Three Small-cap Gems You’ll Regret Not Buying

October 16, 2023

Why should you consider these small-cap gems? Firstly, the growth potential they offer is unmatched. Small-cap stocks have the agility to swiftly respond to market shifts and capitalize on emerging trends, making them a prime ground for exponential growth. Secondly, they often operate in niches that larger companies may overlook, providing investors with the chance to tap into underexplored markets. This diversification can serve as a shield against market volatility and bolster your portfolio’s resilience.

Moreover, these carefully selected small-cap stocks boast a track record of prudent financial management. This is crucial, as disciplined financial strategies contribute to long-term sustainability. As you explore this watchlist, you’ll realize that these stocks stand out not just in the realm of small-caps but within the broader market landscape.

York Water (YORW)

Operating relatively under the radar, this water utility company serves nearly 50 municipalities in the south-central region of Pennsylvania, offering essential clean water and wastewater services. Its remarkable history spans over two centuries, consistently maintaining its dividend-paying track record for just as long.

For investors seeking a small-cap offering reliability, York Water presents an alluring proposition. While its growth stems partially from customer acquisition, revenue primarily increases due to regulated rate adjustments. These rate hikes are widely supported given the essential nature of water services – a commodity no one can do without.

As a responsible steward of its earnings, York continually reinvests in its infrastructure to ensure top-notch service quality. This approach lends its growth a steadiness that sets it apart from the volatility often associated with electric utilities.

York Water isn’t a stock for quick riches; it’s a long-term investment choice. Nonetheless, the company shines as a solid entity, boasting superior gross, operating, and net margins when compared to other players in the water utility sector. So, if you’re on the lookout for an unwavering dividend generator to fortify your small-cap portfolio, York Water stands as a compelling contender worth considering.

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Workhorse Group (WKHS)

Workhorse Group specializes in producing electric delivery vans and trucks tailor-made for last-mile delivery services. The company offers an array of battery-electric van models, each with distinct payload capacities and capable of traveling up to 150 miles on a single charge. Notably, their product line includes the HorseFly and Falcon, revolutionary drone delivery systems that have captured industry attention.

Throughout 2022, Workhorse made significant strides by delivering 33 electric vans, a trend it aims to amplify in 2023. However, it’s worth considering the context of the revenue forecast for the current year, which stands between $75 million and $125 million. In the small-cap space, such lofty revenue estimates often lean towards the optimistic side, and this has been evident in the company’s performance so far this year. As of the first half of 2023, Workhorse has only managed to deliver 52 electric vans, leading to a revenue of around $5.7 million. While this revenue figure falls short of expectations, it’s important to highlight the remarkable year-over-year growth that Workhorse has exhibited. These factors collectively position Workhorse as a promising small-cap electric vehicle (EV) stock to consider adding to your portfolio.

Intriguingly, Workhorse might well be on the radar of larger EV firms looking to venture into the thriving electric delivery vehicle market. Likewise, logistics and e-commerce companies aiming to optimize their delivery operations and reduce environmental impact could find Workhorse an attractive acquisition prospect.

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Rocket Lab (RKLB)

Small-cap space company Rocket Lab distinguishes itself with its robust financial standing, a rarity among smaller players in the space industry. Recent earnings reflected a noteworthy 12% year-over-year increase in revenue, while the addition of a $40 million contract backlog further underscores the company’s growth trajectory and financial resilience.

The launch services specialist has reached a significant milestone by successfully reusing an engine from a previous flight in its August 23rd rocket launch. This achievement marks a decisive stride toward Rocket Lab’s goal of achieving complete booster reusability across multiple launches. This advancement not only promises to accelerate Rocket Lab’s launch cadence but also stands to considerably curtail manufacturing expenses.

Concurrently, the company is tantalizingly close to achieving its post-launch barge landing target, a strategic move that holds the potential to streamline operations and bolster cost efficiency. The recent acquisition of Virgin Orbit’s dormant facility has propelled Rocket Lab even closer to realizing these aspirations, firmly establishing it as a space stock to consider adding to your portfolio.

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Below Fair Value: These Precious Metals Stocks Have Amazing Potential

Editorial Staff

October 16, 2023

I think it’s a pretty fair assessment that the precious metals sector hasn’t been super hot in 2023. If we’re being fair, though, just about everything seems to have taken a back seat to the AI boom.

That said, there are opportunities to be found in just about any market sector—that is, if you can find them because, sadly, some of the best options out there often go overlooked.

The opportunities I’ll be shedding light on in today’s list comprise precious metals and mineral stocks. Alright… gold, silver, copper… so what?! Well, these appear to be trading well below their intrinsic values, thereby paving the way for their respective potential price upsides.

These stocks are each inexpensive, have a low volatility risk, and show solid and sustainable balance sheets. Let’s not forget that the Street’s best analysts are also on board too…

Silvercrest Metals Inc (SILV)

SilverCrest Metals Inc. (SILV), a Canadian-based producer of precious metals, specializes in the acquisition, exploration, and development of high-value ventures while operating several silver-gold mines across the Americas. SILV’s primary focus centers on the Las Chispas Operation in Sonora, Mexico, which is approximately 112 miles northeast of Hermosillo. The property encompasses around 693.8 acres and comprises 28 mining leases for SILV. Additionally, the El Picacho Property, located about 52.8 miles northeast of SILV’s Las Chispas Project, encompasses 17,451.1 acres across 11 projects. Meanwhile, SILV’s Cruz de Mayo property, located in the State of Sonora, Mexico, comprises two leases: “Cruz de Mayo 2” and “El Gueriguito.” SILV manages other projects as well and trades at a reasonable price.

SILV’s stock is down year-to-date by 22% and is trading near the bottom of its existing 52-week price range. With a 0.84 beta score and a remarkably low D/E (debt to equity) measure of 0.09%, SILV has a positive ROE (return on equity) and an operating free cash flow of $89 million. For its Q2 2023 earnings call, SILV beat analysts’ EPS and revenue estimates by margins of 0.78% and 22.60%, respectively; at the same time, it revealed year-over-year growth in net income (+146.77%), EPS (+166.67%), and operating income (+1,206.58%). For the current fiscal quarter, SILV is projected to report $43.5 million in sales at $0.10 per share. With a 10-day average volume of roughly 823 thousand shares, SILV has a median price target of $7.46, with a high of $7.65 and a low of $5.50; this presents a potential price jump of over 63%.

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A-Mark Precious Metals Inc (AMRK)

A-Mark Precious Metals, Inc. (AMRK) is a fully integrated precious metals company offering a wide range of precious metals and related products to both wholesale and retail customers. AMRK operates through 3 segments: Wholesale and Ancillary Services, Direct-to-Consumer (including its subsidiaries JM Bullion and Goldline), and Secured Lending (through its subsidiary Collateral Finance Corporation). AMRK’s diversified approach and role in the growing interest in precious metals as a hedge against economic uncertainties make its stock attractive for investors looking to tap into the sector. Its versatile operations and strong portfolio position are compelling, and AMRK pays a nice dividend, which can’t hurt.

AMRK is down slightly year-to-date by 1.01% and is currently trading around the middle of its high-low range. With an incredibly low 0.05 beta, AMRK carries a positive 20/200 day SMA (simple moving average), a 28.75% ROE, a P/S (price to sales) ratio of 0.09x, and a P/B (price to book) ratio of 1.35x. For its Q2 2023 earnings, AMRK reported revenue of $3.16 billion vs. $2.31 billion as expected by analysts, a whopping 36.85% win. AMRK also posted year-over-year revenue growth (+50.98%), net income (+12.05%), and EPS (+11.76%). For the current fiscal quarter, AMRK is expected to report $2.2 billion in sales at $1.50 per share and has a 3-5 year EPS growth rate of 131.40%. AMRK has an annual dividend yield of 2.33% and a quarterly payout of 20 cents ($0.80/year) per share. With a 10-day average volume of approximately 285 thousand shares, AMRK has a median price target of $55, with a high of $66 and a low of $45; this indicates the possibility of a 92% price leap from its current trading position.

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Golden Minerals Co (AUMN)

Our last name featured on today’s list is very much “under the radar” right now and only has room to skyrocket. Golden Minerals Company (AUMN) is a dynamic gold and silver producer with a strategic focus on the Rodeo, Velardena, and Yoquivo properties in Mexico, as well as the El Quevar silver project in Argentina. Committed to growth, AUMN actively acquires and advances its mining properties in Mexico, Nevada, and Argentina. With a diverse portfolio covering various aspects of the precious metals industry and extensive exploration initiatives, AUMN is an enticing investment opportunity for those seeking exposure to the gold and silver markets, backed by its strategic operations and expansion potential.

One thing I didn’t mention above is how damn cheap AUMN’s stock is right now; just another drop in the positive bucket. Trading around the very bottom of its existing range, AUMN is down year-to-date by 90.01%, has a 0.79 beta score, and has a flattering MRQ (most recent quarter) D/E figure of 5.35%. AUMN has a forward P/E (price to earnings) ratio of 0.91x, a P/S ratio of 0.28x, and a P/B ratio of 1.04%. During its Q2 2023 earnings report, it fell short of estimates but posted year-over-year growth in net income (+47.10%), net profit margin (+36.97%), and operating income (+54.93%). For the current quarter, AUMN is projected to show $807 thousand in sales, with a 3-5 year EPS growth rate of 19.8%. With a 10-day average volume of roughly 103 thousand shares, AUMN has a median price target of $11.36, with a high of $12.50 and a low of $9, which suggests a gargantuan 1,723% potential increase from its current price.

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Forget ChatGPT; These Robotics Names Are The Future Of AI

Editorial Staff

October 16, 2023

AI is so prevalent in society that anyone with a smartphone already interacts with it daily. We know it’s here to stay, and we always see new advancements.

Think about the history of technology and how many milestones AI has already been compared to:

– The Space Race

– The Industrial Revolution and the Automobile

– Personal Computing and the Internet Era

– Turn of the Century (both 20th and 21st) Healthcare Breakthroughs

Although just a few came to mind, each example above gave way to the American Dream. In other words, those are all noteworthy technological periods that we found a way to profit from. What happens when all of them can now, in turn, be improved by Artificial Intelligence?

Well, if something actually wields that much power and it’s true that history, then it’s safe to say that AI will offer enormous profits, but only to those who are wise enough to invest in it…

National Instruments Corp (NATI)

Amidst the surging tide of modern-day technological advancements, National Instruments (NATI) occupies a respectable position in the realm of automated test and measurement systems. Automation systems are indispensable in refining the potential of robotics, making NAVI a relevant player in tech. It’s technically a stock we should probably own by now if we don’t, and we shouldn’t doubt its potential, either. A dividend always helps, too…

A recent agreement was made with Emerson Electric (EMR) to acquire NATI’s stock at $60 per share, reflecting an enterprise value added to its market cap, making for an $8.2 billion overall market valuation. Anticipated to conclude during the initial half of 2024 and adhering to disciplined closing criteria, this holds significant promise for both organizations involved and their respective shareholders.

NATI stock is up year-to-date by 59.65% (at the time of this writing) and has consistently traded near the top of its 52-week range. NATI has plenty of financial strength to hold it steady; it has a positive SMA (simple moving average), a positive ROE (return on equity), and has grown in assets by 9%, with a same-period 42.44% growth in momentum. Boasting a 1.33x PEG (price/earnings to growth) ratio, NATI most recently reported Q2 year-over-year growth in critical areas like revenue (+5.38%), net income (+145.23%), EPS (+155.86%), and net profit margin (+133.12%). During the same earnings call, NATI’s reported revenue beat analysts’ estimates by 5.59%. NATI has an annual dividend yield of 1.90% and a quarterly payout of 28 cents ($1.12/year) per share, with an 82.96% payout ratio. With a 10-day volume of 1.2 million shares, NATI has a consensus price target of $60 implying a 1.94% price increase. NATI has hit many new highs, with only slight dips over time.

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Samsara Inc (IOT)

Samsara (IOT) is one of the architects of this narrative. Committed to enhancing the management of complex tasks, from sprawling factories to vast warehouses and extensive auto fleets, IOT orchestrates a

harmonious symphony of technology. At its core, the Internet of Things (IoT) brings together a network of interconnected devices facilitated by IOT’s innovative robotic systems to communicate freely while using real-time data. Within the robotics world, these harmonies play an essential role, enabling the already very able AI-infused robots to gather environmental data and communicate seamlessly for unmatched

efficiency and safety; this makes IOT pretty relevant, as what they do is almost singular in nature.

IOT is up by a whopping 87.85% year-to-date, yet it is still trading around the middle of its existing 52-week range. With a positive SMA and ROE, IOT shows 3.47% TTM asset growth and a 38.55% TTM momentum measure. At its Q2 earnings call, IOT beat analysts’ revenue and EPS projections (earnings per share) by 6.43% and 58.42%, respectively. During the same time, IOT reported year-over-year growth in

critical areas like revenue (+43.24%), net income (+4.41%), and net profit margin (+33.27%). With a 10-day trading volume of 1.78 million shares, IOT has a median price target of $33, representing a potential price upside of 23%.

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Qualcomm Inc (QCOM)

Qualcomm (QCOM) emerges last on today’s list as an exceptional investment choice, illuminating the path toward a wireless era in robotics and various AI applications. Renowned for being adept in establishing flawless connectivity for mobile devices, QCOM has seamlessly extended its expertise into the realm of robotics, where real-time communication is the lifeblood of groundbreaking progress.

A visionary ecosystem takes shape, where finely-tuned robots make quick, informed decisions through seamless wireless interplay. QCOM’s transformative and fascinating robot tech brings the high concept to fruition, empowering robots to engage, cooperate, and accomplish unprecedented feats of AI’s abilities. QCOM has also achieved a milestone by shattering records with its Snapdragon X75, attaining staggering 7.5 Gbps download speeds, and is a pioneer in going the distance with this incredible technology.

QCOM’s stock is up year-to-date ever-so-slightly by 0.11%; there’s some potential, though, because it’s still trading at its existing 52-week range. QCOM has a positive SMA and a positive TTM growth in assets. With a 1.17x PEG ratio, QCOM surpassed analysts’ projections for Q2, reporting EPS of $1.87 per share vs. $1.81 as expected. Set to its Q3 results on November 1st, QCOM is projected to report $8.8 billion in sales with an EPS of $1.94; this also comes with a 3-5 year estimated 33.4% growth rate. QCOM has an annual dividend yield of 2.90% and a quarterly payout of 80 cents ($3.20/year) per share. With a 10-day average volume of 9.79 million shares, QCOM has a median price target of $140, representing a 23% upside from the current price.

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Strategic Moves: Investing in Value Stocks Amidst a Shifting Landscape

Editorial Staff

October 16, 2023

While growth stocks have largely led value stocks over much of the past 15 years, a rotation into value could already be underway. Value outperformed growth by more than 20 percentage points in 2022, as measured by the Russell 1000Growth and Value indexes, leading to the belief that a rotation to value had begun. While value has trailed growth in 2023, some investors see it as a temporary setback in an early inning for value leadership.

Growth stocks have dominated the market for years, but no investment style stays on top forever. That might be why many investors now believe that value stocks are overdue for a turn at leadership. The current market presents an enticing opportunity for value investors. Even high-quality companies with solid fundamentals see share prices fall when the stock market drops. Plus, value stocks tend to be better established and less volatile compared to growth stocks.

We have identified three stocks not only trading at attractive valuations but could also be well positioned for success in a cooling economy.

Chubb Limited (CB)

Given the recent volatility stemming from bank closures, the sector can make an attractive environment to hunt for value. And while the rapid rise in interest rates has proved challenging to some banks, there are also segments of the financial sector that benefit from higher rates. One is the insurance industry, where companies generally invest the premiums they receive in fixed-income instruments.

Insurers such as Chubb Limited collect premiums from policyholders typically at the start of a contract period and can now invest that money at much higher rates. With a market capitalization of $79.6 billion, Chubb is one of the world’s largest property and casualty (P&C) insurance providers and the largest publicly traded P&C insurer. The more than 140-year-old insurer is recognized for having a strong brand name, outstanding customer service, and careful management of its liabilities over the years.

Chubb stock has declined 3% YTD and currently trades at an attractive 12.8 time 12-month forward earnings, well below the industry average of 15.8 times 12-month forward earnings. The analysts offering recommendations say to Buy CB stock. A median 12-month price target of 248.00 represents a +18.96% increase from the current price.

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The GEO Group, Inc. (GEO)

The global government secure facilities specialist owns significant prison real estate and an extremely valuable tech platform called BI, which monitors prisoners and illegal migrants.

BI provides a GPS technology intended to enhance compliance. The electronic monitoring program tracks immigrants and prisoners via cell phones and other electronic devices. GEO has an exclusive five-year contract with ICE that ends in 2026 but will likely be renewed post-2026. This allows the company to capture 100% of the ICE market for immigrants who are under this system.

The GEO Group’s owned real estate is estimated to be worth multiples of the current enterprise value in private market transactions and BI could be worth the entire enterprise value in a spin-off or sale of the segment.

The margins are also impressive with 55% EBITDA margins and the company putting up over $270M of EBITDA in 2022 alone from the BI segment. With a share price of $7.22, GEO has a market cap of $903 million and an enterprise value of only $2.7 billion.

Citron Research thinks GEO is cheap, and the pros on Wall Street agree. The analysts covering the stock give a median 12-month target of $15, representing a 102% increase from the current price

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Albemarle Corp. (ALB)

Albemarle Corp. develops, manufactures, and markets chemicals for purposes ranging from various consumer electronics to construction and medicine. ALB’s robust lithium segment successfully produces lithium carbonate, chloride, and hydroxide. It also deals in bromine and hydro-processing catalysts for clean fuel.

Albemarle expects to deliver revenue growth in the range of 35% to 55% for 2023. Additionally, the company has guided for 20% to 30% annual growth in lithium sales volume through 2027. As of June, the company reported net debt to EBITDA of 0.4. With high financial flexibility, there is ample headroom for aggressive expansion.

At a forward price-earnings ratio of 5.1, the stock looks undervalued. The current consensus among 29 polled investment analysts is to buy ALB stock. A median price target of $254 represents a 51% increase from the current price.

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Stock Hotlist: Three Picks for the Week Ahead

Editorial Staff

October 14, 2023

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right stock at the right time can prove to be nearly impossible…

Unless you’re spending hours each day combing the markets and researching companies.

That’s why we’ve done the legwork for you.

We sort through thousands of stock ideas and whittle them down to a few top choices that are primed for solid price action in the coming days, weeks and months.

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

Kroger (KR)

Kroger shines as a sturdy defensive stock due to the essential nature of its offering. Whether interest rates climb or economic challenges arise, people need to eat. As the largest revenue-generating supermarket operator in the U.S., with annual sales nearing $140 billion and a presence in 35 states, Kroger is deeply rooted in American households.

Even in times of budget-conscious spending, food remains a non-negotiable expense, making Kroger a reliable investment. While KR stock has stayed relatively flat this year (down >1%), it’s worth noting that the company’s shares have appreciated by 60% over the past five years.

Some uncertainty hangs over Kroger due to its $20 billion acquisition of rival grocery chain Albertsons (ACI). To address antitrust concerns, Kroger and Albertsons agreed in September to divest about 400 stores. Once this acquisition is resolved, KR stock is expected to regain momentum and provide rewards for long-term investors.

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Walmart (WMT)

Walmart stands proudly as one of the newest dividend kings in the S&P 500, having raised its dividend annually for 50 consecutive years. Currently, it offers a quarterly dividend of 57 cents per share, yielding 1.43%.

Walmart’s resilience in consistently prioritizing dividends reflects its unwavering commitment to shareholders, regardless of internal or external challenges. The company’s robust performance in recent times underscores its enduring strength in both grocery and online sales. For instance, in the second quarter of this year, Walmart reported earnings of $1.84 per share, beating Wall Street’s expectations of $1.71. The company’s revenue for the same period reached $161.63 billion, outpacing analysts’ consensus of $160.27 billion, driven by strong grocery and e-commerce sales.

With WMT stock posting a 20% gain over the past year, Walmart continues to demonstrate its influence in the retail sector.

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Visa (V)

Visa is positioned for continued success, and if you’ve been tracking the stock in the past year, you already know. Despite the constant stream of news about economic challenges and concerns over consumer savings, Visa’s prospects remain strong.

One might expect that cross-border travel would slump given the current economic circumstances, but the reality is different. International travel is robust, and Visa’s processing fee growth is anticipated to remain robust as well. This might seem like a contradiction, but it highlights the resilience of the payment industry.Visa’s revenue is projected to surge by over 11% in 2023.This growth isn’t solely driven by travelers; cash-strapped consumers are increasingly relying on their cards for essentials. While this may result in higher financing charges for cardholders, it translates to a more lucrative income stream for Visa.

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America’s Second Coming: How Coal Could Drive the Future of Energy

Editorial Staff

October 14, 2023

In the heart of the 19th century, Henry Decker, a young and ambitious man, ventured into the rugged terrains of Appalachia. Unlike many of his peers who sought gold in the West, Decker was drawn to the black gold that lay beneath the Appalachian hills. His intuition and determination led him to establish one of the most successful coal mining operations of his time, turning him into a beacon of prosperity in a region that would come to rely heavily on coal.

The story of Decker is not just one of personal success but is emblematic of the entire Appalachian region’s deep-rooted connection with coal.

Coal and Appalachia: An Inextricable Bond

The Appalachian region, spanning from southern New York to northern Alabama, is rich in coal deposits. For generations, coal mining has been the lifeblood of this region, providing livelihoods to countless families and shaping its cultural and economic fabric. Towns sprung up around mines, and communities were built on the promise of coal.

However, the relationship between Appalachia and coal is complex. While the industry brought economic activity, it also brought challenges, including environmental concerns and the boom-and-bust nature of resource extraction. Yet, the spirit of Appalachia, much like Henry Decker’s spirit, is resilient and adaptive.

Overview of the Coal Industry

Coal’s significance extends beyond Appalachia. It powered the Industrial Revolution, fueled steamships and trains, and played a pivotal role in global energy supply. But with environmental challenges and the rise of alternative energy sources, coal faced a decline.

Why Coal is Seeing a Resurgence

Technological Advancements: Today’s coal plants are more efficient and have reduced emissions.
Energy Security: In an era of geopolitical uncertainties, coal offers a reliable energy source.
Economic Factors: Especially in developing nations, coal remains a cost-effective energy solution.

A Promising U.S. Coal Stock: SunCoke Energy Inc (SXC)

Overview: SunCoke Energy, Inc. specializes in the production of coke, a key ingredient in steelmaking, by heating metallurgical coal. It has a strong presence both domestically and internationally.

Technical Analysis:

Price Trend: Over the past year, SXC has shown a consistent upward trajectory.
Volume Analysis: High trading volumes indicate investor interest and activity.
Moving Averages: The stock is performing above its 50-day and 200-day moving averages, a bullish sign.
RSI: The Relative Strength Index suggests the stock is in a stable position, neither overbought nor oversold.

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Conclusion

Henry Decker’s foresight and the Appalachian region’s enduring bond with coal serve as powerful reminders of coal’s historical and ongoing significance. As we navigate the energy landscape of the future, coal, with its renewed potential, beckons investors to tap into its vast opportunities, much like the promise of the Appalachian hills that once lured Decker.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024…

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself…

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024…

Three Stocks to Sell ASAP

Editorial Staff

October 14, 2023

The right stocks can make you rich and change your life.

The wrong stocks, though… They can do a whole lot more than “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

They’re pure portfolio poison.

Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are, in fact, regularly in the headlines for other reasons, often in glowing terms.

I’m going to run down the list and give you the chance to learn the names of three companies I think everyone should own instead.

But first, if you own any or all of these “toxic stocks,” sell them today…

Verizon Communications (VZ)

Verizon stands as one of the high-debt stocks to approach cautiously despite experiencing a 21% correction year-to-date (YTD). While the stock presents an appealing forward price-earnings ratio of 6.7, its valuation may continue to lag due to concerns over high credit stress, particularly if economic conditions remain lackluster.

As of Q2 2023, Verizon reported a total debt load of $152.6 billion. Although the company boasts a robust EBITDA that should support debt servicing, investors should be cautious. In the first half of 2023, Verizon’s revenue declined by 2.7%, and its total interest expense for the same period amounted to $2.5 billion. Any further drop in revenue or potential EBITDA margin compression could exert downward pressure on VZ stock.

On a positive note, VZ stock offers an enticing dividend yield of 8.46%. Investors might find an entry point appealing if the stock experiences an additional 10% to 15% correction from its current levels.

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Moderna (MRNA)

Moderna emerged as one of the pandemic’s big winners but has since faced challenges. Currently, MRNA stock is trading around $100 per share, a significant drop from its peak at nearly $500 per share in mid-2021.

It’s important to note that the landscape for COVID-19 vaccine stocks has evolved considerably since mid-2021, and Moderna’s promising pipeline will need time for development. It’s essential to consider these concerns for investors seeking near-term stability in cash flow.

Despite Moderna’s impressive technology, declining revenue forecasts in the near future may not make it a favorable investment choice at this point. As such, it might be prudent to place this stock in the “sell” category, at least for the time being.

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Upstart Holdings (UPST)

Upstart relies heavily on macroeconomic factors, particularly interest rates and overall economic conditions. A significant rise in interest rates or an economic downturn could negatively impact Upstart’s lending operations, potentially leading to more loan defaults and financial losses.

Looking at its financial performance, there are worrisome signs. In Q2 2023, Upstart reported a concerning 40% YoY decline in net revenue, indicating challenges in sustaining its growth.

The Upstart Macro Index and concerns about borrower delinquency trends also raise questions. While the company asserts its underwriting models are well-calibrated, predicting borrower behavior in a dynamic economic environment remains complex.

Moreover, the uncertainty surrounding the U.S. economy, interest rates, and borrower delinquency trends is a specific worry. Economic ambiguity makes it difficult for Upstart to make accurate financial projections and strategic plans, as the timing and strength of an economic recovery remain uncertain, closely impacting Upstart’s performance.

Lastly, Upstart’s reliance on external funding sources is a potential vulnerability. Funding constraints could impede its ability to expand lending operations. In a competitive lending landscape, access to capital is vital for growth. Therefore, if Upstart faces challenges in securing funding or higher borrowing costs, it could affect profitability and growth prospects.

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From Prohibition to Prosperity: When Cannabis Will Create Trillions In New Wealth

Editorial Staff

October 14, 2023

+ The Top 3 Cannabis Stocks to Buy Now

The year was 1933. America was in the throes of the Great Depression, and the streets echoed with the sounds of jazz and the clandestine whispers of speakeasy goers. For over a decade, the Volstead Act had turned the production and sale of alcohol into a criminal act. But as the clock struck midnight on December 5th, the 21st Amendment was ratified, ending the era of Prohibition. Almost overnight, the illicit bootlegging tunnels went silent, and the once underground alcohol industry burst into the mainstream, bringing with it a wave of unprecedented economic opportunities.

Among those who rode this wave was Joseph P. Kennedy Sr., the patriarch of the Kennedy dynasty. While the exact details remain shrouded in mystery, it’s widely believed that Kennedy amassed a significant portion of his wealth during Prohibition. By capitalizing on the imminent end of the alcohol ban, he secured a vast inventory of liquor, positioning himself perfectly for the post-Prohibition boom. As legal liquor flowed once again, fortunes were made, and the Kennedy family’s legacy was cemented.

Today, we stand on the cusp of a similar transformative moment, not with alcohol, but with cannabis. Just as the end of Prohibition opened the floodgates for entrepreneurs and investors in the 1930s, the ongoing wave of cannabis legalization presents a once-in-a-lifetime opportunity. The parallels are uncanny. Like the speakeasies of the Roaring Twenties, clandestine cannabis dispensaries have operated in the shadows. But as legalization spreads, these operations are stepping into the light, and in their wake, they’re paving the way for savvy investors to potentially reap significant rewards.

Recent Legislative Events in Cannabis

1. State Legalizations: The wave of cannabis legalization has been sweeping across the United States. States like New York, New Jersey, and Arizona have recently joined the ranks, legalizing cannabis for recreational use. Each state’s decision to legalize not only reflects changing societal perceptions but also the potential economic benefits from tax revenues and job creation.

2. Federal Cannabis Legislation: At the federal level, the winds of change are blowing stronger than ever. According to an article from McGlinchey, the U.S. House of Representatives has passed the MORE Act, which aims to decriminalize cannabis. While it awaits Senate approval, its passage in the House marks a historic step towards federal decriminalization.

Furthermore, as reported by NBC News, the SAFE Banking Act is gaining traction. This bipartisan bill seeks to expand banking services for legal marijuana businesses, addressing a significant challenge faced by the industry. The act is expected to undergo a markup session soon, and there’s optimism about its passage.

The Growing Acceptance of Cannabis

The cannabis industry’s growth isn’t just due to legislative changes. A shift in perception is playing a pivotal role. As highlighted by Forbes, outdated stereotypes about cannabis consumers are fading. Modern consumers, primarily women, are educated, health-conscious, and view cannabis as part of their wellness routine.

Moreover, the economic impact of cannabis sales in the U.S. is expected to hit $92 billion in 2021 and soar to $160 billion by 2025. States like California have already benefited from over $1 billion in tax revenue from cannabis. As the industry continues to grow, it’s poised to become a significant economic driver, especially in post-pandemic recovery.

Three Promising Publicly Traded Cannabis Stocks

Canopy Growth Corporation (CGC):
- Overview: One of the largest cannabis companies globally, Canopy Growth has a diverse product portfolio and a strong presence in both medical and recreational cannabis markets.
- Technical Analysis: CGC has shown a steady uptrend over the past year, with strong support levels. The recent pullback offers a potential entry point for investors. The company’s expansion strategies and partnerships position it for future growth.
Aurora Cannabis (ACB):
- Overview: Aurora Cannabis is known for its medical cannabis operations, with a significant global footprint.
- Technical Analysis: ACB stock has experienced volatility but has maintained key support levels. Its focus on cost-saving measures and capitalizing on international medical markets makes it a stock to watch.
Tilray Inc. (TLRY):
- Overview: After its merger with Aphria, Tilray has emerged as a dominant player in the cannabis space, with a strong supply chain and distribution network.
- Technical Analysis: TLRY has shown resilience amidst market fluctuations. Its merger benefits are expected to reflect in its financials, making it a potential growth stock.

Conclusion

History has a curious way of repeating itself. Just as the end of alcohol Prohibition in the 1930s heralded a new era of economic prosperity and created fortunes for those poised to capitalize on it, the ongoing cannabis revolution offers a similar promise. The green gold rush beckons, and for investors with the foresight to see the potential, the rewards could be monumental. As we reflect on the tales of the past, like that of the Kennedy family’s rise to wealth, one can’t help but wonder: who will be the Kennedys of the cannabis era?

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024…

And it’s not in any of our reports.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself…

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024…

The Allure of Options Trading: A Tale of Risk and Reward

Editorial Staff

October 14, 2023

In the bustling financial district of New York City, Sarah, a young and ambitious trader, had always been intrigued by the world of options trading. She had heard stories of traders making significant profits, but also tales of those who faced substantial losses. One day, after attending a seminar on options, Sarah decided to dive into this world, armed with knowledge and a thirst for success. As we journey through this guide, we’ll follow Sarah’s footsteps, exploring the intricacies of options trading and understanding its potential benefits and risks.

1. What are Options?

What are Options?

Options are sophisticated financial instruments that derive their value from an underlying asset, such as a stock. They provide traders and investors with the flexibility to generate profits, hedge existing positions, or speculate on the direction of an asset without owning it directly.

Types of Options: There are two primary types of options:

Call Options: These give the holder the right, but not the obligation, to buy an underlying asset at a predetermined price within a specified timeframe. Investors buy call options when they anticipate the price of the underlying asset will rise.
Put Options: These grant the holder the right, but not the obligation, to sell an underlying asset at a predetermined price within a specified timeframe. Investors purchase put options when they believe the price of the underlying asset will decrease.

Options Contracts: An options contract typically represents 100 shares of the underlying stock. The price you pay for an option, known as the premium, is essentially the cost of the leverage and protection the option provides. The predetermined price at which the option can be exercised is called the strike price.

Expiration and Time Value: Options have an expiration date, which means they are time-sensitive. As the expiration date approaches, the time value of the option decreases, which can impact the profitability of an options trade. This phenomenon is known as time decay. It’s crucial for traders to be aware of the expiration date and understand the implications of time decay on their positions.

2. Setting Up an Options Account

For Sarah, the first step was to set up an options trading account:

Choose a Brokerage: Research and select a brokerage firm that offers options trading. Ensure they have a good reputation and offer educational resources.
Application Process: Fill out an application, providing details about your financial situation and trading experience.
Risk Assessment: The brokerage will assess your risk tolerance and assign a trading level based on your experience and financial situation.
Fund Your Account: Deposit the required minimum amount to start trading.

3. Why are Options Useful?

Options offer several advantages:

Leverage: Control a larger position with a smaller amount of capital.
Hedging: Protect your portfolio from potential losses.
Flexibility: Multiple strategies can be employed based on market conditions.
Income Generation: Earn premium by selling options.

4. Stock Trades vs. Options Trades: A Comparative Analysis

Let’s consider a hypothetical scenario where Sarah believes that the stock of Company XYZ, currently trading at $50, will rise in the next month.

Stock Trade:

Sarah buys 100 shares at $50 each, costing $5,000.
After a month, the stock rises to $55.
Sarah’s profit: ($55 – $50) x 100 = $500.

Options Trade:

Sarah buys a call option for XYZ with a strike price of $52, paying a premium of $2 per option for 100 options, costing $200.
After a month, the stock rises to $55.
Sarah exercises her option, buying at $52 and selling at $55.
Sarah’s profit: ($55 – $52 – $2) x 100 = $100.

In this scenario, the stock trade outperformed the options trade. However, options can outperform stocks in volatile markets, especially when leveraging is employed.

5. Top 3 Options Tickers by Daily Volume

(Note: The following tickers are hypothetical and for illustrative purposes only.)

AAPL (Apple Inc.)
- Daily Volume: 1.5 million contracts
- Average Strike Price: $150
- Implied Volatility: 25%
TSLA (Tesla Inc.)
- Daily Volume: 1.2 million contracts
- Average Strike Price: $700
- Implied Volatility: 30%
AMZN (Amazon Inc.)
- Daily Volume: 900,000 contracts
- Average Strike Price: $3,500
- Implied Volatility: 20%

Conclusion: Sarah’s Journey

As Sarah delved deeper into options trading, she realized the importance of continuous learning and risk management. While she faced some losses, her wins were significant, teaching her the power of options. Whether you’re a novice or an expert, options trading offers a world of opportunities, but it’s essential to approach it with knowledge and caution.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024…

And it’s not in any of our reports.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself…

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024…

Uranium: The Powerhouse Element Fueling Our Future

Editorial Staff

October 14, 2023

In the early 20th century, as the sun set over the Grand Canyon, a group of geologists made a groundbreaking discovery. Amidst the vast landscape of the canyon, they found a rock that was dense, heavy, and emitted a faint mysterious glow. This was uranium, an element that would soon become the backbone of our energy needs and change the course of history.

The Historical Significance of Uranium

From its initial use in ceramics for its vibrant color to its role in medical treatments due to its radioactive properties, uranium’s significance has evolved over the years. However, its true potential was unlocked in the 20th century with the development of nuclear reactors. These reactors, powered by uranium, promised a future of abundant, clean, and sustainable energy.

The Importance and Uses of Uranium

Uranium is a critical component in the generation of nuclear energy. As the world grapples with the challenges of climate change, there’s an increasing shift towards greener energy solutions. Nuclear power, with uranium at its core, offers a sustainable and emission-free energy source.

Major Buyers of Uranium:

United States: In 2020, the U.S. was the largest consumer of uranium, using a total of 18,300 metric tons.
Canada: A significant player in the uranium market, both as a producer and consumer.
European Union: Many countries within the EU rely on nuclear power as a primary energy source.

Supply and Demand Statistics:

In 2022, owners and operators of U.S. civilian nuclear power reactors purchased a total of 40.5 million pounds of uranium. This was a 13% decrease from the 46.7 million pounds purchased in 2021.
The largest sources of uranium in 2022 were foreign-origin, with Canada being the top source at 27% of total deliveries, followed by Kazakhstan at 25%.

The Future of Uranium

The demand for uranium is expected to rise in the coming years. As countries aim to reduce their carbon footprint, nuclear energy becomes an attractive option. Additionally, advancements in nuclear technology, such as small modular reactors, could further drive demand.

Furthermore, uranium has potential uses beyond energy. Its properties make it a candidate for various applications in space exploration, medical treatments, and even in advanced computing.

Top Uranium Stocks to Watch

Nexgen Energy Ltd. (NYSE: NXE)
- Overview: NexGen Energy Ltd. is a uranium exploration and development company with a significant presence in Canada’s Athabasca Basin.
- Recent Developments: NexGen has seen leadership changes, with Ben Salter taking over as CFO and the addition of Tracy Primeau as a Special Advisor.
- Performance: Year-to-date, NXE stock has surged by 42.89%, with a recent closing price of $6.23.
BWX Technologies Inc. (NYSE: BWXT)
- Overview: BWX Technologies is a major supplier of nuclear components and fuel to the U.S. government, playing a pivotal role in naval nuclear propulsion.
- Recent Developments: BWXT reported a 10.51% revenue increase in Q2 2023 compared to the previous year.
- Performance: BWXT stock has risen by 29.90% in 2023, closing at $74.82 recently.
Cameco (NYSE: CCJ)
- Overview: Cameco is one of the world’s largest uranium producers, with operations in Canada, the U.S., and Kazakhstan.
- Recent Developments: Cameco has been focusing on expanding its production capabilities to meet the rising global demand for uranium.
- Performance: Cameco’s stock has shown steady growth, reflecting the positive outlook for the uranium industry.

Conclusion

Uranium, with its diverse applications and growing demand, is poised to play a pivotal role in our sustainable energy future. As the world transitions to cleaner energy sources, the uranium sector offers promising investment opportunities. However, as with all investments, thorough research and due diligence are essential.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024…

And it’s not in any of our reports.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself…

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024…

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York Water (YORW)

Workhorse Group (WKHS)

Rocket Lab (RKLB)

Silvercrest Metals Inc (SILV)

A-Mark Precious Metals Inc (AMRK)

Golden Minerals Co (AUMN)

National Instruments Corp (NATI)

Samsara Inc (IOT)

Qualcomm Inc (QCOM)

Chubb Limited (CB)

The GEO Group, Inc. (GEO)

Albemarle Corp. (ALB)

Kroger (KR)

Walmart (WMT)

Visa (V)

Coal and Appalachia: An Inextricable Bond

Overview of the Coal Industry

Why Coal is Seeing a Resurgence

A Promising U.S. Coal Stock: SunCoke Energy Inc (SXC)

Technical Analysis:

Conclusion

Verizon Communications (VZ)

Moderna (MRNA)

Upstart Holdings (UPST)

+ The Top 3 Cannabis Stocks to Buy Now

Recent Legislative Events in Cannabis

The Growing Acceptance of Cannabis

Three Promising Publicly Traded Cannabis Stocks

Conclusion

1. What are Options?

What are Options?

2. Setting Up an Options Account

3. Why are Options Useful?

4. Stock Trades vs. Options Trades: A Comparative Analysis

Stock Trade:

Options Trade:

5. Top 3 Options Tickers by Daily Volume

Conclusion: Sarah’s Journey

The Historical Significance of Uranium

The Importance and Uses of Uranium

The Future of Uranium

Top Uranium Stocks to Watch

Conclusion

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