. The main reason for changing the name is for expansion as the company intends to focus on new technologies such as blockchain. Before now, Square was known for digital payments with a focus on point-of-sale terminals and auxiliary equipment to process debit cards. Since its IPO in 2015 at $9, the share price has done 31X as it reached an all-time high in August 2021 at $289.05.

The lowest price of $SQ during the lockdown was $38.02. As the lockdown eased up, price appreciated above $200 before the end of last year. The price movement of $SQ in the last 11 months has been between $192.15 and $289.05. The range in the weekly and monthly chart has been broken to the downside this week as the price reached $185.72. $SQ is currently not showing an indication of a price reversal to the upside. Since the day Square has been changed to Block, the price of $SQ has gone south.

December 1, 2021December 3, 2021

Zoom’s Share Price Falls Further

Zoom’s investors had a good return in 2020 after the price opened at $67.23 to reach an all-time high of $588.21, which is over 8X. During the lockdown, many meetings and conferences were held virtually as Zoom was the favorite of many organizations. However, 2021 is the worst year for $ZM investors since its IPO in 2019. The opening price for Zoom this year was $337.07. As offices began to open due to the mass vaccination of people in different countries across the globe, the price of Zoom began to fall. The hope that showed in July 2021 as a result of the monthly candlestick was dashed away when all gains were lost in August 2021.

The current share price of Zoom is at $218.79 which shows that Zoom investors have lost 35% from the opening price of this year. A breakout to the downside has occurred from the August 2020 support level at $233.23. Is this going to be a continuous downtrend? The next few weekly candlesticks will determine the next direction. The share price of Zoom is currently at the lowest since June 2020 at $211.41. There are tendencies that the share price of Zoom might rise to $400 as many countries begin to lock their borders due to the new cases of the Omicron variant of the coronavirus. As countries begin to lock borders, this might eventually affect the workspace. Companies might fall back to the remote ways which worked during the lockdown.

December 1, 2021December 1, 2021

Our Investment in Recoplast Congo

It’s been a busy year for us as at FM Capital Group. From an investment perspective, it has been our busiest year to date for our small team of investors. For the remainder of the year, I will highlight each of our 2021 investments and talk up the wonderful, important, and impactful work each of these companies are doing in Africa.

In December 2020, Eric Casinga, the founder of Recoplast Congo, reached out to me seeking investment. While it was still in the midst of the pandemic, we had just made our first covid investment so investors were thawing out and ready to make more. So I was keen to meet Eric and learn more about Recoplast. And when I did, the business resonated with me immediately. Because when my siblings and I met up and went to Nigeria together in 2016, the plastic waste there was an eye sore in which we actually saw opportunity. We wondered how to start and operate a recycling company to combat the plastic waste that littered the, otherwise, beautiful environment. To learn that Eric had done just that in the Democratic Republic of Congo with his own patented process, I was very impressed and eager to share this investment opportunity with investors.

This startup was born out of a passion to fight against plastic pollution and deforestation by presenting a “perfect alternative” to ordinary wood. This type of upcycling creates a material called “Ecowood” that can be used to make more durable and affordable chairs, tables, pallets, and really anything that ordinary wood can make. The upcycled material is also used to create plastic products too. By paying for the plastic waste that ordinary people collect themselves, Recoplast is also providing opportunity for Congolese citizens, many of whom are women, to have a means of earning an income and providing for themselves and their families. Our angel investors saw and agreed that this was an opportunity that must be seized. We invested in this startup, finally closing the investment in July 2021. We have been busy since supporting Recoplast’s growth plans and look to do more investments in the cleantech sector in the coming year 2022.

We celebrate the Recoplast team for their efforts, grit, and innovation. Check out the video below to witness the waste transformation process. Follow Recoplast on Facebook, Instagram, and Twitter. Please reach out to Eric if you are also interested in investing. Let him know we sent you!

This particular investment is in our clients’ portfolios. To understand how you can invest in venture capital opportunities with us for your own portfolio, talk to our advisors at FM Capital Group. Schedule a meeting with us here. It’s free to chat!

November 30, 2021December 2, 2021

Twitter Has Lost All Its 2021 Gains

Twitter’s opening price at the beginning of 2021 was $54.22. Later in the first month of the year, the price fell to the lowest level in the year at $45.59. After the price fall to $45.59, the price rallied in February 2021 to reach an all-time high at $81.09. Since the all-time high was reached, prices began to go lower. There have been lower lows and lower highs, which has resulted in huge losses as all the $TWTR gains of 2021 have been lost. Twitter is currently at a -16% loss from the opening price of the year.

After Thanksgiving Day, the market opened at $46.54 and closed at $47.10. But on the 29th of November 2021, the price had a gap up from $51.84 which showed a bit of hope until Jack Dorsey announced his resignation as the CEO of Twitter. The share price of $TWTR closed at $45.78 yesterday after Parag Agrawal was announced as the new CEO of Twitter. Price is currently around the year’s support level at $45.59. RSI is currently at the oversold position even after the price is around the support level.

The gap up at the opening of yesterday’s share price for Twitter made the price reach the upper region of the Bollinger Bands, but the price crossed lower to the lower region of the bands at the close of the market. There may be a call for the bulls as a new CEO is appointed. A few Indian-American CEOs have emerged as the CEOs of American Tech Companies, and their share prices have been doing excellently. As the Twitter bulls become more active, the price might reach $66 in the coming weeks.

November 27, 2021November 30, 2021

SPX Had A Price Correction

S&P 500’s opening price in 2021 was $3699.90. Price has been appreciating leading to different all-time highs. The SPX has done so well with return for investors as each month since the beginning of this year, there have been new all-time highs reached. The latest all-time high was reached at $4,745.40. This week has been very bad for $SPX has the price fell to $4,594.61 from the weekly opening price of $4711.61. Many stocks’ prices fell during the week as a result of the new variant of coronavirus discovered in South Africa named ‘Omicron’. A few countries are back to a lockdown to avoid the spread of the various. Countries are beginning to restrict movement to and from South Africa. As of July 2021, there are four dominant variants of the Coronavirus.

On the weekly chart, the $SPX closed this week with a bearish candlestick. Looking at the 2020 chart of $SPX, especially before the spike in the cases of Covid-19 globally, the then all-time high in February 2020 was at $3384.11, the price fell to $2210.48 in March 2020. Since the lockdown, the price has been appreciating as price doubled since the lockdown has been eased. The support level at the second half of this year is maintained at $4284.31. The weekly charts show the candlesticks are still in the upper region of the Bollinger bands despite RSI showing that the price has been overbought. The bulls are still very active despite the correction this week. The price of $SPX might appreciate in the next few weeks, which might lead to a new all-time high above $4,800.