Find your way Market Summary What`s new AI Robots 1-on-1 lessons Help Sale

published in Blogs

Nov 07, 2019

Sea Limited hitting upper rail of downward sloped channel with earnings looming

Sea Limited (NYSE: SE) is an electronic gaming and multimedia company based in Singapore. The company is set to announce earnings results on November 12 with analysts expecting the company to report losses of $0.53 per share. The expected is lower than the $0.70 the company lost in the third quarter of last year.

Because the company has lost money to this point, the return on equity, profit margin, and operating margin are all negative. With the negative readings in these key indicators, the Tickeron SMR rating for Sea Ltd. is 100, the worst rating a company can get. The reading indicates weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating is 100, and that is also the worst rating a company can get in this category. It indicates that the returns do not compensate for the risks. Sea's unstable profits reported over time resulted in significant drawdowns within these last five years. A stable profit reduces stock drawdown and volatility.

The Tickeron Valuation Rating for Sea is 64 and that indicates that the company is fair valued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.

In addition to the negative fundamentals, the technical picture isn't looking very good for Sea either. The stock has been trending lower since early August with a trend channel forming that defines the various cycles within the overall trend. The stock hit the upper rail of the channel on November 4 and turned lower the next day.

We also see that the stock is overbought based on the daily stochastic readings and the indicators made a bearish crossover on November 5. The 10-day RSI flirted with overbought territory, but turned lower on the downward move. The stock moved above its upper Bollinger Band on November 4 which is yet another indication that the stock is overbought and could turn lower.

Sea Limited doesn't have a great deal of analysts covering it, but all 11 analysts that are covering it rate the stock as a "buy". There is room for additional coverage on the stock, but there isn't any room for upgrades from the current coverage.

The one area that could help Sea is the short interest ratio. The ratio is at 6.5 currently and that indicates some bearish sentiment directed at the stock. If the company can issue an earnings surprise, the short sellers could add fuel to the rally as they scramble to cover their positions.

Looking back at previous earnings reports, I found two statistics that are concerning for Sea Ltd. Investors. First, the company has missed its EPS estimate in five of the last six quarters. The only time it beat during this stretch was back in May when the company only lost $0.64 per share when it was expected to lose $0.65.

The second concern was from stocksearnings.com and it showed that the stock has moved down after earnings' reports in 22 out of the last 35 quarters.

Given the fundamentals, the technical picture, the sentiment, and the earnings' history, I don't have much optimism for Sea Limited after reporting.

Related Tickers: SE

John Jacques

published in Blogs

May 16, 2022

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I. Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.

Edward Flores

published in Blogs

Apr 29, 2022

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations. As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.

Sergey Savastiouk

published in Blogs

May 16, 2022

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.

Sergey Savastiouk

published in Blogs

Mar 14, 2023

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.

Dmitry Perepelkin

published in Blogs

Mar 14, 2023

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders. Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.

Allana

published in Blogs

Mar 23, 2023

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.

Sergey Savastiouk

published in Blogs

Mar 13, 2023

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence. Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.

Sergey Savastiouk

published in Blogs

Mar 20, 2023

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment. Do unto others.The principles outlined here will ensure that happens. Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.

John Jacques

published in Blogs

Mar 24, 2023

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.

Sergey Savastiouk

published in Blogs

Mar 15, 2023

The five most important Lessons Learned After 10,000 hours of Trading

Ten thousand hours of active trading, broken down into forty-hour weeks, amounts to almost five years. Having surpassed that milestone myself, I now understand why it's significant for any trader's journey. The early years taught me valuable lessons that have shaped my approach to trading. It's a misconception that great traders are born with innate talent. The truth is that it takes years of...