Archive for June, 2019
The software sector is about to get a whole lot more profitable.
Here’s the thing. I focus on software firms because so many of them boast very high profit margins.
And in the era of cloud computing, they can upsell products to their clients with very little extra costs – but tons of extra earnings.
But while this is a red-hot trend from which we can profit from years to come, there’s a new dynamic reshaping the whole sector.
Of course, I’m talking about a recent wave of mergers that will mean even more earnings growth for the buyers, not to mention more upside for savvy tech investors.
Consider that two big deals were recently announced just days apart.
In the first, Alphabet Inc. (Nasdaq:GOOGL) said it’s buying privately held Looker for $2.6 billion. The second deal calls for Salesforce.com Inc. (NYSE:CRM) to buy Tableau Software Inc. (NYSE:DATA) for $15 billion.
Today, I’m going to reveal an investment tailor made to capture the software merger trend. I’ll also give you two more market-beating ideas…
Check it out…
When we spoke on Dec. 26, I suggested you invest in United Technologies Corp. (NYSE:UTX).
At the time, I noted the sprawling defense and industrials firm had completed a $23 billion buyout of aerospace supplier Rockwell Collins.
I went on to say that United Technologies provides access to a very lucrative field of investing – corporate spinoffs. This one gives shareholders access to three separate stocks.
But today I’m writing to let you know I now have placed the stock on hold. Rest assured this was not an easy decision.
After all, I still believe in the company’s long-term growth.
It’s the short term that is the problem, now that the firm has announced an all-stock deal to merge with Raytheon Co. (NYSE:RTN) to create a defense giant with $74 billion in sales.
So today I’m going to walk you through the reasons I have the stock on hold.
And I’ll also show you a lucrative defense pick that is putting the market to complete shame…
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It isn’t every day that Wall Street fails so publicly.
And no, I’m not talking about a big investment firm or commercial bank going under.
Here’s the thing. You and I have been talking about financial technology for several years now. I like to think you have a real inside edge here.
This is a field I literally got involved with in the late 1980s, and have managed to get a piece of every new wave of innovation. Then again, it’s well worth it – global payments total some $100 trillion.
So, for J.P. Morgan Chase &Co. (NYSE:JPM) to tell clients it was shutting down a new app for young people, the offering, called Finn, must have been a train wreck.
Young people are some of the most coveted consumers on Earth because you can keep them for decades. For its part, JP Morgan has built a good digital franchise.
But its future now rides heavily on traditional banking… and physical branches, which most young people hate.
That’s why today, I am going to tell you about a terrific fintech leader that is crushing the broad market by 1,000%…
Check it out…
You’d have never known that I took the whole winter off from trap shooting.
After a five-month break, I came right back and had my best scores ever – 99 out of 100 with 82 straight hits.
This is no mean feat. After all, trap is a shotgun sport where you have to hit a target the size of a compact disc that flies away from you at oblique angles at about 45 miles per hour.
Now then, as good a shot as I am, I know for a fact I can’t hit a moving target – or of any kind for that matter – while wearing a blindfold.
And yet… that’s pretty much what Congress and the Trump administration are trying to do.
Here’s the thing. The president and members of both parties in the House of Representatives want to investigate Big Tech for alleged antitrust problems.
Today, I’m going to show you why this is a terrible idea. And I’ll also show you a great tech-related investment that will power right through all these concerns…
Check it out…
I’ve got some very exciting investment news for you today.
See, on June 25th, the renowned investor and world famous “Shark” Robert Herjavec is coming to Money Morning to unveil a radical new way to achieve the American Dream.
Working hard and living within your means are admirable lifestyle choices, for sure. But the millionaire next door is going to look a lot different now.
That’s because, from here on out, all you’ll really need is access to a small group of smart, dedicated, and industrious people who do all the heavy lifting on your behalf.
Oddly enough, they’re incredibly willing to do it. In fact, when it comes to you getting rich, these people are wildly enthusiastic about it, as you’ll see in this first-of-its-kind online event.
My wife thinks my car has magic.
She just loves how when we approach the car when I’m carrying my keys, LED lights inside the side view mirrors automatically turn on.
Not only that, but the moment I touch the car-door handle, the side view mirrors automatically deploy from their tucked-in sleeping position. The headlights also come alive.
Trust me when I say this… that feature is a godsend at night during California’s rainy season, which was historic this winter.
I’m tempted to say that my state-of-the-art 2019 Acura MDX Hybrid has all the proverbial “bells and whistles.”
But that’s not quite accurate. Simply stated, it is brimming with advanced sensors and chips that lie at the heart of the modern auto market.
Here’s the thing. Putting these devices into today’s cars is so vital a trend that it recently led to the $9.4 billion buyout of Cypress Semiconductor Corp. (Nasdaq:CY) by Infineon Technologies AG (OTC:IFNNY).
That’s why today, I want to show you a great way to play this red-hot tech trend with a market-beating investment you can count on for the long haul…
Check it out…
If you’ve followed along with me for any length of time, then you know I’m not afraid to make bold calls.
And not to toot my own horn – well maybe just a tad – they are very often on the money.
Back in 2013, I was the first analyst to predict that Apple Inc. (Nasdaq:AAPL) would hit $1,000 on a split adjusted basis.
And in the summer of 2014, I forecast that Microsoft Corp. (Nasdaq:MSFT) would become a great company under then new-CEO Satya Nadella.
Both those predictions were dead accurate.
Today, I want to remind you of a call I made more recently.
Last Dec. 14, I told you in no uncertain terms that the blockchain technology underlying crypto currencies would become an unstoppable global force.
Right on schedule, I have a new proof point. It’s a global giant that is using blockchain tech to disrupt a $5.4 billion segment of the aerospace sector.
This is a firm that’s beating the market by more than 30%. And it’s got a whole lot of upside ahead…
Check it out…
When we spoke back on Jan 8, I told you to avoid investing in Tesla Inc. (Nasdaq:TSLA) at all costs.
At the time, I was concerned that Wall Street’s hype machine would try to convince investors of a turnaround ahead at the electric-car leader.
You may recall that the market had just turned the corner and was heading into a nice rebound.
That’s exactly the kind of environment those sharpies on the Street like to see when they try to sell you stocks that are dogs.
Make no mistake. Tesla has been nothing short of a disastrous stock this year – skidding by more than 43% as I write this note to you.
By contrast, the S&P 500 is up nearly 12% even after recent decline on fears of a growing trade dispute with China. The tech-centric Nasdaq is up by 14.6% over the period.
No, I’m not predicting that Tesla will go under. But today I want to show you why this is still one of my top stocks to avoid…
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The U.S. House of Representative’s Judiciary committee has begun an antitrust investigation of the tech industry, with the backing of members of both major political parties. Appearing among a panel discussion on Fox Business’s Cavuto: Coast to Coast today, Michael explains why he doesn’t think much will come out of Congress’s moves. He also highlights how some of tech’s leading lights, like Amazon.com Inc. (Nasdaq:AMZN), are actually enhancing competition in the marketplace… Click here to watch.
It’s time for me to update the mantra I have used here for many years.
No, I haven’t backed off my belief that the road to wealth is paved with tech.
Just the opposite in fact. What’s really going on these days is that the road to wealth is becoming a super highway.
Let me explain. As I have noted many times in our twice-weekly chats, U.S. tech firms generate enormous amounts of cash.
That’s one of the reasons why the top four American tech firms have combined market caps of $3.6 trillion, or roughly the size of Canada’s and Brazil’s economies combined.
Indeed, their profit margins are so huge they simply can’t invest it all in the next round of innovation.
And it explains why tech firms are the leaders in the one of market’s more important new dynamics – share buybacks.
Don’t underestimate the importance of this red-hot new trend. Just in the first quarter, we’re talking at least $126 billion of tech share purchases.
Today, I’m going to reveal a great way to play this trend. And it’s with an investment that has beaten the broad market by 161%…
Check it out…