06-01-2020: The Pandemic Is Not Bad For All Businesses
Investor interest began to sag a bit for stocks in the late
part of a long bull market. Financial brokerage agencies were
having a hard time maintaining earnings. But when the pandemic
broke and the market tanked, trading activity swelled and these
companies along with major retailers like Wal Mart and Amazon
had major gains at the expense of smaller companies forced to
reduce business activities. Gain Capital Holdings, Inc. (GCAP)
was a broker services organization which benefitted heavily from
the pandemic crisis. Unfortunately for it, however, it made a
deal with another company to be acquired for what is now
considered way too low a price. GCAP had strong financials and
considerable support from stock research organizations. It made
a deal "too soon" resulting in a swarm of class action lawsuit
and activist shareholder activity which some suggest may mean
the deal is not yet "done." If so, GCAP has not acknowledged this.
We think it would be a very strong stock were it not for its
directors approving it to be acquired. If that can be stopped,
and some think it can, the stock is a "buy" but if not, traders
should stay away.
Our recent article on Gain Capital Holdings, Inc. (GAIN) is in the Archives Section Below.
Note: Zenith tries to pick only stocks which are shortable, but sometimes stocks appear afterward on the SEC Regulation SHO list of stocks which are not shortable, which is beyond our control. On some stocks, Zenith may hold more than the number of shares it trades in its inventory. Thus the "short" sale of such a security would technically not be a "short" sale for us and not subject to SEC rules regarding selling securities which are not deliverable. Also, stocks pop on and off the list available for shorting on successive days, so the presence of a stock on the current SHO list doesn't mean it was there at the time it was shorted.
Stocks recently restricted by SEC Rule 201 as not shortable unless we already have a position which are on our Active List include: 62% of all our active stocks.
Zenith's Active List of 39 Stocks as of 05/23/2020
(Updated once a week, usually on Saturday except when less than 5 trading days in the week.)
What are the last three entries in the Active Stocks chart list? These represent typical high-, mid-, and low-cap mutual funds to help us gage the tenor of the stock market as a whole.
Archive List
06-01-2020: Gain Capital Holdings, Inc. (GCAP)::Trading Swells on Pandemic Panic
05-11-2020: Lakeland Industries, Inc. (LAKE): Profitting from Pandemic
04-30-2020: Capital Southwest Corporation (CSWC): Accidental High Dividend Payer
04-22-2020: Spirit Airlines, Inc. (SAVE): Shutting Down Routes
04-09-2020: Pentair plc (PNR): Divested Half the Company
04-02-2020: Boeing Company (BA): Government Bailout Certain
03-17-2020: Pacific Gas & Electric Co. (PCG): Government Is the Problem
03-11-2020: Everi Holdings, Inc. (EVRI): Liabilities Exceed Assets
02-26-2020: Open Text Corporation (OTEX): Cloud Computing Experts
02-18-2020: Cincinnati Financial Corporation (CINF): One of the 20 Largest Insurers in U.S.
02-07-2020: Flowserve Corporation (FLS): Flow Control Valves & Other Industrial Machinery
01-28-2020: Xerox Holdings Corporation (XRX): HP Takeover Bid
01-22-2020: United Airlines Holdings Inc. (UAL): Boeing Problems
01-11-2020: Target Corporation (TGT): Awaiting Earnings for Stock Jumps
01-07-2020: BuildersFirstsource, Inc. (BLDR): Digesting Acquisitions
12-22-2019: Quest Diagnostics, Inc. (DGX): Recent Data Breach
12-17-2019: Plantronics, Inc. (PLT): Massive Inventory Writedown
12-07-2019: Tenet Healthcare Inc. (THC): Activist Intervention
11-12-2019: Arconic Inc. (ARNC): Fabricated Engineered Aluminum Products
11-02-2019: Universal Display Corporation (OLED): Organic Light Emitting Diodes
10-28-2019: Intelligent Systems, Inc. (INS): Accounting Management Software
10-23-2019: Copart, Inc. (CPRT): Wrecks for Sale at Low Auction Bids
10-19-2019: Meritor, Inc. (MTOR): Heavy Duty Axles, Gears, Suspension Parts
10-12-2019: Allegiant Travel Company (ALGT): Lower Fares on Less Traveled Routes
10-08-2019: LGI Homes, Inc. (LGIH): Staggering Growth Rate
09-25-2019: Dollar Tree, Inc. (DLTR): Holding the $1 Line on Pricing and Goods
08-31-2019: Heico Corporation (HEI).: Outstanding Aerospace Supplier
08-24-2019: Myers Industries Inc. (MYE): Getting Out of Lawn & Garden Container Business
08-18-2019: Delek US Holdings, Inc. (DK): Awaiting Oil Price Recovery
08-13-2019: M / I Homes, Inc. (O): Booming After Recession Recovery
08-09-2019: Inter Parfums Inc. (IPAR): Perfume Industry Strong Performer Lately
08-02-2019: Mobile Mini Inc. (MINI): Strong Construction Industry Container Niche
07-27-2019: Agnico Eagle Mines Ltd. (AEM): Gold Price May Rise Dramatically
07-21-2019: Paysign, Inc. (PAYS): Credit Card Services Group Soars
07-12-2019: Service Corporation International (SCI): Not Much Changes in the Funeral Industry
07-06-2019: Enphase Energy, Inc. (ENPH): Trade Relations Improvement Hopes
06-28-2019: Blackstone Mortgage Trust Inc. (BXMT): Fingers In Many Pies
06-21-2019: Under Armour, Inc. (UA): Some Things Not To Like About This Stock
06-15-2019: Xperi Corporation (XPER): Confusing Array of Licensed Technologies
05-19-2019: Cardtronics plc (CATM): Cashless Society Not Likely
05-10-2019: Lithia Motors, Inc. (LAD): Internet-Linked Dealerships
Trading in stocks involves risk, and past performance is no guarantee of future profits. Zenith doesnot sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders / brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" forconfirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.
Recommendations may include trades which have already been made on the same or a previous day,otherwise the issue is placed on a "watch list." Suggested stock trades are based upon an approximate maximum $30,000 capitalization requirement per trade. Zenith's actual trades may be larger.
