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Matt McCall

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Penn National has the potential to deliver for years to come via gambling and sports betting

As long as the novel coronavirus remains a risk, casinos will struggle. It might seem odd that Penn National Gaming (NASDAQ:PENN) has been on a tear since the pandemic struck.

But a closer look shows that Penn is playing the long game and makes for a good buy-and-hold pick.

It’s worth noting that PENN stock could see some volatility in the coming weeks as second-quarter earnings materialize. A big part of whether or not the stock is up for another plunge depends on if the firm can deliver with its Q2 results.

Long-term investors who are willing to wait out some volatility could start building a position in PENN stock now and use any upcoming dips to add to it.

Unique Positioning of PENN Stock

One of the things that sets Penn National apart from other casino operators is its locations. Unlike some of the bigger names, Penn operates mostly outside of Las Vegas. Only a handful of the casinos under Penn’s umbrella are in Vegas, the rest of the casinos and racetracks it manages are dotted across the country.

That’s an advantage in the wake of the Covid-19 pandemic, especially in the U.S. While some states have very low case numbers, others have started to skyrocket. That has put a damper on summer traveling plans and means many people will be hesitant to get on an airplane or stay in hotels.

Penn’s range of casinos and racetracks in cities around the country means they’re more accessible to those who aren’t willing to stray far from their hometown.

Sports Betting Comeback

PENN stock is also poised to benefit from the rising popularity of sports betting in the U.S., something that will surely be addressed during the firm’s Aug. 6 earnings release. Over half of the states that Penn National operates in have already legalized sports betting, and many others are likely to follow as states look for new ways to increase revenue to pay for coronavirus-related expenses.

On top of that, many states are also mulling over whether or not to relax online gambling laws, which would give Penn’s online gaming segment a shot in the arm. The firm has been investing in its online gambling future, most recently with the acquisition of Barstool Sports.

Barstool has gotten a lot of attention recently as its founder Dave Portnoy has been using the absence of sports betting during lockdown to play the stock market. His success on the market has garnered millions of followers on social media, which will help pull people toward sports betting with Penn National once the sports schedule resumes.

Near-Term Risks

Like just about every other company on the planet, the biggest risk to PENN stock in the near-term is another wide-scale lockdown due to the coronavirus. The firm’s finances depend not only on people coming into its gambling locations but also on the resumption of the normal sports schedule. As it stands, it looks like professional sports will come back, but university sporting events are still a question mark.

Plus, PENN stock isn’t the only choice when it comes to online gambling and sports betting. While the the company’s acquisition of Barstool puts it in a strong position, it doesn’t guarantee the firm will rise to the top of the pack.

The Bottom Line on PENN Stock

The risks facing Penn National are worth considering in the near-term, but the firm’s long-term outlook looks strong. Penn National is a bet on America’s return to normal that will pay off for years to come as the online gambling space continues to expand in the U.S.

It’s worth picking up PENN stock now and using any near-term turbulence to continue building a position.

Author: Matt McCall and the InvestorPlace Research Staff

Source: Investor Place: Penn National Is Your Best Long-Term Gaming Bet

Everything appears set for this company to continue its high-growth trend for years to come

Have you ever heard of TAM?

Companies have started referring to it more often in recent years, and it’s absolutely critical when analyzing opportunities within long-term trends.

TAM stands for “total addressable market.” In other words … how big will an industry be?

For example, the future of transportation — what I often refer to as Transportation 2.0 — is a $7 trillion opportunity, according to Cisco. And if you expand that to include two-wheel and flying vehicles, the TAM jumps to $10+ trillion in wealth in the coming decades.

Silicon Valley will only bet on companies and trends that have a large TAM. Remember, they’re looking for 10X and 100X returns. The only way to achieve that kind of wealth generation is through a very large TAM.

Transportation meets that TAM criterion. So the next step is uncovering the companies in position to be the biggest winners in the future.

The time I spent at the Web Summit — the world’s largest technology conference — in Portugal earlier this month made me even more excited about the massive potential in Transportation 2.0.

A big focus at the conference was urban mobility, or how people get around in cities. Urban mobility can also be considered the last mile or two of someone’s commute. Most people around the world travel an average of 6.2 miles to work, and 60%-80% of that commute is made by individual travelers.

But to fully grasp the total addressable market, the key is to think globally.

In the United States, most people own cars — and oftentimes a few cars. In Europe and Asia, a larger concentration of people live in or near crowded cities, so commuting is different. Two-wheel vehicles are a lot more prevalent. That makes sense when you only have to travel a couple of miles … in horrible traffic … to an office where parking is basically non-existent. Two-wheel vehicles are also more “green.” (The climate and “green thinking” were major points of emphasis in nearly every transportation presentation.)

One company that tackles urban mobility, green transportation, and the future of vehicle sharing is NIU Technologies (NASDAQ:NIU). NIU — pronounced just like “new” — is one of the recommendations in my Early Stage Investor 10X Venture Portfolio. The stock was added on July 31, and it’s already up 36%.

The company sells electric scooters and e-bikes around the globe. It has more than 800,000 users across 34 countries. But what makes NIU unique is that its all-electric scooters are considered “smart” vehicles.

Each scooter has 72 sensors that connect to the cloud. And each rider has an app that connects to those sensors. The app alerts riders to relevant information, like if there’s maintenance due on the vehicle. All of the data collected by the sensors is then shared with the company, allowing it to create better products and services in the future.

Currently, NIU has received more than 3.9 billion kilometers worth of data from its scooters. That equates to 125 terabytes of data. By analyzing this valuable data, the company is able to improve all aspects of its business.

NIU just released its latest product — an e-bike that I was able to check out firsthand at the Web Summit.

But even more exciting was the chance I got to sit down with CEO Yan Li after his presentation.

I pride myself on boots-on-the-ground research. I don’t just dig into these companies’ financials and investor websites. I travel to their headquarters, speak with their CEOs, test out their products for myself, and much more.

Being able to sit down with the executives of small companies like NIU is how you really gain insight. And after meeting with Li, I am even more confident in the future of our investment.

During our chat, we discussed the future of urban mobility generally and NIU specifically. The global mobility market alone will be worth trillions of dollars in the years ahead. To capitalize on that, NIU is focusing on expanding its e-scooter products throughout its home country of China as well as the rest of Southeast Asia. The company already has a strong footprint in Europe but will look to continue growing there. It is only just beginning to expand in the United States.

Through a partnership with Revel, NIU now has its e-scooters in three U.S. cities — New York City, Washington, D.C., and Austin — via a ride-sharing platform. Riders use an app to scan a scooter, drive a few miles to their destination, and then park it anywhere on the street. It’s similar to the Lime and Bird stand-up scooter ride-sharing apps that are taking the world by storm. I myself use Lime on my daily commute.

Everything appears set for NIU to continue its high-growth trend for years to come. The company is expected to more than double its revenue in the next two years to $671 million. And at the same time, the stock is currently valued at $649 million, and earnings are predicted to jump from $0.30 per share this year to $1.45 in 2021.

Based on those numbers, this stock is not only cheap … it’s a screaming buy!

And it’s the perfect opportunity to gain exposure to Transportation 2.0 — a mega-trend that will generate trillions of dollars in wealth in the coming decade. The key, as always, is getting in early.

Author: Matt McCall

Source: Investor Place: Transportation 2.0’s Best Under-the-Radar Investment

I’m highly selective with my early investments, and you should be, too

I always keep tabs on IPO stocks, as I’m a big believer in investing early, but I’ll be the first to tell you that it’s not always easy.

If you’re looking for large, long-term gains – and who isn’t? – investing early is necessary. One example you probably know is Facebook (NASDAQ:FB). If you’d invested five years ago, you’d be richer today than if you’d just invested this year.

But on the road to greatness, Facebook hit its share of roadblocks. In fact, the stock went absolutely nowhere for over a year after its IPO in 2012.

The market is full of stories like that. And IPO stocks don’t always go on to do great things. Some of the most anticipated IPOs fizzle out before they even begin, as we recently saw with the whole WeWork debacle.

In the space of just one month, the coworking office space company filed for an IPO, saw potential creditors flee once they got a look at its financials, yanked the IPO entirely, and ultimately fired its scandalous CEO, Adam Neumann. WeWork was once privately valued at $47 billion, but now that seems to have gone up in smoke.

One big problem here is that once WeWork got into the spotlight, the hype – and the valuation – got out of control. I’ve seen it many times before, but sooner or later, the honeymoon ends and reality sets in.

Put These Two IPO Stocks On Your Watch List

Right now, the best-performing IPO stocks are also the least talked-about, which is pretty telling. A couple stand out to me right now. They might not have a cool enough story to get on TV, but you’ll definitely want to put them on your watch list all the same.

InMode (NASDAQ:INMD) is a medical device company based in Israel. Specifically, its products are used in minimally invasive surgical and aesthetic procedures in the fields of dermatology, cellulite removal, and gynecology. It’s a $1 billion company by market cap, was founded in 2008, and has been profitable for years. Financial buzz puts the sector InMode is going after, medical aesthetics, at $22.2 billion in five years.

INMD stock is up 133% since its IPO this August. Even better, its sales are on a steady climb, too – from $53 million in 2017 to $187 million projected for 2020. That would be 253% sales growth in just three years

The other promising, under-the-radar IPO is NextCure (NASDAQ:NXTC). It’s a clinical stage biotech focused on cancer treatments. The company is pretty small at a market cap of less than $600 million, but it has a deal with drug giant Eli Lilly (NYSE:LLY) that could result in up to $1.4 billion in milestone payments. The stock is up 30% since its IPO this May. Given the lucrative deal with Big Pharma, I wouldn’t be surprised to see much better gains down the road.

If you’ve never heard of either of these IPO stocks before, I wouldn’t be surprised. They’ve been neglected by the media “hype machine”… and that’s promising. It tells me that there’s still a lot of potential for future gains – gains that these companies can earn the old fashioned way: by selling more product and delivering shareholder value, year after year.

I’ll be keeping an eye out for that. You should, too.

Author: Matt McCall

Source: Investor Place: WeWork IPO was a Failure – These 2 IPO Stocks are Surging

If you haven’t been following this new asset class worth over $148 billion as of this writing, you should start.

To give you a sense of what I’m talking about, let’s step in the MoneyWire time machine and go back a few years …

See, I first discussed Bitcoin’s explosive potential on Fox News back on July 1, 2014.

If you’d like to see the younger me in action, you can click the picture above or click here to watch the video.

At the time, I noted that “Bitcoin is there for the taking … I’ve become a believer.” The fact that it could become a viable global currency, and act as a store of value, like digital gold, were the main reasons behind my bullish view.

Even though the technology backing it is complicated, Bitcoin’s ongoing allure is simple, really.

It’s a digital form of money that governments cannot control or debase … one we can transfer without the involvement of big, corrupt banks.

For those who don’t place much trust in government or big banks, Bitcoin is a great idea.

Now, if you’d listened to me back in 2014, when the price was still a mere $640.81 per bitcoin, you’d have seen the value of your investment soar to unthinkable highs.

On December 17, 2017, Bitcoin reached its all-time peak — to date — of $20,089, according to Coinmarketcap.com. That’s a run of 3,035% over 41 months!

The price has been on a roller coaster since, falling through much of 2018, only to return strong this year.

I know, I know. You’ve heard Bitcoin mentioned all over the financial news all the time. Mostly, the discussion revolves around the roller coaster-like volatility that’s been with Bitcoin since the anonymous developer(s), known as Satoshi Nakamoto, released it to the world on January 3, 2009.

And in case you were wondering, I’m here to tell you that Bitcoin’s volatility isn’t going anywhere, anytime soon.

But that isn’t surprising. Volatility is the very life-blood of realizing explosive gains in the market.

Volatility is inherent to any technological breakthrough of Bitcoin’s magnitude. The key is investing in ones that later turned into a money-printing engines — think about the internet upstarts like Alphabet (NASDAQ:GOOGL, otherwise known as Google), Amazon (NASDAQ:AMZN), or Facebook (NASDAQ:FB), or early stage biotechs that rocketed into billion-dollar juggernauts, like Gilead Sciences (NASDAQ:GILD), which developed the highly lucrative hepatitis anti-viral drugs.

Let me show you what I mean specifically with Bitcoin.

Bitcoin has seen at least 13 pullbacks in the last six years when the cryptocurrency corrected by more than 30%. And almost every time, it’s come roaring back with larger gains.

Take the 83% dip Bitcoin saw over two days in early April 2013. In November of that year, Bitcoin raged back 191% over a 14-day period.

Year-to-date, Bitcoin has climbed an outstanding 111%, while the S&P 500 has risen nearly 20%.

But here’s the only performance that matters: Since April 28, 2013, Bitcoin has climbed an astounding 6,972% overall.

Long-term investors who didn’t panic at the quick downturns in the crypto markets, and instead held their ground and saw the value of this digital gold as I do, have been rewarded. Big time.

This is a high-risk/high-reward asset, no doubt, and I wouldn’t recommend allocating more resources than you’re willing to lose.

But here’s the thing every investor should know — Bitcoin is about to skyrocket.

I’ve spent countless hours researching the cryptocurrency market since my appearance on Fox News back in 2014. And I can say that you ABSOLUTELY SHOULD have a position in Bitcoin right now.

This cryptocurrency king is poised to soar higher, not just over the long term, but soon, thanks to a catalyst on the horizon that not many people are talking about — at least not that I’ve seen.

This upcoming change to Bitcoin’s supply and demand structure could cause enthusiastic investors to buy what they can, as soon as they can.

In fact, I believe its all-time high will be left in the dust and take its place among the historical markers of past highs. In the coming months, you might be kicking yourself at what could have been … the days of Bitcoin below $10,000 could soon a thing of the past. Don’t say I didn’t warn you.

Your chance to get into Bitcoin when I first called it in 2014 is long gone, but here’s the good news: I see a lot more to come. I’m just as enthusiastic as ever about this opportunity, and you can still make a lot of money. So keep an eye out for more from me soon on this vital topic and why it’s so important that you position yourself now for future profits.

Author: Matt McCall

Source: Investor Place: Bitcoin’s 6,972% Gains Are Only a Prelude

I see two major reasons for Square now entering the red-hot CBD market

When Square (NYSE:SQ) came on the scene, it changed the retail payments game for good. Now, anyone with a mobile device could turn it into a portable “cash register” just by plugging in a Square Reader. Square also offers wireless terminals, app payments, and even online-store platforms.

Square is a dream come true for small business owners. And, as of Thursday, that’s now true for a whole new (and red-hot) market: cannabidiol (CBD). The news gave SQ stock a nice bump; now let’s take a deeper look at the opportunity here.

CBD is found in both cannabis plants and industrial hemp, but it’s a non-psychoactive compound. In other words, CBD will not get you “high.”

I could write an entire book on the benefits of CBD (I’m a fan of it myself), but I’ll keep it simple: CBD can help with everything from anxiety and depression to chronic pain and inflammation to childhood epilepsy. Best of all, it does so without the nasty side effects of many drugs. So, it’s become an incredibly popular alternative to traditional pharmaceuticals.

CBD has actually been legal for nearly a year, thanks to the 2018 U.S. Farm Bill ending the prohibition on hemp. But there is still some “red tape” involved. For example, each state has its own laws and licensing requirements. Plus, the U.S. Food & Drug Administration (FDA) is still working out the details of how CBD will be regulated.

Up until now, this has made many financial companies wary of anything cannabis-related. Square started small in May with an invite-only pilot program.

Then came Thursday’s announcement that Square was ready to dive into the CBD market – nationwide. Below you see the various options CBD sellers will now have.

So why now?

For one thing, Congress is fast-tracking the new FDA policy. Specifically, Senate Majority Leader Mitch McConnell gave regulators 120 days to “issue a policy of enforcement discretion” for CBD, and that was in mid-September. I’m not a fan of regulations when they become a burden, but in this case, regulation is great news.

Once rules are in play, it not only levels the playing field and allows the best companies to rise to the top – it also lends legitimacy. And that gives CBD companies more freedom. Already, since the Farm Bill legalized hemp products with 0.3% THC or less (that’s the compound that does get you “high”), Square is now comfortable with those products being sold through its platform nationwide.

But there’s another, bigger reason that companies like Square are moving into CBD: the sheer size of the market. And, most importantly, CBD’s growth prospects are incredibly compelling. It’s a major catalyst for many others than just SQ stock.

By 2022, hemp-CBD will be a $22 billion market, including $14.1 billion in sales at “big box” chain retailers.

To put that number into perspective, in 2018, the total sales from chain retailers was… zero! But now, everyone from Kroger (NYSE:KR) to Ulta Beauty (NASDAQ:ULTA), GNC (NYSE:GNC), The Vitamin Shoppe (NYSE:VSI), and even Walgreens (NASDAQ:WBA) and CVS Health (NYSE:CVS) are in on the action.

So, that gives investors a lot of options for playing the CBD craze. But rather than Square stock or any of the retailers, I prefer a pure play for my CBD stocks.

Be an Early Investor in CBD

My #1 CBD Stock in the World is already gobbling up much of the market share in CBD. In doing so, it’s among the first companies to turn a profit in the entire cannabis industry! Even better, it’s got top-shelf executives behind the wheel… revenues are expected to double by 2020… and earnings are set to grow 3.5X in the same time.

These high-growth stocks usually trade at higher valuations than other groups. But right now, it’s a bargain. The price-to-earnings ratio (and the price-to-sales, for that matter) is below 15-to-1! I expect that’ll reach a more typical level within two years – causing the share price to triple.

The action in cannabis stocks right now reminds me of Amazon (NASDAQ:AMZN). Remember, as recently as 2013, people loved to bash Amazon for having yet to turn a profit. Forget that sales were booming. The stock fell 30% by 2014. Then, it promptly went from $300 to more than $2,000 per share by 2018!

Now it’s cannabis stocks that are down about 50% as a group from their 2019 high. And yet the industry is set to double in the next few years.

That’s especially true of CBD, as the products pop up at corner shops, drugstores, and shopping malls nationwide. So, while my CBD stocks are still small — they won’t stay small for long.

I’ve put together a complete research package with The #1 CBD Stock in the World and Three More CBD Stocks to Fatten Your Wallet. Thanks to legalization — and demand for CBD that’s just snowballing nationwide — these companies are set to multiply their revenues over time. You’ll see their names, ticker symbols, and buy under prices in my full report.

But if you’re like me, you want to see what all the fuss is about — by getting to know the product yourself.

So, I’m making this a true CBD Early Investor’s Kit by also including an actual, 15-day supply of high-grade CBD from CannaComplete. You won’t have to rely on all the rumors about CBD. You can see the real deal for yourself.

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