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Solid carbon dioxide (also knows as dry ice) has been extremely essential in the food processing and manufacturing sector. But now it is going to be a key component in getting the vaccination accessible to all Americans in 2021. Dry ice is carbon dioxide gas processed into a solid form. As a cooling agent, dry ice is used for preserving temperature-sensitive items. Dry ice is used in the healthcare sector to transport and store biological samples, blood, and vaccines.

Dry Ice Use to Aid in Vaccine Distribution

The vaccine from Pfizer (PFE) is so delicate that it has to be kept at -70 degrees Celsius. That’s colder than most freezers in the world and even colder than the temperature at the south pole. Hence normal freezers are not going to cut it. Dry ice seems to be the only solution for this. Dry ice is going to be crucial in transporting the vaccine from the US to all different parts of the world. Distribution of the vaccine is a challenge for many, but for dry ice companies, that nightmare may be a huge business opportunity. Because of the cold storage requirements for the Pfizer vaccine, dry ice stocks have been trending in anticipation of the increased demand.

The leading dry ice makers in the US are bombarded with inquiries not only from the vaccine manufacturers but also from different district hospitals, public health departments as well. Not only during the transportation but also during the storage, dry ice would be essential as huge volumes are required. Considering the need for transportation and storage for the vaccine, the dry ice companies are going to have increased demand very soon. The increased demand and lack of suppliers would mean increased pricing.

Many dry ice companies are small and private, but there are a few publicly traded companies that operate in this space which makes for good investment opportunities. Here are some of the most notable few companies in this space. With the P/E ratio ranging from 26 to 60, these stocks are not cheap, but the increased revenue would mean increased EPS, which may make the scenario favorable for these stocks. Also, one positive factor for all these 3 stocks is the decent dividend yield! Here are the top 3 companies by revenue and market share. Below is the comparison based on different parameters.

Linde Plc (NYSE: LIN)

Linde Plc is an American-German multinational chemical company. Founded in 1879, this 141-year-old company is the largest industrial gas company by both market share and revenue. With revenue over 28B, this is among one of the largest fortune 500 companies in the world. Though the current P/E of the stock is high, the stock could have a significant upside in EPS in the near future, which may mean that the stock price can go up in the medium term.

As the largest beneficiary of the dry ice demand surge, a lot of money can flow into this stock, which can see the stock price move up. Also, a decent dividend yield would ensure the investors would keep this stock on their radar.

Air Products and Chemicals, Inc. (NYSE: APD)

Air Products and Chemicals, Inc. is a leading American company that primarily deals in gases and chemicals for industrial use. Air Products and Chemicals, Inc. serves customers in healthcare, food, energy, and technology space. Air Products also produces liquid hydrogen and liquid oxygen fuel for NASA. Headquartered in Allentown, Pennsylvania this company is going to be a huge beneficiary of the surge in demand for dry ice.

With revenue of close to 9B this stock can improve it’s revenue and also can improve the EPS. The stock has corrected a bit in last 1 month after a huge surge in last 7-8 months and can rebound again in near future.

L’Air Liquide S.A. (OTCMKTS: AIQUY)

L’Air Liquide S.A. is a French company that supplies industrial gases to various industries including healthcare, chemical, and electronic companies. Founded in 1902, this is the second-largest supplier of industrial gases in the world by revenue, operating in over 80 countries.

The stock has moved up significantly in the last 7-8 months in line with the broader market. The stock is poised for significant uptrend as investor interest increases in next few months. With a P/E ratio of 26 and dividend yield of almost 1.8%, this stock is a safe bet in the current scenario. The stock has huge potential to move up and has extremely limited downside risk. As lots of smart money move into this segment, a huge uptrend is expected in this stock.

With just over a week left for the United States presidential election, the battleground is set for intense debate and rhetoric. However, the stock market is prone to high volatility, not only as we come close to the election, but also in the next few months to a year as a result of the COVID-19 pandemic. There are certain stocks that are going to benefit from the victory of either President Donald Trump and former Vice President Joe Biden. The policies and philosophy of each of the candidates are getting clearer during these debates and increasing clarity on which stocks are going to benefit from the result of this battle.

Which Stocks Will Win In This Election

We have created the list below based on the analysis of how the stock market has performed in the last few months and on the odds of victory for Joe Biden or Donald Trump. The analysis takes into account the correlation between daily price changes and presidential candidate general election betting odds. Also, the history of the stock and the current valuation has also been taken into account to identify these stocks which could potentially benefit from its favorable side’s winning.

Stocks that can benefit from Trump winning:

Johnson & Johnson (JNJ): Johnson & Johnson is one of the leading American multinational corporations founded in 1886, which deals in medical devices, pharmaceuticals, and consumer packaged goods. Due to the recent pandemic, there has been a lot of focus on the pharmaceutical companies and Johnson and Johnson is going to benefit in the near term. 

British American Tobacco PLC (BTI): British American Tobacco plc is a British multinational company that manufactures and sells cigarettes, tobacco, and other nicotine products. In the recent past, the stock has reacted positively to any news that signified Trump ahead of Biden in the Presidential race. Also, the stock is reasonably priced at a P/E of 9.29 and has a good dividend yield of almost 10%. The company has consistently paid dividends in the last 10 years.

Microsoft (MSFT): Microsoft has been one of the very few tech behemoths who have not faced the wrath of the Trump administration. There have been multiple allegations against companies like Apple, Amazon, Google, and Facebook as they are restricting competition and becoming monopolies in their respective spaces. But when it comes to Microsoft it has been well placed from that perspective and is well poised to benefit from the tech revolution. Also, the recent interest was shown by Microsoft to buy Tik Tok in the USA, making its ambitions clear in the social media space, one of the areas which Microsoft has been trying to venture into. Considering decent valuations and no immediate interruptions to the business it can benefit from Trump’s victory in the presidential election.

Bristol-Myers Squibb Co (BMY): Bristol Myers Squibb is a leading American pharmaceutical company that manufactures prescription pharmaceuticals for cancer, HIV/AIDS, cardiovascular disease, etc. As the continuous focus of Trump to improve healthcare gathers pace, this company may benefit in the near term from Trump’s victory. With a decent dividend yield of almost 3% and a consistent track record of paying dividends, this stock is should be in your portfolio.

Stocks that can benefit from Biden win:

A. O. Smith Corp (AOS): A.O. Smith, a maker of water heaters in the US has been supplying its water heaters globally. It did not have an easy go in recent years. However, the stock has shown positive movement whenever the odds have improved in favor of Biden. Biden’s “Made in America” plan will help companies such as A.O. Smith, which manufactures in China and India for years but still produce most of the products destined for the US right here in America. The new policy from Biden should help companies who are not forced to stop offshoring and the new tax regime might help this company.

Oracle Corporation (ORCL): Oracle Corporation is a leading American multinational computer technology corporation that sells database software and technology, cloud engineered systems, and enterprise software products. With a market cap of 180 Billion, this tech giant is poised to take the next big leap under the Biden regime. This stock has also seen positive movements with any improvement of odds in favor of Biden. With a decent P/E ratio of just 18.78 which is relatively cheap for a tech company and a good dividend yield of 1.6%, this stock is expected to get some attention from investors in near future. Also, the consistent track record of dividend distribution should be an added advantage for the investors.

Exxon Mobil Corporation (XOM): ExxonMobil is a leading American multinational oil and gas corporation headquartered in Irving, Texas. In the recent past, Exxon Mobil’s share price has favorably moved in case of any improvement in odds in favor of Joe Biden. Though the oil and gas space is gaining less traction, the decent dividend yield of 10% and a consistent track record of paying dividends may help you to keep this stock in your portfolio.

Baozun Inc (BZUN): The last stock on our list is a relatively unknown company. Baozun is a leading digital technology and solution company in China. This stock has shown positive movement whenever the predictions have shown that the odds are improving in favor of Biden. As the USA-China deal may go for a change in the Biden regime this stock may also witness some change in fortune.

The recent lawsuit against Google (GOOGL), the so-called search engine gatekeeper to the internet, marks the return of the US Government’s role in disciplining the country’s largest and most powerful monopolies. As alleged, Google is a classic monopoly that has used wrongful means to keep its competitors at bay. They are also accused of striking exclusive deals with major partners like Apple (AAPL) to ensure that their search engine is the default option in most of the phones across the world.

Though Google’s response is that its services are free and do not harm the consumers, which may not stand for long. The same logic did not work out in Microsoft’s (MSFT) case when it faced a similar lawsuit for its Internet Explorer, which was free as well. 

Earlier the US House of Representatives panel submitted the report regrading the working of companies like Facebook (FB), Amazon (AMZN), Google, and Apple. The probe had started in July 2019. These behemoths have been on the radar in different geographies for buying out their competitors or forcing the vendors to avoid working with these competitors. By that way, the monopoly of these giants remain intact in ecommerce, social media, search engine and mobile phone and operating system environment.

Though blips are going to come every now and then, this may not deter the position of strength for these companies. Also, if we believe history is going to repeat itself, then these companies are going to come out stronger from these lawsuits.

This Is Not Google’s First Lawsuit

This lawsuit is not new for Google as it was faced with similar lawsuits in the past, not only in the US but in Europe, as well. Though in Jan 2013, the Federal Trade Commission (FTC) decided against pursuing the case against Google. But after a few years, Google was hit with a record 2.42 billion Euro fine in 2017 in Europe. On 20^th March 2019, the European Commission imposed a hefty fine of 1.49 billion pounds on Google for abusive practices in online marketing. Hence the risk of lawsuits and fines are going to continue to be there for the next few years.

But each of these events has just been a temporary blip in the stock price and the google stock continued to go up in the last 7-8 years without any interruption. In 2019, Google made over 80% of it is total revenue through selling advertisement placements. The more user data that Google collects it can benefit more from targeted advertisements.

What About Google’s Competitors?

When it comes to other tech giants we mentioned, each of them has almost tripled in market cap in the last 5 years. Apple, Amazon, and Google have already become trillion-dollar companies, and Facebook is just a few steps behind. It appears these tech behemoths are going to weather the storm and come out stronger. In the post-COVID world, the new normal is going to be the order of the day, with social distancing and remote working becoming more prevalent. These tech giants are going to make the most out of this situation and are going to be bigger in size and power. As more money follows these few tech giants the lobby of these companies would be immense.

However, if the lawsuit against Google adversely affects its profitability due to hefty fines, the company that will get the most out of this situation would be Microsoft. It owns the next biggest search engine in the world (Bing) and also it owns the biggest professional networking space (Linkedin). Furthermore, the biggest competitor for Google Chrome is Internet Explorer, which can benefit immensely if Google faces an adverse impact tp all of its businesses.

When it comes to social media and streaming space, the company that can benefit from this turmoil would be Facebook as it aspires to compete with YouTube. Ironically, this would strengthen its monopolistic position in the social media space. Finally, if the Android empire fails, the obvious beneficiary would be Apple and a greater number of people would switch to the IOS world for better customer experience. A recent stock split has been also beneficial to its shareholders.

However, if all these tech behemoths face the wrath of the judicial system in the US, the next set of winners and competitors would emerge from the garages and we would witness the tech empire built once again from the scratch.

Real-Time Stock Tickers

Stock Split is an important event for most of the corporates as it gives them the flexibility to manage the stock price of their company. Theoretically stock split should not have any impact on the overall market value of the company but it has been proven time and again that it can have a huge psychological impact on the investors’ mind and in a way can have significant value to the company.

So, it is no surprise when Apple (AAPL) and Tesla (TSLA) announced a split of 4:1 and 5:1 respectively, rallied the two shares to new highs. But what is specifically is a stock split and why should you care when they happen?

What is Stock Split?

Stock split is a process to increase the total shares outstanding for a company, however, the total market cap of the company remains the same. The stock split requires the explicit approval of the board of directors and the number of shares after the split goes up by the split ratio. At the same time, the market price of the stock is reduced by proportionate amount.

We can compare the stock split to a pizza slice where a whole pizza (stock) is divided into pizza slices (split stocks). Let us assume the price of Pizza is $10 and it is split into 4 pieces, indicating a price of $2.5 per slice. Similarly, a stock with a market price of $100 after split into 4 pieces would have a market price of $25. So, if an individual did have 10 stocks earlier, she would have 40 stocks not, but the overall value of the stock would still remain the same i.e. $1000.

The above image depicts the stock split of Apple from its inception till 2005. The stock split happened in 2:1 ratio in 1987, 2000 and 2005. Ideally the stock price should have been reduced from 100 USD to 12.5 USD and each stock would split to 8 stocks.

Is stock split Good for Investors and the company?

We cannot generalize to indicate whether a stock split is good or bad, rather it is the market condition that dictates the efficacy of the stock split. Also, it is the individual company and its outlook that is a crucial factor as well. For good companies where the stock price has reached a stage where it has gone out of reach for retail traders, a stock split helps in bringing the stock price down and in turn helping the stock more accessible by the retail traders.

So, if the market value of a company does not change why does companies go for stock split? Also, if the effective stock price does not change why should investors be excited about the stock split?

Keep stock price in comfortable zone:

The first and foremost reason for most companies to go for stock split is that, it allows companies to keep stock price in comfortable zone.

Companies like Apple has split its stock 5 times in the last 33 years. If Apple would not have split its stock since inception and the stock price would have increased as per the historical trend, then each of the stock would have been at close to $20,000 today. This would have made it extremely difficult for the retail investors to buy/trade the stock.

Recently Tesla has split its stock and it has a market price of approximately 400 USD now compared to the pre-split price of approximately 2000 USD.

Play with Investor Psychology

It is common investor psychology that keeps them away from selecting a stock whose market prices is too high. Many investors usually associate higher stock price with expensive stock and do not consider the intrinsic value of the stock.

Having a lower stock price plays with the psychology of investors and some of them may consider the stock to be cheap even though it might be much more expensive compared to a high-priced stock. Instead of comparing the stock price with the book value or the EPS of the company many investors compare the price with the stock price of another company.

Have more volatility and effective price discovery

A quality stock which has lower market price is traded more frequently. Many retail investors will be able to trade a stock which has smaller market price. Also, we usually see a big run up after the announcement of the stock split and typically after the actual stock split the stock price goes down.

As the famous saying in the market, “Buy on Rumour and Sell on news”, similarly the stock price goes up with the announcement of the stock split and typically goes down for some time after the actual splitting of the stock.

We can observe this trend in case of Tesla, where the stock started the rally from 11^th Aug 2020 (when the stock split was announced) and continued till 31^st Aug (when the actual stock split happened). This trend can also be visible in case of Apple and many other quality stock that has gone for a stock split in recent years.

We can say that even though the stock split does not have any significant impact theoretically on a stock but for some of the quality stocks it can have good psychological impact on the investors which can help the stock reach new highs.

If you’re interested in learning more about the market, you can read our previous article on Patterns and Trends

In the forex market’s jargon, the bullish patterns represent the rising of the price. This climbing happens in either ranging or trending markets.

The ranging markets define a price reversal, while the trending markets outline price continuation.

In this guide, we’ll discuss the top 5 bullish patterns in a trending market. If you are a trend-trader then this list is your cup of tea.

1. Bullish Triangle

The Triangle pattern appears in ranging and trending markets and marks the continuation of a trend. It consists of two trend lines. These lines are the depiction of support and resistance levels and take the shape of an opened triangle along with a converging price range.

The Triangle pattern consists of three types; ascending, descending, and symmetrical. In its ascending version, the Triangle takes the form of a bullish pattern.

The pattern starts with a sharp rise, following a decline, then moving up and down before finally breaking the upper horizontal line. When it breaks the upper trend line, there is a significant buying pressure, and the bulls are in control.

To trade, you should take long positions after the completion of the pattern.

2. Bullish Pennant

The Pennant is a continuation pattern that emerges when a large price movement follows a consolidation before moving with the trend. The initial price’s high expresses the first half of a flagpole, and when the pattern completes with the huge peak, the second half of a flagpole occurs.

The Pennants are a form of Triangle Pattern, but with the strong opening movement.

The bullish version of the Pennant is an excellent indicator of trend continuation. It surfaces in an uptrend, and you can take long positions after the confirmation of a breakout candle. The breakout candle is a last candle in the Pennant.

3. Bullish Rectangle

The Rectangle is another price continuation pattern that resembles a rectangular box. In a Rectangular pattern, the price is confined by support and resistance levels. It pops out in either uptrend or downtrend and contains several highs and lows before signaling a breakout candle.

In its bullish variation, the Rectangle forms in an uptrend. Here, you have to take positions after the breakout candle.

4. Bullish Flag

The Flag also illustrates the continuation of a trend. It establishes on shorter timeframes and is limited by two trend lines. The breakout occurs after the consolidation period.

You should locate the pattern in an uptrend in the bullish Flag and wait for the breakout candle. After that, you can go long.

5. Bullish Rounding Bottom

Many traders consider the Rounding Bottom as a reversal pattern. However, it is both continuation and reversal.

As the name suggests, the Rounding Bottom has a round structure and develops when the price bar is at the bottom.

In bullish Rounding Bottom, the price may fall at first, but it can rise again. To help identify the trend’s behavior, consider using momentum oscillators. In this way, you would only take long positions when the trend is in your favor.

To sum up, all of the above-mentioned patterns work fine in the trending markets. To make them more useful, you can combine these patterns with other technical indicators. And if your looking for a system that does this for, we suggest trying Forex Trendy

Professional traders used to analyze chart after chart to find reliable patterns on daily and even intraday time frames. Today, computing power comes into play. Forex Trendy is a software solution able to recognize chart patterns on all charts every second! Forex Trendy is a fully-automated trading system designed to analyze the Forex market for various trends and opportunities. Upon identifying either, it can recommend specific trades to its users.

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