Archive for March, 2017
“You heard it here first.”
That’s what the Fox Business Network’s Stuart Varney said after a stock-price prediction I made during an interview rendered the polished TV host momentarily speechless.
During my Dec. 5, 2013, appearance on his popular Varney & Co., I predicted Apple Inc. (Nasdaq: AAPL) shares would be taking up residence in the $1,000-a-share neighborhood pretty quickly. (Post-split, that figures as $142.85 a share.)
Now, technically speaking, you heard it here first, as I had made that same forecast six weeks earlier right here at Strategic Tech Investor.
However, as Varney’s reaction made clear, this was the first time any tech analyst had made such a bold public prediction about Apple on national television.
Since then, many have doubted me along the way. Even Varney himself has ribbed me about it more than a few times.
But I’ve always stuck by this prediction. And I hope you have, too.
If you have, you’re sitting on some tasty 80%+ gains.
That’s because Apple just broke through that $142.85 mark… shortly after noon Eastern on Tuesday, to be exact.
Where is it going from here?
Well, I’ve got another prediction…
If you want to be a great tech investor, sometimes you have to forget some of your consumer habits.
From the time we’re children, we’re taught to be price sensitive, to look for bargains.
That’s a good idea in stocks, too – if you compare stocks’ price-earnings ratios and other metrics to find deals.
But too many investors just look at the “price tag.”
While comparing price tags certainly can help you out in the mall or the grocery store, it can be positively disastrous when investing.
When finding stocks, you’re shopping the future – gains and losses – not the present price.
As the four stocks we’re looking at today prove, it’s far more important to follow Rule No. 5 of Your Tech Wealth Blueprint. That rule says to “Target stocks that can double your money.”
Two of the stocks we’ll be looking at trade for more than $140 and two for more than $800.
Yet they’ve all met the mandates of Rule No. 5, and the “worst” performer in the group beat the S&P 500 by more than fourfold in the past two years.
And two of them already doubled over the period.
But they’re not done yet.
Not even close.
In fact, all four stand to gain 50% or more over the next few years.
And that means these “expensive” stocks are actually bargains.
Let’s take a look…
Before I began working for you folks, I served as a senior advisor to a dozen tech startups and sat on the board of a Silicon Valley venture capital firm (VC).
And when it comes to finding profit-producing tech investments before mainstream stock analysts do, that gives me a leg up on Wall Street.
In fact, it gives me a “secret” method.
Besides following the stock market and keeping my ear to the ground here in Silicon Valley, I spend hours each week intensely studying VC funding.
That’s because those early-stage investors have a proven track record of backing tech breakthroughs that eventually lead to lucrative profits for Main Street investors like you.
Today, we’re going to look at a burgeoning tech sector drew roughly $200 million in VC funding through early March.
At that rate, startups in this sector are on pace to receive nearly $800 million in seed money this year.
That’s a lot – and it’s worth following.
So I’m going to tell you about four primo startups in this sector that are big 2017 VC winners.
“But, Michael,” I hear you saying. “These are privately held startups. I can’t invest in them.”
That’s why I’m also revealing a great way to play this fast-growing market you can get into today.
And make a lot of money with for years to come…
You or the manufacturer mount a device on your dashboard.
As the device’s software algorithms “interpret” a video feed in real-time, it detects anything in your car’s path – pedestrians, other vehicles, animals, large debris – and your distance from it.
If the software interprets what it “sees” as “trouble,” it alerts the driver with a series of beeps and flashing lights.
It can also “read” and interpret traffic signs and signals.
No, this isn’t a driverless car yet – you still need to hit the brakes – but it’s a big part of the advanced driver assistance systems (ADAS) that will get us there.
And to me at least, it’s pretty amazing technology.
Intel Corp. (Nasdaq: INTC) thinks so, too. It picked up the developer of this technology for $15.3 billion last week – catalyzing the much smaller firm’s stock up 30% that day.
And suddenly Wall Street has fallen in love with the “car of the future”?
We know better.
In fact, you’re way ahead of the Street.
We were in this stock years ago – and another “car of the future” company that got acquired recently – and we’ve made a bundle on both.
So let’s go over those two deals today – see what happened and exactly how much money we made.
And then we’ll take a look at what I think is the best pick in the connected and driverless vehicle space right now.
It’ll be good for a very quick 30% pop in your portfolio.
And that’s something you’ll be able to brag about to your friends and family.
Or maybe you’ll save your bragging for the showroom – where you can use those gains to pick up a connected car yourself.
Take a look…
One billion hours of video is a lot.
In fact, it’s nearly impossible to conceive it.
But let’s try…
If all you did was watch online movies 24/7, it would take you roughly 41.7 million days to view 1 billion hours of video. That’s about 114,155 years.
Here’s another way to look at it: If you had a team of 1,500 colleagues all watching online movies and TV shows nonstop, it would take them 76 years to view 1 billion hours of video.
I completed this thought exercise to help you understand the watershed online video recently reached.
It’s hard to believe, but YouTube just said that its users now watch 1 billion hours of video a day.
This is an important milestone for tech investors.
And today we’ll find out why.
There’s a moneymaking possibility here, too – beyond the obvious one (investing in YouTube’s parent company).
And we’ll uncover that today, too.
It’s one that will make you a lot of money over the years – and pay you a 3.5% yield as you hold it.
Take a look…
Common wisdom suggests America’s most famous investor has long avoided high-tech companies.
Instead, Warren Buffett has stuck to what he knows – everything from insurance and railroads to soda and razors.
“I know about as much about semiconductors or integrated circuits as I do of the mating habits of the [beetle],” Buffett once wrote. “We will not go into businesses where technology which is way over my head is crucial to the investment decision.”
He felt technology lacked margin of safety, and many “Buffett-heads” followed his lead – and they all missed out on tech stocks’ leaps in value over the last eight years or so.
But that’s not the only reason that common wisdom isn’t looking so wise anymore…
As we’ve been saying here for a while now, every business has become a tech business. It’s all because of the Convergence Economy, where we see multiple technologies merging into new, innovation-unlocking and profit-making creations. That leads to everything from cloud computing and the Internet of Everything to smart homes and connected cars – to technology affecting every part of our daily lives.
But you don’t have to take my word for it…
Fact is, Buffett has been getting to know tech – and he’s been quietly moving into technology stocks over the last six years. He just doubled his holdings in Silicon Valley legend Apple Inc. (Nasdaq: AAPL).
This may sound like merely trivia – after all, we’ve never let Buffett’s aversion to tech stop us.
But I believe the Oracle of Omaha’s move into tech is far more important that it might sound at first.
So today, first, we’ll investigate why Buffett’s newfound interest in smartphones and semiconductors are crucial to our understanding of the tech sector.
Then, we’ll dig up a cost-effective way to play this unstoppable trend that will make you plenty of money in the years to come.
Let’s get started…
Sometimes it pays to sound like a broken record.
For several years now, I’ve been telling investors – over and over again – that if you want to transform your net worth… if you want to secure a wealthy retirement… you absolutely have to be in high tech and the life sciences.
Like we always say, the road to wealth is paved by tech…
I’m bringing this up with you today – because I can prove it.
Yesterday marked the eighth anniversary of the bull market, the second-longest on record.
During this period, the S&P 500 rose roughly 207%, turning every $10,000 into $30,700. That sounds great.
Until you compare it to tech…
The tech-heavy Nasdaq Composite did nearly 50% better. From March 9, 2009, through yesterday’s close, it had gained nearly 308% – turning every $10,000 invested into $40,800.
You might think this is over.
However, over the last few days, we’ve gotten two pieces of evidence that tell me this market still has life.
We’ll talk about those in today’s report.
Better yet, I’ll reveal three of my favorite cost-effective but profitable ways to play this tech boom.
When it comes to legal marijuana and cannabis biotech – which we’ve been discussing for several months now – there’s an elephant in the room.
There’s been a few recent comments from the Trump administration – though not the president himself – that paint recreational cannabis in a negative light.
During a Feb. 23 press conference, White House Communications Director Sean Spicer said he expects the Trump administration to seek “greater enforcement” of federal laws against marijuana.
Then, while speaking to reporters on Feb. 27 at the Justice Department, new Attorney General Jeff Sessions said, “I’m definitely not a fan of expanded use of marijuana.”
Not surprisingly, that’s inspired plenty of conjecture and worry from the media.
However, we’re not buying into that sensationalism and fear-mongering.
That’s because neither Spicer nor Sessions – nor anyone else in the White House – proposed any actual actions.
So instead of panicking, let’s take a breath…
I remain a big believer in this sector and its long-term growth. And I stand by my 2017 Legal Marijuana Forecast.
But the statements from Spicer and Sessions do raise some questions from “marijuana curious” investors.
Today I’m answering them…
My father was a defense analyst, and so the conversation could get pretty intense around the dinner table.
Usually, I could follow along, but when he started talking about the “credibility gap,” I got a bit lost.
Having been raised on the folklore surrounding George Washington, I just couldn’t believe that a president would ever lie. And so when my father said Lyndon B. Johnson had a “credibility gap” when it came to what he was saying about the Vietnam War, it just didn’t compute.
(Did I mention I was only 10 or so at this time?)
Presidents, of course, aren’t the only ones who can end up with credibility problems.
We took a look at a tech company with a huge credibility gap back on Jan. 10
We saw how they were always making excuses rather than money. And I told you to avoid any hype you heard regarding a “turnaround” in the making.
Turns out, my prediction was dead on the money. Since then, this company has been hit by wave after wave of bad news.
Investors who ignored my warning paid dearly for doing so. This once-proud company’s stock has fallen by roughly 24% since.
Today, I’ll show you exactly what went wrong – and why avoiding losers is so important.
In fact, if you want to make enough wealth to provide for a secure retirement, it’s absolutely crucial