All posts by Money Morning News Team

The Best Electric Vehicle Stock to Buy Today

Electric vehicles (EVs) are taking the market by storm, and soon, auto manufacturers everywhere will fall in line.

In fact, investors watching this shift are gearing up to make a lot of money by investing in electric vehicle stocks.

Just take a look at Volkswagen AG’s (OTCMKTS: VWAGY) most recent announcement: They plan to produce 22 million EVs within the next decade.

And right now, manufacturers everywhere are slowly phasing out gas-powered vehicles. If you don’t believe that, just look at their online catalogs. Check out all the hybrids on the road nowadays.

This is a $1.7 trillion industry where the biggest names are announcing their lineups of hybrids and EVs.

And while most vehicles still run on gas, the above trends show the shift has already started. Whether it’s Ford, BMW, or Volkswagen, they’re all putting money into hybrid and electric vehicles.

5G Revolution: This breakthrough technology is expected to unleash $12 TRILLION in new wealth… and one $6 stock could be better-positioned than any other to skyrocket. Learn more.

Even Money Morning Defense and Tech Specialist Michael A. Robinson sees EVs as the future of the auto industry. In fact, he has a play that can help you get in on the action.

It’s one of the best electric vehicle stocks you can buy. And it’s kind of like owning an exchange-traded fund (ETF) for future automotive technology.

This EV Is Changing the Game

Volkswagen’s goal of 22 million EVs is a game-changer for the auto industry. In fact, it’s a 46% jump from its previous target of 15 million.

And right now, Volkswagen is the best-selling automotive company on the planet. It has even outsold Toyota Motor Corp. (NYSE: TM) for the past three years in a row.

Beyond that, the company predicts 40% of all its vehicles will be EVs in just a few years. By 2050, it expects to be completely carbon-neutral.

Allied Market Research says Volkswagen is a key leader in global EV production. According to their research, it’s a market segment that’s growing more than 22% annually.

AMR even predicts that the company’s EV sales will top $567 billion by 2025. That’s a 380.5% increase from 2017.

With such impressive growth, it’s a golden market for automotive suppliers to jump in and supply components to manufacturers for EVs.

In fact, we have a company that is one of the best suppliers to automotive manufacturers. This company is one of the best electric vehicle stocks to buy today.

So, if you’re a tech investor looking to make big profits, you better take this EV stock out for a spin.

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Source: Money Morning

The 5 Best 5G Stocks to Watch in 2019

The 5G revolution is coming, and to help you cash in on the transformation, these are the best 5G stocks to watch in 2019.

In fact, the revolution could be as great as the rollout of personal computers and the introduction of the Internet. These made fortunes for investors who got in early.

In October 2018, Verizon Communications Inc. (NYSE: VZ) said it had started to activate the first-ever 5G network in the United States. The 5G capability, rolled out in four U.S. cities, is expected to expand throughout 2019 and 2020.

Currently, data networks in the United States run on 4G. Your smartphone, for example, is likely a 4G phone.

But the upgrade to 5G won’t just mean a faster connection – it could transform the entire economy. 5G will enable self-driving cars to become a reality because autonomous cars need continuous, rapid access to real-time data. That also means they need the constant, high-speed connection 5G offers.

The Internet of Things (IoT), which will enable devices to talk to each other across businesses and homes, will move faster and more conveniently on 5G.

Plus, broadband-like speeds will allow you to connect to the Internet anywhere. That could change how we look at Internet services and cable television.

Fortunately, all the disruption 5G networks will bring is creating an opportunity for investors.

These are our best 5G stocks to watch in 2019, and they’re poised to reward investors.

Best 5G Stocks to Watch in 2019, No. 5: Keysight Technologies Inc.

Keysight Technologies Inc. (NYSE: KEYS) is a U.S. electronics firm that develops equipment and software for measurement and analysis of electrical statistics.

That may sound niche, but Keysight has developed its business to be crucial to the 5G expansion of networks. 5G will require a network of hardwiring and towers to function properly. To put the network together, 5G companies will need to analyze and collect data. Keysight makes the instruments necessary to do this.

Two years ago, KEYS worked with semiconductor company Qualcomm Inc. (NASDAQ: QCOM) to demonstrate the first 5G data connection with a modem chipset.

It’s very likely to become a key player given that history.

Not only that, but KEYS has a Money Morning Stock VQScore™ of 3.15, meaning that it’s a solid stock.

Further, Wall Street analysts forecast a $100 share price in the next 12 months – a nice 17% advance from the current $84.94 share price.

Best 5G Stocks to Watch in 2019, No. 4: Intel Corp.

Venerable semiconductor maker Intel Corp. (NASDAQ: INTC) is the second largest global chipmaker.

It doesn’t intend to be a slouch in the 5G market, either. In fact, the company has spent the last 10 years making sure it dominates the market.

Eight years ago, INTC bought Infineon, a modem maker based in Germany. It’s the only company that supplies modems to tech giant Apple Inc. (NASDAQ: AAPL). AAPL uses the modem chips from Infineon to connect iPhones to networks.

So now INTC has an exclusive supplier relationship with Apple, one of the biggest device makers on the planet.

INTC plans to launch a 5G modem in 2019 too. That will be a big help in ushering the iPhone into the 5G world.

But the 5G modems are also planned for automakers for use in self-driving cars and for industrial manufacturers for the IoT.

Wall Street analysts have a target price on INTC of $70 – a nearly 30% climb from today’s $54 share price.

INTC currently has a 3.75 VQScore. While it’s a good buy, you are likely to get an even better price – and therefore better potential price appreciation – if you buy on the next dip.

Best 5G Stocks to Watch in 2019, No. 3: Apple Inc.

And just like we said above, tech behemoth Apple is primed for the 5G revolution.

Apple has been seeing the effects of lagging sales for its flagship product, the iPhone, driven by weakening sales in China and throughout the globe.

So much so that AAPL’s earnings report in January showed a drop in revenue of 5%. And the company lowered guidance for future quarters. Sales in the current quarter are forecast to decline up to 10%.

Apple needs to breathe new life into its old products. And 5G phones could be the innovation the company needs.

Apple and Intel are working together to see that they both capitalize on the new 5G networks.

Plus, Apple has been working on a self-driving car beginning in 2014. 5G is likely to be a gigantic boost to these plans.

AAPL enjoys an excellent 4.45 VQScore, putting the stock right in the “Buy Zone.” Analysts on Wall Street project that AAPL shares could rise up to 40% over the next 12 months, which might turn out to be overly conservative.

Best 5G Stocks to Watch in 2019, No. 2: Micron Technology Inc.

Micron Technology Inc. (NASDAQ: MU) produces hardware used in manufacturing both semiconductors and computers worldwide.

It has been making plans for the 5G revolution for some time, developing a multichip package for use in 5G modems.

Its current product was developed to provide modems with the capability to run as much as 20 times faster than current modems.

MU’s products will be used in every sector that uses 5G.

Right now, MU has the highest VQScore of the 5G stocks bunch, at 4.75. Wall Street analysts have set a $90 target price on the stock. That’s an almost 125% increase from today’s $39.75 share price.

But our top 5G stock to watch is flying under the radar right now…

Best 5G Stocks to Watch in 2019, No. 1: Skyworks Solutions Inc.

Skyworks Solutions Inc. (NASDAQ: SWKS) is a U.S. semiconductor producer based in Massachusetts. It makes analog chips for 5G.

SWKS is going to benefit from two trends related to 5G. The first is the sheer number of sectors that are going to need 5G chips. You name the sector; it’s going to be moving into 5G.

But the second and even more significant trend is the role of 5G in mobile devices – and the profit picture for the company.

Every time the mobile network upgrades, Skyworks’ products get more profitable.

For 3G network phones, SWKS booked a profit of about $8 per phone. For 4G network phones, that figure rose more than 100% to $18.

Management forecasts that 5G phones will make the company $25 per phone, another 38% increase in profit.

Not only that, but mobile phones make up 73% of sales as of the first quarter. That means that the climb in mobile phone profit will be really good news.

Wall Street analysts forecast that the company’s shares will sell for $173 once the 5G revolution is underway, a 113% jump from the current $83.26 level.

But this could be the true breakout stock once 5G gets here…

Source: Money Morning

Get In on the Next Big IPO Without the Volatility

For the most part, initial public offerings are a sucker’s game.

IPOs, especially for name-brand tech companies, generate lots of hype. And even if the company is solid, it often can’t justify its debut stock price – let alone any surges in its first few days on the market.

But that doesn’t mean you can’t get in on some of the most exciting upcoming IPOs – like Uber, Lyft, Slack, Pinterest, or Airbnb – and still limit your risk.

In fact, we’ve got a pick today that gives you some of the hottest IPOs while taking all the guesswork (and grunt work) out of trying to pick winners.

Plus, we’ll also give you the opportunity to grab multiple upcoming IPO picks in a red-hot industry that are ready to hit the market in 2019. Each of these is capable of unleashing millions of dollars into the market, so you won’t want to miss these opportunities.

But first up, one of best ways to approach the IPO market – especially if you don’t have the time or patience to research every new offering individually – is through a well-managed ETF.

Well-managed doesn’t just mean selecting the most promising public offerings. It also means holding onto the ones that still have room to grow. That way you both minimize your risk and maximize your gains.

That’s why we like one particular ETF that gives you access to the broad IPO market while blending both new offerings and older ones.

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And before you worry that an ETF is going to dilute your gains too much, keep in mind that this pick has beaten the S&P 500 by more than 50% over the last two years.

So if you’ve always wanted to get into the IPO game but were (rightly) concerned about volatility and overhyped offerings, this is your ticket to cutting edge of the stock market.

And you can get there without sweating endlessly over a new offering’s financials…

Your Quickest, Easiest Entry Point into Venture Capitalism

First Trust US Equity Opportunities ETF Fund (NYSE: FPX) is an ETF with roughly 100 holdings. These include some of the biggest companies to go public in the last few years. They include Match Group Inc. (NASDAQ: MTCH), Coupa Software Inc. (NASDAQ: COUP), and Wayfair Inc. (NYSE: W).

Because most of the stocks in FPX only make up about 1% each of the portfolio, no one stock is going to sink the fund. And First Trust balances out those young startups with some big names that have been around for a while, like Hewlett Packard Enterprise Co. (NYSE: HPE), Tyson Foods Inc. (NYSE: TSN), and Kraft Heinz Co. (NASDAQ: KHC), which provide an extra layer of protection.

The principle in play here is that it’s foolish to invest in IPOs and then drop them once they’re no longer new. So FPX holds on to select stocks for the long haul. That way the fund doesn’t get burned by selling stocks before the initial volatility has settled down.

Just Revealed: The Secret to Potentially Growing Incredibly Wealthy Buying Straight-Up Stocks

One great feature of FPX is how diversified it is. It’s not just grabbing tech stocks – though there are certainly plenty of them – but includes offerings across the finance, auto, retail, and energy industries.

And because the fund’s managers are researching every IPO before they decide to include it in the fund, you can rest assured that your money isn’t going into every overhyped offering that hits the market.

Let’s take a look at some of the winners this fund has chosen over the years…

  • Square Inc. (NYSE: SQ) is probably best known for the adapters people can attach to their smartphones to accept credit cards, leveling the playing field for artists and small startups. It now offers a wide range of products for financial transactions, including the popular Cash App for consumer-to-consumer transactions. That app can now also be used to purchase Bitcoin, and we can no doubt expect even more functionality in the future. Now at more than eight and a half times its debut price in November 2016, this stock likely still has room to run.
  • SailPoint Technologies Holdings Inc. (NYSE: SAIL) is a provider of identity governance services for more than 1,000 global customers. Identity governance is one of those less exciting, but critical services, allowing enterprises to manage their cloud-based and on-site applications and data effectively, efficiently, and safely. SailPoint stock is up 162% since its November 2017 debut, and the need for its services is only growing.
  • Etsy Inc. (NASDAQ: ETSY) brings e-commerce to the arts, crafts, and vintage items market. Its earnings per share (EPS) soared into the black in the 2017 fiscal year, and according to FactSet, is projected to triple between now and 2021. Despite a rough start to its appearance on the market, Etsy has now doubled since its November 2015 debut.
  • ZenDesk Inc. (NYSE: ZEN) is bringing customer service into the 21st century, providing software solutions to make the process run quickly and efficiently. Like Etsy, ZenDesk’s EPS went sharply positive within the last couple years. More impressively, it is expected to multiply nearly seven times by 2022. Those rising fortunes have boosted the stock 768% since it debuted in May 2014.

That said, if you want to up your game and grab a potential rocket stock on the IPO market, we’ve got an opportunity – a whole series of opportunities, in fact – you won’t want to miss.

Source: Money Morning

This Penny Stock to Buy Is Profiting from the Solar Boom

Today, I’m going to show you one of the best penny stocks you can buy right now. You see, this stock is a play on the solar industry, which is absolutely booming.

A lot has happened over a short period with respect to the solar power industry. For much of 2018, oil prices were soaring and reached their peak in November at close to $70. Most of this increase was due to higher interest rates from the U.S. Federal Reserve and a strong dollar.

As crude prices climbed, so did the price of solar stocks.

This wasn’t just a small bump, either. In just a few short months, there were jumps of 50% or more on some of the top solar stocks.

Sadly, this rally was short-lived.

Toward the end of 2018, there was a market rally in bonds and another interest rate hike took the dollar much lower.

The price of crude oil dropped when the dollar lost momentum and traders pulled out of solar stocks to lock in profits.

Market volatility didn’t help either. What began as a 50% bump in solar stocks ended up being losses of almost 20%.

This wasn’t the first time this has happened with solar stocks either.

There was a major rally with solar stocks several years ago when the price of oil was over $100 per barrel. The solar industry was young at that time, and some of the early investments were followed by share price losses.

However, investors were not fazed.

Compared to where they trade today, solar stocks were trading at prices that were three and four times higher.

So, why get excited about solar stocks now?

The truth is that we’ve seen this before, and there is still plenty of evidence that the next solar boom is right around the corner…

There Is a Massive Solar Boom on the Horizon

The solar industry has experienced some major breakthroughs in the past several years that make this the perfect time to invest

To start, there are more green initiatives than ever, which has been a windfall for solar companies.

And those initiatives will continue into the coming years.

Solar Estimate reports that solar energy is now the cheapest way to power a home.

According to some estimates, there were an estimated 2 million residential solar installations in the United States by the middle of 2018. This is a figure that is expected to double over just four years.

Plus, a stronger dollar environment and rising interest rates will be ideal for solar stocks.

Long term, an investment today could double or triple in value.

Knowing this, what are the best solar stocks to buy?

The market has been volatile of late, but the economy continues to do well. This is evidence for a stronger dollar in 2019 and good news for the solar industry.

When it comes to picking solar stocks, the best ones will be positioned so that they benefit from green initiatives. These are primarily companies that deal with solar installations.

As oil prices go higher, this will be an additional catalyst for these types of stocks to move up.

Here is our pick for the top penny stock to buy now in the solar sector.

This Is the Best Penny Stock to Buy Now in the Solar Space

Vivint Solar Inc. (NYSE: VSLR) is the best penny stock to own according to the Money Morning Stock VQScore™ system.

This is a solar company that was founded in 2011 that’s focused on the installation of residential, commercial, and industrial solar systems throughout the United States.

Shares of VSLR were trading at over $15 when crude oil was priced over $100 back in 2014.

Today, you can pick up the stock for just over $4 per share.

When crude prices jumped again in the first three quarters of 2018, Vivint stock peaked just below $6 per share.

Granted, the company still isn’t profitable, which explains why it trades in the penny stock range.

The good news is that its revenue continues to grow, with analysts expecting sales to hit $291 million in 2018 and reach $331 million this year. This is a growth of 14% in just one year.

Since it’s already hit $6 in the past year, it can certainly do so again. Going from $4 to $6, investors would gain 50% on this profit play.

If crude oil prices soar once again, VSLR stock could even jump as high as $10 per share with a repeat of 2014 prices. This would represent a 150% gain over today’s price.

The difference is that the company is now pulling in more revenue and edging closer to being profitable.

Bank 100% with the Best Marijuana Stock to Buy Today

We’ve been telling you for some time about the top pot stocks to watch.

Today, we’ve got a slightly different story about the best marijuana stock to buy today.

It’s Money Morning Director of Cannabis Investing Research Greg Miller’s top pick.

best marijuana stocks to buy today

It’s Aphria Inc. (NYSE: APHA).

And Greg Miller believes that the share price of the best marijuana stock to buy today has been beaten down by the actions of short sellers. As a result, investors can benefit.

We believe APHA could double investors’ money in 2019.

Here’s why…

Short Selling and How It Works

Traders sell stocks short by borrowing shares from other investors and selling them on the market. Short sellers hope that they can buy back shares at a reduced price when it’s time to give back shares to the folks they borrowed them from. They then return the borrowed shares at a lower price and make a profit from the price differential between when they borrowed and when they returned.

But if the prices of the shares they’ve borrowed actually rise, short sellers stand to lose money. In fact, they can lose an infinite amount of money, since the share price could theoretically climb continually.

So Miller says that sometimes short sellers take matters into their own hands. They publicize that a company is riddled with problems via articles and television appearances, for instance. If investors are then convinced to sell the stock, the price is more likely to decline. And that’s good news for short sellers.

But if a company targeted by short sellers is in fact in good shape, knowledgeable traders can make money by doing the opposite of the short sellers.

Take the example of Herbalife Ltd. (NYSE: HLF) back in 2014. HLF shares were hit hard when Bill Ackman, a prominent hedge fund manager, took a billion-dollar short position on HLF.

He took to TV, print, and even conferences to tell investors Herbalife was a doomed company. But his gambit failed when investors weren’t fooled. Ultimately, Ackman had to abandon his position at a massive loss.

In the past year, HLF has risen 67%. Revenue climbed 7.7%. Its EBITA rose 4%, and its free cash flow at a 1.2% rate. The company enjoys cash of $1.28 billion and has debt of $2.17 billion.

It’s a strong company financially, so Ackman’s war was ultimately defeated by business growth and good financials.

We believe that Aphria is in a similar situation now.

Why Aphria Is the Best Marijuana Stock to Buy Today

Short sellers are currently alleging that Aphria made illegal transactions in overseas markets, including Colombia, Argentina, and Jamaica.

Aphria didn’t respond quickly enough, and the shares took a hit. But because we believe there is scant substance to the claims, the shares are currently undervalued.

Aphria shares fell a huge 70% between Sept. 12, 2018, and its low point. In fact, after research firms Quintessential Capital Management and Hindenburg Research questioned its Latin American acquisitions in early December, the stock dropped 23% in a single day.

The stock’s trading was halted the day after.

Aphria management, however, said it’s committed to its acquisitions. Then, it purchased over $3.1 million of APHA – a vote of management confidence.

Purchases like that by company insiders is a testimony to what the company’s actual financial position and growth prospects are.

Miller points out that the allegations about Aphria don’t really hold up. One of the allegations, for example, is that the company’s cash flow is negative. But that’s a common issue among both companies engaged in marijuana and in startups. They are still in the development stage.

Other allegations center around product quality. But Miller observes that the company’s business model is mass-market consumers, not high-end. In fact, it’s analogous to Anheuser-Busch InBev S.A. (NYSE: BUD), the company that produces Budweiser. Plenty of money can be made producing products for the bulk of people, not for the artisanal crowd.

Neither of these reasons is compelling, in Miller’s view.

But the short sellers’ final argument is really the worst. And it could be the impetus to double investors’ money in the best marijuana stock to buy today.

The Last Allegation

Short sellers are also claiming that Aphria overpaid for assets because insiders wanted the money.

Miller doesn’t believe that claim. He says that the chief executive officer of Aphria, Vic Neufeld, is also on the board of directions of SOL Global Holdings. SOL is a company that did sell assets to Aphria. But a CEO sitting on another board is extremely common. Neufeld’s holdings in SOL were under 2%.

He therefore wouldn’t profit much for the risk of impropriety. Without firm evidence, the claim can’t be substantiated.

But there’s good news coming out of this. APHA retained Clarus Securities Inc.for an independent appraisal and fairness opinion. Clarus is a highly important investment bank that works with the Canadian marijuana sector.

Miller believes the allegations are hot air that can’t hold up. But the damage inflicted on the stock does create a buying opportunity for investors.

Aphria is one of the best five marijuana firms in Canada. Given the importance of the Canadian market, that means it’s one of the top cannabis companies today.

The stock currently trades near lows it hasn’t seen in 15 months. It also has a past pattern of huge swings in price. Both position investors to make a profit in the best marijuana stock to buy today.

Aphria is approved by Health Canada, which is very important in its market. Its agreements for distribution throughout Canada still stand. And our neighbor to the north doesn’t have enough marijuana to meet demand in the wake of the 2018 legalization.

Company management has faith in Aphria, as witnessed by management buying more shares.

We believe this is a compelling company at a compelling price.

Even if APHA just returns to its November 2018 levels, which were under the high for last year, investors could realize a 100% profit on the stock.

Source: Money Morning News Team

The Tech Sell-Off? Wake Me When Amazon Hits $200

As some of the tech darlings have fallen rather sharply over the past couple of months, I begin to get the inevitable questions about the wisdom of buying these market darlings.

Everyone just assumes that because I am an investor, I care about these stocks. After all, they’re the ones on the news and in the papers – the stock market equivalent of “must-see TV.” The truth is that I don’t give a rat’s furry behind about the “growth and glamour” stocks.

Why? I could never justify paying the multiples of asset value and cash flow that these stocks fetch at any given moment in time… except in the aftermath of a precipitous decline.

But are they on sale “enough” to suit my tastes or, since you’re here, move me to recommend that you spend your hard-earned ducats on them?

Let’s have a look…

Not Every Sell-Off Is a True Opportunity

But surely, my friends say, as a value investor, I must be excited because these giants have fallen in price.

How far? The slide’s been pretty steep.

During the depths of the sell-off, Facebook Inc. (NASDAQ: FB) sank as low as 40% off the highs. The great and mighty Inc.  (NASDAQ: AMZN) was down over 25%. Netflix Inc. (NASDAQ: NFLX) became a member of the “minus 30%” club. Even Alphabet’s Google Inc. (NASDAQ: GOOG) was down almost 20%.

This is a bloodbath of historic proportions, according to the talking heads and internet geniuses. They must be a buy at these levels!

Let’s walk through some fundamental deep value, “dealmaker” math, shall we?

I buy stocks like the modern-day private equity funds, and other buyers of last resort, buy entire companies. I don’t want to pay more than seven, maybe eight times cash-flow multiples for non-financial companies, and less than the net value of the assets owned by financial companies and REITs.

The only exception to these rules is in my Heatseekers’ Rational liquidation Value Strategy where we only pay a discount to the liquidation value of the firm.

I’m an even bigger cheapskate than that.

I’m only willing to pay for what is – I wouldn’t assign a red cent of value to “forecasted” or “projected” results. The way these folks get creative with accounting? Please! Instead, I have rules, and the controls are a lot like my wife in that they must be obeyed and deviation from what is proven to work is done at great hazard to life, limb, and loot.

Let’s look at what happens when we apply that math to the Titans of Tech.

When Glitzy Tech Meets “Dealmaker Math”

Facebook has generated a cash flow of about $8 a share over the past 12 months. Using my rules, the stock is worth at most $64 a share.  Even after falling almost 40% already, the stock would have to drop another 50% to get my attention.

But I also have to consider the fact that I am only going to fork over my hard-fought money for companies I really, actually want to own. Given the complete and utter clown show we’ve seen from Mark “Deer in Headlights” Zuckerberg, Sheryl “Lean In” Sandberg, and other Facebook C-suite characters in recent weeks, I’m not sure I want to own Facebook.

In fact, I could make that a new rule: When you’re considering buying a company, make sure the leadership has avoided subpoenas and command appearances in front of Congress, the British Parliament, and the European Commission to explain “where we messed up.”

Anyway, that means I am probably only going to be willing to buy the stock if the price is $56 or less.

Now let us turn to Amazon. That’s a trickier issue altogether.

I would love to own Amazon. I use Amazon pretty much every day of my life – you probably do, too. I confess, I’m a wholehearted, joyful Kindle addict. The world’s most beautiful granddaughter has her supply of toys and super-cute clothing replenished by the UPS or FedEx man almost daily, all courtesy of Amazon Prime with free two-day shipping.

I am a huge fan of the newspapers, even occasionally The Washington Post. Furthermore, I’m forever indebted to Jeff Bezos for NOT plunking a headquarters here in my backyard in Florida, what with all the traffic and housing problems that would have caused.

In fact, I like Amazon so much I am going to get really aggressive in defining cash flow to arrive at the highest possible number I can use without vomiting in my lap.

I’m going to overpay, and use a multiple of a sky-high 10 to value that cash flow. I am also going to add the per-share value of their assets to my total valuation (If I had any employees, I would fire one that did that, but I really do like this company, so I want to make the buy-below number as high as possible).

Adding all this up, with a heart full of charity and goodwill and warm, fuzzy stuff, I find… at most I’m willing to pay up to $193 for shares of Amazon.

They are around $1,600 today. This could take a while.

I am not a huge fan of Netflix (I prefer Amazon Prime and Hulu), but my wife and daughters love it.

Doing the deal math with Netflix, I find that I am willing to pay a whopping $25 for the business. A real dig into the balance sheet and income statements tells me that while it is an okay business, it is not a great one. Only bargain multiples can be justified to value the stock.

Now let’s look at Google, or as it prefers to be called, Alphabet. I have a tech friend that calls it the Evil Empire for its data collection and usage practices, and I tend to agree.

However, I didn’t flinch from buying big tobacco or defense companies when they traded at bargain levels, and I won’t hesitate if I get the chance to buy the Darth Vader of Data at the right price, either. Oooh darn, but that price is $380 or less… So I guess I won’t own evil anytime soon, with Google’s price currently over $1,000.

When Value Is on the Line, You Must Be a Hard Case

Usually, when I walk someone through this exercise, they remark that using this type of rigid valuation standard means that I won’t ever own the really great companies that tend to trade at higher valuations.

For the most part, that’s true – and for the most part, I am okay with that. And I certainly wouldn’t hold it against you if we ever met and you mentioned you owned every single one of the FAANGs.

As for me, when I can buy nut farmers, grease collection companies, and other boring businesses that multiply my money many times over in the long term, I’m as happy as an alligator with a fried chicken in its jaws.

Will I miss some exciting moves to the upside when every talking head and their sister mention the FAANGs? Maybe so. But I’ll miss all of the disastrous collapses, too.

In my mind, that’s a damn good trade.

I do not do this to be exciting. I invest to make money, and lots of it – and help a few like-minded individuals also achieve consistent profitability in their investing endeavors.

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 

These Are the 2 Must-Own Holiday Shopping Stocks Inc. (NYSE: AMZN) is walking out of Black Friday and Cyber Monday ahead of the pack in the States, but if it’s the only holiday shopping stock you’re looking at now, you’re missing out.

In fact, one of our favorite retailers has turned more profit in five minutes than Jeff Bezos’ e-commerce giant has in an entire day – and it’s far less expensive than Amazon is.

That’s according to Money Morning Chief Investment Strategist Keith Fitz-Gerald, whose 34 years of experience in the markets have made him an expert at identifying the best stocks to buy in uncertain market conditions.

See the short video clip below to catch Keith’s recommendation…

Join This Massive 20-Win Trade Streak Tonight

Chris Johnson’s Night Trader system has proven to reign supreme during these past few volatile weeks.

During this same time, it has helped him produce a 20-trade win streak, including gains like 55% and 69% in the same day.

Now, his next recommendation is being released just after closing bell…

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

This Is the Best Tech Stock to Buy in November 2018

It’s been a banner year for the tech sector, and that’s especially true for the best tech stock to buy in November 2018

Just look at what some of the big tech stocks have already done. Tech giant Inc. (NASDAQ: AMZN) is up a staggering 44%. Apple Inc. (NASDAQ: AAPL) has risen 18%.

With tech stocks like Amazon and Apple near all-time highs, it can feel like investors have missed the boat on tech investment.

gas pump

However, that couldn’t be further from the truth. Some of the best tech stocks to buy right now are flying under the radar – and they’re easy to find if you know where to look.

We do. And we’re going to show you how this booming new tech sector is going to send our top tech stock soaring…

The Most Exciting Tech Field to Invest in Right now

One product on the verge of redefining modern life in the same fashion as the personal computer is autonomous electric vehicles.

You see, self-driving electric cars stand at the convergence of three important and innovative trends – clean energy, technological innovation, and safer transportation.

As of this writing, more than 1 billion gas-burning vehicles are used every day – and that’s just passenger cars. Trucks, motorcycles, and vehicles using combustible engines use immense amounts of oil.

Burning fossil fuels is one of the leading causes of greenhouse gases, which many believe are driving climate change.

With carbon emissions expected to rise an additional 100% by 2035 without substantial intervention, limiting the carbon output of traditional gas burning vehicles is imperative.

And that’s where self-driving electric cars come in. Because they limit the global net consumption of fossil fuel, autonomous electric cars are a crucial part of limiting carbon emissions – and will play a tremendous roll in future green investments.

Electric cars are also expected to play a vital role in improving vehicle safety and navigation.

You see, autonomous vehicles can sense and reduce driver error – saving lives and making traffic accidents a thing of the past.

Because of the clear benefits in safety and navigation, analysts believe that the self-driving car market will increase tenfold in fewer than 10 years, jumping to a value of $556 billion.

And we’ve identified one company that’s going to ride this boom into immense profits.

It’s a major tech firm that’s going to play a vital role in the mass production of electric autonomous vehicles.

And it’s going to make shareholders a killing in the process…

The Best Tech Stock to Buy in November 2018 Is a Leader in Self-Driving Vehicles

Money Morning Defense and Tech Specialist Michael A. Robinson believes the best tech stock to buy in November 2018 isn’t a vehicle maker. It’s a microchip company that supplies the brains, not the brawn.

Nvidia Corp. (NASDAQ: NVDA) is expected to be a prime beneficiary of the self-driving car market.

Nvidia is best known for its video game products. It makes the graphics cards for computers and video game consoles.

But it makes a lot more than that. The company’s latest strategy is to partner with car manufacturers and offer a wide spectrum of advanced tools centered in technology that they will use on the way to fully self-driving vehicles.

Nvidia combined its development strategy with sensor suppliers, advanced mapping software, research shops, and more. As a result, Nvidia’s Drive AX platform is the premier product in its class.

Drive AX operates as a central nervous system for self-driving vehicles.

Nvidia has a number of automotive partners. They include Volkswagen AG (OTC: VALKA), one of the larger global manufacturers. According to reports, Volkswagen intends to give a majority of its self-driving vehicle development to Nvidia.

Nvidia is also working with automakers Audi AG (OTC: AUDVF) and Volvo AB (OTC: VLVLY). Truck makers such as PACCAR Inc. (NASDAQ: PCAR) and logistics firms such as Deutsche Post AG (OTC: DPSGY) are also deploying the Nvidia Drive AGX platform.

All of this effort is having a great effect on the company’s bottom line too. Nvidia sales soared to $10 billion in 2017 from just $5 billion the year before. In 2019, the company is expected to rake in net sales of $19 billion.

Not bad for a company and industry at the very start of its potential growth trajectory.

Robinson forecasts that its growth in earnings, combined with its work in red-hot innovative fields, will propel the share price to $400 in 12 months.

That’s a soaring 96% rise from its current price of $204.

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 

Fear and Doubt Are Running the Stock Market – Here’s How to Profit

It’s the start of a brand-new week… and much more importantly, the start of an entirely new stock market.

That’s right: Everything’s changed.

The overriding bullish sentiment that powered markets higher for nine years died last week.

It was at death’s door the week of Oct. 15, but the bull had a pulse at least.

Not anymore. It’s flatlined. R.I.P.

The action last week… ouch; it was ugly. Particularly the Nasdaq, which is well on track for its worst October since 2008.

In fact, that may have been the decisive “death blow.”

Why was that so bad?

Well, for years, the tech darlings, chiefly the FAANG stocks – Facebook Inc.(NASDAQ: FB), Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), Google’s parent company, Alphabet Inc. (NASDAQ: GOOGL), and Microsoft Corp. (NASDAQ: MSFT) – would routinely lead markets higher.

Not anymore.

Don’t let Monday’s rally fool you. There’s just not enough there to change the inevitable fact that there’s a new boss in town…

The Mega-Cap Tech Leaders Are Gasping for Air

The Street is talking. Good times or bad, that’ll never change, but there’s a new topic of conversation on the table.

See, the Street isn’t buzzing about record earnings, or record profit margins, or inflows into passive investment funds anymore.

It’s about peak earnings, stretched profit margins, and outflows from indexed mutual funds and exchange-traded funds (ETFs).

Fear and skepticism are the flavor of the day.

As far as I’m concerned, there’s no magic potion investors can take to mask the bad taste they have in their mouths now.

When companies come out with good earnings, they go up then collapse back. When they miss on the top line, the bottom line, or pare back future guidance, the get pummeled mercilessly.

The hell of it is, nothing’s changed, fundamentally speaking. Misses aren’t bad; beats have been convincing.

It’s just that the market isn’t looking healthy. Technically, it looks like there’s a huge weight breaking its back.

That’s sentiment and psychology. And that’s what’s changed.

We’ll respond to it with a classic from my playbook, though…

Even a Downtrend Is Still Your Friend

And it always will be, whether the bulls are running or the bears are rampaging.

Go with the flow.

There’s no sense in fighting it because, if you do, you’re just as likely as not to get sucked under, like millions of investors did over the past two weeks.

In my paid trading services, for instance, several positions I was researching opened down too much. To get into those positions would be to chase them, and that would be foolish.

It’s not unexpected, it’s just indicative of how quickly a lot of stocks got levelled.

It’s just the way it is. It’s not the end of the world.

From here, for the time being, I like being on the short side of things. That’s what I’m going to recommend for my paid-up readers as we look at specific sputtering companies to target.

Otherwise, it’s a smart idea to – you guessed it – go with the trend, and play the broad declines with “bear” vehicles, like the ProShares Short S&P 500 ETF(NYSEArca: SH), the ProShares Short Dow 30 ETF (NYSEArca: DOG), and the ProShares Short QQQ ETF (NYSEArca: PSQ).

The trend is down until proven otherwise. It’s not unrealistic to expect these bear runs to continue until the midterm elections are history.

Beyond that, it’s anyone’s guess, but I would not try to anticipate a change in the weather.

But it will change eventually.

When lightning strikes and a few intrepid bargain-hunting traders inject enough leadership momentum to rekindle hope and, who knows, maybe back toward highs, we’ll be ready.

Because we want to be friends with that trend, too.

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 

Here’s How Much Amazon Stock Is Actually Worth

In October 2013, Money Morning Defense and Tech Specialist Michael A. Robinson predicted that Inc. (NASDAQ: AMZN) was destined to hit $1,000 per share.

According to Michael, his bold price prediction “had to do with [his] thesis that high tech is vital to our economy and your investment portfolio… the road to wealth is paved by tech.”

amazon stockFive years later, little has changed for Michael and his belief in Amazon stock.

Except for the price of Amazon’s stock. Since Michael’s prediction, AMZN stock has entered the stratosphere, climbing 452% over the last five years. At the time of writing, the company’s stock is only $4 away from breaking the $2,000 barrier.

Amazon’s astonishing rise has exceeded Michael’s expectations – and has driven him to make another astonishing price call for this tech juggernaut…

Don’t Let Media Predictions Cloud Your Judgement Again    

When Amazon crossed the $1,000 market on May 31, 2017, TV host Jim Cramer issued a dire warning for Amazon investors.

According to Cramer, the $1,000 mark was a psychological barrier for investors, one that would likely result in the end of the company’s “bubble.”

As we know now, the host of “Mad Money” could not have been more off the mark. Amazon stock has nearly doubled since the stock blew through the $1,000 mark 18 months ago.

Michael often refers to Cramer’s price call as a “cautionary broadcast” – one that investors should have taken with a big grain of salt.

Michael doesn’t like to brag, but he nailed his last Amazon price prediction thanks to his 34 years of experience in Silicon Valley and a proven track record of identifying the market’s next big tech winners.

As Michael points out, much of media has been thrown off of Amazon because of fears of a tech bubble. But they couldn’t be further from the truth. Michael has long argued that “tech has become the key driver for the U.S. economy in a way we haven’t seen before.”

That’s why he’s issued a new Amazon price prediction – one that’s even bolder than the last one…

Amazon’s Next Stop: $3,000

Michael can easily justify a $3,000 share price based solely on Amazon’s massive growth rates.

For the past three years, Amazon has grown its earnings per share by roughly 99%. Just to be conservative, he cut that figure way back to 25% to make his estimate.

At that rate, the firm’s per-share earnings would double every 2.8 years. Because stock prices tend to follow earnings growth, Michael reasons the stock has the potential to double in less than five years.

That’s why this new “bold call” on Amazon stock could turn out to be conservative.

But the company’s amazing growth rates aren’t the only vital details here.

There’s something deeper.

And it’s the reason for all the upside in the first place.

Amazon now operates as essentially two different companies – and there will soon be a third.

It’s long been the king of e-commerce, and in the past few years, it’s become the clear leader in cloud computing services.

Amazon Web Services (AWS) is a profit machine. In the most recent quarter, AWS sales climbed 48.9% to $6.1 billion.

Over the past three years, AWS sales have risen 255%. The cloud services unit now accounts for 55% of Amazon’s operating income, which came in at $1.64 billion, beating forecasts.

Not bad for a “company” that only began in 2006.

However, the company’s next move is likely to give it a dominant hand in every retail area it sets foot in.

After purchasing Whole Foods Market last year, Amazon has launched a full-fledged invasion of the “brick and mortar” retail space, promising to revolutionize storefronts in the same way it changed Internet commerce.

Taken together, these three areas make Amazon a triple threat – one that promises to generate immense profits for shareholders long into the future.

However, this isn’t Michael’s only bold call…

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