With Nvidia shares now up more than 45% this year (and up over 1,870% in the last 5 years) some investors are again wondering if the stock is overpriced. On one hand, the semiconductor industry is notoriously cyclical, and big price pullbacks (60% to 80%) are not uncommon. On the other hand, Nvidia benefits enormously from two megatrends (artificial intelligence (“AI”) and the great cloud migration/ digitization), and the share price gains may still just be getting started. In this report, we take a closer look at Nvidia’s current valuation versus 40 other top chip stocks, share our views on what sets it apart, and then conclude with our strong opinion on investing.
Top 10 High Income NOW Securities (Feb 2024)
There is a new Top 10 in town with regards to our “High Income NOW” Portfolio. And the reshuffling is driven by two big themes (i.e. where the stock and bond markets are heading). No one has a working crystal ball, but the writing is on the wall for BDCs and Bond CEFs. In aggregate, the portfolio has 24 positions (including BDCs, stock and bond CEFs, REITs, dividend stocks and more) and the aggregate portfolio yield is 9.5%. Let’s get into the details.
Saratoga: Big-Yield, Big Leverage, Big Write-Downs (40 BDCs Compared)
Saratoga Investment Corp (SAR) is a small-cap BDC ($300 million market cap) with a big yield (12.4%) and some big risks. The company’s high leverage isn’t as bad as it seems (thanks to SBIC loans), but it could still become a problem considering continued depreciation/write-downs on a few of its larger investments. After comparing Saratoga to 40+ other big-yield BDCs, we review its business, valuation, dividend and risks. We conclude with our strong opinion on investing.
50 Top Growth Stocks: These 6 Worth Considering
For many investors, financial data alone is not enough. However, it can be a great place to start. This report shares updated data on over 50 top growth stocks with at least 20% expected revenue growth (for this year and next) and that have a “Strong Buy” rating from Wall Street analysts. We highlight six specific names from the list that are particularly interesting and worth considering.
AI-Powered Marketing Software Stock: Disruptive Growth
The company we review in this report is a leading omnichannel data-driven cloud platform offering consumer intelligence and marketing automation software to enterprises. The company enables its clients to engage consumers across various channels like email, social media, web, chat, Connected TV, and video. In this report, we analyze the company’s business model, its market opportunity, financials, valuation and risks, and then conclude with our opinion on whether the shares offer an attractive balance between risks and rewards.
Top 10 Big Yields: CEFs, BDCs, REITs, MLPs (Update)
After two full weeks of 2024, the tectonic big-yield landscape continues to shift, and select highly-attractive opportunities continue to emerge. It’s a fantastic time to be a big-yield investor, and we share top ideas in this report. Specifically, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and master limited partnerships (“MLPs”). We also share updated data on hundreds of big-yield opportunities from across each of these categories (so you can compare and contrast for yourself).
Energy Transfer: Top 5 Big-Yield MLPs, IRA vs Taxable or Neither
If you an income-focused investor, you have likely come across energy midstream companies (including master limited partnerships (“MLPs”)). These specialized companies transport oil and gas through pipelines, and they can offer some very large and steady income payments to investors (thanks to the steady long-term contracts they have in place with clients). However, before you invest in any of these companies, you need to understand the unique nuances and tax risks of the MLP structure, particularly with regards to account types (i.e. should you hold in your IRA, your taxable account, or neither). In this report, we share data on the top 10 midstream companies (including the top 5 MLPs), review Energy Transfer (an MLP) in particular (including its business, big yield, valuation and risks), and then finally conclude with our strong opinion on if (and where) your should even consider investing.
Top Small Cap: Big Secular Growth, Automotive Semiconductors
In this report, we review a small cap company that specializes in providing semiconductor and software solutions for Advanced Driver Assistance Systems (ADAS), including light detection and ranging (LiDAR), connected cars, user experience, and electrification applications. The company's technologies serve as the foundational elements for both electric and autonomous vehicles, with a focus on enhancing in-cabin experiences and seamless connectivity to mobile platforms. In this report, we analyze the company’s business model, its market opportunity, financials, valuation, risks, and then finally conclude with our opinion on whether investing offers an attractive balance between risks and rewards.
Dividend Growth Stock Opportunities
In this “snapshot & update” report, we share data on 75 top dividend growth stocks, and a few of them stand out in particular as attractive opportunities. If you are worried about “growth stocks” being too aggressive and “double-digit yield” securities being too risky, then you might appreciate a few of the ideas in this report which offer well-covered growing dividends and long-term capital appreciation potential.
12 Big-Yield Oil & Gas Midstream Companies, Compared
If you like big-yield income, you’ve likely come across the oil & gas midstream industry. The group can offer impressive high income, plus total returns that are less correlated with the overall stock market (because of the steady fee-based income these companies generate). But there are a few things you need to consider before investing. In this brief report, we share comparative data on the 12 biggest companies in the group, plus a few important caveats on investing in them.
RLTY: Attractive Big-Yield CEF, But Know the Big Risks
As per a reader’s request, this report focuses on the attractive qualities and big risks of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY). This closed-end fund (“CEF”) yields 9.0% and currently trades at 12.0% discount to NAV. However, there are some nuances and big performance factors readers should consider before investing. After reviewing all the details, we conclude with our strong opinion in investing.
Amazon: Ranking “The Magnificent 7” for 2024
2023 was largely a tale of two markets. The “S&P 493” (roughly two-thirds of the index, by market cap) was up 20.3% (on average), while the seven largest mega-cap stocks (i.e. the “Magnificent 7”) were up ~100%, on average (see table below). In this report, we rank each of the Magnificent 7 stocks for 2024, with a special focus on Amazon (including an update on its business, its four big growth opportunities, valuation and risks). We conclude with our stern opinion on investing in Amazon (and the Magnificent 7) in 2024, especially as compared to non-mega-cap growth stock opportunities.
Top 10 Growth Stocks for 2024 (Updated)
As we head towards 2024, the market continues to present widely varied and dynamic investments opportunities, particularly in the growth stock space. Importantly, the macroeconomic backdrop is shifting from ultra-hawkish (i.e. the fed was aggressively hiking rates—to fight the high inflation it helped create by pumping easy money into the economy during the pandemic) to more dovish (as inflation slows and fed-funds futures now predict interest rate cuts in 2024). Without question, monetary and fiscal policies have their thumb on the scales of market performance, but not all stocks are created equally. In this report, we countdown our top 10 growth stocks for 2024, starting with #10 and finishing with our very top ideas.
Ares Capital: 40 Big-Yield BDCs, Compared
In this report, we compare 40+ big-yield BDCs, including a special focus on industry stalwart, Ares Capital (ARCC). Specifically, we rank the BDCs based on various metrics, including price-to-book value, dividend yield and a variety of other factors. We then dive into the specifics on Ares, including a discussion of how it is fortifying its financials for a potential macroeconomic storm. We conclude with our strong opinion about investing in BDCs at this point in the market cycle, and our specific views on investing in Ares Capital, in particular.
Top 10 Big Yields: CEFs, BDCs, REITs & More
As 2024 begins, it is a fantastic time to be a big-yield investor. With the Fed’s interest rate hikes seemingly over (and potentially even about to reverse), and with so many big-yield opportunities that have become “too” out of favor, income-focused contrarians are salivating. In this report, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and more. We also share data on hundreds of big-yield opportunities from across each of these categories (so you can compare and contrast for yourself).
REIT CEF: Big-Yield, Big Discount, Contrarian Opportunity
If you are an income-focused investor, you may have noticed that popular high-dividend REITs have struggled this year. Specifically, rising interest rates and secular changes to the real estate market have kept REIT prices low (while other market sectors, such as technology, have posted strong gains). In this report, we review a blue-chip REIT closed-end fund (“CEF”) that offers a large distribution yield (currently 8.1%) and trades at a significant discount to net asset value (“NAV”). After reviewing the strategy, distribution characteristics, leverage, price and risks, we conclude with our opinion on investing.
Next Gen AI Data Center: Massive Disruptive Upside
The data center company we review in this report is the epitome of a high-risk / high-reward opportunity, and the odds appear tilted strongly towards high reward (based on the massive secular opportunities: mainly explosive growth in Artificial Intelligence, and to a lesser extent blockchain hosting). This isn’t the type of stock you bet the farm on, but it’s absolutely worth considering for an allocation within a prudently concentrated high-growth portfolio. In this report, we review the business, the opportunities, valuation and risks, and then conclude with an important takeaway.
Muni Bond CEFs: Big-Yields, Historic Discounts to NAV
If you don’t like paying taxes, like most of us, you may have noticed that municipal bond closed-end funds are still trading at historically large (and very unusual—attractive!) discounts to NAV. The “magic” of a municipal bond, is that you generally don’t have to pay federal income tax on the income—so if you’re in a high tax bracket—munis can be quite lucrative (especially on a “tax-equivalent” yield basis). In this report, we share data on over 75 big-yield municipal bond CEFs, discuss the current historical opportunity (including how funds are actively working to reduce the discounts!), and then share a few thoughts on particular muni-bond CEFs that you may want to consider for investment.
British American Tobacco: Despite Big Risks And Impairment, Big Dividend Is Attractive
The already inexpensive British American Tobacco (BTI) just got more inexpensive following Wednesday’s announced $31.5 billion write down (mainly related to its U.S. cigarette brands). The shares fell sharply on the news (because it adds to the multiple big risks the company already faces). However, this big non-cash impairment doesn’t impact the company’s cash position and it won’t impact future capital allocation decisions (including the monster big dividend, currently yielding nearly 10%). In this report, we review the business, the details of the impairment charge, the company’s valuation and the big risks. We conclude with our strong opinion on investing.
Top 10 Big-Yields: CEFs, BDCs, REITs and More (Updated)
This report ranks our top 10 big-yield investments, including CEFs, BDCs, REITs, dividend stocks and more. We also share data on hundreds of big-yield opportunities from across each of these categories. After counting down our top 10 ideas, we conclude with all the details on how each of the top ideas fits into our prudently concentrated High Income NOW portfolio (current yield 10.1%, 28 total positions).