You’ve got to hand it to those folks on Wall Street- they have a knack for ignoring the obvious.
And in the case of Facebook Inc. (Nasdaq:FB) that meant actually digging below the daily headlines.
See, the Street has been concerned with the social media giant’s hassles with regulators and politicians over crackdowns on Facebook violations of user privacy.
To be sure, the firm is forecasting losses of up to $3 billion due to possible fines from the Federal Trade Commission.
Here’s the thing. It recently made a merger that greatly increases its move into a hot new field that could easily generate more than six times that amount – in less than three years.
That’s why news that came out back on Feb. 4 is so important for understanding Facebook’s true cryptocurrency ambitions.
See, the firm quietly began a blockchain project about a year ago. But with the recent purchase in February of blockchain startup Chainspace, Facebook is looking for the kind of scale that means Big Money.
And today, I’m going to reveal a great way to play Facebook’s blockchain and crypto currency moves…
If you’re like most families, rising gas prices have caught your attention.
Then again, this is the time of year when many people begin planning their first big trip of the summer, the Memorial Day weekend.
It’s a three-day holiday tailor made for a road trip. It also is the traditional kickoff for summer travel.
And anyone taking to the road this year is likely to pay more for gasoline, which has risen by 22.6% so far this year. Although we have an energy boom in the U.S., we face two short-term issues.
1. The huge flooding in the Midwest this winter has hurt production of ethanol, a key gasoline ingredient.
2. Venezuela’s collapsing economy has put a pinch on global supplies because that troubled, socialist nation is an energy exporter.
Well, today I want to let you know of a hidden way to “hedge” against rising energy prices.
This is a high-tech firm that is a classic pick-and-shovel play because it helps energy firms optimize output.
That fact alone helps explain why it has doubled the S&P 500’s return so far this year. And is likely to crush it over the long haul…
I’ve been talking about legal cannabis here for years as an unstoppable industry, with my broad investment motto being: when laws pass, stocks soar.
Now it looks like the folks at BofA Securities, a division of Bank of America Corp. (NYSE:BAC), are finally catching on, as they’ve started to cover the industry in depth. Let me be the first to say: Welcome!
It also looks like in their initial coverage, they’re predicting that as the U.S. steps closer to federal legalization, we’re going to see more Canada-based firms trying to snatch up American ones, while the price is still cheaper than what it would be in a post-federal legalization world.
Of course, seeing legal cannabis as a global market is also something I’ve been talking about for a while, so I heartily agree here. And of course, the proof is in the pudding. Take Canopy Growth Corp.’s (NYSE:CGC) recent $3.4 billion agreement to purchase U.S.-based Acreage Holdings Inc. (OTC:ACRGF), which can be finalized when the U.S. federally legalizes.
The Bank of America analyst also believes the combined market share of the 14 largest Canadian cultivators could exceed that nation’s domestic market consumption needs by 2021, making international strategies all the more important for firms in this increasingly competitive space.
Again, I’ve also been focused on the international potential in this industry for years. The Bank of America analysts expect the global market will reach $166 billion, with the U.S. taking up about a third of that total, while Canada could account for about 3%. In all, cannabis is set to disrupt $2.6 trillion in revenue from existing industries like health and wellness to alcohol.
For a while during former CEO Steve Ballmer’s reign at Microsoft Corp. (Nasdaq:MSFT), the firm looked like it was stuck in neutral, mired in its legacy business that focused pumping out personal computers and related software. But things changed when current CEO Satya Nadella took over. Today, Microsoft breached the $1 trillion valuation mark on the back of a strong third quarter earnings report, which helped the stock jump 3%. Appearing on Fox Business’s Cavuto: Coast to Coast today, Michael explains the importance of good leadership and how it can change the course of a company – even one as big as Microsoft – and its stock potential. Watch Michael describe the key steps Nadella made to send Microsoft soaring… Click here to watch.
It was great to hear from my good friend, Frank Holmes, once again.
This time, he had some very exciting news about his involvement in one of the more lucrative fields in high tech today.
But first, you may recall that when we spoke last Dec. 7, I noted that I have followed Frank’s career for many years because he ranks as one world’s leading experts on anything involving metals and mining.
He serves as the CEO and chief investment officer at U.S. Global Investors(Nasdaq:GROW). It’s a boutique investment management firm, specializing in actively managed equity and bond strategies.
As impressive as his title is, it only scratches the surface of why I think he is a visionary leader.
Frank also ranks as a leading expert on high tech. And his latest venture combines those two parts of his personality with the promise of huge payouts for investors.
Indeed, Frank has just become the chairman of a fast-moving nano-cap that is using artificial intelligence (AI) to disrupt the centuries-old mining sector.