Archive for January, 2019
Until Jan. 7, most investors had never heard of a small biopharmaceutical firm based out of Stamford, Ct.
But they certainly paid attention to Loxo Oncology Inc. (Nasdaq:LOXO) and its medicines for patients with genetically defined cancers after its stock jumped more than 66% that day.
Of course, within minutes, the average retail investor was locked out of the action.
That’s because shares of this once-obscure biotech leader leapt on news of an $8 billion buyout from Eli Lily & Co. (NYSE:LLY). See, the biopharma giant is shelling out the money to gain access to Loxo’s cutting-edge cancer treatment.
As important as the news is for life sciences investors, in all candor I probably wouldn’t be bringing it to your attention if this was just a one-off.
That’s because this was the third major biotech takeover in just a few weeks’ time.
And when I say major… the total price tag for all three deals… was a cool $83 billion.
Talk about a sector on fire with mergers and acquisitions.
Which leads me to the theme at hand…
Finding a good way to profit from of all of this M&A activity in the life sciences sector… without getting blindsided by these eye-popping deals, like we saw with the Loxo Oncology takeover.
So today, I’m going to let you in on how to profit from takeovers in the space, with an investment that has already rallied nearly 21% from its recent low…
Check it out…
Whenever I want to know what’s happening in the legal cannabis market, I don’t have to go very far.
After all, I live in the hills near Oakland, Calif., which has served as the epicenter for the legal marijuana industry since 1996, when California approved medical use.
This place is all about legal cannabis.
There’s even a district downtown known as Oaksterdam, which is lined with several legal cannabis retail outlets, not to mention a patient co-op and a marijuana school. Plus, nationally known cannabis industry research firm, the Arcview Group, is based there as well.
So I’m happy to report that, on a visit to a couple of stores last week to talk to sales folks and get their take on how things are going, I got a very upbeat report. Data is not yet available, but retailers say sales are up sharply.
And, like me, they’re expecting a great 2019.
After a rocky start to its recreational market in 2018, that California comeback is one of the reasons why I think we will see a very robust year for the industry nationwide.
Check out what I see in store…
As you’re well aware by now, I’m a pot stock enthusiast, and think investments in the right cannabis companies represent some of the best opportunities on the market right now.
That’s because… when laws pass, stocks soar.
In the past few years, we’ve watched 33 states and Washington D.C. greenlight medical and/or recreational cannabis. That means that most Americans are living in states with some form of legal marijuana.
We’ve just endured one of the toughest Decembers for stocks in decades.
But at the end of the day, what we have on our hands is a “Massive Disconnect.”
Let me explain. Just before Christmas, the tech-centric Nasdaq entered bear market terrain, defined as a 20% drop from a recent high.
If all you did was look at the headlines, you’d think economic growth and corporate earnings had just dropped off a cliff.
But nothing could be further from the truth. Fact is, third-quarter earnings were strong across the board, especially for high-margin tech leaders.
Plus, the economy remains in overall great shape. We have one of the best job markets in nearly five decades with consumer confidence near 20-year highs.
But fears about trade tensions, higher interest rates, and slower economic growth put stocks into a fast tailspin. In other words, it’s been fear and not fundamentals that caused the decline for stocks in every sector of the economy.
Now, the good news is that stocks are beaten down, and due for a rebound.
That just leaves deciding on which stocks are the right ones to choose in this type of market.
And that’s why I’m here today.
I’m going to reveal three oversold tech leaders that are due to rally and hand investors big gains in the year ahead… And can potentially give you your best shot at capitalizing on this volatile environment.
Check it out…
Apple Inc. just revised its revenue guidance and gross margin downward, pinning the blame on several factors, including reduced demand from Chinese consumers facing weakening economic conditions. Michael appeared on Cheddar recently to provide his take on Apple’s outlook in the near-term. While Michael views Apple as the best tech company in the world, with its own unified operating system, and a growing services arm, he also thinks the firm has been too reliant on hardware as of late.
Watch Michael explain what lies ahead for Apple, and how its recent troubles will impact the broader tech sector… Click here to watch.
Today, I want to give you a warning call for the year ahead.
No, I’ve not changed my opinion that the road to wealth is paved with tech.
Far from it.
When we spoke on Jan. 1, I struck an optimistic tone about our ability to make money on tech stocks in the New Year. And I reiterated that sentiment in my follow-up conversation with Money Map Executive Editor Bill Patalon on Jan. 4.
However, I do have one concern. With the sector in bear market territory of late, I expect to see Wall Street tout a number of stocks as great “turnaround” plays.
Here’s the thing. While that may be true in some cases, there are several stocks out there that I believe could be toxic to your portfolio.
In a choppy, news-driven market like we have right now, this is no time to take a flier with your hard-earned cash.
With that in mind, I want to reveal the four tech laggards I think you need to avoid in 2019…
Check ’em out…
It’s not every day I get to sit down with my good friend William Patalon III to chat about my passion: tech stocks.
So I jumped at the chance to talk with the Executive Editor of Money Morning to lay out my thesis for why tech stocks are headed for a huge rebound.
Now, you may be thinking the opposite if you’ve been tuning into the talking heads on cable, who’ve been talking like the sky is falling.
Sure, tech stocks took a tough turn toward the end of the 2018.
As measured by the iShares Expanded Tech Sector ETF (NYSE Arca:IGM), tech stocks ended the year down just under 1%. (Though they still beat the heck out the S&P 500, which was down 7.6% for 2018.)
But as I mentioned on New Year’s Day here, it’s far too premature to worry about the massive disconnect between fright-inducing headlines and rock-solid economic fundamentals. Those fundamentals are particularly bullish for high-margin tech leaders seeing solid earnings in the third quarter.
In this wide-ranging interview, I spell out exactly what’s been impacting tech stocks lately – despite those fundamentals.
Plus, I reveal my top investment strategy for 2019.
Check it out…
I’ve been hearing a lot of TV talking heads use the dreaded “R” word.
And it drives me nuts!
I’m talking recession here, if it wasn’t obvious.
After all, the average period between recessions is 6.5 years, and we’ll mark the 10th anniversary of the end of the last recession in June 2019.
But these “experts” are glossing over some important economic data that show we’re not likely to dip into a recession in 2019.
In fact, I’m optimistic about your ability to make money on tech stocks in the New Year. And I’ve identified four major catalysts that will lead to a major tech rebound.
I’m calling these catalysts “Fort Silicon Valley,” for their ability to stave off the doldrums, keep the economy growing, and make you money.
A lot of money.
Check them out…