Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Nov 07, 2019
Sea Limited hitting upper rail of downward sloped channel with earnings looming

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
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

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.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

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.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

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.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

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.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.