Daily Archives: September 26, 2018

Market Preview

Market Preview: Fed Holds Predicted Course, Earnings from Carnival and BlackBerry

As expected, the Federal Reserve raised interest rates by a quarter of a percentage point from 2.00% to 2.25%. The Fed had done an excellent job of telegraphing the move, as the CME reported that 95% of traders expected the quarter point increase. With no surprises, the markets took the raise in stride, and finished flat. The only notable change to the Fed’s policy statement language was the removal of the word “accommodative” to describe Fed policy. With the rate increase out of the way, the market will likely turn back to trade tariffs as the main headline for the rest of the week. James Hackett, CEO of Ford (F), rekindled the tariff discussion Wednesday afternoon when he stated the tariffs on aluminum and steel have now cost the automobile manufacturer $1 billion in profit. It’s likely we’ll hear from several more companies in the days ahead as to the negative impact of the tariffs on their bottom lines.

Thursday morning Accenture  (ACN) and Carnival (CCL) will report earnings. The consulting and outsourcing company has put in a good showing this year with continued growth in both its business lines. Accenture has expanded its offerings in recent years by acquiring cloud and internet of things (IOT) companies that can augment its core business. Analysts are watching margins closely at the $110 billion company, as competition has been steadily increasing in both consulting and outsourcing. This is the biggest quarter of the year for Carnival. The company generates a disproportionate amount of its revenue and operating income in Q3. The stock has basically traded flat thus far in 2018. The main focus for investors as the company reports is whether Carnival can contain expenses as revenue rises. This quarter will definitely set the tone for the remainder of the year for the cruise company.

While the market was focused on the Fed and its Wednesday afternoon announcement, the remainder of the week is full of economic numbers to chew on. Thursday we’ll get reports on durable goods, GDP, international trade, jobless claims, pending home sales, wholesale inventories, retail inventories and corporate profits. Corporate profits are expected to jump to a healthy 6.7% year-over-year for Q2 ‘18. That’s a major uptick from .1% reported in Q1. On Friday we’ll see personal income and outlays, Chicago PMI, and consumer sentiment. The consumer sentiment number is expected to come in at 100.8, an important reversal of the downward trend in place since March of ‘18. The survey of 600 households measures both current conditions and expectations for future economic opportunity.

Friday earnings will include Vail Resorts (MTN) and BlackBerry (BB). While the summer earnings report from ski operator Vail Resorts may not be the most important of the year, it does give the company a chance to report on infrastructure improvements headed into the busy winter season. The company can also preview early season pass sales numbers for investors. BlackBerry isn’t your old BlackBerry anymore. But, the transformation has been long and arduous, and the accounting for old businesses along the way has clouded earnings. This may be the quarter the company’s connected car business comes into focus. Analysts are looking for a strong showing from the BlackBerry Technology Solutions (BTS) unit which houses the connected car operating system.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.
Pot Stocks

4 Medical Marijuana Stocks to Buy as the U.S. Chills Out

Source: Shutterstock

Even in America’s reddest states, favorable conditions for medical marijuana stocks could emerge soon. A permissive medical marijuana law received voter approval in Oklahoma earlier this year. Also, Republicans in Texas recently approved medical marijuana in their party platform. Cannabis’ days as a Schedule I drug are likely numbered. When this status changes, investing in medically-related marijuana stocks could reach a fever pitch in the fourth quarter and beyond.

Right now, most pot stocks trade on the OTC market and base themselves in Canada. The thirst for American investment has led more marijuana stocks to list on the NYSE and Nasdaq already, but more will likely join them when cannabis’ Schedule I designation ceases to exist. Both the designation swith and increased U.S. listing should flood more investment capital into the marijuana industry, driving stock prices higher. While many of these marijuana stocks have already achieved high valuations, investors could still more gains.

These four medical marijuana stocks are perfect to get into now before the interest in pot stocks becomes even bigger:

CannTrust Holdings, Inc. (CNTTF)

Source: Shutterstock

Vaughan, Ontario-based CannTrust (OTCMKTS:CNTTF) exists as a federally-regulated medical marijuana producer within Canada. It produces a 100% pesticide-free medical-grade cannabis and cannabis oils. The company also conducts medical research on marijuana-related drug products. CannTrust partnered with McMaster University and Hamilton Health Sciences on medical research trials.

CannTrust just completed their first overseas shipment of cannabis oil to Denmark-based StenoCare. CannTrust’s cannabis oil is the first and only to gain acceptance on the Danish Medicine List thus far. Incidentally, StenoCare will launch Europe’s first IPO by a medical marijuana company next month. Such a move will likely expand CannTrust’s reach within Europe.

From a financial perspective, CannTrust outshines most other marijuana stocks in one area — making a profit. Analysts forecast it will earn 11 cents CAD (8.5 cents U.S.) per share in 2018. They expect that to grow to 38 cents CAD (29 cents) per share in 2019. While that brings the forward price-to-earnings (P/E) ratio to 115, CNTTF still compares well to other profitable peers. Moreover, if the stock price were to stay the same over the next year, that P/E would fall to just over 33.

This marijuana stock’s profit should rise as its recreational brands also gain traction. With supply agreements in place in the Atlantic provinces, CannTrust now can sell across Canada. And with a schedule change in the U.S., its medical products could move south of the border. With the high growth potential and the financial stability, CNTTF one of the few cannabis stocks that will prosper under any conditions.

Hexo Corp. (HYYDF)

Source: Shutterstock

Hexo Corp. (OTCMKTS:HYYDF) develops and produces medical marijuana products for the Canadian market. Formerly known as Hydropothecary, this company offers a wide variety of cannabis-based products to treat various conditions.

Hexo has taken a slower approach than most of its peers. Unlike others, it has kept its focus to its core region, in this case, Quebec. However, that creates advantages. Through supply agreements, this should give the company a market share of about 34% within Quebec. Quebec also happens to border four pot-friendly U.S. states. If the U.S. market were to become available, Hexo could expand to New York and New England while keeping to its regional market.

Despite its smaller footprint, investors still need to look at HYYDF stock. It makes 24 different products ranging from tried products like cannabis flowers and cannabis powder to a fine cannabis mist. The company also works in conjunction with Molson Coors (NYSE:TAP) on cannabis-infused drinks.

Since the company has not spent heavily on expansion, analysts expect the company will break even next quarter. This should make the company profitable by the fourth quarter of this year. Consensus estimates for 2019 place profits at five cents CAD (3.9 cents) per share.

That gives the company a 2019 forward P/E ratio of about 129. This ratio should come down in future years, and it still compares favorably to most marijuana stocks. With its forecasted profits and its go-it-slow approach, I think HYYDF will not only survive, but thrive.

MariMed Inc. (MRMD)

Wait for the Next Big Correction to Jump on Canopy Growth Stock

 

MariMed (OTCMKTS:MRMD) specializes in medical-marijuana consulting. As a company, it helps others optimize production and sales for both the medical and legal cannabis firms. It helps to design production facilities to grow safe medical cannabis. It also offers business planning services to cannabis companies. Additionally, MariMed produces its own proprietary products that it sells under the MariMed brand name.

Such a business could help medical marijuana companies in Canada bring product into the U.S. once marijuana ceases to be a Schedule I drug. Moreover, it should help cannabis enterprises produce more medical marijuana as legal roadblocks gradually disappear. According to their last quarterly report, the company has initiated plans to operate in Florida, Michigan, New Jersey, Pennsylvania and Ohio.

Also, when non-cash charges are excluded, MRMD could call itself one of the profitable marijuana stocks. The company earned $530,000 in the first six months of the year. Due to stock option issuance and payment of debt via stock sales, the company reported an $8.1 million loss.

However, this shows MariMed can earn money. Profits should move much higher once more markets open up as well. With its own product line and its consulting business positioned in multiple states, MRMD should grow along with the U.S.’s weed industry.

OrganiGram Holdings, Inc. (OGRMF)

Source: Shutterstock

Unlike its peers, OrganiGram (OTCMKTS:OGRMF) takes a unique approach to medical pot. It focuses on treatments for conditions such as PTSD and chronic pain.

The firm also emphasizes partnerships. The company will invest in Eviana Health Corporation, a European, cannabinoid-focused hemp company. With Europe more ready than ever to embrace legalization, this gives OrganiGram an early advantage.

OrganiGram also signed a deal with Canopy Growth (NYSE:CGC). Under terms of the agreement, OrganiGram will provide Canopy’s Tweed retail locations in Newfoundland and Labrador with branded cannabis products. Since Canopy also made a deal with Constellation Brands (NYSE:STZ), this creates that much-needed U.S. connection. This agreement could lead to a medical marijuana agreement in the U.S. whenever the government permits Canadian medical cannabis products.

Analysts also expect OrganiGram to begin reporting profitability beginning in the fourth quarter. For 2019, consensus earnings stand at 14 cents CAD (11 cents) per share.

At current prices, this takes the 2019 forward P/E ratio to about 48.6. Given where other marijuana stocks trade, this makes OGRMF a safer bet than most. Also, with its connections to Europe and now, an indirect contact in the U.S., OrganiGram should place itself in a strong market position once sales in the U.S. and Europe take off.

As of this writing, Will Healy is long CNTTF stock.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.

Source: Investor Place 

Technology

This Is One of the Best Tech Stocks to Buy in October 2018

One of the best tech stocks to buy in October 2018 isn’t a flashy FANG stock or legacy Silicon Valley giant, but it could make you a killing.

Consider any innovative technology such as cloud computing, smart homes, self-driving vehicles, immunotherapy, and the Internet of Things (IoT), and it’s a certainty that the company we’re highlighting played a role.

tech stocks to buy in October 2018

The clients for this company run the spectrum from start-ups to some of the biggest companies on the planet, including Nike Inc. (NYSE: NKE) and Alphabet Inc. (NASDAQ: GOOGL).

While flying under the radar, this company has grown into the third-largest electronics manufacturing company in the world.

This is a mighty feat for a tech firm that most investors have never heard of.

And the innovations it fuels is why it’s one of the best tech stocks to own…

How Innovation Is Driving Tech’s Growth

While this is a backdoor play in the tech sector, it isn’t a small one by any measure.

The technology sector is primed for growth thanks to continued innovation. Just consider some of the recent breakthroughs…

  • Research firm MarketsandMarkets reports that the IoT market is projected to grow at a rate of 26.9% annually, from revenue of $170.57 billion in 2017 to $561.04 billion by 2022.
  • Allied Market Research says the market for self-driving vehicles is going to reach $54.23 billion by next year and then grow at an annual rate of 40% over the next seven years.
  • According to Statista, the smart home industry in the United States alone will close to double from $27.5 billion last year to $53.5 billion in 2022.

And one of the best tech stocks to buy now has become the top supplier for each one of these innovative trends. This company is a one-stop shop capable of taking any technology-based concept all the way through to production.

Critical: A breakthrough technology could disrupt every major industry, and one tiny company is at the center of it all. Its stock is trading for less than $10 now, but it could deliver a 471.9% gain for early investors. Learn more…

The company can create prototypes, protect a company’s intellectual property, establish a supply chain, and handle global distribution. Tech giants and entrepreneurs alike rest easy knowing that this firm has their back when they are developing or launching a new product or line.

This is just one of the reasons why this company was named among the world’s most admired by Forbes.

But the best reason to buy stock in this company is its sterling growth potential.

In fact, that’s exactly why it’s on our radar.

This company has a perfect Money Morning Stock VQScore™, meaning it’s a major growth target trading at the best buy-in price you’ll see.

That’s exactly why analysts are projecting this stock could soar 50% over the next year…

The Best Tech Stock to Buy in October

Flex Ltd. (NASDAQ: FLEX) is a Singapore-based company that designs, engineers, manufactures, and distributes a variety of consumer products.

It was originally a Silicon Valley company founded in 1969 as Flectronics Inc., but it moved overseas and shortened its name in 2016. It has 200,000 employees that work across 100 locations in 40 countries.

Over the years, Flex’s list of projects has covered the spectrum of high-tech innovation, and it’s an impressive resume.

Google enlisted the help of Flex several years back, when it wanted to break into the market for video streaming. Flex already had experience with smart home technology and devices and was able to hand Google a prototype for Chromecast in just one month.

The product launched within 24 hours in 2013, and Google had to cancel its sales promotion because it couldn’t keep up with the overwhelming sales volume.

Several years prior, Flex worked with NASA to deliver the mobility functions for its Curiosity rover, which was dispatched to Mars in 2011. The company outfitted the rover with technology that included sensors for delivering feedback and movable joints. With this tech, operators on Earth can monitor the changing conditions on Mars to make adjustments to the rover’s performance.

NASA moved to extend the mission of Curiosity indefinitely in 2012. To date, it has been collecting valuable data on Mars for over 2,200 earth days.

Nike turned to Flex when the company decided that it had to speed up its turnaround time for custom-made sneakers. The company put together a team that was able to swiftly identify and solve Nike’s largest inefficiency.

Before this partnership, Nike’s practice of laser cutting was deemed inefficient because the oxygen mixing with the laser beam burnt edges on the fabric.

Flex’s team of chemists and engineers were able to redesign a laser-cutting system that eliminated those burnt edges, which allowed Nike to significantly reduce the wait time for a custom sneaker from weeks to just a few days.

Flex is able to tackle just about any electronic issue brought to it by a client, but it is also known for helping innovators. Through its Lab IX incubator program, the company assists new tech companies in bringing disruptive ideas and products to market.

One example is Grabit, which is an automation arm that is used in warehouses and factories. Instead of gripping or simple suction, the arm uses electro-adhesion to handle fragile items like flat-screen TVs and solar panels.

The Lab IX program gave Grabit’s designers the tools they need to perfect their products and processes and bring it to market.

These are impressive feats for a tech company, but it is still a tech stock that is flying under the radar, making it an even better profit play.

FactSet reports that eight analysts out of 11 rate FLEX a “Buy” and give it a price target nearly double its current price.

And this is still selling the stock short.

In the past year, FLEX’s price/earnings ratio is only 63% of the industry average, which means it’s trading at a significant discount before Wall Street catches on.

Wall Street gives FLEX a high price target of $20 a share, a 54% increase from today’s share price of $13.03.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.

Source: Money Morning