Some of the best growth opportunities are NOT based in Silicon Valley, and as such they remain undervalued relative to their long-term growth potential. This report highlights one such attractive opportunity that competes with Silicon Valley darling Twilio (TWLO) in the CPaaS market, but trades at a more attractive valuation and offers even higher expected growth. Not to mention its owned IP network provides scalability, reliability, major cost savings and uniquely positions it for success.
PIMCO & DoubleLine CEFs: 9.1% & 7.7% Yields, MOPAY
If it’s mainly big steady income payments you seek, this report reviews two fixed-income closed-end-funds (CEFs) that offer attractive yields of 9.1% and 7.7%, respectively. They both pay monthly (MOPAY), and trade at very attractive prices. This report shares the important details for you to consider.
Unity Software: A Long-Term Winner
Unity Software provides tools to videogame developers. The company recently completed its initial public offering in September. The business is healthy, revenue is growing rapidly, and it has a large total addressable market. In this report, we analyze Unity’s business model, its market opportunity, competitive position, valuation, risks, and finally conclude with our opinion on investing.
Top 10 Big Dividends: Contrarian Value Opportunities
Value and income stocks have been challenged this year as the COVID-19 pandemic has made life difficult for many of them and as many growth and technology stocks have sailed higher. However, if you are a contrarian, there are select opportunities among the wreckage that are absolutely worth considering. Especially as many value and income stocks have started to perk up lately as news of a COVID-19 vaccine is spurring some capitulation between high-flying growth stocks and beaten down value and income names.
Realty Income, Big Monthly Dividend: COVID Challenges
Realty Income is one of the most renowned dividend stocks. Its monthly dividend track record has earned it the nickname ‘The Monthly Dividend Company’. It has made 604 consecutive monthly payments and raised its dividend for 94 quarters in a row. Since March 2020 (when COVID-19 hit the world), the company has raised its dividend twice. This signals to some the recession-resistant nature of its property portfolio and superior management skills. But will the company sail through this crisis like it has in the past? This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about investing.
Nvidia (NVDA): Quick Note
Just a quick note on Nvidia, a leading semiconductor chip maker that is growing rapidly thanks to its powerful graphics processing units (GPU) / chips. More specifically, Nvidia continues to grow rapidly thanks to its leadership position in gaming (+55% sales growth yoy), data centers (+100% sales growth yoy), and its many other uses, as will be discussed.
Newly Public Data Analytics Company: Keep It High On Your Watchlist
This data analytics software company recently began trading publicly, and it is known for its highly secretive work with the US government. It has also recently experienced strong revenue growth, and it has a large (and growing) total addressable market (although a fiercely competitive one). In this report, we analyze the company’s business model, growth prospects, valuation, risks, and finally conclude with our opinion on whether this stock offers an attractive risk-versus-reward investment opportunity.
The Safest and Strongest Net-Lease REIT with a 5.8% Dividend Yield
This REIT is one of the largest net-lease REITs benefiting from the unmatched diversity in its portfolio and its deep expertise in sale-leasebacks. The portfolio has displayed very strong resilience to the pandemic, as its rent collections have remained strong throughout. It also has an impressive dividend history with consecutive dividend increases every year since it went public in 1998. We are also encouraged by its successful track record of operating through economic downturns and using them to build and grow a high-quality portfolio through opportunistic investing. Despite all the odds in favor, the stock has underperformed this year. We believe at the current price, the REIT offers an attractive investment opportunity from an income generation, capital preservation, and capital appreciation perspective. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why it’s worth considering if you are a long-term income-focused and growth-oriented investor.
2 High-Yield CEFs Worth Owning: Contrarian Value Edition
Forget Bonds: Try This Blue Chip Stock Instead
Stocks and bonds are fundamentally different types of investments. However, if you are seeking the traditionally very-safe income provided by investment-grade bonds, you’re probably very disappointed by our ongoing “near-zero” interest rate environment. Traditionally speaking, stocks are simply too risky for bond investors. However, not all stocks are created equally, and in this article we review the very-safe yield provided by a specific blue-chip stock that has been increasing its dividend for over 6 decades, while its share price has also steadily increased too. Specifically, we review the company’s business, dividend safety, valuation and risks, and then conclude with our opinion on investing.
Top 10 Growth Stocks: Attractive Long-Term Buys, Ranked
The Vix (VIX), also know as “The Market Fear Index,” is elevated, thereby suggesting it could be a bumpy ride for stocks in the weeks ahead. However, despite the potential volatility, one thing that has worked well throughout history is to simply buy good stocks and then hang on—for the long-term. That may seem easier said than done, but in this report we attempt to help. There are certain themes and companies that are poised to grow dramatically in the years ahead—no matter what happens with near-term volatility. And in this report, we rank our top 10 growth stocks for you to consider.
Snowflake: An Enormous Opportunity for Long-Term Growth
Snowflake provides a cloud-based data platform, addressing the rising data management needs of enterprises. The company went public recently and has delivered staggering listing gains to its investors. In this report, we analyze Snowflake’s business model, competitive strength, financial position, and finally conclude with our opinion on the stock’s risk-reward investment opportunity versus its current valuation.
Chinese E-Commerce Small Cap: High Growth, Attractive Valuation
Shares of this Chinese, small-cap, “brand-focused,” e-commerce company trade in the US (on the Nasdaq) as an ADR (American Depositary Receipt), and they are currently priced attractively after the recent sell-off, especially considering the continuing powerful growth expectations for online commerce and for the company in particular. In this article, we review the solutions offered by the company, its growth prospects, valuation, risks and conclude with our view on why the shares are worth considering if you are a long-term investor.
High Growth Software Company: Tremendously Popular Solution, High Options Market Premium Income
This young high-growth software company has become a solution-of-choice for developers and organizations alike within a relatively short span of time. The company has achieved a five-year annual revenue growth rate of ~59% through a proven “Land-and-Expand” business model, an endeavor to fill the platform’s functionality gaps, a rapidly expanding market, and a solid management team. The company’s stock lost about half of its value in the COVID-19 induced market turmoil earlier this year, but has strongly recovered since then and is currently trading at almost 28x Price-to-Sales multiple. The valuation certainly looks rich (considering the company is not yet profitable and is burning a lot of cash), but the platform is immensely popular among developers and it has a very long runway for continuing high growth in the years ahead. The shares also offer very high premium income in the options market. This article reviews the health of the business, growth prospects, valuation, risks, and concludes with our opinion about why it may be worth considering (and how to play it with put options) if you are a long-term growth-oriented investor.
Johnson & Johnson: Bedrock Dividend Growth? Time to Sell Calls?
Johnson & Johnson is one of the most revered dividend aristocrats (it has raised its dividend 58 years in a row). The company has incredibly strong fundamentals derived from its well-diversified three-pronged business model that contributes to consistent profitability and a strong balance sheet. It is one of only two AAA-rated companies (the other being Microsoft), signifying its extremely strong capacity to meet financial commitments. Johnson & Johnson’s share price hit a four-year low during the March downturn, but has since rebound and is now trading near all-time highs. Is Johnson & Johnson sill a buy at any level? Is it time to sell covered calls? We answer these questions in the conclusion of this article after first providing a detailed review of the health of the business, valuation, risks and dividend safety.
Alibaba: Despite Big Risks, Cloud Growth Makes Valuation Interesting
Alibaba (BABA), often referred to as “the Amazon (AMZN) of China,” is the country’s largest e-commerce, cloud, and digital advertising company. Its e-commerce business has been the growth and profit engine for years, but cloud computing is positioned to increasingly contribute meaningfully to high-margin growth in the future. The perception of weak corporate governance, combined with geopolitical tensions, are major risks, and November could be a big month considering the US election, the company’s upcoming earnings announcement, and Singles’ Day. In this article, we analyze Alibaba’s business model, its market opportunities, fundamentals, valuation, risks, and finally conclude with our opinion on whether the stock offers an attractive balance between risks and rewards.
Why This Fast Grower Fell 28%, And What Comes Next
During afterhours on Wednesday, shares of this fast growing company fell dramatically as it released preliminary third quarter revenue numbers that were below expectations. This particular business provides an “edge cloud platform” designed for the “modern internet” thereby allowing digital applications to process quickly, reliably and safely—on the edge of the internet. This report reviews the business, its massive long-term growth opportunity, its newly revised rapid growth trajectory, valuation, risks, and concludes with our opinion on why the shares are worth considering.
New Options Trade: 8.8% Yield Property REIT + Covered Call Income
This is an attractive long-term 8.8% yield property REIT trading at a compelling valuation, but the shares have rallied hard in recent weeks thereby creating this high-income options trade opportunity. Specifically, nervous investors may slow the short-term rally by taking profits, which is fine with us because we’d keep these attractive shares for the long-term and get paid the big dividend shortly after the options contract expires in just over 1-month from now. And if the shares do get called, that’s a 39-day gain of approximately 20%, not too bad at all. We believe this is an attractive trade to place today, and over the next few days, as long as the price of the underlying shares don’t move too far during that period.
Know Your Goals: Overcome Fear & Greed, Especially Now!
Fear and greed are very real psychological hazards when it comes to investing. And lately (with everything going on), it seems growth stocks have taken on the role of greed (considering their performance has been so strong!). Rather than worrying about keeping up with the Joneses, a better strategy right now (and always) is to know your own investment goals, avoid those common mistakes caused by fear and greed, and pick really good stocks! This article provides some perspective on current market conditions and opportunities, it highlights a handful of our recent top investment ideas, shares performance, and hopefully provides a little meaningful perspective as you manage your portfolios in light of everything going on right now (e.g. low interest rates, the upcoming US election, Covid and the acceleration of technology in the global economy).
Attractive CEF: +9% Yield, Discounted Price
Income-focused stock-market investors often make the unfortunate mistake of concentrating all of their investments in the same few big-dividend sectors of the market. However, this particular closed-end fund diversifies across important sectors, thereby reducing investor risks, increasing total return opportunities, and still offering a big yield for investors. It is also trading at a very attractively discounted price, has an experienced-leadership team, and pays investors at least a 6% annual yield—and usually more (in 2019 it paid 9.6%, and 2020 is on pace to be another very strong year). What’s more, because it pays three smaller dividends in Q1, Q2 and Q3, investment websites consistently under-report the size of the big yield, and there is still time for investors to get in now to capture the big upcoming Q4 payment. And by the way, it’s been paying healthy dividends for over 80 years straight!