Archive for December, 2017
When we spoke Dec. 19, I warned you to be careful about getting into Bitcoin as we head into 2018.
No, I’m not pessimistic about cryptocurrencies in general or Bitcoin in particular. In fact, just the opposite is true – I firmly believe these e-currencies are the wave of the future and still face huge upside.
My concern is for individual investors like you. At the time, Bitcoin had literally just hit the futures markets for the first time ever. And Wall Street traders, hedge funds, and other high rollers were sharpening their knives – setting Bitcoin up for massive volatility.
My call couldn’t have been timelier.
Practically as I hit “send” on that report, Bitcoin fell $1,070 in a day. Not only that, but it weakened over the next few days, falling from a high of roughly $20,000 to $12,500. That’s a 37.5% peak-to-trough loss.
As I write this on Wednesday, Dec. 27, Bitcoin has swung back up to around $16,000.
For you Bitcoin veterans out there, that kind of swing is pretty normal. You folks can handle it. But for new investors, that type of volatility is hard to swallow.
So, what I want to tell you today may sound a bit counterintuitive. But here we go…
Please don’t cash out of Bitcoin completely.
If you do that, you’ll miss out on the hard forks.
If you set yourself up correctly, these Bitcoin spin-offs could mean gains for you of several hundred percent.
Here’s how to do that…
I had a terrible head cold – but the message got through.
No, it was more than a message…
It was a revelation.
It was back in June, and I was on the floor of the Fourth Annual Cannabis Business Summit & Expo in Oakland, California. My head was fuzzy due to the combo of viral infection and strong cold medicine, but I knew the conversation I was in was important.
I was talking to Chet Billings, CEO of legal cannabis investing company Mentor Capital Inc., and he was trying to explain the importance of compliance in his business. He was talking about cannabis companies’ need to follow all state and local business regulations – and to track their compliance.
Billings told me that we’re now approaching an era when mergers and acquisitions among marijuana companies are starting to happen. And buyers will only go after smaller firms of the highest quality. If they don’t have their compliance in order, he said, those acquirers will keep on trolling for more attractive fish.
The stakes are high, Billings said, and a lot of smaller operators simply don’t have experience with government regulation or the manpower to pay it the attention it needs without tech software to do the heavy lifting.
I must have still looked confused, because then he put it to me in a way that I, as a lifelong movie fan, could understand: “It’s like in the 1980s and ’90s when video rental shops still proliferated the landscape.”
Eventually, Billings recalled, Blockbuster came along and bought up the best video stores in each town. Hollywood Video picked up the second-best ones. And the dustiest, most unfriendly places got left alone – and went out of business.
“Why would you want a ratty, local dispensary that resembles an old video store?” Billings said. “One false key stroke is a permanent violation. You get enough of those noncompliance violations – and you lose your license… and any chance at being a success.”
That’s one of the reasons why I’ve frequently recommended Microsoft Corp. (Nasdaq: MSFT) as a “starter” pot stock. The tech giant has made a big commitment to developing legal marijuana compliance software tools for governments and businesses.
And it’s really just one of the many “lessons” I’ve learned while out on the trail this year that I’ve used to make some of my members a mint through investing in the right marijuana stocks.
Now I’m using those same lessons to bring you these five pot stock predictions for 2018. All five are catalysts that will really drive the marijuana market upward in the next year.
Don’t miss them…
I’ve been doing the Christmas party rounds over the past few weeks, and at every single one I’ve had this same conversation.
Someone asks me about Bitcoin.
I explain what it is… how it works… why it’s run up 1,500% this year alone… the works.
Then I brag a little.
As the crowd of “Bitcoin curious” gathers, I tell them how I began talking with my Nova-X Report members about how big Bitcoin was going to become way back in early 2013. At the time, the encrypted digital currency was trading for roughly $100. By the end of the year, the price had topped $1,200 – for a 1,100% gain in just a few months.
As I write this Wednesday morning, Bitcoin stands at around 170 times what I recommended it at, meaning those followers of mine have stacked up gains of around 16,900%.
I tell them they’d be hard pressed to find a bigger Bitcoin bull than me. And I tell them to use their best judgment to take some profits – but to hold onto a good chunk of their Bitcoin. (I’ll tell you why in an upcoming report here.)
Then I tell them not to buy any more – at least not right now.
Here’s the thing. At least two Wall Street outfits are setting up Bitcoin futures markets.
And that means hedge funds, short sellers, and other assorted bad actors are getting unleashed on the Bitcoin market.
Plus, Bitcoin owners have seen the value of their holdings swing by $1,000 or more over the last few weeks. I don’t want any rookie investors walking into that kind of volatility.
However, as we enter 2018, there’s another digital currency out there that offers investors much less volatility and much more upside.
With everyone from your broker and golf partner to your barber and dentist talking about Bitcoin, you may have completely missed the fact that this crytpo coin has tripled Bitcoin’s gains so far this year.
It costs a lot less than Bitcoin.
Thanks to its high-level security protocols, it has far more utility to investors, banks, and tech companies.
And it’s set up to continue delivering huge profits in 2018.
Check it out…
A friend of mine, Ben, did what many of us dream about a few years back.
He was in middle management, deeply ensconced in a big accounting firm in downtown San Francisco. It paid great, but Ben hated the job: long hours, a ridiculous commute, tons of boring meetings, eating lunch at the desk every day. You know the routine.
But unlike so many of us, Ben took action. He regained his freedom.
He quit his job, cashed out some of his investments, moved to the country, and became an independent trucker.
He loves it. He loves chatting with other truckers, eating at greasy spoons, listening to talk radio all day, being his own boss… pretty much.
But he also hates it, sometimes. That’s because Ben’s “boss,” such as it is, is a computer that tells him where to go, when to get there, when to pull over to fill up or for maintenance, even when to go to bed.
Yup, like I tell you so often, every business is a tech business – even trucking.
A few years back, I showed you folks one way to cash in on tech’s takeover of trucking by recommending FleetCor Technologies Inc. (NYSE: FLT), a commercial fleet-focused electronic payments company. And if you made that move, you’re sitting on some pretty big gains – 135.8%.
FleetCor still has plenty of room to run – up to 20% in just the next 12 months.
But there’s another trucking technology investment out there that I want to tell you about. And I need to tell you about it now – today.
That’s because midnight, Dec. 18, a little-known federal mandate will go into effect across the United States.
It requires the immediate deployment of a cutting-edge technology for the trucking industry. It’s “Ben’s boss.”
I call it an Augmented Digital Copilot – or ADC for short. (I can’t tell you what Ben calls it.)
And just one tiny company has meticulously developed the technology to dominate this market. Only it can fulfill the immense and imminent demand for these devices.
This small, under-the-radar firm is on the verge of earning a big chunk of the $2 billion windfall that this federal mandate is creating.
That will send its stock soaring and make its investors a fortune.
Now here’s how you can “be like Ben” – and regain your own freedom…
Black Friday/Cyber Monday hit about two weeks ago – and all I’ve heard since is doom and gloom.
The “retail apocalypse” is here, and every “expert” out there is telling investors to “Short” brick-and-mortar retailers… wait, no, they should “Buy” retailers on the dip.
Then there are those who try to explain that this isn’t really an apocalypse, and that this specific retailer is going to survive (but this one or this one isn’t).
Over at Jim Cramer’s TheStreet, I saw one writer recommend an ETF – EMTY, as in “empty” stores – whose share price rises whenever a bricks-and-mortar retail stock index falls.
All this is ridiculous – and way more complicated than necessary.
Yes, Macy’s Inc. (NYSE: M), Sears Holdings Corp. (Nasdaq: SHLD), and Office Depot Inc. (ODP) are plummeting. And, indeed, J. Crew Group Inc. and Toys “R” Us Inc. are heading toward insolvency.
But check out these numbers…
Adobe Analytics tracked $5.03 billion in online sales on Black Friday – and an even more robust $6.59 billion on Cyber Monday. And the analysts there think the stage is now set for e-commerce sales to surpass $100 billion this holiday season, a new record.
In other words, technology is behind all the “apocalypse.” So instead of picking among retailers to “Buy” and/or “Short,” we should be investing in the technology that’s causing the “apocalypse.”
And though it’s a good start, we can do way more than “Buy” Amazon.com Inc. (Nasdaq: AMZN).
In fact, we can get into an e-commerce-focused investment that’s been doubling the overall market’s return all year long.
And that shows no sign of slowing down…
Call it the “Millennial Market.”
No, I’m not talking about how twenty- and thirtysomethings are affecting the market.
Instead, I’m talking about how we now measure the advance of the bellwether Dow Jones Industrial Average not by hundreds, but by thousands.
The Doe has advanced by 1,000 points by five times this year… so far.
In fact, it took just 30 days for it to reach 24,000 on Nov. 30.
That’s great news for just about every investor.
But the news is even better for investors like you.
For technology investors, the Nasdaq Composite set 69 new highs so far this year. It has gained 23.3%, which is 49.5% better than the S&P 500 and 15.7% better than the Dow.
Meanwhile, Bitcoin is up 1,075% in 2017 – and Ethereum has soared an amazing 5,371.4%.
And in legal marijuana, my premium Nova-X Report members have made triple-digit gains on several of the penny pot stocks in their model portfolio. To find out how to join them, just click here.
In other words, ground-floor trends like technology, cryptocurrencies, and legal marijuana are the driving forces behind the market’s historic gains.
But that doesn’t mean you can just blindly buy any tech stock out there and expect to make money.
While I know you don’t believe that’s true, some of you might buy into Wall Street’s hype machine – and believe you can make a fortune on some of the troubled tech leaders they’re touting as “turnaround” investments in 2018.
Don’t believe that hype.
Especially don’t believe any hype you might hear about these 2018 Tech Dogs.
These are the four stocks you want to stay as far away as possible from next year. They’re dangerous – all four of them.
Take a look – and then keep away… far away…
If you follow the chip sector, you might be confused.
Check out what’s happened in just the past month…
On Nov. 3 we learned that Marvell Technology Group Ltd. (Nasdaq: MRVL) is in talks to buy Cavium Inc. (Nasdaq: CAVM). The pact would create a chip firm worth some $14 billion but the deal is yet to be consummated.
But that was small potatoes compared to what came next.
On Nov. 13, Qualcomm Inc. (Nasdaq: QCOM) rejected a $105 billion buyout offer from Broadcom Ltd. (Nasdaq: AVGO) – what would have been the biggest tech buyout in history. As a leading supplier of mobile-chip technology, Qualcomm says it’s better off operating on its own rather than merge with.
And all that comes after Qualcomm offered $39 billion to buy NXP Semiconductors NV (Nasdaq: NXPI). At the time, that was the record amount for a chip sector takeover.
Moreover, Wall Street analysts seem to be constantly putting the semiconductor sector on “watch” – saying the current chip surge is about to run out… today… tomorrow… next week.
But they’re always wrong.
If you’re not sure where you should be putting your money after mixed messages like that, I understand. Like I said, it gets confusing.
However, you do want some money in semiconductors.
See, the chip industry is consolidating not out of weakness, but strength.
A recent report by industry trade group SEMI forecasts that silicon shipments will hit 11.49 billion square inches this year, 11.8 billion next year, and 12.24 billion in 2019. Total shipments of “wafers” – the format silicon is produced in – for this year will break the record set back in 2016. And shipments will continue at record levels for each of the next two years.
And that’s just one robust forecast – I’ll show you a couple more below.
Still, if you’re not up for picking and choosing among the acquirers and acquireds, there is a way to make money off the on again/off again Qualcomm-Broadcom merger, the Marvell-Cavium lockup, and just about any other chip-sector M&A that comes along.
It’s a wallet-expanding way to profit from the chip sector’s ascendance and merger mania in a way that is crushing the market by nearly threefold…