Strategic Tech Investor | Michael A. Robinson http://strategictechinvestor.com Profiting in tech and defense with Michael A. Robinson Fri, 21 Jul 2017 14:34:35 +0000 en-US hourly 1 Huge Arenas, Global Audiences, Big Profits http://strategictechinvestor.com/2017/07/huge-arenas-global-audiences-big-profits/ http://strategictechinvestor.com/2017/07/huge-arenas-global-audiences-big-profits/#respond Fri, 21 Jul 2017 13:48:48 +0000 http://strategictechinvestor.com/?p=20171 There's not a major sports league in the world today that wouldn't love to undergo 138% growth in just four years.

We're talking a total of 238 million viewers around the world for a "sport" that didn't really hit its stride until 2010.

To cash in on this fast-growing trend, a group of owners from the National Football League, National Basketball Association, and Major League Baseball recently invested more than $140 million to start their own teams.

And if the players look more like computer geeks than athletes, it's because that's just what they are. In the new field of eSports, teams duel it out over computer games while fans watch online or at major arenas.

Here's the thing. Though the field is new, it's already ripe for disruption due to the immersive experience of virtual reality (VR).

Today, I'm going to reveal a VR firm that offers us a rare Convergence Economy play on the emerging lucrative mix of sports and digital tech.

Let's get started...

The post Huge Arenas, Global Audiences, Big Profits appeared first on Strategic Tech Investor.

]]>
There’s not a major sports league in the world today that wouldn’t love to undergo 138% growth in just four years.

We’re talking a total of 238 million viewers around the world for a “sport” that didn’t really hit its stride until 2010.

To cash in on this fast-growing trend, a group of owners from the National Football League, National Basketball Association, and Major League Baseball recently invested more than $140 million to start their own teams.

And if the players look more like computer geeks than athletes, it’s because that’s just what they are. In the new field of eSports, teams duel it out over computer games while fans watch online or at major arenas.

Here’s the thing. Though the field is new, it’s already ripe for disruption due to the immersive experience of virtual reality (VR).

Today, I’m going to reveal a VR firm that offers us a rare Convergence Economy play on the emerging lucrative mix of sports and digital tech.

Let’s get started…

From the Arcade to Madison Square Garden

If you’re a baby boomer like me, you no doubt recall the early days of video games. My friends and I often played Asteroids, Space Invaders or Pac Man over cocktails at our favorite watering hole.

By comparison to today’s deeply immersive, graphics-rich games, those titles seem to have come from the Stone Age.

That’s why modern hits like Call of Duty and World of Warcraft go after the desirable demographic group of millennials. These young people live online, stream movies rather than watch television, and seem to have their smartphones attached to their hands.

And the money is rolling in…

SuperData valued the eSports market at $748 million in 2015. The figure includes sponsorships, advertising, team prizes, fantasy sites, and ticket sales. By the end of 2018, SuperData says that figure will climb 154% – to $1.9 billion.

YOU NEED TO SEE THIS: Big Tobacco Is Legally Mandated to Pay Out This Cash… Forever

Roughly 52% of those sales will come from the United States and Canada. In other words, unlike most American pro sports eSports already is a global field with a lot of growth ahead.

Most viewers follow the field online. But live events also do well. Back in 2015, an eSports multiplayer battle sold out New York’s Madison Square Garden, which has more than 18,000 seats. Fans paid between $46 and $61 to attend.

No wonder all three major computer game publishers have launched competing eSports leagues.

Last week, computer game firm Activision Blizzard Inc. (Nasdaq: ATVI) drew attention from The Wall Street Journal. The paper reported that Activision’s Overwatch League has so far signed up seven owner groups that have put up $20 million each to start their own teams.

The paper said Blizzard expects the Overwatch League to field 28 teams. The company will share sales for advertising, merchandising, ticket sales, and broadcast rights with team owners.

Meantime, = Electronic Arts Inc. (Nasdaq: EA) and Take-Two Interactive Software Inc. (Nasdaq: TTWO) are developing their own leagues, though data about their status is not yet public.

HAVE YOU SEEN THIS? These Micro-Cap Pot Stocks Could Turn Small Timers Into Millionaires

So is Riot Games, the firm behind League of Legends that sold out Madison Square Garden. Chinese web giant Tencent Holdings Ltd. (OTC: TCEHY) bought a majority of Riot Games in 2011.

The move gave Tencent a big play on eSports growth in China. With China in the lead, the video game analysts at Newzoo estimate that Asian Pacific countries will be home to 44% of the global eSports audience.

In a case like this where many tech leaders are racing to get in on the action, I believe we can make more money by finding a great backend stock.

Even better, if the firm just happens to have the type of breakout tech that can disrupt a new field like eSports…

Inside the Game

And that’s why I think Facebook Inc. (Nasdaq: FB) is a great way to play the massive grow ahead for eSports. See, Facebook owns the Oculus Rift VR headset.

VR is one future of video gaming and eSports. Simply stated, VR allows users to “enter” a computer game with such a deeply immersive experience that they feel like they really are there.

This virtual world could also fashion a strong bond between players and their fans. After all, teams will battle it out wearing VR headsets while fans at home can join the action from the comfort of their couches using the same equipment that puts them in the center of the action.

VR is a great growth field in its own right. MarketsandMarkets says the sector will be worth $33.9 billion by 2022. During the period, growth will average 57.8% a year.

But there’s much more upside ahead for Facebook than just its VR headset. Turns out, the social networking leader also is becoming a go-to eSports outlet.

Facebook started in the field in the “early days” of mid-2015. At the time, sites like Reddit, Twitter, and YouTube were the eSports broadcasting leaders.

These Tiny Devices Are Giving Medical Technologies an Einstein-Like I.Q. Boost

So, Facebook joined forces with Major League Gaming, an eSports network geared around pro events. At that time, Facebook was way back in the pack among eSports sites.

However, the Silicon Valley leader keeps picking up the pace…

In April, Facebook signed a deal with Team Dignitas, one of the field’s top teams. The next month, Team Zuckerberg joined forces with eSports league ESL to bring more than 5,550 hours of events and other fresh content to Facebook, including 1,500 of original programming.

ESL made the move so it could deepen its reach into its Facebook fans. Last year, ESL had more than 2 billion impressions and more than 200 million global Facebook users.

That pact brings up a key point behind why I believe Facebook will soon dominate the new gaming paradigm. Simply stated, no online, cable or TV network can match its user base and its Facebook Live streaming format.

1.94 Billion – and Rising

We’re talking 1.94 billion active monthly users at the end of the first quarter, up 17% from the year-ago period. Daily average users grew by 18% to 1.28 billion, a figure that is just shy of China’s 1.37 billion population.

Make no mistake, Facebook is a cash machine…

In the first quarter, sales rose 51% to $7.8 billion while diluted earnings per share climbed 73% to $1.04. The firm has $32 billion in cash on hand. The stock is trading around $164.50 and has a $480.58 billion market cap.

Pick up a few shares and you get one of the tech sector’s top stocks with year-to-date gains of 38%. That’s more than three times the S&P 500’s return over the same period.

Add it all up and you can see that Facebook is not just a great way to play the growth in eSports and the dawn of the VR era.

It’s also a stock you can count on to grow your portfolio over the long run as firms all over the world keep tapping the power of massive user base.

Follow me on Facebook and Twitter.

Editor’s Note

Paid-up members of Michael’s Nova-X Report research service have a “pure” eSports play in their portfolios – and they’ve made 84% on it in the less than two years they’ve held it.

And that’s far from the only play that’s burning up their bottom line. Nova-X readers are also sitting on gains of 102.8%, 107% 108.6%, and 72.39%.

And this year alone, they’ve closed out plays that made them gains of 264.79% and 213.92%.

Click here to find out more.

The post Huge Arenas, Global Audiences, Big Profits appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/07/huge-arenas-global-audiences-big-profits/feed/ 0
When AI Meets Biotech, the Results Are Amazing – and Profitable http://strategictechinvestor.com/2017/07/when-ai-meets-biotech-the-results-are-amazing-and-profitable/ http://strategictechinvestor.com/2017/07/when-ai-meets-biotech-the-results-are-amazing-and-profitable/#respond Tue, 18 Jul 2017 17:14:23 +0000 http://strategictechinvestor.com/?p=19981 In biotech, one thing isn't going to change.

The treatment that makes up 90% of the pharmaceutical market - good, old-fashioned small molecules created in the laboratory - isn't going anywhere.

Yes, incredibly innovative treatments like T-cell therapy, microbiome therapies, and CRISPR gene editing are all having a huge impact on healthcare.

But we use small, synthetic molecules to create everything from aspirin and corticosteroids to sofosbuvir (Sovaldi) and ivacaftor (Kalydeco) - and we'll keep doing so for a long time to come.

The small molecule technique dates back to the 1890s, but that doesn't mean innovation cannot happen within that field. Scientists are hard at work in the labs, creating cutting-edge drugs, often tailored to treat a very specific disease or subset of patients.

Meanwhile, I've turned up a small British company that's using its artificial intelligence platform to discover promising small molecule treatments faster - and cheaper - than ever before.

I call it biointelligence.

It's a perfect illustration of the "Convergence Economy" we talk so much about here. By combining two or more fields of tech - in this case biotech and AI - it's like a formula in which 1 + 1 = 3... and often a lot more that.

Today, we're going to learn all about this tiny company and its brand-new biointelligence technology.

This company is privately held - so if you ask, Wall Street will say you can't invest in it.

But I've a way you can.

In fact, I've found two ways.

Both of them will lead you to outsized returns - and hefty dividends.

Let's take a look...

The post When AI Meets Biotech, the Results Are Amazing – and Profitable appeared first on Strategic Tech Investor.

]]>
In biotech, one thing isn’t going to change.

The treatment that makes up 90% of the pharmaceutical market – good, old-fashioned small molecules created in the laboratory – isn’t going anywhere.

Yes, incredibly innovative treatments like T-cell therapy, microbiome therapies, and CRISPR gene editing are all having a huge impact on healthcare.

But we use small, synthetic molecules to create everything from aspirin and corticosteroids to sofosbuvir (Sovaldi) and ivacaftor (Kalydeco) – and we’ll keep doing so for a long time to come.

The small molecule technique dates back to the 1890s, but that doesn’t mean innovation cannot happen within that field. Scientists are hard at work in the labs, creating cutting-edge drugs, often tailored to treat a very specific disease or subset of patients.

Meanwhile, I’ve turned up a small British company that’s using its artificial intelligence platform to discover promising small molecule treatments faster – and cheaper – than ever before.

I call it biointelligence.

It’s a perfect illustration of the “Convergence Economy” we talk so much about here. By combining two or more fields of tech – in this case biotech and AI – it’s like a formula in which 1 + 1 = 3… and often a lot more that.

Today, we’re going to learn all about this tiny company and its brand-new biointelligence technology.

This company is privately held – so if you ask, Wall Street will say you can’t invest in it.

But I’ve found a way you can.

In fact, I’ve found two ways.

Both of them will lead you to outsized returns – and hefty dividends.

Let’s take a look…

Finding Effective Treatments Faster

Don’t worry if you’ve never heard of the Dundee, Scotland-based firm Exscientia Ltd. Few folks have.

But this small company is upending drug development as we know it by adding a Silicon Valley-style innovation – artificial intelligence – into the mix. AI harnesses the power of computing, machine learning, and advanced algorithms to greatly augment what human minds can do – and find profitable patterns they can’t.

The $1.6 trillion biopharmaceutical sector is ripe for this kind of tech.

Let me explain why…

It now takes roughly five years from the time scientists begin looking at an area of disease before they land on a promising compound. Then after that, a drug firm will spend an average of $2.9 billion and 10 years to get the resulting treatment through U.S. Food and Drug Administration approval and out to patients.

MUST READ: How to “Rig” Penny Stocks in Your Favor…

According to a recent report from the Tuts Center for the Study of Drug Development, here’s how the costs break down: $1.4 billion in direct spending, $1.2 billion in lost use of funds over the decade, and more than $300 million in post-approval costs. That’s a 145% increase in costs since 2003, Tufts found.

But Exscientia is changing all that. Here’s how it works…

  • The firm’s biointelligence engine combs through thousands of drug studies to fashion best practices.
  • The biointelligence system then employs Big Data analytics to comb through millions of novel, project-specific compounds (nearly all small molecules).
  • After that, it produces a list of a data-rich compounds ripe for testing in the lab.

With this biointelligence process, Exscientia says it can come up with a list of promising compound in one-fourth the time of standard approaches.

That’s huge – both for patients looking for more effective treatments and for investors looking for bigger gains.

The Inventor of Viagra Is on This Team

This small startup has winner written all over it… in no small measure because it meets Rule No. 1 of our Tech Wealth Blueprint “Great Companies Have Great Operations.”

Just take a look at Exscientia CEO Andrew Hopkins.

He spent 10 years at Big Pharma leader Pfizer Inc. (NYSE: PFE), where he was responsible for establishing new research methods for finding potential drugs.

Hopkins also has raised a total of $50 million for academic and commercial research activities as Chair of Medicinal Informatics at the University of Dundee. And he’s the author of some of the most highly cited papers in modern drug discovery.

His chief chemist is no slouch either. Andy Bell is a coinventor of sildenafil (Viagra) and a contributor to the development of antifungal treatment voriconazole (Vfend). These products have racked up sales of nearly $40 billion around the world.

With more than 30 years of experience in the field, Bell is the winner of the American Chemical Society‘s Technical Achievement in Organic Chemistry Award.

Like I said before, this is a privately held firm, so Wall Street will tell you that there’s no way you can directly profit from this tiny firm’s work.

Unless you know where to look.

Two of my favorite drug companies have invested in and are working with Exscientia.

Both of these pioneers have the potential to profit from biointelligence.

And now so do you…

Biointelligence Pioneer No. 1

Let’s start with Sanofi SA (NYSE: SNY). The French giant in early May said it would invest up to $285 million in Exscientia if certain goals are met.

Because the pact is new, few specific details are available. But we do know that the two are teaming up on metabolic diseases like diabetes, a market valued at $55.3 billion.

With funding from Sanofi, Excientia’s biointelligence platform will be used to discover and identify “bispecific” small molecules. That means they’re looking for treatments that could treat not just diabetes but also one or more of its accompanying conditions, such as heart disease, all at once.

Tapping AI seems to be a natural fit for Sanofi. This is the firm that paid $20 billion back in 2010 to acquire biotech pioneer Genzyme and its RNA interference (RNAi) treatments. RNAi medicines can send genetic codes that tell diseased cells to stop replicating. That’s why these drugs have the capacity to cure tough diseases that affect millions of people around the world.

Sanofi has 44 drugs in its pipeline, including 13 in late-stage Phase III trials.

ATTENTION: Big Tobacco Is Legally Mandated to Pay Out This Cash… Forever

That impressive pipeline is one of the reasons I recommend Sanofi.

Another reason is Dupixent, Sanofi’s new eczema drug approved by the FDA in March. Developed in partnership with Regeneron Pharmaceuticals Inc. (Nasdaq: REGN), Dupixent is the world’s first injectable eczema treatment and avoids the cancerous side effects of topical calcineurin inhibitors (TCIs) often prescribed for eczema. Research firm EvaluatePharma puts expected sales of Dupixent at $4.2 billion by 2022.

The stock trades at roughly $48 and has a market cap of $120.56 billion – and it pays a 3.4% dividend.

Sanofi is up 18.4% in 2017 so far, compared to 10% gain for the S&P 500.

This company’s best days are clearly just ahead of it, so this is a great time to buy.

Editor’s Note

Biointelligence is far from the only biopharmaceutical innovation Michael is following.

In fact, he’s uncovered a method to turn small sums into massive fortunes, almost overnight, via medical marijuana stocks.

And he shares this method exclusively with you in his “Roadmap.”

Click here for more.

Biointelligence Partner No. 2

Meantime, at first glance, it may not seem like GlaxoSmithKline Plc (NYSE ADR: GSK) is a likely candidate for biointelligence.

Last time we talked about GSK, I showed you how the global giant has moved in recent years to smooth out its cash flow by focusing on over-the-counter drugs and consumer products like toothpaste. In fact, the company’s new CEO, Emma Walmsley, spent 17 years at makeup company L’Oréal SA (OTC ADR: LRLCY).

But make no mistake, GSK is committed to cutting-edge science.

As we’ve also discussed here, Glaxo is an innovator in both bioelectric medicine and immuno-oncology.

Bioelectric medicine is an approach that uses electrical signals to alter the body’s basic functions. In a child with asthma, for instance, doctors could wrap tiny devices around nerves in the lungs. Employing those devices, doctors could then alter nervous electric signals in order to ease tension in the lungs

BREAKING: These Micro-Cap Pot Stocks Could Turn Small Timers Into Millionaires

In August, Glaxo struck a $715 million deal with Alphabet Inc. (Nasdaq: GOOGL) to form a new company called Galvani Bioelectronics. This new firm will develop miniaturized implantable devices that can modify electrical nerve signals.

The immuno-oncology sector, according to Allied Market Research says will be worth $110 billion market by 2020. The goal is to come up with a whole new class of drugs that use our own immune system to combat cancer.

And just two weeks ago, Glaxo said it will invest up to $43 million in Exscientia.

The goal is to use biointelligence to search for drug candidates for up to 10 targets. Drug candidates that will one day add to GSK’s – and its investors’ – bottom line.

Trading at around $42.25, GSK has a $101.91 billion market cap. And it offers us a dividend with a current yield of 4.6%.

And now is a good time to buy.

Both of these firms are great foundational plays. They give us access to frontier fields of science like biointelligence – and the potential huge gains – but with the stability that investors like you crave.

Like I said up top, biointelligence is a combo of one of the oldest forms of drug discovery with one of Silicon Valley’s latest innovations – the epitome of the wildly profitable Convergence Economy.

Finally, make sure to reinvest all your dividends so that these companies are basically paying to own them.

I’ll see you later this week

Follow me on Facebook and Twitter.

Related Reports:

The post When AI Meets Biotech, the Results Are Amazing – and Profitable appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/07/when-ai-meets-biotech-the-results-are-amazing-and-profitable/feed/ 0
Every Time Trump Rips Into NATO, This Stock Soars http://strategictechinvestor.com/2017/07/every-time-trump-rips-into-nato-this-stock-soars/ http://strategictechinvestor.com/2017/07/every-time-trump-rips-into-nato-this-stock-soars/#respond Fri, 14 Jul 2017 14:54:55 +0000 http://strategictechinvestor.com/?p=19791 We've talked about some truly revolutionary tech developments rocking the entire defense sector right now, like laser weapons, advanced drones, helicopters, battlefield AI, and global awareness.

It all sounds very sci-fi, but it's happening now (and making us some serious money).

I want to talk about something a little less flashy but perhaps even more important to keeping our armed forces effective when boots are on the ground.

It's not headline-grabbing, and you certainly couldn't call it "state of the art." In fact, at less than $5 billion, it's a relatively small, overlooked niche in one of the world's most lucrative, high-profile sectors.

That's just one of the reasons why I love it right now.

The upside is huge... market-crushing.

And it's all likely headed to this European company with a U.S. presence...

The post Every Time Trump Rips Into NATO, This Stock Soars appeared first on Strategic Tech Investor.

]]>
We’ve talked about some truly revolutionary tech developments rocking the entire defense sector right now, like laser weapons, advanced drones, helicopters, battlefield AI, and global awareness.

It all sounds very sci-fi, but it’s happening now (and making us some serious money).

I want to talk about something a little less flashy but perhaps even more important to keeping our armed forces effective when boots are on the ground.

It’s not headline-grabbing, and you certainly couldn’t call it “state of the art.” In fact, at less than $5 billion, it’s a relatively small, overlooked niche in one of the world’s most lucrative, high-profile sectors.

That’s just one of the reasons why I love it right now.

The upside is huge… market-crushing.

And it’s all likely headed to this European company with a U.S. presence…

Big Changes Are Coming to Europe

The world has changed over the past eight months. Defense spending is coming out from under the onerous “sequestration” limits that kept it tightly capped for years.

What’s more, U.S. President Donald Trump has put America’s European Union (EU) and NATO allies on notice that they will have to beef up their defense spending to meet the treaty’s “2% obligation.”

That’s going to have some unintended knock-on effects, and this is exactly the right time to get in front of them.

You see, historically, much of Western Europe’s defense spending ends up here in the United States, with our defense contractors. This is largely because NATO was content to let the United States take a leading role in collective defense. There are European defense firms, of course, but mostly they’re absolutely dwarfed by the likes of Lockheed Martin Corp. (NYSE: LMT), Northrop Grumman Corp. (NYSE: NOC), and Boeing Co. (NYSE: BA).

Now, NATO has seen some changes in its 68-year history. The end of the Cold War, for instance, opened up the alliance to several former Warsaw Pact adversaries, and the Sept. 11, 2001, attacks on New York and Washington, D.C., “refocused” the organization on security concerns like global terrorism.

The new administration in Washington means change is coming again. The Europeans see they might not be able to take a leading U.S. role for granted anymore, and there’s quiet acknowledgement that defense spending in the alliance will have to increase in the face of Vladimir Putin’s resurgent, ambitious Russia.

The plan is now for NATO and the EU’s member states to develop a more robust, “homegrown” pan-European defense posture, with European defense contractors set to reap the most business.

Up till now, each country has built up a national defense force, by and large, with its own equipment.

Just last month the head of the European Union noted that while the United States has one main battle tank for its armed forces, Europe has 17. Wheeled and tracked vehicles are absolutely critical to fielding armies, getting them where they need to be, and keeping them supplied.

Harmonizing and rationalizing these vehicles among Europe’s allied militaries means big opportunities for military contractors with the capacity and technical knowledge to provide said vehicles for the future European defense force.

Unfortunately for U.S. contractors, most European countries are more interested in building up their own countries’ defense firms than handing the builds and maintenance contracts over to American firms.

Now, don’t worry for a second about our plays in the U.S. defense sector. It’s not going anywhere, and the growth potential here on military spending is staggering. What’s more, we’re in the middle of a broader trend where U.S. contractors are picking up dollars spent by non-European allies, like Australia and Japan.

Nevertheless, I think there’s going to be one really big winner in this pan-European defense effort…

HOW TO: “Rig” Penny Stocks in Your Favor…

The “Best of British”

defense stocks to buyI really love BAE Systems PLC (OTC ADR: BAESY)’s position in this space. It’s the Mary Careybiggest defense contractor and the third-biggest worldwide, based on 2015 revenue.

BAE is the successor company to legendary British aviation and shipbuilding firms that helped win the First and Second World Wars. BAE’s “heritage” includes…

  • Supermarine Aviation, whose Spitfire fighter ruled the skies during the Battle of Britain,
  • Yarrow Shipbuilders, which built the Royal Navy’s first-ever destroyers,
  • and Vickers, which gave the “Senior Service” its first-ever combat submarines.

On the civilian side…

  • De Havilland Aircraft Co. built the world’s first commercial jet, the Comet,
  • And British Aircraft Corp. built the world’s first supersonic commercial aircraft, Concorde.

These days, BAE is a globally focused operation that’s only improved on its impressive forbears’ groundbreaking work.

In an interesting twist, this British contractor even supplies the U.S. military, providing the perfect template for European military forces looking to “simplify.” In July 2016, the U.S. Army released its top 10 wish list of projects it hopes to get on the books in coming budget cycles.

Some are relatively small but important items like new hand grenades or better tourniquets, but a significant number are about armored vehicles and mobile artillery.

That’s right in BAE’s wheelhouse.

In 2005, BAE bought the company that built the Bradley Armored Multi-Purpose Vehicle (AMPV). The Bradley has been a workhorse for moving Army troops since then. After years of service, it’s now getting rebuilt from top to bottom – a $300 million buildout.

When the U.S. Army needed firepower and mobility, BAE came in with the Stryker Dragoon, a contract worth $666 million.

On the heavy mobile artillery side, there’s BAE’s M109 “Paladin” 155 mm Howitzer. In one form or another, the Paladin has been the Army’s go-to mobile cannon since the 1960s.

Over the years, there have been a number of programs to replace Paladin but nothing seemed to work as well. Now there’s Paladin Integrated Management (PIM) underway to upgrade parts, subsystems, and equipment, as well as companion Field Artillery Ammunition Service Vehicles (FAASV). Price tag: $636 million.

That’s $1.2 billion in new business, just in the United States and just in the next year. BAE can and will sell these systems all over the world, especially to the more than 29 European allies looking to operate on consistent, harmonized platforms.

ONE DEVICE: It Could Help End Cancer… Heart Attacks… Strokes

The Market Hasn’t Priced in This Growth Potential

While BAE is up 15% year to date and is still throwing off a juicy 3.1% dividend yield, much of that progress doesn’t include these big European and U.S. projects because the budget process isn’t official yet.

But the fact is, when the economy is sluggish and politicians’ popularity is mediocre or worse, there’s nothing better than defense spending to perk things up.

It’s an easy sell, and the defense sector is a massive employer. Most firms have strategically built out their operations so there are large clusters of employees scattered across many jurisdictions.

The logic is when times get tough, if you cut defense, you lose workers, and no politician, even in Europe, wants to face reelection after a major employer has left town.

But beyond the pragmatic, the simple fact is an independent British military contractor is much more appealing to Europe, the Middle East, Asia, and other emerging markets than a U.S. contractor at this point. India will likely be a big client moving forward, as well.

BAE is perfectly situated to become an even bigger global military player in coming years with its ability to work domestically and abroad with equal and unrivaled ease. It won’t be long before the market realizes this, at which point its current $32.58 entry price will be a distant memory.

BREAKING: These Micro-Cap Pot Stocks Could Turn Small Timers Into Millionaires

Follow me on Facebook and Twitter.

Related Reports:

The post Every Time Trump Rips Into NATO, This Stock Soars appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/07/every-time-trump-rips-into-nato-this-stock-soars/feed/ 0
They Own 6% of the Stock Market http://strategictechinvestor.com/2017/07/they-own-6-of-the-stock-market/ http://strategictechinvestor.com/2017/07/they-own-6-of-the-stock-market/#respond Tue, 11 Jul 2017 20:15:35 +0000 http://strategictechinvestor.com/?p=19681 There's an under-the-radar reason why the stock market keeps rallying despite some mediocre economic numbers, constant "noise" out of Washington, and plenty of overheated valuations.

And while it's a bit hidden, it's huge.

In fact, it owned 6% of the U.S. stock market in the first quarter.

And it keeps gobbling things up.

It bought $98 billion in U.S. stocks during the first three months of the year - and that puts it on pace to surpass its total purchases for 2015 and '16 combined.

I'm talking about exchange-traded funds (ETFs) and Main Street investors' big appetite for passive investments.

Those investors keep putting more money into funds they can then forget about - and the market keeps rising.

Now you could join them and buy some passive index funds.

But that's not what we do here. We're in search of investments on the Frontier - ones that will double, triple... even quadruple our money.

So let's get active and go in search of three ETFs that will get us to that Frontier.

All three will continue to double the market's return - and line your pockets - for years to come...

The post They Own 6% of the Stock Market appeared first on Strategic Tech Investor.

]]>
There’s an under-the-radar reason why the stock market keeps rallying despite some mediocre economic numbers, constant “noise” out of Washington, and plenty of overheated valuations.

And while it’s a bit hidden, it’s huge.

In fact, it owned 6% of the U.S. stock market in the first quarter.

And it keeps gobbling things up.

It bought $98 billion in U.S. stocks during the first three months of the year – and that puts it on pace to surpass its total purchases for 2015 and ’16 combined.

I’m talking about exchange-traded funds (ETFs) and Main Street investors’ big appetite for passive investments.

Those investors keep putting more money into funds they can then forget about – and the market keeps rising.

Now you could join them and buy some passive index funds.

But that’s not what we do here. We’re in search of investments on the Frontier – ones that will double, triple… even quadruple our money.

So let’s get active and go in search of three ETFs that will get us to that Frontier.

All three will continue to double the market’s return – and line your pockets – for years to come…

Combo Play

While we’re active stock pickers here at Strategic Tech Investor, I do recommend making several tech ETFs part of your core holdings because they target the most profitable trends and give you instant diversification.

Plus, they take advantage of the fact that tech remains one of the big drivers in this bull market that began in March 2009. Even though we do see the sector come under pressure from time to time, as it did again a couple of weeks ago, technology remains the best place to make life-changing gains.

And to get yourself on the Road to Wealth

Again, I’m not saying you should avoid individual stocks. We use ETFs to provide a solid base so that you can focus on the big winners among individual tech shares.

That’s where my two paid services come into play. We just closed the books on the second quarter and totally crushed the market.

During the period, the S&P 500 gained 2.6%. But readers at my Nova-X Report more than tripled that, with an average gain of 8.1%. Members of my Radical Technology Profits premium service did even better. They earned an average 12.9% return, beating the broad market by just shy of fivefold.

Several stocks at each service did even better than that, with some climbing 30% or more in just three months.

HOW TO: “Rig” Penny Stocks in Your Favor…

Now, let’s make sure you add to your foundational holdings by taking advantage of the big upsurge we see in ETF investing.

But let’s do so actively.

I’ve come up with three that are focused on high tech, and that have great returns and very low overhead – they pass all three of my ETF Profit Screens. That means your profits won’t get eaten by expenses.

If you ever thought ETFs couldn’t get you to the Frontier – think again.

Take a look at these three…

Frontier ETF No. 1

The SPDR S&P Semiconductor ETF (NYSE: XSD) is a great play on a very basic fact- our tech-driven world needs chips for just about everything, from smartphones and connected cars to Wi-Fi routers and data centers.

Add in the Internet of Everything, virtual reality, and artificial intelligence – and you can see we’re looking at strong demand for years to come.

With XSD, we get to invest in roughly 50 firms covering nearly every aspect of the chip sector.

Of course, it hold industry giants like Intel Corp. (Nasdaq: INTC). It also holds Skyworks Solutions Inc. (Nasdaq: SWKS), which ranks as a force in the mobile and broadband markets.

Nvidia Corp. (Nasdaq: NVDA) makes advanced graphics processors now being used in connected cars, VR, and AI. And Integrated Device Technology Inc. (Nasdaq: IDTI) is a small-cap firm that sells sophisticated computer memory systems to the wireless industry.

No wonder XSD is such a strong performer. Over the past year, it has soared roughly 41%, more than double the gains of the S&P 500. XSD trades at $62, with an expense ratio of 0.35%.

Frontier ETF No. 2

Holding more than 40 stocks, First Trust Dow Jones Internet Index (NYSE: FDN) is set up to take advantage of the broad changes occurring in the internet industry, including a nice sub-focus on e-commerce.

ONE DEVICE: It Could Help End Cancer… Heart Attacks… Strokes

For instance, it holds ecommerce titans eBay Inc. (Nasdaq: EBAY) and Amazon.com Inc. (Nasdaq: AMZN). FDN also owns Netflix Inc. (Nasdaq: NFLX) and Alphabet Inc. (Nasdaq: GOOGL).

Plus, FDN holds web “pick and shovel” plays like Netgear Inc. (Nasdaq: NTGR), which supplies Ethernet switches to homes, businesses, and internet service providers.

And it gives us a couple of nice plays on online trading. FDN holds both E*Trade Financial Corp. (Nasdaq: ETFC) and TD Ameritrade Holding Corp. (Nasdaq: AMTD).

For the year ended June 30, FDN is up roughly 31%, right at double the gains of the S&P 500. It trades at roughly $94 and has a 0.54% expense ratio.

Frontier ETF No. 3

I’ve recommended the iShares North American Tech ETF (NYSE: IGM) several times over the past three years. And for two very good reasons.

Let’s start with its performance. Over the past year, it has more than doubled the overall market’s return, with 31% gains. Over the past five years, it has beaten the S&P by just shy of 70%, showing that its upside just keeps getting better.

And that brings me to my second point. This ETF covers all the big leaders in tech, a group that has been a big factor in the market’s rally over the past year.

We’re talking firms like Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), Amazon, and Facebook Inc. (Nasdaq: FB) that make up 30% of its portfolio.

These firms have used their size to outgun smaller rivals, and each has spread its swings into the fastest-growing areas of tech. While many of the firms in IGM have done a great job reaching into global markets, they all count on North America as their major source of strength.

You can’t blame them. Since the 1960s, Silicon Valley has ushered in wave after wave of tech breakthroughs, from chips and the personal computer to the smartphone and cloud computing. It’s also one the main reasons why the United States boasts the world’s largest economy.

BREAKING: These Micro-Cap Pot Stocks Could Turn Small Timers Into Millionaires

And there’s plenty of breadth here as well. Holding some 285 stocks, IGM trades at roughly $126.50. It has a 0.48% expense ratio.

Each of these ETFs takes advantage of big tech tends you can count on for the long haul.

That means you can hold them for years to come, knowing that they’ll help you steadily build your net worth.

And now they’re on your radar.

Follow me on Facebook and Twitter.

Related Reports:

The post They Own 6% of the Stock Market appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/07/they-own-6-of-the-stock-market/feed/ 0
Three Biotech Bargains to Buy Right Now http://strategictechinvestor.com/2017/07/three-biotech-bargains-to-buy-right-now/ http://strategictechinvestor.com/2017/07/three-biotech-bargains-to-buy-right-now/#respond Fri, 07 Jul 2017 15:31:10 +0000 http://strategictechinvestor.com/?p=19411 Back in October, I did something crazy.

That's when I told the paid-up members of my Radical Technology Profits trading service to buy a small-cap biotech stock.

Here's why that move was a bit nuts.

At the time, it looked like Hillary Clinton would soon enter in the White House and clamp down on drug prices - and so the biopharmaceutical sector was deeply out of favor.

Turns out, however, our crazy bet paid off.

Despite his campaign rhetoric, President Donald Trump has pulled back from his own fiery rhetoric about drug-price caps.

That helped pushed biotech and drug stocks into a big uptrend.

And my paid-up members made peak gains of 116% - in just over eight months.

Today, things have changed - and investing in biopharma stocks is generally seen as a smart move. However, that means a lot of these shares have been bid up, and your best move is to buy big winners at deep discounts.

But to do that, you have to know how to find those deals.

I do.

Today I'll show you how you can, too.

And I'll reveal the three best Biotech Bargains out there right now

All three have triple-digit gains potential...

The post Three Biotech Bargains to Buy Right Now appeared first on Strategic Tech Investor.

]]>
Back in October, I did something crazy.

That’s when I told the paid-up members of my Radical Technology Profits trading service to buy a small-cap biotech stock.

Here’s why that move was a bit nuts.

At the time, it looked like Hillary Clinton would soon enter in the White House and clamp down on drug prices – and so the biopharmaceutical sector was deeply out of favor.

Turns out, however, our crazy bet paid off.

Despite his campaign rhetoric, President Donald Trump has pulled back from his own fiery rhetoric about drug-price caps.

That helped pushed biotech and drug stocks into a big uptrend.

And my paid-up members made peak gains of 116% – in just over eight months.

Today, things have changed – and investing in biopharma stocks is generally seen as a smart move. However, that means a lot of these shares have been bid up, and your best move is to buy big winners at deep discounts.

But to do that, you have to know how to find those deals.

I do.

Today I’ll show you how you can, too.

And I’ll reveal the three best Biotech Bargains out there right now.

All three have triple-digit gains potential…

Not 1 but 2 D.C. Catalysts

I hate to look to Washington for help when it comes to finding tech stocks you can use to get on the Road to Wealth.

But I’ll take it when it comes our way.

Besides the seeming end of grousing about drug prices, biopharma stocks are gaining ground from another big catalyst out of Washington.

The White House is now talking about speeding up the U.S. Food and Drug Administration approval process.

That would be huge.

You see, hundreds of drugs are in FDA trials. It now takes an average 10 years and $1 billion to get a drug from discovery to market.

So, anything that gets the hundreds of drugs now in FDA trials out faster and cheaper is good news for biopharma investors – not to mention doctors and patients seeking new and effective treatments.

No wonder the sector is on fire once again.

The iShares Nasdaq Biotechnology ETF (NYSE: IBB) is up 11% since it hit a three-month low on May 30. Those gains are better than nine times greater than the S&P 500’s return of 1.2% over the period.

So, now that we have some proof for the sector’s rebound, it’s time to dig up those Biotech Bargains.

Remember that 116% gains-in-eight-months winner I told you about before?

I didn’t do so just to brag, but to demonstrate to you that I’ve got a knack – a system – for finding undervalued biotech shares. And I see a similar setup occurring right now with three great pharmaceutical leaders that are priced for a big move up.

IMPORTANT: If you don’t invest in marijuana right now, you’ll regret it the rest of your life…

Here’s how I know: Each is selling at a big discount from its peer group.

I base that on the fact that the tech-centric Nasdaq 100 is trading at about 21 times the forward price-to-earnings ratio (forward P/E), a key gauge of earnings growth roughly a year out. And based on their forward P/E’s, these three Biotech Bargains are trading at “fire sale” prices.

Take a look…

Biotech Bargain No. 1 – Gilead

Gilead Sciences Inc. (Nasdaq: GILD) had become a bit of a victim of its own success.

It was one of the better-performing biopharma stocks a few years ago based on its strength in the hepatitis market through its drugs Sovaldi and Harvoni, both of which rake in huge revenue. According to the advocacy group Hepatitis Foundation International, some 3.2 million Americans who suffer from a chronic version that can make them very sick. More than 150 million people globally are infected with the virus that causes the blood-borne disease.

However, the drugs’ cost – $1,000 a week… or even more – brought the company under the media’s and Washington’s scrutiny, and the targets of drug-price controls.

But now that the White House has waved the white flag on price caps, Gilead is back in Wall Street’s spotlight.

It just received a “Buy” rating from Deutsche Bank and a glowing review in Barron’s. Both noted that the stock appears to have bottomed out and entered a new uptrend.

Trading at $71.35, Gilead has a market cap of $93.5 billion. It trades at just 9.4 times next year’s earnings. That’s a 55% discount from the Nasdaq – and it doesn’t count Gilead’s 2.9% dividend.

Biotech Bargain No. 2 – Shire

If all you did was look at the headline for Shire PLC (Nasdaq: SHPG)’s first-quarter results, you might be tempted to shy away. After all, while sales were up sharply, earnings fell 11%.

But here’s the thing. Most of the decline came from onetime events and higher costs associated with Shire’s mid-2016 $32 billion merger with Baxalta Inc. If you strip out all those charges, you get a 14% increase in non-GAAP profits.

That Baxalta merger will end up being a boon for Shire. That move not only adds sales growth but also removes $700 million in costs by the end of 2019. That’s just going to add to Shire’s already impressive 75.5% gross margins.

And it has a great product pipeline. Shire has recently got FDA approval for five new drugs. It also has 18 compounds in Phase III trials. If only half got approved, that would mean a total of 14 new drugs on the market less than three years out.

Trading at about $172, Shire has a $52.3 billion market cap. It sells for 10.4 times forward earnings. That gives us a 50% discount from its Nasdaq peers.

Biotech Bargain No. 3 – Jazz Pharmaceuticals

For much of this year, shares of Jazz Pharmaceuticals PLC (Nasdaq: JAZZ) were on the rise. From Jan. 3 until the stock topped out April 27, they yielded peak gains of 45%.

While the stock headed down in advance of first-quarter earnings, they turned out to be very strong, with profits up 16.5% from the year-ago quarter.

ANOTHER MEDTECH BARGAIN: One Device to End All Disease – and It Costs Less Than $50

Not only that, but Jazz Pharmaceuticals reported solid progress on three drugs now in pivotal Phase III trials. It now has six products on the U.S. market, so we’re looking at what could be a 50% increase in its sales.

Armed with the narcolepsy drug Xyrem, Jazz should post double-digit gains for both sales and earnings. Bear in mind that the analyst consensus is that Jazz will grow earnings by 16% a year over the next five years, meaning they – and the share price – should double over that stretch.

The stock trades at roughly $156, giving Jazz a market cap of $9.4 billion. It has a forward P/E of 12, meaning it trades at about a 43% discount from the Nasdaq.

Any or all of these stocks would make a great “Buy and Hold.” After you get beyond the politics of the moment, it should be clear that biotech will remain vital for years to come.

After all, you and me – all of us – want see better treatments or even cures for diseases like cancer and Alzheimer’s in our lifetime. And we won’t get that without the steady stream of breakthroughs that will come from biopharma firms.

So, with these stocks you’ll not only get on the Road to Wealth, but these companies will be using your investment dollars to cure the worst diseases on Earth and help us all live longer lives.

What could be better than that?

Of course, while I believe all three of these Biotech Bargains will deliver triple-digit gains over the medium haul, I can’t promise they’ll do so in less than a year, like that Radical Technology Profits “pick” did.

But if you do desire that kind of action – which I deliver like clockwork in “Rad Tech” – just click here.

Have a great weekend.

I’ll see you next week.

Follow me on Facebook and Twitter.

The post Three Biotech Bargains to Buy Right Now appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/07/three-biotech-bargains-to-buy-right-now/feed/ 0
Laser Arms Race Gives Savvy Defense Play Even More Firepower http://strategictechinvestor.com/2017/06/laser-arms-race-gives-savvy-defense-play-even-more-firepower/ http://strategictechinvestor.com/2017/06/laser-arms-race-gives-savvy-defense-play-even-more-firepower/#respond Fri, 30 Jun 2017 16:00:46 +0000 http://strategictechinvestor.com/?p=19201 Defense stocks are one of the smartest buys of the Trump White House era, given his stated commitment to boosting defense spending by $54 billion.

As we've seen, drones and autonomous vehicles are two high-profit ways to play the growth energizing this $1.7 trillion sector.

But the big play - the really disruptive, transformative 21st-century technology - is military lasers.

We're talking "ray guns" here.

It sounds like science fiction, but it's a reality. Laser weapons are here now, and, perhaps as soon as next year, they'll change the way the U.S. military fights conflicts all over the world.

You'll have reaped the financial rewards long before that, though. That is, if you make one critical play...

The post Laser Arms Race Gives Savvy Defense Play Even More Firepower appeared first on Strategic Tech Investor.

]]>
Defense stocks are one of the smartest buys of the Trump White House era, given his stated commitment to boosting defense spending by $54 billion.

As we’ve seen, drones and autonomous vehicles are two high-profit ways to play the growth energizing this $1.7 trillion sector.

But the big play – the really disruptive, transformative 21st-century technology – is military lasers.

We’re talking “ray guns” here.

It sounds like science fiction, but it’s a reality. Laser weapons are here now, and, perhaps as soon as next year, they’ll change the way the U.S. military fights conflicts all over the world.

You’ll have reaped the financial rewards long before that, though. That is, if you make one critical play…

An Infinite, Safe Supply of Ammo

You can’t fight without ammo, and that makes it a huge consideration when you’re designing (and paying for) a fighter plane or a battleship, for example.

A turret for a 16-inch naval gun housing costs around $1.5 million – without the guns. Shells can weigh anywhere from 1 to 1.5 tons, with each one going to outfit the U.S. Navy‘s new, $4 billion Zumwalkclass destroyer costs $800,000.

Ammo can be dangerous, of course.

So, shells need to be stored in huge, vulnerable magazines aboard ships. In battle, a lucky shot at a ship’s magazine might cause a catastrophic explosion.

Even in peacetime, lethal misfires and explosions have occurred, killing dozens of sailors.

The technology is borderline medieval. There have been refinements, but at the end of the day, a shell is a heavy piece of metal hurled downrange though a sturdy tube by exploding chemical propellants, just like it was in the 13th century.

Laser weapons could make all this ancient history.

Breaking: Investing legend Rick Rule is making history repeat itself, backing a project eerily similar to one that fueled perhaps his biggest win.  And you can get in on the (under)ground floor here.

You don’t need to keep expensive, dangerous shells around anymore. And you don’t have to build your planes and ships to accommodate them, either.

As such, your weapons platform – manned or unmanned – is open to other useful equipment.

They’re precise, too. Explosions are messy, and no matter how carefully explosive shells and missiles are aimed, innocent people can and do get hurt or killed.

That’s not a concern with a laser, which will hit its target and nothing else, every time.

The idea of laser weapons has been around for a long time, but the great challenge in weaponizing them – electrical power, and lots of it – has only recently been overcome.

One of my long-time favorite defense companies was the first to unveil a laser weapon in 2014. Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) strapped together six commercial welding lasers and built the first operational laser weapon for the U.S. Navy.

Kratos’ Laser Weapons System (LaWS) was about 30 kilowatts (kw) and could down a drone and poke a hole in a ship at 1,000 meters.

It was an impressive proof of concept that attracted attention from some of the biggest players in defense.

Lockheed Martin Corp. (NYSE: LMT) did Kratos one better: It built a 60-kw laser that mounts on the back of truck and that can take out a drone at 500 meters.

These breakthroughs have ignited a domestic “laser arms race,” with contractors pouring into the laser niche.

And the company I’m going to show you today stands to be a direct beneficiary.

You see, even though this ()-based company isn’t biggest or the flashiest in the laser space, it has the talent and ingenuity to become a dominant player in the industry…

The Future King of the “Laser Age”

Northrop Grumman Corp. (NYSE: NOC) was already one of my favorite defense and aerospace plays, too, before it moved into lasers.

Northrop Grumman has been a pioneer in the aerospace sector since the early days. Its savvy mergers and acquisitions over the years have made the firm highly respected for its weapons systems and sensors, as well.

Its share total is up 17% in the past 12 months, revenue is up 6% year on year, and earnings per share were up 20% at this company’s last report.

The board will pay you a tidy $1.00 a share to own it, too, up from $0.90 last quarter.

Did You Know?: Two of Canada’s best cannabis stocks will profit not only from full legalization at home, but through its shares of pot companies abroad. Find out about these winners by clicking here.

Northrop’s current flagship product is the B-2 “Spirit” stealth bomber. It’s been awarded the second-biggest defense contract in history to produce the “next generation” B-21 bomber.

But the company has bought some of the biggest names in electronic engineering over the years, too: Westinghouse Electric Corp., Litton Industries, and Trans World Radio, just to name a few. This accumulated “know-how” is absolutely critical to the development of laser weapons.

That’s why Northrop is in the perfect spot to usher in the “Laser Age.”

The U.S. Navy has picked Northrop to take laser weapons to the next level. The Navy is the natural choice among the armed services to lead the development and adoption of lasers.

I mentioned the key challenge with laser weapons is in the electrical power they demand. The Navy’s big ships have the space aboard to house the large generators needed to power truly lethal lasers. Granted, inevitable miniaturization means air- and land-based weapons will arrive eventually.

Northrop is building the Laser Weapon System Demonstrator (LWSD) that, at 150 kw, will be 4.5 times more powerful than the LaWS and cost just $2 per shot. Remember, the shells on the new U.S.S. Zumwalt cost around $800,000 apiece.

Those cost savings are going to play a huge role on the political side of this project.

The “Trump Factor” Isn’t a Worry Here

President Donald Trump has, of course, been quite outspoken on his desire to ramp up military spending to around $600 billion overall.

At the same time, he’s been openly, even harshly critical of projects he deems too “expensive” or “complicated,” like Air Force One upgrades or the F-35 “Lightning” Joint Strike Fighter.

This has introduced an element of uncertainty for defense investors, but one that’s likely to fade as Trump continues to step back and let Congress and the Pentagon take over the execution of his directive to “make America’s military great.”

Besides, as high-tech as lasers are, they’re not really all that complicated. And as I said, they’re much cheaper than conventional weapons. Retrofitting naval vessels with the generators needed to power them is fairly easy.

What’s more, there’s a rich pool of research and development funding, which has jumped $6 billion to $83 billion.

That works especially well for Northrop Grumman, and it’s going to pay especially well for Northrop shareholders.

There’s no telling how far this contractor will advance the field of laser weaponry. The U.S. Air Force, for instance, says it wants a 300-kw laser weapon deployed on its fleet of AC-130 “Spooky” gunships by 2022.

And Northrop will be there to deliver the goods.

Follow me on Facebook and Twitter.

Related Reports:

The post Laser Arms Race Gives Savvy Defense Play Even More Firepower appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/06/laser-arms-race-gives-savvy-defense-play-even-more-firepower/feed/ 0
New Bid on Toshiba Chip Unit Puts Heat on Management http://strategictechinvestor.com/2017/06/new-bid-on-toshiba-chip-unit-puts-heat-on-management/ http://strategictechinvestor.com/2017/06/new-bid-on-toshiba-chip-unit-puts-heat-on-management/#respond Wed, 28 Jun 2017 17:13:17 +0000 http://strategictechinvestor.com/?p=19131

Western Digital’s late bid on Toshiba’s chip unit complicates the already troubled former electronics giant just ahead of a key shareholders’ meeting. Even with a sale, Toshiba might not remain solvent into 2019. Its operations, turnaround plan, and very identity going forward remain unconvincing.

The post New Bid on Toshiba Chip Unit Puts Heat on Management appeared first on Strategic Tech Investor.

]]>
Western Digital’s late bid on Toshiba’s chip unit complicates the already troubled former electronics giant just ahead of a key shareholders’ meeting. Even with a sale, Toshiba might not remain solvent into 2019. Its operations, turnaround plan, and very identity going forward remain unconvincing.

The post New Bid on Toshiba Chip Unit Puts Heat on Management appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/06/new-bid-on-toshiba-chip-unit-puts-heat-on-management/feed/ 0
Supercomputing Supplier to Rake in Profits From U.S.-China Chip War http://strategictechinvestor.com/2017/06/supercomputing-supplier-to-rake-in-profits-from-u-s-china-chip-war/ http://strategictechinvestor.com/2017/06/supercomputing-supplier-to-rake-in-profits-from-u-s-china-chip-war/#respond Tue, 27 Jun 2017 21:16:51 +0000 http://strategictechinvestor.com/?p=18931 If you think China's tech sector is all about playing copycat, think again.

The United States has fallen behind in a key field after leading for It lies at the heart of such cutting technologies as Artificial Intelligence, machine learning, Big Data, even cracking the mysteries of the universe.

Of course, I'm talking about supercomputing. You see, China unveiled the world's fastest computing last year. And in a slap in the face for Silicon Valley, did so without U.S. chips.

That's why on June 14, the U.S. Department of Energy (DoE) said it will provide a three-year, 258 million grant to six American tech leaders. The goal is simple: reclaim the top spot from China.

Doing so includes not just computing, but advances in the brains that runs these machines and semiconductors.

Today, I'm going to reveal five reasons why a leading chip supply firm will make out like gangbusters no matter who wins the race...

The post Supercomputing Supplier to Rake in Profits From U.S.-China Chip War appeared first on Strategic Tech Investor.

]]>
If you think China‘s tech sector is all about playing copycat, think again.

The United States has fallen behind in a key field. It lies at the heart of such cutting technologies as Artificial Intelligence, machine learning, Big Data, even cracking the mysteries of the universe.

That’s why on June 14, the U.S. Department of Energy (DoE) said it will provide a three-year, 258 million grant to six American tech leaders. The goal is simple: reclaim the top spot from China.

Doing so includes not just computing, but advances in the brains that runs these machines and semiconductors.

Today, I’m going to reveal five reasons why a leading chip supply firm will make out like gangbusters no matter who wins the race…

Yes, these are all great chip firms. I have no doubt they will come up with breakthrough new devices.

But let’s remember, China won’t be standing still. The world’s most populous nation wants to spur its own chip sector.

In other words, there’s more going on here than just the market for high-performance computing, which Market Research Media estimates will be worth $44 billion by the end of 2020.

We have the chance to plant a big flag in the heart of the entire $338.9 billion global chip sector. And it’s a classic supply firm that is expanding in China as it also gears up for greater sales in the U.S. and Europe.

Lam Research Corp. (Nasdaq: LRCX) supplies the key machines used throughout the chip-making cycle. We’re talking everything from thin-film deposition to plasma etching to wafer cleaning.

And since chips lie at the heart of all electronics made today, this will be a growth field for years to come. To show you why this exciting stock has so much upside ahead, let’s run it through my five filters for building wealth with market-crushing tech winners.

Rule No. 1: Great Companies Have Great Operations

These are well-run firms with top-notch leaders.

Lam Research is a company that had one of Silicon Valley’s greats behind it from its birth. Intel Founder Bob Noyce reviewed the Lam business plan. After that, the firm was able to secure funding.

IN THE KNOW: Upcoming full cannabis legalization in Canada means revenue will quadruple for a handful of publicly traded firms

To this day, Lam Research ranks as one of the Valley’s top firms and a global leader in making chip equipment. It’s now a major supplier to Intel and is 4.2 times more valuable than its client.

And Lam’s President and CEO Martin Anstice knows how to wring profits out of sales. Before becoming CEO in January 2012, he served as chief financial officer and chief operating officer. Before that, Anstice logged senior stints at Raychem and Tyco Electronics.

Rule No. 2: Separate the Signal From the Noise

To create real wealth, you have to ignore the hype and find companies that have rock-solid fundamentals.

In early April 2016, the chip sector came under pressure on fears of falling global demand going into the second quarter. This got a lot of play in the media.

These reports turned out to be nothing more than spin – chips rallied and remain on the rise.

Savvy Lam investors could have cleaned up. From the time it began to bounce back on April 13, the stock climbed for recent peak gains of 31.8%. As one of the sector’s top players, it’s got market-crusher written all over it.

Rule No. 3: Ride the Unstoppable Trends

Look for stocks in red-hot sectors because they offer the best chance for life-changing gains.

By investing in a chip supply firm like this one, you are actually putting money into several trends at once. After all, chips lie at the heart of just about every piece of electronics in the world today from TVs to smart phones to “connected cars” to cloud computing routers.

Just look at the impact of those last two. Luxury cars now have $1,000 worth of chips on board, with even midrange cars coming in at $400. Research firm Technavio says just the market for Internet Protocol chips used in Web connections will grow 15% a year through 2020.

BREAKING: Investor figures out how to mint 44% gains per day on carbon trades.

Overall, chip sales are expected to rise 7% to approximately $364 billion this year alone, tech researcher Gartner Inc. said. That’s a roughly $58 billion gain since the end of 2011.

Rule No. 4: Focus on Growth

Companies that have the strongest growth rates almost always offer the highest stock returns.

We get a good sense here of a firm that still has plenty of runway left. Sales growth is actually rising. Over the past three years, sales have climbed by an average 15%, doubling every 4.8 years.

But last quarter, they surged 64%. Let’s say Lam ends the year at half that rate, sales will still double every 2.3 years. Even better, profits are rising much faster than sales.

That’s important because this is a company that clearly knows how to manage its growth. Last year, it brought in nearly $1.2 billion in free cash flow and now has $3.1 billion in net cash on hand.

Rule No. 5: Target Stocks That Can Double Your Money

This is where we look at Lam’s earnings growth and see how long it will take to double profits. By doing that we can figure out how long on average it should take for the stock to roughly double.

In the first quarter, net profits jumped by 137% and are expected to rise by nearly 60% for the June quarter. But to be conservative, let’s forget about those massive gains and instead use the firm’s 3-year average of 24%.

Now, let’s plug that into my doubling calculator. Mathematicians call it the Rule of 72. I divided the compound growth rate of 24 into the number 72 and found that the stock could double right at three years from now.

With a market cap of $23.9 billion, the stock trades at roughly $148. It pays a dividend of 1.8%. Although it’s a small amount, you should reinvest them in the stock.

Add it all up and you can see that Lam Research is a great foundational holding.

With this play, you’ll tap the power of the global chip boom with a quality that will hand you returns for years to come.

Follow me on Facebook and Twitter.

The post Supercomputing Supplier to Rake in Profits From U.S.-China Chip War appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/06/supercomputing-supplier-to-rake-in-profits-from-u-s-china-chip-war/feed/ 0
Nobody Is Talking About the Best Tech Play After Amazon’s Big Buy http://strategictechinvestor.com/2017/06/nobody-is-talking-about-the-best-tech-play-after-amazons-big-buy/ http://strategictechinvestor.com/2017/06/nobody-is-talking-about-the-best-tech-play-after-amazons-big-buy/#respond Fri, 23 Jun 2017 11:00:24 +0000 http://strategictechinvestor.com/?p=18791 If there's one thing you can count from Wall Street, its repetitious analysis of big tech news.

Take the Amazon.com Inc. (Nasdaq: AMZN) purchase of Whole Foods Market Inc. (Nasdaq: WFM) for $13.2 billion last week.

A steady, predictable stream of stories quoting analysts about the "death of retail" followed the announcement.

Don't get me wrong - that's a big, ongoing story. It's one I wrote about in the past, as recently as May 23.

What they missed is how this is a boon for technology: mobile commerce, Big Data, machine vision and learning, chips, sensors... and especially robots.

Robots already are all over Amazon's warehouses and are a big part of its success.

Now they'll be in Whole Foods' warehouses, checkout lines, and maybe even a part of making deliveries.

You could buy Amazon - and I recommend you do establish a position if you haven't yet - but that'll cost you.

You could buy a robotics stock, but that will only scratch the surface.

Or you could make this one move and get at least double the market's return...

The post Nobody Is Talking About the Best Tech Play After Amazon’s Big Buy appeared first on Strategic Tech Investor.

]]>
If there’s one thing you can count from Wall Street, its repetitious analysis of big tech news.

Take the Amazon.com Inc. (Nasdaq: AMZN) purchase of Whole Foods Market Inc. (Nasdaq: WFM) for $13.2 billion last week.

A steady, predictable stream of stories quoting analysts about the “death of retail” followed the announcement.

Don’t get me wrong – that’s a big, ongoing story. It’s one I wrote about in the past, as recently as May 23.

What they missed is how this is a boon for technology: mobile commerce, Big Data, machine vision and learning, chips, sensors… and especially robots.

Robots already are all over Amazon’s warehouses and are a big part of its success.

Now they’ll be in Whole Foods’ warehouses, checkout lines, and maybe even a part of making deliveries.

You could buy Amazon – and I recommend you do establish a position if you haven’t yet – but that’ll cost you.

You could buy a robotics stock, but that will only scratch the surface.

Or you could make this one move and get at least double the market’s return…

Automation Is Coming

I was excited when I woke up to news of the Amazon-Whole Foods merger. However, I was focused on the logistics and tech angles that financial analysts evidently forgot.

While Amazon picks up the massive list of gourmet items and devoted shoppers at Whole Foods’ 460 retail outlets, it also acquired access to all those stores’ freezers and storage rooms.

With localized cold storage, Amazon can truly make good on its promise of same-day delivery of not just groceries but also many other goods.

Even better, most of these stores are close to wealthy zip codes. I see these folks as the most likely early adopters of “unmanned” deliveries.

In The Know: World Power’s Cannabis Legalization a Game-Changer

Amazon is already pioneering drone-based deliveries. And small robotic delivery vehicles could be next.

Beyond those are the in-house robotics and automation plays. Under CEO Jeff Bezos, Amazon has pushed these two areas like few companies have.

Robotic handlers and sorters could be a huge boon to the grocery sector, by cutting costs and beefing up the notoriously thin margins. As such, the Amazon deal will be a great case study in the value of the robotics revolution. This is a fertile field to be sure.

Research firm Allied Market Research predicts the global robotics market will grow at an average compound rate of 10% through the end 2020, when the sector will have a value of $82.7 billion.

The firm notes that robots are finding use in a wide range of sectors. Auto assembly takes the top market share, accounting for about 39% of sales growth. Electronics follows with 20%.

Robot Invasion

With so much going on in the global robotics field, tech investors ought to consider the Robo-Stox Global Robotics & Automation ETF (Nasdaq: ROBO).

Holding 91 stocks, the fund covers just about every conceivable robotics and factory automation angle. So, we’re talking everything from 3D printing and chips to drones and massive industrial robots.

Breaking: Gold and silver deposits found in the most unexpected locations. [And the “mainstream” doesn’t know about them.]

There’s some fascinating tech in this ETF. Just take a look at some of its top holdings:

  • Cognex Corp. (Nasdaq: CGNX) is a world leader in machine vision. It also supplies software, vision sensors, and industrial ID readers used in manufacturing automation. These systems are used for guiding assembly robots and also for tracking, sorting, and identifying products. This is the kind of technology that Amazon will need. For its part, Cognex is already a key supplier to Apple Inc. (Nasdaq: AAPL) for its vision systems that can detect product defects, a key part of quality control. It also produces logistics barcode readers and tracking software.
  • iRobot Corp. (NASDAQ: IRBT) is all about automating the home. Founded in 1990, the firm was early to the U.S. robotics revolution. Today, it’s the leader in consumer robots. Its best-known product, the Roomba vacuum cleaner, contains onboard navigation as well as vision for in-home landmarks for improved mapping. It also integrates to a smartphone app. The Braava is used for mopping floors, while the Mirra is an underwater robot used for cleaning pools. It’s designed to climb walls as well as transit a flat surface. iRobot also runs a venture fund that invests in robotics, smart home, and automation startups.
  • Autodesk Inc. (NASDAQ: ADSK) pioneered complex software vital to making a wide range of products around the world. The field is known as CAD/CAM (computer aided design/computer aided modeling). The tech itself is complex, but the idea behind it all is very simple – use software to design the product and then to control the machines that make it. Whether it’s a surgical tool, an artificial aorta, a fuel nozzle, or a bike helmet, Autodesk’s CAD/CAM software plays a role in it all.

ROBO launched in late November 2013. To mark the occasion, Nasdaq officials used a robotic arm to ring the closing bell. Nice touch.

Priced at just $35, ROBO trades at a fraction of some of its notable portfolio holdings. And Wall Street is starting to wake up to the value that a balanced robotics play like ROBO represents.

So far this year, ROBO has gained 21.9%. That’s more than double the S&P 500’s 9.5% return during the period.

But remember, this fund is really just getting started… so its best days are yet to come.

I believe this is an ETF that offers patient tech investors some excellent long-term potential – and would make a great foundational play for your portfolio.

Follow me on Facebook and Twitter.

Related Reports:

The post Nobody Is Talking About the Best Tech Play After Amazon’s Big Buy appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/06/nobody-is-talking-about-the-best-tech-play-after-amazons-big-buy/feed/ 0
One New Investment Could Challenge the Greatest Stock Gain in Decades http://strategictechinvestor.com/2017/06/one-new-investment-could-challenge-the-greatest-stock-gain-in-decades/ http://strategictechinvestor.com/2017/06/one-new-investment-could-challenge-the-greatest-stock-gain-in-decades/#respond Tue, 20 Jun 2017 15:56:31 +0000 http://strategictechinvestor.com/?p=18691 As I noted during our May 30 chat, the 49,000% gain for Amazon.com Inc. (Nasdaq: AMZN) from the time it went public made it the most successful stock in decades.

That amazing rise shows the power of our tech-centric economy.

Today, I want to talk to you about an investment that's quickly giving Amazon a run for its money... in a fraction of the time.

It's not a stock, but it is an investment I personally recommended.

Almost no one on Wall Street or in the financial press believed in the cryptocurrency Bitcoin back in 2013. At the time, Bitcoin was subject of a steady stream of negative stories.

Almost of all of it had one basic - yet incorrect - premise: that Bitcoin was a passing fad that was bound to hurt investors.

But had you bought Bitcoin back when I first talked about it, holding through its many ups and downs, you could have made peak gains of 2,850% in just 4.5 years.

That's why I'm so excited to tell you about this new breakout technology...

The post One New Investment Could Challenge the Greatest Stock Gain in Decades appeared first on Strategic Tech Investor.

]]>
As I noted during our May 30 chat, the 49,000% gain for Amazon.com Inc. (Nasdaq: AMZN) from the time it went public made it the most successful stock in decades.

That amazing rise shows the power of our tech-centric economy.

Today, I want to talk to you about an investment that’s quickly giving Amazon a run for its money… in a fraction of the time.

It’s not a stock, but it is an investment I personally recommended.

Almost no one on Wall Street or in the financial press believed in the cryptocurrency Bitcoin back in 2013. At the time, Bitcoin was subject of a steady stream of negative stories.

Almost of all of it had one basic – yet incorrect – premise: that Bitcoin was a passing fad that was bound to hurt investors.

But had you bought Bitcoin back when I first talked about it, holding through its many ups and downs, you could have made peak gains of 2,850% in just 4.5 years.

That’s why I’m so excited to tell you about this new breakout technology…

Bitcoin Alternative Mirrors Historic Surges

Trading currencies is quite different from tech stocks.

But even with my longtime focus on Silicon Valley as a tech analyst and insider, this other area is by no means an odd fit.

You see, in college I earned an honors economics degree. In fact, I wrote my honors essay about monetary economics under the guidance of a senior official with the Federal Reserve.

IN THE KNOW: This company controls three world-class Tier 1 deposits. [And the “mainstream” doesn’t know about them.]

I went on to become a senior analyst with the trade journal American Banker, the “bible of banking.” I also wrote a book on the nation’s savings and loan crisis.

In short, following money comes naturally to me. And when I first heard about Bitcoin, it quickly grabbed my attention.

This new digital form of money combined my deep expertise in both money and technology… so I jumped on board with a huge passion.

The 2013 Bitcoin Play

When I first started talking about Bitcoin back in early 2013, it was trading for just $100. Yes, after peaking at nearly $1,200 at the end of that year, Bitcoin plummeted on a sell-off.

I’ve lost count of how many Bitcoin “obituaries” I’ve read, but it’s in the hundreds. But that was one of those moments – perhaps the last one – when those early naysayers looked like they could have been correct.

All along the way, however, I kept telling investors to keep the faith because Bitcoin was set to become key technology that would spread far beyond early traders.

And that’s just how things have played out…

Bitcoin recently peaked at around $2,950. Had you gotten in when I first started talking about this new digital money, you’d have made roughly 2,850% in about 4.5 years.

Even if you had bought back at the previous high and watched it crash, you still would have made peak profits of 152%.

The reason has to do with why I got involved in the first place. Bitcoin isn’t just a digital form of money. It’s also great technology. And it’s all because of the platform that supports it – the blockchain.

The Blockchain Is Gaining Ground

See, the blockchain is like the “grids” that allow you to make credit card purchases, transfer money between banks, or buy stocks through online brokerages.

But the blockchain has a huge advantage. It’s a peer-to-peer system in which one computer “talks” to another. In other words, no central bank or government gets between the traders.

BREAKING: Major World Power Legalizes Recreational Marijuana

This decentralized aspect of the blockchain makes it ripe for a wide range of industries all over the world.

And that why major banks, investment firms, and big tech leaders are now making daily use of Bitcoin. It’s among the reasons for Bitcoin’s huge rebound and unlimited future.

If you missed Bitcoin’s huge run, don’t worry. I believe that what I call the “new Bitcoin” has emerged. And it may have even more of an upside.

The “New Bitcoin” Surges Through the Spring

At the end of March, this Bitcoin alternative traded for just $15. It recently topped out at around $385. That’s peak profits of 2,466% in around 10 weeks.

But you see, the next Bitcoin is not just a just digital currency. It’s a massive distributed computing system.

Unlike Bitcoin, the new kid on the block is what experts call “Turing complete,” meaning it ranks as a global, programmable network. That’s why so many companies are jumping on board.

Last year, International Business Machines Corp. (NYSE: IBM) said it was using this Bitcoin alternative in its Autonomous Decentralized Peer-to-Peer Telemetry (ADEPT) system. ADEPT is a decentralized form of communication between devices connected via the “Internet of Everything.” IBM also sees possibilities for this digital currency in its cloud business.

So does Microsoft Corp. (Nasdaq: MSFT), which has adopted the new Bitcoin for use in its cloud business. Microsoft even has a special name for it: Azure Blockchain as a Service (BaaS).

Big banks also have taken a liking to this emerging tech and currency force. JPMorgan Chase & Co. (NYSE: JPM) used it to create a tool called Masala that enables communication between the new Bitcoin’s blockchain and the bank’s internal databases.

If you you’re wondering how you can profit from this vital new digital currency, you’ve come to the right place.

I recently finished up a special report on this very topic for my paid-up Radical Technology Profits members. As part of that, I even went so far as to talk with one of the new Bitcoin’s creators.

His insights only bolstered my belief that this digital currency and platform will easily rival that of Bitcoin’s profit potential.

Because we’re in the early days of this new investment frontier, you should be aware that it is bound to be volatile as it marches higher. But there are ways to maximize your returns while minimizing your risk.

That’s why you’ll need me as your investing guide when the time comes.

Soon enough, I’ll be revealing more about how to approach and buy what has quickly become one of the hottest and most exciting plays in tech today… one that could help you dramatically improve your net worth.

It’s truly a technology that could put you on the road to wealth.

Follow me on Facebook and Twitter.

Related Reports:

Strategic Tech Investor: Stats Confirm: The Road to Wealth Is Still Paved by Tech.

The post One New Investment Could Challenge the Greatest Stock Gain in Decades appeared first on Strategic Tech Investor.

]]>
http://strategictechinvestor.com/2017/06/one-new-investment-could-challenge-the-greatest-stock-gain-in-decades/feed/ 0