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Today's Must Know's
Where to Invest in the Current Market.
With the current global situation we have to look to the future and how things will change come out of the COVID pandemic. The most obvious change is the massive shift to remote work. I would look to companies that support this industry and ones that are already heavily involved in E-commerce. Amazon is a great example, I personally have never seen more amazon boxes in my condos mail room before. This alone is a great reason to pick up a share in the company.
Stay Relevant
Flux Power Holdings (FLUX)FLUX is in the lithium battery industry which has seen a significant spike in its demand recently. This company has a strong book and is in great position to become a big player. With its recent stock price increase I would wait for a small pullback to buy in.
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Chaga Health and WellnessChaga Health and Wellness, an Ontario started business, selling Chaga mushroom. This Company looks promising as Chaga is currently a very unknown product with no big cap companies in the industry.
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Ford, (F)Ford announced a plan to move into electric cars for 2021 putting them into the electric car game. They also plan on partnering with Alibaba (BABA) to sell cars online in China. Ford could be a potential long term hold.
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Disney (DIS)Disney is starting to look like a great buy. The company is puts out some of the best content available to watch and it is consistently some of their best. Their Disney+ platform is turning out to be a very popular household product with over 90 million members and growing. They have recently announced that they will be releasing new Disney movies on Disney+ to paying customers along side a theater release. They are aligned with the trend to switch to an online streaming platform and with COVID-19 looking like it will be around for a while, they are taking full advantage. I would watch for a small pullback from their February highs and add to my position.
What crypto should I look buy?
Crypto is gaining traction recently as more and more people have easier access to buying and selling it and as popular figure start to take a liking to the idea. Recently Elon Musk said he liked the idea of Bitcoin, which is a good step in the right direction if you are a support of crypto. As for which coin to look at buying it comes down to a few different things. In my opinion Litecoin (LTC) is a great option for most investors. Compared to BTC it has a faster and less expensive transaction costs. This coin is built for the consumer to use in day-to-day purchases and as we see crypto grow in popularity look for LTC to be first in line for most retailors. Some people are even swapping their BTC to LTC to transfer to different wallets or cash out from apps because of the smaller fee. Check the Crypto tab to learn more about it.
Marijuana Stocks Losing Momentum?
Marijuana stocks have been in the spot light the past few months with big news and crazy gains. This has all been based off Canada making marijuana legal in July. With legalization date coming closer why are marijuana stocks leveling off? A big factor behind this is that most of the people looking to get into these markets have slowed down. People have made their picks and are now holding long term. The big news releases and big gains can’t last forever and after the dust settles hopefully you’ve made the right pick, and the best companies have come out on top of this new market. Follow my picks under MY PORTFOLIO section to see what I think will be the best in the sector.
Netflix and Tech Stocks in 2018
There is no doubt about it, technology is going to have a significant role in the future of humanity, but how is it going to doing in 2018? After tech stocks had a huge year in 2017, is there still room to grow going into 2018? I think there is still plenty room for growth tech. We have just seen Netflix release one of their best quarters yet and climbing over 30% in the last month. Netflix isn’t really a tech stock but obviously its platform is tech based and apart of FAANG, Facebook, Apple, Amazon, Netflix and Google. With these big-name companies still putting out these kind of numbers, there is massive room in this market going into 2018. Keep an eye out for up and coming tech stocks in 2018 for better entry points if your playing with a smaller capital or if your looking for the next set of FAANG companies. Check out my FORUMS page for some of my big stocks to watch in 2018.
Marijuana Stocks Over Valued?Marijuana stocks have seen a massive increase followed by a massive pull back in the recent month, but where does that leave the stocks today? Monday January 15, 2018 all the Canadian weed stocks opened with a huge dip followed by a massive spike up into the green. Aurora (ACB), Canopy Growth (WEED) and Newstrike (HIP) are all examples of this dip and recovery. Many people believe market manipulation by big hedge funds are behind this recent dip in stock prices as they were the most shorted stocks on the Canadian Market. I see marijuana stocks coming back strong with a full recovery and continue to climb as July 1st comes closer for Canadian stocks, and legalization becomes more popular in US. Now might be a good time to add if you do your research on the companies you want to invest in. You can follow my buys under MY PORTFOLIO tab.
Online Payments Companies
Paypal (PYPL) and Square (SQ) both coming out on top this holiday season. As predicted this has been one of the best spending seasons in years, some predict it will top $1 Trillion in sales between November and January. With most of the big tech stocks taking a hit after the rotation, these companies started trading at quite a discount. With it being one of the biggest holiday seasons yet and most companies seeing huge growth in online sales, these online payment companies look like great buys.
Too Late to Buy Cryptocurrency?
Cryptocurrency has gained a lot of traction in the media recently because of its quick rise in price. But what has caused this sudden rise in price for the crypto market? I believe the media and this quick climb in cryptocurrency value are directly related. One of the main factors holding crypto back is that people see no real value for it, there is a limited number of places you can use it, there are a limit amount of people holding the currency. This media traction has broadened the awareness allowing for more people to buy into its positive values. I do see the value coming down in the near future after the hype has died down but cryptocurrency is going to be a big part of the future, making it a solid buy on the dip.
General Electric (GE) Hits Bottom?General Electric looks like it might be coming to a bottom. It is at a point in the chart pattern that many analysts call a Fibonacci level, which means its likely near the bottom. After cutting 12,000 jobs and proposing a new plan to improve revenues over the next 2 years, is this mainly crude oil company preparing for a turn around? Many analysts are saying they might even start to add to their position so it might be a good a good time to put this stock on your watch list.
Online Sales on the Rise?What does the increase in online sales mean? This could be a great time to pick up Paypal (PYPL), Square inc. (SQ) and other online payment methods. With more and more companies seeing a rise in online traffic, there will be more and more people using online payment methods. Sounds like a great time to buy in the dip.
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Boeing (BA)
Boeing saw a significant like most of the market when the covid outbreak initially started. Since its bottom in March of 2020 Boeing has been on a steady incline back to its pre-covid prices, although still far off its highs. One of the main reasons why BA has not seen a rebound like most other companies is because it deals mainly in the most significantly impacted industry, travel. I would keep an eye on this stock because there have been a few different bits of good news involving BA. One, its restrictions on its 737 plans is starting to be lift has more countries are allowing them to fly. Second reason is the covid vaccine. Once this is easily available travel restrictions will lift and even see a high demand as people are looking to travel once again.
Brinks (BCO) Company Review
Brinks is a company that is based off securing cash transfers from one location to another. They deal with retail cash transfers, ATM services, transportation of valuables and cash management services. Recently they have seen big gains for a few different reasons. One, they are making a lot of accusations in small companies that lead to instant profits on paper. Earnings per share have gone from $0.88 in Q4 2016 to $0.95 in Q4 2017. Although they are increasing revenue all these acquisitions have accumulated a hefty amount of debt for the company, approximately $612 million net debt in Q4 of 2017, from $247 million in Q4 of 2016, a 148% increase year over year. These acquisitions allow Brink to widen their geographical footprint but at what cost?
Another big reason for Brinks recent gains have been due to marijuana legalization. Its speculated that marijuana industry will reach over $20 billion by 2020 and all the new marijuana stores will require safe transportation for their cash. Brinks is predicted to see some nice revenues as soon as things pick up in the marijuana industry, but how popular will in store marijuana sales be for cash? Many locations already popping up in Toronto are already utilizing Square (SQ) cash payment methods getting rid of the need for cash transactions. Some locations also do have an ATM on sight for customers who feel more comfortable not having a marijuana store pop up on their bank statement. For Canada, you can’t sell marijuana in clinical settings when it first becomes legal, but it is said it will be available later in 2018. If you are buying marijuana from a clinic are you comfortable using a debit card? With cash becoming more and more unpopular to carry will Brinks be able to maintain this growth? Companies like Square (SQ), Visa (V) and Paypal (PYPL) are currently doing good with their cashless payment methods, is a plastic card the way of the future? Not to mention Apple Pay becoming more popular, all you need is your phone to make a purchase. I see Brinks having some tough times in the future maintain their acquisition strategy for profits. What is your opinion on this company? Let us know under FORUMS section for next weeks watch list. What to Watch for in 2018
2018 is here and I'm betting on it being another great year for us as investors. We saw some big moves in tech in 2017 with Tesla and it's new Model 3 and now it's electric trucks. There has also been a lot of growth in voice control devices and voice commands on existing products, Google Home and Amazon Eco making waves here, and we are also taking another big step toward completely wireless devices. The momentum for tech going into 2018 isn’t going to slow down, if anything speed up. For 2018 what I’m going to be watching for are improvements in self learning programs and devices. Companies like Yext (YEXY) and Alteryx (AYX) are good examples of this in the online environment. Blockchain technology is also going to be huge going into 2018. Keep an eye out for self learning programs that you can get into early and you’ll be doing good in 2018.
More Bitcoin and Cannabis StocksLooks like a good day for share holders of Riot Blockchain (RIOT) as the stock is currently up over 30% and the previous day of over 40%. This is related to the seemingly positive response to bitcoin futures as well as a merger between Tess, a company that have a majority stake in and Cresval Capital. This merger is predicted to happen in the second quarter of 2018.
Many small cap weed stocks also saw a nice spike today because the Ontario Government just confirmed that Marijuana will be legalized on July 1st 2018. Aphria (APH) still climbing after his big accountment with shoppers. Namaste Technologies (NXTTF) with a current 12% gain, NewStrike Resources (HIP.V) up about 8% and Aerohive Networks (HIVE) up around 5% on the day. These may be some good stocks to add into your watch list. Who will Benefit From Legal WeedA few companies have been making big moves in Canada's marijuana industry. Aurora (ACB) has put in a few offers to buy some Canadian weed companies. A main few include a company that provides people with home growing equipment, a large growing facility and a hostel takeover for Cannimed.
Aphria (APH) just made a deal with Shoppers to supply only their online weed sales. Canopy Growth Cooperation (WEED) Expands to Newfoundland & Labrador. Keep an eye on all of these companies for news and updates for potential buying opportunities Lululemon (LULU) Reported a Great QuarterLululemon's stock rose 6.5% as they reported a great quarter. As the retail industry is on the decline lulu comes out on top, reporting a significant increase in online sales. The board also approved a $200 million dollar share buyback.
PayPal (PYPL) and Aurora (ACB)Aurora (ACB) revives a European Union Goods manufacturing practise certificate that will allow them to trade and produce package and store cannabis in Europe. This opens their doors to market of approximately
82 million people. PayPal (PYPL) revives a good review from IHS Markit, getting a score of 83 out of 100 and upgraded from neutral. Looks like a good time to buy on this dip? Bitcoin Futures and New Highs
After Bitcoin futures became available to the public it had an amazing reaction for the first day. Most of the futures traded at $17,800 per bitcoin where it was actively trading around $16,000, a good premium. It hit a new high today of about $17,300 USD and the way things are playing out Bitcoin looks like its going to have a big future. There is still a lot unknown about who's long and who's short and where things will end up, so stay skeptical.
Paypal (PYPL) Enters China's TerritoryPaypal entered a partnership agreement with Baidu (BIDU) to make their payment option available on their platform. This would give them access to a possible 70 million users to chose Paypal as a payment option.
Why does this make a good buying opportunity? Online sales have been on the rise in the US and Canada but are no where new full penetration. Having Paypal open its doors to China will give them reach to a whole new market and potentially be a first of its kind in this area. |