If you listened to the mainstream Wall Street media, these are the potential major 2016 initial public offerings you’d be “keeping an eye on.”
You and every other investor…
While we don’t follow the herd here, I do track the tech IPO market.
That’s because IPOs are the primary way in which tech startup investors – venture capitalists, hedge funds and the like – cash out and make their fortune. They’re the lifeblood of Silicon Valley.
Moreover, healthy numbers of IPOs drive a bull market higher because they pull in lots of fresh cash.
Now, the 2015 IPO market was a huge disappointment for investors. Only 169 companies went public last year, raising a combined $30 billion in proceeds. That’s the lowest amount since 2009.
Many high-tech firms postponed their stock debuts last year because they feared the market’s volatility. To me, that means the IPO market is due for a turnaround 2016.
But instead of chasing after “hot” startups that may or may not go public this year – Uber and the rest – today I’m going to reveal the facts about four fast-growing tech firms that almost certainly will make their IPOs in 2016. They’re the sorts of IPOs we can track to assess the market’s health.
These aren’t on Wall Street’s radar… but they’ll now be on yours.
I’ve been driving my new 2016 Acura MDX – the most “connected” car I’ve owned yet – for well over a month now.
And my family and I still love it – this beauty drives like a dream.
This car is loaded with proto-self-driving technologies – known as advanced driver assistance systems(ADAS) – like lane-keeping assistance and adaptive cruise control. And that’s not even getting into its voice-guided navigation and souped-up dashboard infotainment system.
That’s not to say the car is perfect – and reader Alex S. wrote in to let me know all about it. Alex says he owns a year-older MDX that has one annoying tech “feature”…
“The voice recognition is abysmal, the worst I have ever used,” he writes “My cellphone has far superior recognition and GPS map guidance.”
He makes a great point – the car’s operating system still needs a great deal of work to reach “perfection” – and it’s one that cuts to the heart of a huge disconnect for advanced auto tech.
Automakers are still largely reinventing the wheel when it comes to adding today’s most advanced technologies to new vehicles.
Those carmakers sold a record 17.5 million vehicles last year. But their success could be in jeopardy if they drop the ball on the operating system they adopt.
“Uncertainty is what is driving the markets right now,” Michael said during his latest appearance on CNBC World. Michael shows viewers how the price of oil and troubles in China have sent investors taking profits en masse off the market – shaving significant percentages off stocks like Alphabet Inc. (Nasdaq: GOOGL) and Amazon.com Inc. (Nasdaq: AMZN).
But more importantly, Michael shows us all how these tech giants and more are gearing up for stunning comeback. Check out his CNBC appearance in the video below.
"Scientia potentia est"… "Knowledge is power."
-Attributed to Francis Bacon
Over the past few days, I’ve read at least 10,000 words of analysis from various market "experts" attempting to explain the market sell-off.
But when you boil down what’s going on to its most basic elements, you really only need to know two words to understand this correction.
At first, these two words may seem disconnected. However, today I’ll show you how they’re two sides of the same financial coin – and they put what’s happening with the economy and the markets into perspective.
Understanding the market’s plunge may sound little more than academic at this point. Who cares why something happened? What you want to know is what to do now.
Well, you can’t go on the offensive – you can’t make the right moves – without first understanding the sell-off.
More and more tech companies are building their success by going “open source.”
By that, I mean they’re using open-source tech platforms like Linux and Hadoop – which are free and open to the public to use – to write code, create cloud storage and develop Big Data applications. With these platforms, they’re saving money, running their business more efficiently… and raking in the profits.
I thought of open-source platforms recently – on New Year’s Eve.
For more than a decade now, my wife and I close each year with a powerful ritual that has helped us live a life most people only dream about. We sit down in front of the fire and go over the annual report we’ve written – celebrating our accomplishments and planning for the year ahead.
This year, I realized that our annual report is built on open-source platforms. In fact, there are three “Tech Investor’s Open-Source Platforms” that I use every day to improve my skill set, find winning stocks, know when to cut my losses – and enjoy peace of mind.
The Dow Jones Industrial Average already dropped 400 points this morning, making 2016 look more like a “stock-picker’s” market than ever.
With these three free platforms, you can build your picker’s “muscles” – improving your odds of crushing the market, not just this year but for many years to come.
During times like these your first reaction may be to "Sell" everything. However, the last thing you should do now is let your emotions take over, join the panicky crowd and dump your stocks.
Instead, you should remain disciplined in your strategy.
After all, being in the market when it goes down is much less painful than being out when it goes up. If you pull out now, you run the risk of missing out the inevitable rallies that will produce double- and triple-digit returns in the stocks you now hold.
But first, I want to address a question I’ve been hearing a lot.
At the start of this year, I told you that various "ignition points" continue lining up to create one of the greatest tech-profit cycles of all time.
Moreover, I’ve been saying that the U.S. economy is in sound shape – and poised to take our tech stocks even higher.
Now, after stocks have fallen nearly 7% over the past five trading days, you might be thinking I’m ready to change my analysis.
Whenever a CEO takes the stage at the Consumer Electronics Show (CES) in Las Vegas, we investors expect them to reveal something meaningful… innovative… in a word – big.
For example, during his CES address earlier this week, Netflix CEO Reed Hastings declared that 2016 would mark "the birth of a new global internet TV network."
And with his firm’s streaming service now in more than 130 countries -Hastings’ enthusiasm is vindicated.
That wasn’t the only "big" announcement we saw at CES.
LG Electronics rolled out a screen that can be… rolled up like a newspaper… Samsung used its time in the spotlight to showcase how its motion controllers are taking virtual reality gaming to the next level… Ford revealed that it’s tripling its fleet of driverless cars this year – and making deals with Amazon and DJI to make its "connected cars" even more innovative.
But there was one CEO whose enthusiasm seemed forced and misplaced.
IBM Corp. CEO Virginia Rometty, during her keynote speech, spoke about Watson, the company’s artificial intelligence process… and unveiled what amounts to a souped-up fitness tracker.
As CEOs at CES tend to do, she assured us this new technology will change the world.
I was unimpressed – and so was Wall Street. This week, shares of IBM fell to five-year lows, off nearly 19% over last six months.
This sudden drop is only the latest bad news for the once-mighty IBM.
And it’s just one reason why I’ve penned a letter to Rometty and offered her a custom-made action plan. If she listens, my plan will rescue IBM by making it the undisputed leader in one of the fastest-growing sectors of the market.
Over the past year, I’ve been stressing the importance of stock selection.
Then yesterday, the global stock markets were down more than 2% over fears about the slowdown in China, the world’s second-largest economy – perfectly illustrating why I frequently call this a "stock picker’s market."
In this kind of choppiness, you just can’t depend on the "market" to inflate your wealth. You have to make good choices about your stocks – and then about when to buy and sell them.
And that’s our goal here at Strategic Technology Investor – to unravel what’s happening in the world… and to find you ways to make money from that.
However, there’s a lot more to making money in tech stocks than choosing the right investments.
You also have to know which stocks to avoid. After all, no one wants to lose money chasing after overhyped stocks.
If current trends continue, expect to see a lot of hype from Wall Street about great "turnaround" investments.
Today I want to peer inside several turnaround prospects the Street is likely to peddle in the coming months.
On paper at least, they appear to be good candidates to come back from recent sell-offs.