All posts by Aaron Levitt

3 Forgotten Tech Stocks Worth Remembering

You can’t deny that the technology sector is fast-paced. It’s ever-changing as new fads, trends, devices, and applications come and go. Today, it’s cloud computing. A few years ago, it was wearable devices. And who can forget the hype surrounding B2B stocks during the dotcom days?

But as these trends shifted, so too have the various tech stocks. The sector is littered with former leaders that have now turned into losers.

Not all former high-flying tech stocks are worthy of the dust bin, though.

In fact, there are plenty of decidedly old-school technology firms that are still making plenty of profits, cash flows and even dividends for their shareholders.

For investors, these now-forgotten tech stocks could be huge potential values in the making. Sure, they require some patience and a little luck, but the potential rewards are great. All in all, making some room in a portfolio for a few forgotten tech stocks could make a ton of sense.

But which ones actually have the goods to outperform over the long haul? Here are three former high-flying tech stocks that could be big bargains.

eBay (EBAY)

eBay stock

While Amazon (NASDAQ:AMZN) and even Walmart (NYSE:WMT) capture most of investor’s e-commerce love, old school tech stock eBay (NASDAQ:EBAY) continues to rack up sales and profit growth.

The firm is still one of the largest online retailers in the world — with more than 179 million active users and an average of over 1.9 billion listings on its site at any one time. Meanwhile, as a third-party listing service, EBAY features some pretty high margins and cash flows when it comes to people actually making a purchase on the site.

And it turns out, the firm has some tricks up its sleeve to get its former mojo going.

After eBay jettisoned PayPal (NASDAQ:PYPL), growth at the firm slowed to a trickle. In order to get that growth back, the firm is starting to copy a playbook that has helped both AMZN and WMT: sponsored ads and promoted listings.

EBAY charges sellers a fee in order to boost the prevalence of their products and quicken the pace of a sale. The beauty is that EBAY will still get the standard commission fees when the item does sell.

These promoted ads are starting to work wonders. During the first quarter, eBay managed to generate more than $65 million in extra revenues from them. Better still, this only improves the firm’s margins. Adding in moves to refresh and simplify the buying experience, eBay is back on track to post some significant gains this year.

Despite the potential, new dividend, and increased estimates, EBAY stock trades at a forward P/E of 13. When it comes to tech stocks, eBay should not be forgotten.

Groupon (GRPN)

Groupon Stock Investors Mull Results: Disaster or Just Disappointment?

Source: Shutterstock

A strange thing recently happened at a summer kick-off barbecue I attended. Multiple people were talking deals that they had scored on Groupon (NASDAQ:GRPN).

About a decade ago, the deal-making site became a huge fad as it promoted its voucher system for local restaurants, goods, and various services. You could pay a low cost to save as much as 80% on dinner, a movie, and even dog grooming services. These days, GRPN is moving away from that system and into a potentially more lucrative one for consumers and its bottom line.

Groupon now offers what’s called card-linked deals. Instead of buying a voucher for a service later on, consumers are able to link a credit card to the account and then get cash back after they buy a good or service advertised on the platform. The benefit is that customers don’t pay until the point of service and can use deals an unlimited number of times.

At the same time, it has revamped its voucher-based products by adding appointments for certain services and experience segments. These two moves are designed to create a more seamless interaction between customers and businesses. Moreover, it’s designed to make using GRPN a habit. The tech stock just sits back and collects the fees.

And while it’s easy to write GRPN off as a former fad, the firm continues to be free cash flow positive, have a huge $1 billion in cash on its balance sheet, and see improving results. In the end, Groupon may be a former high-flyer, but today, investors are getting a huge sale on the discount provider.

Dell Technologies (DELL)

Dell

Dude, you’re getting a Dell … again. However, these days Dell Technologies (NASDAQ:DELL) is a far better and perhaps more important tech stock than it was during the go-go dotcom days.

The story of how DELL got here is perhaps a bit convoluted. The PC maker was public throughout the internet boom and was taken private by founder Michael Dell and Silver Lake Partners. During that time, the firm made a big splash when it bought enterprise software specialist EMC Corporation, which also included a stake in VMware(NASDAQ:VMW). This led to a tracking stock covering Dell’s VMW holding.

Which brings us to today. Dell decided to roll-up that tracking stock and once again IPO as its former ticker DELL.

And while it may have fallen out of the public eye in the five or so years it wasn’t openly traded, DELL has become a monster of an integrated tech stock. The PC and server business is still there — which is booming thanks to rising data center demand. Meanwhile, the firm is a leader in cloud computing and virtualization software, cybersecurity via RSA as well as various infrastructure-as-a-service (IaaS) products. Today’s DELL is looking like a real contender among leading tech stocks. That fact has shown up in its first-quarter results. First quarter revenue clocked in at $21.9 billion — an increase of 3%.

In the end, Dell may be a blast from the past. But this is one forgotten tech stock ready to rewrite its future.

 At the time of writing, Aaron Levitt held a long position in AMZN.

  [FREE REPORT] Options Income Blueprint: 3 Proven Strategies to Earn More Cash Today Discover how to grab $577 to $2,175 every 7 days even if you have a small brokerage account or little experience... And it's as simple as using these 3 proven trading strategies for earning extra cash. They’re revealed in my new ebook, Options Income Blueprint: 3 Proven Strategies to Earn Extra Cash Today. You can get it right now absolutely FREE. Click here right now for your free copy and to start pulling in up to $2,175 in extra income every week.

Source: Investor Place

3 Small Caps That Could Be the Next Amazon Stock

When it comes to tech stocks, most investors think bigger is better. They believe the FANGs or dot-com survivors such as Microsoft (NASDAQ:MSFT) and Cisco(NASDAQ:CSCO) are the way to go in the sector. And there is some truth to that feeling. After all, these giants still produce billions in revenues, cash flows and profits. Heck, some of these giant tech stocks even pay hefty dividends these days.

However, bigger may not be better. This is especially true when it comes to tech stocks.

The truth is, the big boys aren’t the always the ones dominating their respective technology subsectors. In fact, there are many small- and mid-cap tech stocks that are the leaders. Moreover, they offer a bigger opportunity to find above-average growth in both revenues and profits. And they are able to grow their share prices much faster than the bigger tech stocks as well. After all, doubling a $1 billion market cap is much easier than a $1 trillion one.

For investors, the reality is, going small in the technology sector could be really smart and pay-off over the long haul. And these three small-cap tech stocks are the ones to buy.

Domo Inc (DOMO)

AAPL

Source: Shutterstock

Market-Cap: $989 million

There’s no secret that cloud computing is huge these days as Software as a Service (SaaS) platforms have become the rage with businesses. The problem is, there’s just so many of these firms. How do you analyze data from your Salesforce (NASDAQ:CRM) applications and Amazon (NASDAQ:AMZN) AWS services at the same time.

The answer is small-cap tech stock Domo (NASDAQ:DOMO).

Recently IPO’d unicorn tech-stock DOMO provides analytic data solutions for the cloud. The best part is that it isn’t trying to compete with the big tech names, but ties them together to provide customers the ability to get to the big picture. This strategy seems to be working, DOMO has more than 1,500 customers. And those customers are spending some big bucks for the firm’s tech. Last quarter, billings at Domo rose 35% year-over-year and total revenues grew by 31%.

Analysts expect that DOMO will continue to see continued success as more firms look to query their data across various platforms. And as the linkage between these platforms, the firm should be able to score additional customers and increase its offerings to existing ones. And yet, the firm still has only a $1 billion market cap. That leaves it plenty of room for capital appreciation.

Box (BOX)

Will Box Stock Be Bought Out… or Run Out?

Market-Cap: $2.82 billion

The collaborative workplace is here. Managing documents, products and other content across various locations and workers is now the norm for many businesses. Cloud computing specialist Box(NASDAQ:BOX) is facilitating that trend.

BOX offers a variety of apps and programs designed to help businesses facilitate collaboration and storage of everything from emails to jpg files. The idea is that work can flow between customers and employees of the firm — all on a secure network/platform. Enterprise seems to be keen on the idea — with BOX courting major customers like General Electric (NYSE:GE) and AstraZeneca (NYSE:AZN). As a result, BOX has experienced some torrid growth over its history. Since 2016, the firm has experienced a 23% compound annual growth rate in its revenues. Moreover, the firm has posted positive cash flows for the last five quarters.

And the gains can keep coming. BOX is currently working to score more contracts with the Federal Government to help with record safe-keeping and digitizing the government’s workload.

Now could be the best time to strike on BOX shares. Poor guidance outlook — thanks to the length of time it takes to score those government contracts — has pushed down shares. But with a huge customer base as well as overall long-term growth, BOX seems poised to win and be one of the best tech stocks around.

Etsy Inc (ETSY)

etsy stock

Source: Meaghan O’Malley via Flickr (Modified)

Market-cap: $7.58 billion

Brand recognition is key when it comes to internet properties. And when it comes to hand-made, art and one-of-one objects, Etsy(NASDAQ:ETSY) is the leader. This even Amazon hasn’t been able to compete in this arena.

And it turns out, that brand is worth a lot.

ETSY has now seen its eighth consecutive quarter revenue growth. And while that revenue growth did slip a bit last quarter, this shouldn’t worry investors. Partly because Etsy’s profits and margins have actually increased. The reason is that ETSY doesn’t store inventory, it just serves as middle-man to facilitate transactions between craftspeople and buyers. And its moat and brand-name make it the go-to website to do that.

Additionally, ETSY has been adding additional services to its menu of options. This includes promotion for sellers, facilitating transactions/personalized website design via its Pattern initiatives and more. As ETSY leans more on these products, revenues should once again resume and continue their pace of growth.

In the end, ETSY has positioned itself to be one of the top online merchants and tech stocks. With a market cap of only $7.5 billion, there’s plenty of potential down the road — even buyout potential.

Disclosure: At the time of writing, Aaron Levitt was long AMZN.

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Source: Investor Place

5 Low-Priced Stocks Under $10 for the New Year

Source: Shutterstock

As Warren Buffett likes to say, “price you what you pay, value is what you get.” It’s the reason why a $300-per-share stock can be cheap, while a $3 one can be expensive. With that said, there’s something about low-priced stocks that captivates investors’ imaginations. After all, there’s nothing like being able to buy a ton of shares for dirt cheap and having them take off. And there is some method to this madness.

For example, the Fidelity Low-Priced Stock Fund (MUTF:FLPSX) has managed to return nearly 15% annually over the last 10 years. That return has managed to beat both the small-cap-focused Russell 2000 and Russell Midcap Index over that time. Low-priced stocks can be a big source of additional alpha and returns.

The key is that many low-priced stocks are cheap for a reason. Finding the ones that have the potential for greatness or overcoming their issues is vital. They are a gamble, but the payoff can be big for portfolios. The idea is to keep your bets small and broad.

For investors looking to put some risk capital to work, here are five low-priced stocks that have great potential in the new year.

Low-Priced Stocks Under $10 for the New Year: Dova Pharmaceuticals Inc (DOVA)

Source: Shutterstock

Dova Pharmaceuticals Inc (DOVA)

Closing Share Price on Dec. 19: $6.07

Over the summer, Dova Pharmaceuticals (NASDAQ:DOVA) was riding high. The biotech firm had scored an approval for their drug Doptelet. The drug is used to treat thrombocytopenia — which is a low-blood-platelet disorder. With that disease, patients find it hard to form blood clots and suffer major bleeding from even a small injury. The drug has plenty of blockbuster potential. Unfortunately, that potential hasn’t lived up to expectations.

Management recently cut sales guidance for the drug down to just $2.4 million. That’s about half of what Wall Street is looking for. At the same time, several key executives have recently left the company. Naturally, investors are spooked and shares have nose-dived, dropping from a recent high of about $30 per share down to under $7.

But that could be a great buying opportunity for this low-priced stock.

For one thing, the potential for Doptelet is there. DOVA is looking to fast-track Doptelet for other indications of thrombocytopenia. That will expand the usage of the drug and bring in more revenues. Secondly, Dova has replaced many of its outgoing managers with executives from winning biotechs like United Therapeutics (NASDAQ:UTHR) and Vertex (NASDAQ:VRTX).

With that, analysts still have price targets in the $20 to $30 range on this low-priced stock.

Low-Priced Stocks Under $10 for the New Year: Trivago (TRVG)

Source: Shutterstock

Trivago (TRVG)

Closing Share Price on Dec. 19: $5.81

Internet travel websites are known for their profitability, as their margins remain crazy high. However, for hotel booking site Trivago (NASDAQ:TRVG) that hasn’t been the case over the last year or so. TRVG has spent much of the last few quarters disappointing investors and has lost money. That’s sent shares tumbling and below $6 per share.

However, TRVG may be a bargain among low-priced stocks.

For one thing, the bleeding seems to have stopped. While revenues continue to drop, profits have come back to the travel site. Trivago managed to post net income of 10.1 million euros or around 0.03 euros per share last quarter. Analysts were looking for another loss.

And other things have gotten better for TRVG as well. Returns on advertising spend jumped by 25 percentage points to reach 135.9%, while the firm continues to see improvement/demand from its mobile site. Additionally, Trivago continues to see huge listing numbers — over a million places — from so-called alternative accommodations, including private apartments and vacation rental properties. This is great considering this is the fastest-growing section of travel booking. All in all, analysts expect the firm to continue to see profits in 2019.

When it comes to low-priced stocks, Trivago’s turnaround is one to bet on.

Low-Priced Stocks Under $10 for the New Year: Goldcorp. (GG)

Source: Shutterstock

Goldcorp (GG)

Closing Share Price on Dec. 19: $9.23

With volatility and uncertainty rising, gold has been riding high over the last few quarters. That surge in gold prices hasn’t exactly reached former gold stock kingpin Goldcorp (NYSE:GG), though. In fact, the GG share price currently places it among the low-priced stocks and castaways of the mining sector. The gold miner’s stock has now fallen to levels not seen since 2002!

And part of that decline is justified.

Goldcorp continues to be hit on several fronts. During the spring, the miner reported lower production and rising all-in costs. This trend continued during the fall. Last quarter, Goldcorp once again showed a decline in production — by roughly 20% — and saw its all-in sustaining costs surge higher. That’s terrible. Essentially, GG hasn’t been able to capitalize on the higher gold prices and is now earning less on what it does mine.

But there may be some hope for this low-priced stock.

Goldcorp mentioned that drop in production was a short-term dip due to lower one-time output at the company’s Penasquito mine. Meanwhile, the firm has made significant progress on its 20/20/20 plan, which will see production rising by 20%, costs falling by 20% and asset reserves growing by 20%. Ramped-up production at its Eleonore and Cerro Negro mines have helped here. Moreover, GG is producing decent cash flow and has resumed its dividend payment.

If management can execute on its plan, GG stock should regain much of its former glory. That makes it one of the best low-priced stocks to snag in the mining sector.

Low-Priced Stocks Under $10 for the New Year: Barclays PLC ADR (BCS)

Barclays PLC ADR (BCS)

Closing Share Price on Dec. 19: $7.46

One of the biggest shadows on the entire market happens to be the dreaded Brexit. Naturally, the U.K.’s exit from the European Union hasn’t gone smoothly. Heck, at this point, an exit might not happen even at all. Because of that, it has thrown plenty of uncertainty over stocks in the United Kingdom. This includes U.K. banking giant Barclays PLC ADR (NYSE:BCS).

BCS never fully recovered from the financial crisis, and the latest Brexit woes have put a hurt on its share price, which currently rests below $8 per share. But that low price does offer some bang for the buck.

For one thing, Barclays is dirt cheap and can be had for a forward P/E of around its share price. At the same time, it has a price-to-growth ratio of less than 1. That means would be investors are not paying much for its current earnings nor its future projections. Those future projections are coming from its continued moves to court more international high-net-worth investors from the Middle East. Additionally, recent moves into Fintech have improved BCS margins.

All of this is starting to pay-off. Last quarter, BCS saw some big jumps to its profits and revenues- despite the Brexit mess. The firm reported EPS of £0.07 and total net income of £5.13 billion. This was roughly double what analysts expected it to earn per share. The hope is that Barclay’s can keep it going with the world’s economy getting a bit rocky.

But with its rock-bottom P/E and PEG, the bank is a prime example of value among low-priced stocks today.

Low-Priced Stocks Under $10 for the New Year: VEREIT (VER)

Source: Shutterstock

Vereit (VER)

Closing Share Price on Dec. 19: $7.49

Sometimes low-priced stocks are being punished for things that happened years earlier. Case in point, real estate investment trust Vereit (NYSE: VER). VER’s issues started back in 2016 when it was called American Realty Capital Properties. American Realty was created by combining several non-traded REITs, and it quickly became one of the largest single-property REITs in the country. At its peak, it held more than 4,600 different properties. Unfortunately, executives at the firm weren’t so great and it turned out that they used all sorts of questionable accounting tricks.

Naturally, shares of VER sank like a stone when the news came out. Several lawsuits, jail time, a dividend cut and a name change bring us to Vereit. And that’s actually a good thing.

The new management at the firm has worked to reduce and prune its portfolio of underperforming and “flat” leased properties. Debt reduction and bolstering its balance sheet have also been a priority. These efforts have helped and VER finally started to turn the corner. Cash flows continue to be robust and the firm is able to pay its juicy 7%-plus yield.

The problem remains the overhang of lawsuits from shareholders. But with many shareholders already settling, VER is getting closer to being 100% free from its past. With the end in sight, the real estate firm could be one of the most sure things when it comes to low-priced stocks.

Disclosure: At the time of writing, Aaron Levitt did not have a position in any of the stocks listed, but may initiate a position in DOVA.

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Source: Investor Place 

5 Great Stocks to Take a Bite Out of China

Source: Maher Najm via Flickr

The fears of a trade war have sent the markets into a bit of a panic mode lately. Volatility has spiked and we’ve seen some pretty nasty intraday swings. But it’s not just U.S. firms that have felt the effects of the tariffs. Chinese stocks have also been hurt.

Since the war of words and tariffs, Chinese stocks have felt many of the same pressures as their U.S. counterparts and have sunk by pretty big amounts. But in those drops, Chinese stocks could be big bargains.

The long-term picture for China is still rosy. The nation’s huge and growing consumer class is spending, while its importance in the world’s economic picture is assured — with China becoming less and less reliant on the U.S. For investors, the key emerging market is a must own and now could be a great time to buy them.

With that, here are five great ways to load up on Chinese stocks.

The Best Ways To Buy Chinese Stocks Now #1: iShares MSCI China Index Fund (MCHI)

The simplest and quickest way to add a hefty dose of Chinese stocks is the iShares MSCI China Index Fund (NYSEArca:MCHI). The index ETF has grown more than $3.5 billion in assets as it represents one of the broadest takes on the nation.

As its name implies, MCHI tracks the benchmark MSCI China Index. That index covers a wide spectrum of Chinese equities, including both large- and mid-caps. In fact, MCHI’s 154 stocks provide exposure to roughly 85% of the entire Chinese market available to international investors. And that number is getting bigger as index provider MSCI has begun to gradually add exclusive A-shares. This boosts its holdings to over 375 when the transition is finally done.

That broad exposure to China’s equities makes MCHI one of the best ETFs for investors looking to profit from the nation’s continued rise. And it certainly has delivered in the returns department. MCHI has managed to post an average annual return of 10.76% over the last 5 years and was up an astonishing 53% in 2017.

And as a core holding, MCHI is also a pretty cheap option as well. Expenses for the Chinese stocks ETF only costs 0.62%- or $62 per $10,000 invested.

The Best Ways To Buy Chinese Stocks Now #2: Guggenheim China Small Cap ETF (HAO)

Small-caps have long been the way to play any nation’s domestic economy. After all, smaller firms usually don’t have the global reach of their larger sisters. And when it comes to China, that fact is no different. Smaller is a direct bet on the Asian Dragon’s domestic growth.

The way to play that growth is the Guggenheim China Small Cap ETF (NYSEARCA:HAO).

HAO follows the AlphaShares China Small Cap Index- which tracks the performance of Chinese stocks with market caps under $1.5 billion. HAO’s 319 stocks only include publicly-traded mainland stocks. So, no A-shares. Even without them, the ETFs diversification is broad with no sector accounting for more than 17% of assets.

Performance for HAO has been ok- with a 5-year average return of 7.17%. However, the fund has had periods over double-digit performance based on reactions to the Chinese economy. It’s a volatile play that could pay-off big time for investors looking for a leveraged play on the nation’s growth.

Expenses for HAO clock in at 0.75%.

The Best Ways To Buy Chinese Stocks Now #3: Matthews China Dividend Fund (MCDFX)

Source: Shutterstock

For investors looking for an active way to play Chinese stocks, the Matthews China Dividend Fund (MUTF:MCDFX) could be a great choice.

Matthews’ sole focus is investing in Asia and as a result, the firm’s mutual funds have had plenty of outperformance vs. traditional index funds. This includes MCDFX. The fund has managed to beat the previously mentioned MSCI China Index by nearly double annually since its inception in 2009.

The key is the mutual fund’s focus. MCDFX bets on dividend payers in China. That provides a less volatile ride for shareholders and also provides plenty of income. While most view Chinese stocks as pure growth elements, they also can be great dividend payers. The fund’s 52 holdings throw off a healthy 2.59% dividend yield. That’s more than the S&P 500.

Perhaps the only downside to MCDFX is its expense ratio at 1.22%. in the world of low-cost investing, that’s very high. However, given its outperformance and dividend-focus, it could be worth paying for those investors looking for an active route into China.

The Best Ways To Buy Chinese Stocks Now #4: Global X China Consumer ETF (CHIQ)

One of the biggest reasons to own Chinese stocks in the first place is its growing middle class. With a population of around 1.4 billion, China’s story is very much a consumer one. As the nation’s wealth has expanded, consumer demand in the country has only exploded. The best part is the story is still only in the first couple innings of a very long ballgame.

To that end, betting directly on China’s growing consumerism makes a tone of sense. And the Global X China Consumer ETF (NYSEARCA:CHIQ) is the way to do it.

CHIQ tracks the Solactive China Consumer Total Return Index -which is a measure of all the consumer discretionary and staple stocks that operate in China. The fund’s 40 holdings read like a who’s who of retail, beverage, media, apparel and personal and household products companies in the nation. All in all, it’s a broad-bet on a quickly growing segment of the Chinese economy.

Much like previously mentioned HAO, CHIQ’s returns have been mixed- with periods of significant outperformance and underperformance. Over the last five years, however, CHIQ has averaged a 7.96% annual return. That’s not too shabby and considering the long-term projection for consumer growth, performance should pick-up over the upcoming decades.

Expenses run at 0.65%.

The Best Ways to Buy Chinese Stocks Now #5: Alibaba Group Holding Ltd (BABA)

The ‘New’ Alibaba Group Holding Ltd (BABA) Stock Looks a Lot Like the Old One

Source: Shutterstock

If you were going to own just one Chinese stock, it would have to be Alibaba Group Holdings Ltd (NYSE: BABA). Heck, if you were going own any tech stock- from any country- it might just have to be BABA. That’s because the stock has become a conglomerate of the some of the best takes in the technology sector.

For starters, BABA’s main bread-n-butter is its retail business. But unlike Amazon.com, Inc. (NASDAQ:AMZN), BABA only serves as the marketplace and doesn’t actually hold inventory. That provides higher margins than its rival.

Founder Jack Ma has used the hefty cash flows from this business to fund expansions into everything from peer-to-peer lending, social media, and even tablets/mobile devices. These moves, as well as deals into other parts of Asia, have only cemented Alibaba’s stance as one of China’s most important stocks and technology firms.

Meanwhile, the recent downturn in Chinese stocks has made BABA pretty attractive. Toward, the firm can be had for a forward P/E of just 24. That’s pretty cheap considering the potential, long-term growth and dominance of Chinese tech.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.

Source: Investor Place