Prosegur Cash: Head and Shoulders and earningsH&S pattern and earnings outcome on July 31 may drag the price down to new historical minimum levels at 0.58, following long-term bearish channel. Also, second wave in Spain swelling may put pressure downwards on the stock price due to the company's main business: ATM's cash, which in covid19 days people are less keen on using physical money and prefer paying with card. However, Prosegur Cash is trying to keep floating capital with dividend reinvestments and buying its own capital. No analyst recommends to sell and 8 recommend to buy. Q1, CASH reduced profits 10.7% and made -3.9% sales. CASH also blames the currencies' effect to its earnings, so keep in mind that when covid exploded euro was up to 1.14 and now, after European Union took action with its funding 750.000 million, eurusd is up to 1.17. So watch out its Q2 earnings, but also get ready for Q3 in case Q2 are disappointing.
Atm
ACB Long ATM StraddleCannabis stocks have the possibility to move a lot in a short period of time, as regulatory changes on whims have huge impact on the market size to which Cannabis companies can sell their products. Although our stance is that the cannabis industry is likely to become even more volatile as more regulatory developments and sector-wide shake-outs leave only the leading firms, the reason we are particularly interested in the ACB long straddle is because of the low IVR.
We are entering into a near-the-money straddle on $ACB by longing the July calls and puts with a strike of $7.50, for a $.70 debit. The breakevens are below 6.80 and above 8.20. As a long straddle, the maximum loss occurs if the stock price S is at the strike k of 7.50 at maturity in July. Taking long positions on both of these options is very cheap because the implied volatility is subdued -- with an Implied Volatility Rank of 4.3.
Also, Aurora in particular has not joined big partnerships, contrasting the alignments with Canopy Growth ($CGC) and Constellation Brands ($STZ), Cronos Group ($CRON) and Altria ($MO), Tilray ($TLRY) with Anheuser-Busch InBev (BUD) and Novatris ($NVS), and HEXO($HEXO) with Molson Coors ($TAP). Announcement of any partnership, which is likely as billionaire private equity specialist Nelson Peltz recently joined with the intent to line up possible partners, would have a huge impact on the stock price. In January, Aurora Chief Corporate Officer Cam Battley told Business Insider that he would be looking to release “hemp-derived CBD strategy” into the U.S. market in the “next few months” in January. Five months later, we still don’t know what the surprise is. It could come within the next few months.
Dether-Usd Falling wedgeThe Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout.
The falling wedge can also fit into the continuation category. As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.
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