When two of the economy’s biggest mega trends combine, you get Nvidia (+59% ytd) and offshoots like Super Micro Computer (+202% ytd). And if you’re wondering if its “too late” to invest in these two mega trends (i.e. Artificial Intelligence and/or the Digital Revolution) the answer is a resounding, no way! We’re still in the early innings and here are 5 stock ideas that could potentially ride these waves dramatically higher in the decade ahead (volatility haters need not read on).
Market Overheating? High-Income Strategies Worth Considering
The market continues to climb a wall of worry, and some investors believe it’s getting a bit ahead of itself. For example, the S&P 500 is up +6.9% this year and up +27.4% over the last 12 months, but we keep hearing stories about a sputtering economy. If you are concerned the market is ahead of itself, and we may be due for a healthy pullback, here are 3 high-income investment opportunities for you to consider.
New Sale: Sold Half of this Aggressive Growth Stock
Quick Note: I sold half of my shares of this highly successful aggressive growth stock. The reason is mainly because the price has run up so fast and the number of short-sellers (people betting against it) is extremely high. This could be an epic mistake on my part, but it feels like this one has gotten way ahead of itself (despite the fact that it is backed by an enormous mega trend.
PDI (13.8% Yield): Up Big, More Gains Likely Ahead (100 Big-Yield CEFs Compared)
If you like high income investments, two things are likely true: (1) you are aware of the big double-digit yields offered by PIMCO closed-end funds (“CEFs”) and (2) you’re likely disgusted by the returns of said bond funds over the last few years. However, the tide has shifted as interest rate hikes have ceased (and may reverse). And as we correctly predicted, the brief price discount on PIMCO’s PDI (versus NAV) has evaporated and the shares now trade at a premium. What’s special is BOTH the premium and share price will likely increase dramatically in the months, quarters and years ahead. We explain in this short report and also share data on 100 other big-yield CEFs (many also paid monthly) for comparison purposes.
Quick Note: Top Performing Stocks with Highest Short Interest
Quick Note: The following table shows stocks that have returned at least 50% over the last 1-year, but also have at least 5% short interest (i.e. people “betting against the shares”). The table is sorted by market cap, and we also included the “Magnificent 7” for comparison purposes. Lots of good data in the table, including analyst ratings, upside versus price targets and various valuation metrics, to name a few.
Palantir: A Long-Term Play on Big Data and AI, But at What Price?
Palantir provides sophisticated software platforms for data analysis, leveraging advanced AI and machine learning techniques. Its software effortlessly integrates structured data like spreadsheets and unstructured data like images and social media posts into a single centralized database, enabling visualization and analysis of all information. The company is further leveraging its AI expertise with AIP, a novel platform that introduces support for large language models and generative AI to its current offerings. In this report, we analyze Palantir’s business model, its market opportunity, financials, valuation, risks, and then conclude with our opinion on investing.
Nvidia: 40 Top Chip Stocks (Ranked by Value)
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 Growth Stocks, Most Upside (per Wall Street Analysts)
Quick Note: Meta Up +15% on Earnings
Investing on Sabbatical: 5 Huge Tax Savings Tips
Top 100 Big-Yield Closed-End Funds (Ranked)
In this report, we share updated data on 100 big-yield CEFs from across a variety of categories. The data is ranked by market cap, per category, but you can also compare these big yield opportunities on discounts-premiums, leverage, recent performance metrics and more. We conclude with our opinion on where we’re seeing the best (and some of the worst) big-yield opportunities in the current market environment.
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.
Donor Advised Funds: 5 Big Tax Benefits
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.
Quick Note: Updated BDC Data
Quick Note: Sharing some updated BDC data as of today’s close. Yields remain attractively high, yet valuations are not particularly low, as much of the group is benefiting from increased investment income from floating rate loans while their own debts are fixed rate with some time before much of it resets higher.
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.