If you like to invest in powerful secular growth opportunities, Super Micro Computer (SMCI) has likely caught your eye. This developer and manufacturer of high-performance servers and storage systems is benefitting dramatically from explosive secular growth in artificial intelligence (“AI”) and high-powered computing. The total addressable market opportunity is enormous. In this report, we review the business, the market opportunity, financials, valuation and risks, and then conclude with our strong opinion on investing.
PDI: Attractive 14% Yield, Big Hidden Costs
PIMCO’s Dynamic Income Fund (PDI) is popular among income-focused investors, and it should be. It offers big monthly distribution payments (that have increased over time), and it occasionally pays additional special dividends too. Plus, the fund is managed by a world-class company, PIMCO. However, there are significant costs, both implicit and explicit. In this report, we weigh the fund’s attractive qualities against its various costs, and then conclude with our strong opinion on investing.
Energy Transfer: Tempting Big Yield, Dynamic Big Risks
If you are an income-focused investor, Energy Transfer offers a tempting 9.7% yield. Especially considering the stable fee-based income, the healthy distribution coverage ratio and the ongoing volume growth trajectory. However, there are variety of big risk factors that investors should consider, including debt levels, MLP tax considerations, management team, the lack of a strong competitive moat, rising interest rates, regulations, environmental concerns and the overall volatility profile of the industry. In this report, we provide an overview of the business, consider the attractive qualities that make the distribution so tempting, review the risks, evaluate the current valuation and then conclude with our opinion on investing.
Is Quantum Computing The Future? This High-Growth Stock Is Worth Considering
The company we review in this report harnesses the power of atomic ions found in nature to develop quantum computing systems that are widely regarded as surpassing traditional computer technologies in both quality and scalability. Founded in 2015 and first trading publicly in late 2021, the company is relatively small, but growing rapidly and supported by very large long-term secular disruption opportunities. We review the business, the market opportunity, financials, valuation, risks and then conclude with our opinion on investing.
Hercules: Big Yield BDC, Very High Valuation
Hercules is a big-dividend (9.4% yield, not counting supplemental dividends) business development company (“BDC”) that we purchased in March and that has now experienced significant share price gains since the Silicon Valley Bank panic at that time (Hercules provides financing in the same high-growth / venture-backed lending space). And the shares now trade at a very high price-to-book valuation. In this report, we review the business, current market conditions, the company’s financial position, dividend, valuation and risks. We conclude with our opinion on investing.
Long-Term Lithium Deficit: We're Playing It with this Stock
The company we review in this report is very profitable, growing rapidly, and the business benefits from a lithium supply deficit that will likely remain in place (and support strong profits) through 2030 and beyond (courtesy of demand largely for electric vehicle batteries). The company just recently announced quarterly earnings, whereby they raised forward guidance. But are the shares a good investment? In this report, we review the company, the lithium opportunity, financial performance, growth strategy, valuation and risks. We conclude with our strong opinion on investing.
6.3% Yield REIT: 10 Good Things, 5 Big Risks, 1 Conclusion
The 6.3% dividend yield REIT we review in this report recently announced quarterly earnings, whereby it beat expectations. However, the share price is down this year (despite gains for other top dividend REITs), thereby leaving investors wondering what is happening and if the shares are worth investing. In this report, we review the company and its strategy, and then review 10 good things about it, 5 big risks to consider, and finally share our one bottom line conclusion about investing in this big-dividend REIT.
Attractive Fintech Disruptor (Q2 Earnings Update)
The fintech company we review in this report just announced quarterly results and they were impressive. Specifically, the company reported record revenue, increasing profitability and robust member and product growth. In this report, we highlight a few strong reasons why you might want to consider investing in this opportunity, including its strong financial performance, diversified revenue streams, strategic growth initiatives, large market opportunity and its valuation. We are currently long the shares in our Blue Harbinger Disciplined Growth Portfolio.
30 Top Big-Dividend REITS, Compared
In this report, we share data on 30 top big-dividend REITs. And when comparing them, it is important to note that they come in a wide variety of types (for example sub-industries) and require very different forms of analysis. The 30 in this report are widely followed, and investors have passionately different viewpoints. We share ours in this report, including information on the ones we currently own, the ones we are avoiding, and the REITs that are high on our watchlist (and that we may purchase soon).
Ares Capital: 40 Big-Yield BDCs Compared
Many income investors love Ares Capital (ARCC) for its big dividend yield and long history of healthy performance. But considering the current market environment, are the shares still worth owning? Or are there better BDC options available? In this report, we share comparative data on over 40 big-yield BDCs, and then dive deeper into Ares (including its business, valuation, dividend safety and risks). Next, we briefly consider two Ares alternatives (Blue Owl and Hercules Capital). Finally, we conclude with our strong opinion on investing in these specific big-yield BDC opportunities, especially with BDC earnings season right around the corner.
Top Growth Stock: Cloud-Based "Data in Motion," Risk-Reward Considerations
This company is on a mission to “set data in motion.” It provides a data platform which is designed to help businesses manage and process data in real-time from various sources. Traditional database technologies typically focus on storing and retrieving data that is at rest. In contrast, this company’s platform is built around an open-source distributed streaming platform, which enables the processing of data in motion or data streams. The company also has plans to integrate its platform with popular AI systems, further expanding its product offerings and strengthening its position in the industry. In this report, we analyze the business model, market opportunity, financials, valuation and risks, and then conclude with our opinion on investing.
Top 10 Big-Yield CEFs, BDCs, Ranked
Income investors, focused primarily on generating big steady income, can still enjoy some price appreciation too. And now that interest rate volatility is decreasing, attractive high-income opportunities are increasingly emerging. In this report, we first share and discuss comparative data on over 100 big-yield closed-end funds (“CEFs”) and over 40 big-yield business development companies (“BDCs”), and then rank our top 10 favorites (with yields ranging from 6.0% to over 12.0%), starting with #10 and counting down to our very top ideas.
Wide Moat Semiconductor Company: Two Massive Secular Trends
The non-mega-cap semiconductor company we review in this report is growing rapidly as it benefits from two massive secular trends: (1) the cloud (and artificial intelligence), and (2) dramatically increasing technology in the automotive industry (i.e. its chips have increasing applications in new cars). Also, this wide-moat founder-led company has impressive profit margins (important in the current macro environment), and generates tons of cash (for increasing dividends and share repurchases). If you are looking for an attractive “offense-and-defense” investment opportunity, these shares are worth considering.
50 Top Growth Stocks: These 3 Worth Considering
Market fear has ticked up slightly over the last week as interest rate hikes are expected to resume and this could pour water on the red hot stock market rally so far this year, especially high-growth stocks. However, it’s our contention that this short-term noise won’t matter for select top growth stocks which will be driven higher by strong execution supported by incredible disruptive secular trends (including generative AI, the great cloud migration and the world’s insatiable desire for more efficient sources of energy). In this report, we share high-level data on the current state of the market, company-specific fundamental metrics on over 50 top growth stocks, and then review three specific stocks from the list that represent particular compelling businesses going forward.
Big-Yield BDC: Why This 11.2% Yielder May Be Set For Gains Ahead
Business Development Companies (BDCs) are another income-investor favorite thanks to their very large dividends and potential for price gains. In this report, we review an attractive BDC that has positioned itself for solid performance ahead (i.e. potential dividend and price increases). We review the business, the market, the dividend safety, valuation and risks, and then conclude with our opinion on investing.
NMZ: 50 Big-Yield Municipal Bond CEFs, Historically Large Price Discounts
Big Yield Bond CEFs: Is It Safe To Invest? (Interest Rate Risk)
Income-focused investors love big-yield bond CEFs because of their large distributions payments, often paid monthly. But if you’ve been following along, you know most of them (i.e. the popular PIMCO and BlackRock bond CEFs) have been feeling a lot of pain over the last year (because as rates have gone up, bond prices have gone down). Granted some investors don’t care about price as long as the income keeps rolling in, but it really does matter. In this report, we provide an update on three popular Bond CEFs (two from PIMCO and one from BlackRock), and share our views on whether the interest rate environment is signaling an “all clear” sign. We conclude with our strong opinion on investing.
Lithium Producer: 40 Top Stocks, These 4 Worth Considering
There are many ways to identify top investment opportunities, and one strategy is to screen the universe based on important fundamental metrics and then dig deeper into the names that look attractive. In this report, we share data on 40+ high-profit-margin and high-sales-growth stocks, and then dig deeper into four that are particularly attractive. We have a special focus on a new lithium producer, including a review of its business, its growth potential, its valuation and risks. We conclude with our strong opinion about investing in high-profit-margin and high-sales-growth stocks in the current challenging macroeconomic environment.
This AI-ML Stock: Massive Sticky Secular Growth
The company we review in this report is already benefiting from the massive secular growth in Artificial Intelligence (“AI”) and Machine Learning (“ML”). And it is positioned to keep benefiting massively in the years ahead thanks to its leading solutions, innovation, sticky customer base and very strong balance sheet. This one was loved (during the pandemic bubble) then hated (when the bubble burst), but the business has only been getting stronger and the shares are still inexpensive relative to where we expect them to be in five years and beyond. In this report, we review the business, the growth, the opportunity, the valuation and the risks. We are currently long these shares with no intention of selling.
Is Verizon 7.2% Dividend Yield Worth the Cost?
Verizon’s 7.2% dividend yield is increasingly tempting to many income-focused investors. However, many of those same investors are reminded of AT&T—another telecom that was recently forced to cut its big dividend as the payout got way ahead of the company’s cash flows. In this report, we review Verizon’s business, dividend safety, valuation and risks (including the new Amazon Prime threat), and then conclude with our opinion on investing.