Archive for January, 2018
The Spotify AB initial public offering is quickly approaching.
It will probably be the biggest technology IPO of the year – and it’s definitely the most watched one right now.
That’s true for two reasons.
- Spotify is the leader in online music streaming, boasting some 140 million monthly active users – 70 million of them paying subscribers. That’s well over double the 30 million paying members it boasted just two years ago. Plus, it’s got a name brand that’s just about tops among tech startups, and a pre-IPO valuation of more than $19 billion.
- It’s pursuing an unconventional IPO. While it’s listing on the New York Stock Exchange, instead of using underwriters (i.e., big banks) to help sell the stock, set a price, and find interested buyers, Spotify is using a “direct listing” for its IPO. That means that every investor will be able to buy the stock at the same price on the day it opens. This gives retail investors the same opportunity as the hedge funds and other Wall Street sharks.
However, despite its popularity and success at obtaining and keeping paying subscribers, Spotify is still losing money and holds a significant amount of debt.
Plus, a company’s stock price after an IPO nearly always has volatile price swings – the kind that’ll make even veteran investors pull out their hair.
So here’s the thing: I don’t want you to put any of your money into the Spotify IPO.
If you’re near the beach, I want you to head out there.
Now listen closely.
Hear that roar? That’s the tsunami of cash headed to our shores thanks to the corporate tax cuts President Donald Trump signed into law last month.
It’s also the sound of you getting rich.
That’s because the biggest the beneficiaries of that tidal wave are investors in Silicon Valley-style technology.
See, American firms hold hundreds of billions in overseas profits – and these new business tax cuts are motivating them to bring it all back home. Data I’ve seen shows that 11 of the top 16 firms that will repatriate foreign cash are in high tech or healthcare – two of our biggest profit targets here at Strategic Tech Investor.
And the single biggest winner here will be Apple Inc. (Nasdaq: AAPL) – and its investors.
Well, I’ve got a brand-new Apple share-price prediction.
And whether you’re a longtime Apple shareholder – or are just considering buying AAPL for the first time – I think you’re going to like it.
Let’s take a look…
If you’re reading this on a PC, the odds are very good you’re doing so on an infected computer.
Or one that is in significantly jeopardy of being hacked.
I’m not being an alarmist here. Fact is, the Spectre and Meltdown bugs – flaws recently found in chips made by Intel Corp. (Nasdaq: INTC) – mean that nearly every computer and network server out there are more vulnerable to cyber criminals than we previously thought.
That’s because Intel commands a dominant 81.2% share of the central processing unit (CPU) market. No wonder just about every tech company out there – from Alphabet Inc. (Nasdaq: GOOGL) to Apple Inc. (Nasdaq: AAPL) – has spent the past few weeks working furiously on fixing the problem.
While I’m a big believer in Intel’s long-term future, it’s too late to “buy on the dip” in this case.
But there is a profit opportunity here – a big one.
You see, there’s a huge global challenge – hacks, cyber theft, viruses, malware…
A lot of companies are going to make a lot of money helping us all fight these threats – and so are their investors.
That’s why, today I’ve dug up a great way to profit off this with an investment that beat the market by more than 40% over the last two years.
And that’s going to keep doing the same for years to come.
Take a look…
On Jan. 9, the storied but beleaguered photography firm Eastman Kodak Co. (NYSE: KODK) let slip the word that it’s integrating blockchain technology into its operations.
Kodak said it wants to use the blockchain distributed ledger to help photographers license their work – and get paid – when people use those images.
You know what happened next…
Kodak’s shares soared higher by 119% that day – and then another 57% the next day.
Then the talking heads on CNBC and Fox Business – and in mainstream publications everywhere – tut-tutted both Kodak and the investors who bought into its scheme.
They’ve got a point – chasing after desperate companies putting blockchain into their business or names is a bit foolish. After all, plenty of investors who hit the greed pedal following Kodak’s blockchain announcement got creamed on profit-taking.
Here’s the thing. Those mainstream analysts missed the larger meaning behind this story.
Investors are right now feeling a great need to invest in blockchain before they miss their opportunity. And they’re chasing it everywhere they see it, even if it means making a play on a long-struggling company like Kodak.
The blockchain, of course, is the backend technology that makes cryptocurrencies like Bitcoin possible. And it’s the blockchain’s promise that’s behind Bitcoin’s and other digital coins’ recent wild ride.
So I get it. I want to be invested in blockchain- and I think you folks should be, too. But plays like Kodak are extremely risky trades, not long-term profitable investments.
So today I want to tell you about a stock that is a great backend play on blockchain technology.
It’s is a highly respected tech leader that offers stable returns – but that will crush the market over the next three years thanks to its moves into blockchain and other bleeding-edge technologies.
Let’s take a look…
Between Oct. 5 and Nov. 11, one of the bellwether biotech exchange-traded funds fell 10.5%.
That’s a correction, as defined by most market watchers.
And most investors – and their “enablers” on Wall Street – have shied away from biotech shares since. They’re jittery.
In fact, I saw one august financial publication -the highly respected Investor’s Business Daily – warn folks away from biotech in 2018 due to “median tenure of chief executives at large-cap biotech companies.”
That’s not just a stretch. It’s a load of malarkey.
Here’s the thing: If you want to double your money in 2018, you absolutely must invest in biotech.
I sure hope you’re not like Levi L.
Or Michelle M.
Or even Sean G., for that matter.
All three of these young people sat out one of the greatest bull markets for stocks in history. (At least that’s what they told The Wall Street Journal last week.)
All three told the Journal they worried about losing money.
That outrages me.
If these kids had started investing in an S&P 500-based fund since the launch of Strategic Tech Investor on March 26, 2013, they’d be sitting on 70.1% gains.
That’s not bad.
Back in February 2016, I recommended that you all buy Bitcoin as a hedge – as “The Gold of Tech.”
Those of you who moved on that recommendation made peak profits on the cryptocurrency of more than 5,000% in mid-December. But it’s been a bit of a wild ride since then, with every bit of “noise” sending Bitcoin down 10% or so, and then the next day’s “signal” bringing it right back up.
Just check out what happened while we were all sleeping Sunday night.
Most of the major digital currencies fell pretty hard – Bitcoin, 15% – after South Korea announced that it is cracking down on crypto speculation and launching an investigation into six banks. Seoul wants to make sure these banks are following anti-money laundering regulations – and, most likely, not allowing North Korea to trade cryptos.
I’ve long predicted that the world’s major economies will do all they can to get a handle on cryptos – and that each time they make a move like this, we’ll see a slide.
But digital currencies are here to stay. And they’ll keep coming back – and keep making smart investors money.
In other words, don’t panic.
While this is a very lucrative field, it’s volatile. Therefore, to profit in this exciting new arena against that turbulence, you need a savvy set of tools.
You want to be able to put in lowball limit orders to profit from selloffs. And you’ll need stop-losses to protect your capital and profits.
There’s only one way to do that…
The road to wealth is paved by tech (along with cryptocurrencies and legal marijuana). I know it. And I hope you know it. If you still have doubts, however, keep reading... Yes, the S&P 500 had a great 2017, rising some 19.4% and...
To continue reading click here...
My childhood family dinner conversations were a bit different than most folks’.
Sure, we talked about school, sports, neighborhood gossip, movies – normal stuff. But we also talked about military contractors, weapons systems, and defense budgets.
That’s because my father was the award-winning senior military editor for Aviation Week & Space Technology magazine, the bible of that industry. And that gave me a front-row seat for the military de-escalations and escalations of the 1970s and 1980s.
Therefore, when last year President Donald Trump called for raising the fiscal 2018 defense budget by 10%, I took notice.
Without doing the math – thanks to those long-ago family dinners – I knew immediately that this would represent the biggest defense budget increase since the Ronald Reagan years.
But that’s just trivia. Here’s the “meat”…
President Trump wants more airplanes, tanks, and troops as well as technology for missile defense and a wide range of other platforms. And that means 2018 is stacking up to be the best year for the defense industry – and its investors – since 1981.
That gives us a target-rich profit opportunity for this New Year.
We’ve made a lot of money on defense over the years on stocks like Northrop Grumman Corp. (NYSE: NOC) and Raytheon Co. (NYSE: RTN).
But there’s more to come.
A lot more.
That’s because, even beyond President Trump’s historic budget increase, I see multiple catalysts – “triggers” – that will power the defense industry to continued new highs.
So today, let’s look at those 2018 defense catalysts.
Then I’ll show you how to play them with an innovative market-crushing investment…