Archive for February, 2018
After the last few weeks of violent market swings – way up one day, way down the next – you might feel like there’s no new moves you can make.
While it can seem a bit scary out there, that’s not true.
When volatility hits, as it has since late January, one smart move you can make is to start buying companies that richly reward their investors through dividends and stock buybacks. These are companies that are going to pay off no matter the noise in the markets.
“But!” – I can hear you folks crying – “dividend stocks are boring.” You’re looking for fast-growing Silicon Valley startups and companies in frontier fields like biotech… legal marijuana… and the blockchain and cryptocurrencies.
As a growth-centric investor, I too used to think of dividend payers as firms that have lost their cutting-edge fervor.
Well, that was then. This is now…
Fact is, tech leaders are generating so much cash these days that they can boost R&D spending on new innovations and pay higher dividends. And thanks to the Trump tax cuts – which encourage the repatriation of cash held overseas – those companies are now piling up even more cash.
So I’ve been looking hard to find you folks some unstoppable trendsetters that are also big dividend payers.
And I just spotted a biotech leader that – almost immediately after calculating its lower tax rate – announced that it’s boosting its dividend by an amazing 35% to a rate of nearly 3.3%. Not only that, but it’s also going to start buying back $10 billion of its stock.
As good as that sounds, there’s a lot going on here on the innovation/growth side as well.
In fact, on a share-price basis alone, I believe it’s going to double your money in just a few years.
All that could be cash in your pocket.
However, there’s one more thing you need to know.
To collect that cash, this is a play you need to make by April 13.
A few weeks back, my wife and I were vacationing in Cabo San Lucas, on the southern tip of Mexico’s Baja California Peninsula.
While we were lounging around the pool one day, I overheard a group talking about Bitcoin.
Naturally, I joined in – and offered up a few of my “credentials.”
Next thing I knew, I was getting peppered with questions about Bitcoin, the blockchain, and cryptocurrencies. These fellow tourists were smart folks, but they hadn’t yet been able to fully grasp all the ins and outs of this new world.
But by the time the conversation ended, they were thanking me for clearing up a lot of their confusion.
I was happy to help.
There’s little I like to do more than introduce people to new investing ideas – especially profitable ones.
In fact, this kind of thing happens all the time.
During the long Presidents’ Day weekend, I found myself in three Bitcoin/crypto conversations among three entirely different groups of people.
I bet the same thing happens to you – at the golf course, at cocktail parties, around the pool… everywhere.
That’s why I want to arm you with three key points – I call them “Insider’s Edges” – that will make you your crowd’s top Bitcoin expert.
After this quick lesson, not only will you be the smartest guy or gal in the room.
You’ll be all the better positioned to make big profits on cryptos…
When U.S. Attorney General Jeff Sessions rescinded the so-called Cole Memo on Jan. 4 and opened the door for federal prosecutors to target marijuana businesses, plenty of legal cannabis investors panicked.
But not us.
The very next day – despite pot stocks plummeting by double digits – I said the U.S. Department of Justice’s unprecedented attack on states’ rights is no reason to panic. Instead, I said, it was a massive opportunity for investors.
And I was right.
Since then, most of those stocks have reversed their losses, and advocacy groups, medical marijuana patients, legal pot entrepreneurs, politicians in legalized states, and even members of Congress have stood up to Sessions. They’re doing everything they can to reverse or neutralize the AG’s anti-marijuana moves.
Now, just in the past few weeks, Sessions has picked up a brand-new “enemy”… from a place few would expect.
Because this man is so powerful, the moves he makes now could shut down Sessions – and help fuel the entire legal marijuana sector.
That’s because he sits at the same White House table whenever President Donald Trump’s Cabinet meets.
Take a look…
A couple of times now I’ve told you not to start buying Bitcoin again yet – but let me reiterate…
We’re not counting Bitcoin or cryptocurrencies out.
Despite the recent extreme turbulence, there are many fundamentals behind the best cryptos – and the blockchain technology that backs them up could be the most disruptive tech innovation to come along in years.
This is a phenomenon you must keep up with. And we will.
While Bitcoin’s price is determined the same way a stock’s price is – through price discovery on an exchange – just like stocks, many other factors cause things to get much more complex.
So a lot of catalysts went into driving Bitcoin’s price up close to 2,000% during 2017. And a whole ‘nother set of factors drove it down from north of $19,000 in mid-December to around $8,500 today.
I’m talking about threats of regulation, actual regulation, comments from this or that government official, market manipulation, and good, old-fashioned hype.
These issues are going to get ironed out. And when I feel the time is right, I’ll give you the “go” signal to get back in.
We’ve spent the past week reacting to the market correction.
On Wednesday, I showed you three “Fat Finger Market Tools” you can use to protect your current investment portfolio. They’re three strategies you can use to turn anything – bloodbath or rally – into money in the bank.
I want you to keep that list in hand because the market has yet to settle down – we’re going to keep seeing a lot of turbulence for at least a couple of more weeks.
Then on Friday, we went over five Strategic Tech Investor Game Changers – three “rules” we’ll be using to find our next round of winning technology, legal cannabis, and cryptocurrency plays.
And I promised you I’d circle back soon – using those Game Changers to dig up some new profit opportunities.
Today I start keeping that promise…
If any pro sports team needed a game-changing play, it was the Philadelphia Eagles last Sunday.
The underdogs in Super Bowl LII were behind by just 1 point late in the second half. And they were up against Tom Brady.
One of the top quarterbacks in NFL history, Brady was leading the New England Patriots downfield in what was shaping up to be another of his trademark wins.
But just when it mattered most, the Eagles pulled off a game-changing play – a strip-sack of Brady. After they recovered the fumble, the Eagles went on to win by 8 points for their first Super Bowl win in franchise history.
I’m bringing this all up because I see a lot of parallels between that game and the market bloodbath we saw early this week – and the extreme turbulence we’ve seen ever since.
Fact is, individual investors like you are the clear underdogs, while hedge funds and the titans on Wall Street are more like the powerhouse Patriots.
And now that the Dow Jones Industrial Average is swinging by hundreds of points every day – and the sharks on the Street make a bundle every time – you could use a game-changing play to earn yourself a “Lombardi Trophy.”
In fact, you could probably use a few Strategic Tech Investor Game Changers to get you in the winner’s circle.
Today I’ve got five of them you can start executing right now…
If Monday’s market bloodbath – and yesterday’s huge rally – has you scratching your head, you’re not alone.
I lost count of all the reasons – many of them half-baked – that the cable TV “experts” tossed out.
Yes, they rightly pointed out plenty of “triggers” out there that could indicate a return to the kind of volatility we saw back in 2015 and 2016.
But I firmly believe the one big reason for Monday’s historic 1,100-point drop in the Dow Jones Industrial Average was computerized trading.
The software that hedge funds and Wall Street houses use are filled with algorithms designed to protect even meager profits for these high-frequency traders. And on Monday, as I’ll show you in a minute, those machines struck back.
Here’s what I think that means: After a couple of complacent years on the Street, it looks like we are headed for choppy markets once again. I’m calling this bout of turbulence “The Fat Finger Market” (that “title” will soon make sense).
But that’s fine. We can deal with some choppiness.
You see, I’m still pumped up about Silicon Valley tech investing… about finding ways to play the cryptocurrency craze… and about the unstoppable legal cannabis industry.
And I know you are, too.
That’s why today I’m delivering to you three “Fat Finger Market” tools you can use to turn anything – bloodbath or rally – into money in the bank…
On Friday, Feb. 2, Michael and his team attended the International Cannabis Business Conference in San Francisco in order to investigate the current state of legal marijuana – and what’s on the horizon. There are a ton of new ideas out there. The growers and dispensaries/retailers – the “pure plays” – were literally the least of it. The amount of startups with new technologies and services for legal cannabis companies on the conference floor seemed limitless. We lost track of how many entrepreneurs and budding CEOs Michael got to talk to. Frankly, it was dizzying.
Plus, we checked out plenty of biotech companies developing medicinal marijuana treatments, chatted with state officials helping companies set up their licenses, and visited all kinds of firms displaying their cannabis-infused “edibles” and “topicals” – i.e., foods and skin-care products.
It’s no wonder so many entrepreneurs are getting into this space… If the forecasts Michael trusts are correct, the North American legal cannabis market is going to grow by 26% annually through 2021. And the industry will be generating almost $22 billion in sales by 2021 – triple what it did in 2016. You can’t ignore that kind of growth. To us, getting in on cannabis now is like getting in on Silicon Valley… in 1965. Michael tells you more about that in the video. Click here to watch.
We’re getting some big news on Monday.
That’s when GW Pharmaceuticals PLC (Nasdaq: GWPH) is reporting its first-quarter 2018 results. It plans to do so early that the morning of Feb. 5, before the market opens.
GW Pharma is one of the legal marijuana stocks we follow here – so we’ll be waking up early.
GW Pharma’s share price is up 211.3% in the last two years, more than quadruple the performance of the S&P 500 over the same stretch.
Now, GW has disappointed over the past few quarters. In fact, the company posted an earnings per share (EPS) loss of $2.08 for third-quarter 2017. That was 29% below the consensus of the seven analysts who follow it. And Wall Street punished it to the tune of 7% the day those results were released.
And we can expect to see a similar dip if GW again misses expectations on Monday. And if it does, you should see it as an opportunity to buy on the dip and get it at a discount.
That’s because we’re invested here for the long haul – not quarter-to-quarter results – as GW works to get its cannabis-based prescription drugs in American pharmacies.
When it comes to those marijuana-based drugs – and all the profits and share-price gains they’ll soon deliver – there’s a date that’s much more important to us than Feb. 5.
And it’s approaching fast…