- Elite Trade Club
- Posts
- 4 Stocks to Trade Before 2024 ⏰
4 Stocks to Trade Before 2024 ⏰
Premarket Report
Chris Dinello
December 29, 2023
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Remember, markets are closed Monday to celebrate New Year’s Day. I hope you have a great weekend and a happy New Year!
Now, let's get ready to trade!
Markets 📈
It was a mixed day for stocks on Thursday, but most U.S. indexes ended the day close to where they began.
|
|
Futures are edging lower in early trading. S&P 500 contracts are currently down by less than 0.1%.
Trading volume looks pretty thin in the premarket, so watch for extra volatility among thinly-traded stocks today.
Sponsored
Rising interest rates... Skyrocketing inflation... Exploding debt... A looming recession...
It's no wonder Americans are becoming concerned about their savings and investments.
That's why Ben Stein wrote his newest report...
This FREE REPORT shows YOU how you could protect your retirement savings before it's too late.
Get started now to see how you can protect everything you've worked for!
Premarket Highlights 🔎
📉 Hang Seng Posts Another Losing Year
Hong Kong's financial market has faced another challenging year, with the Hang Seng Index marking its fourth consecutive annual decline. The index dropped 14% in 2023, ending the year at 17047.39. This persistent downturn reflects the city's struggle to recapture its former prominence as a financial hub.
📉 Key Factors Influencing the Decline:
The Hong Kong market, home to numerous Chinese companies' shares, has seen diminishing interest from international investors.
Geopolitical factors have played a significant role in dampening investor sentiment towards Hong Kong's stock market.
The deceleration in China's economic growth has been a contributing factor to the Hang Seng Index's poor performance.
🌏 Comparative Market Performance:
India's Market Surge: In contrast, India's stock market, with a market capitalization of around $4.4 trillion, has recently surpassed Hong Kong's, buoyed by benchmarks nearing all-time highs.
Positive Trends in Taiwan and South Korea: Both Taiwan and South Korea ended 2023 on a more positive note, registering double-digit percentage gains.
Mainland China's CSI 300: The CSI 300 index, representing major companies in Shanghai and Shenzhen, closed the year with an 11% decline.
The ongoing decline of Hong Kong's Hang Seng Index against the backdrop of more robust performances in other Asian markets underscores the complex interplay of regional economic dynamics and geopolitical factors shaping investor confidence.
What to Watch Today 👀
Holiday Season Comes to a Close
The close of today’s session will mark the official end of the holiday trading season. We’ll only have four days of trading next week due to the holiday on Monday, but market conditions should begin to normalize once New Years has passed. I am optimistic about the market in 2024, thanks to the Fed’s recent dovish pivot, but I still have some concerns about the U.S. economy. Regardless, I think the U.S. stock market will continue to be an excellent investment option in 2024.
Featured Earnings 💲
None
Economy 🏗
Chicago Business Barometer [Dec] ... 9:45a
Running Hot 🔥
Gainers
China SXT Pharma [SXTC] >> +165.2%
Sentage Holdings [SNTG] >> +38.4%
Kintara Therapeutics [KTRA] >> +42.0%
Decliners
Safeguard Scientific [SFE] >> (19.2%)
Sidus Space [SIDU] >> (22.6%)
Cingulate [CING] >> (23.5%)
China Green Agriculture [CGA] - Last Close: $1.90
The micro-cap agricultural stock is trending after the company announced a new stock purchase agreement with Zhibiao Pan.
Under the terms of the deal, China Green Ag will acquire all outstanding stock of Lonestar Dream for a total consideration of $49 million.
News of the deal sent CGA soaring in today’s premarket. It’s up 91.0% on 2.2 million shares traded.
My Take: Forgive my cynicism, but I am pretty skeptical about no-name China stocks that randomly explode out of nowhere on the slightest piece of news. Something tells me these gains won’t last for long.
CBDMD [YCBD] - Last Close: $0.7899
Late last week, the CBD firm reported fiscal Q4 and full-year 2023 financial results that are giving the stock a boost this week.
CBMD reported $24.2 million in sales, down from $35.4 million last year, for a total net loss of $23 million.
Altogether, the company saw its net sales slide by 27% YoY in fiscal 2023, but its operating loss narrowed by 67% compared to the previous year.
YCBD is one of this morning’s top stocks with a 77.3% gain on nearly 7 million shares traded.
My Take: YCBD had a 10.89% short percentage on Nov. 30th, which could explain some of the volatility the stock has experienced in the wake of its earnings report.
FLJ Group [FLJ] - Last Close: $1.38
Aparment rental platform FLJ just announced the acquisition of Alpha Mind Technology and the termination of its Lianlian buyout.
On November 22, the company made a deal with Alpha Mind and its parent company's shareholders to acquire it for $180 million.
The company funded the deal via a promissory note with a 90-day maturity term and a 3% annual interest rate.
Apart from this, FLJ terminated the previously announced equity acquisition deal with Lianlian Holdings and certain Lianlian shareholders.
FLJ jumped 15% on Thursday, and it’s up another 19.5% with more than 6 million shares changing hands in today’s premarket .
My Take: The market seems to like this deal, and FLJ saw a massive volume spike on Thursday. It also has an absurd short rate, so who knows how long this rally can roll.
Regis Corp. [RGS] - Last Close: $10.44
The hair salon operator is rallying after announcing plans to appeal the NYSE decision to commence proceedings to delist its stock.
After Thursday’s close, Regis announced the filing of the appeal, which included a request for an oral hearing with the NYSE to discuss the ruling.
RGS is up 13.0% on the news, but volume is very thin with less than 100K shares traded in the premarket.
My Take: RGS has been on a tear this week, so it’s possible it may have reached its bottom. However, if you’re going to buy this one, don’t let the thin trading volume trip you up when the time comes to make your exit.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
Text ELITE to 47121 or click here to get our alerts on your mobile device, and never miss another fast-moving stock!
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.