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.
New Options Trade: Very High Upfront Income, Intelligence Community Software Platform
We wrote about the attractive, yet somewhat speculative, opportunity in this newly public stock just over 1-week ago, and the shares have surged more than 50% since that report (i.e. they’ve climbed from $18 to $28). We still believe the shares are somewhat speculative here (especially at the higher price), but the extremely high upfront premium income available in the options market is hard to ignore. In this report, we share a trade that generates very high upfront premium income (that you get to keep no matter what) and it gives us a chance to own shares of this company at a much more reasonable price. We believe this is an attractive trade to place today and potential over the next few trading days, as long as the price doesn’t move too dramatically before then.
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
New Options Trade: Very High Upfront Income, Big Sell-Off Creates Opportunity
Highly encouraging Covid-19 vaccine news was released on Monday, and the market reacted in dramatic fashion. For example, popular brick-and-mortar REITs that had been beaten down by the virus (such as SPG and WELL) gained (+27% and +21%, respectively), while social distancing tech stocks (such as ZM and DOCU) lost (-17% and -15%, respectively). However, some names have continued to sell off when they should not have, and we highlight one in particular in this report for an attractive income-generating options trade opportunity. We already own some shares of this name (we purchased them recently), but if you don’t own it (or you wouldn’t mind picking up more shares), you may want to consider this trade opportunity because it generates very high upfront premium income for you to keep, and it gives you a shot at owning shares of this attractive business at an even lower price.
New Options Trade: Very High Upfront Income, Bullish Vertical Put Spread, Chinese Internet Juggernaut
Just three weeks ago we wrote about the attractiveness of this stock, but warned of near-term volatility events at the start of November. One of those events has played out, drawing the share price lower. However, we believe the shares are now trading too low, and they could be driven even lower in the days ahead (as fearful investors panic). These conditions have given rise to this attractive options trade. The trade sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—and potentially over the next few trading sessions—as long as the price doesn’t move too dramatically before then.
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.
New Options Trade: Very High Upfront Income, Huge Upside Potential
The world continues to change, and uncertainty and fear are currently high. These two broad factors have combined to create a very specific attractive opportunity to generate high upfront income and very large price appreciation potential. This small digital advertising company ($1 billion market cap) is in the right place at the right time (the intersection of disruption and volatility) thereby creating this very attractive option trade opportunity (plus, the $9 share price makes the “cash secured” part of this trade more palatable for some). In our view, this is an attractive trade to place today, tomorrow and potentially into early week (so long as the share price doesn’t move too dramatically before then). You get to keep the attractive upfront premium income this trade generates (no matter what), and you may end up owning shares of an extremely attractive, long-term, small cap, disruptive-growth stock at a very compelling low price.
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.