The Breadwinner


Being patient has worked well for stock investors during the previous decade, as the S&P 500 has increased over 262% and it’s close to setting a fresh record yet again. But these mammoth gains would not be possible without tech stocks. Many people do not realize that although the benchmark is filled with 500 large stocks, over 27% of these companies are tech stocks, the largest part of the index.

In fact, the Nasdaq 100 Technology Sector index has outperformed the S&P 500 over the past 10 years, by more than two to one. To make real money from Wall Street, investors should put time on their side. If creating serious wealth is among your financial goals, it is perfectly achievable by using a buying-and-holding strategy. A perfect place to start would be these two high-growth tech stocks.

1. Nvidia

Video games are at the heart of Nvidia, with GPUs for gaming bringing in 47% of their $6.5 billion revenue for Q2. With the gaming market predicted to expand at a compound annual rate of 14% through 2026, as reported by Mordor Intelligence, Nvidia could be bringing in $20 billion per year in this sector alone if its sales hold steady.

Data center revenue also went up 35% y/y last quarter and could grow to really become Nvidia’s largest sector by 2025. Its $7 billion buyout of Mellanox finished in 2020, helped position Nvidia to be the top supplier of networking hardware. And we have not even started to scratch the surface on its Drive AV platform for autonomous vehicles, or the Omniverse, the first real-time 3D collaboration and simulation platform. These components have led to the almost 300% stock growth over the previous three years, and it does not seem like it will stop anytime soon.

Wall Street forecasts Nvidia will have revenue growth of around 25% per year for the upcoming five years, reaching $51 billion in 2026 with earnings thought to grow even faster, at 26% every year, to $7.73 a share.

2. The Trade Desk

At-home entertainment is moving from traditional cable networks to internet-based tv. This opens the path for The Trade Desk to further increase its dominant ad buying system. Through the use of bid factor tech to value ad impressions, The Trade Desk’s system allows companies to collect better data on possible buyers in real-time. This guarantees their ads are positioned appropriately depending on the data and its clients are loving it.

Revenue went up 101% in Q2, bringing in $280 million. And during the initial six months of 2021 revenue was 78% higher than this same time in 2019. Over the past four years, revenue has gone up almost 300%. Adjusted EBITDA margin also went up in Q2, reaching 42%, even better than the pre-pandemic number of 36% it got in Q2 of 2019. Looking ahead, The Trade Desk sees itself keeping this breathless growth, with Q3 revenue and adjusted EBITDA going up around 31% and 30%, respectively, over the year-ago period.

Author: Blake Ambrose

The prospect of getting free money is usually pretty exciting. After all, the past stimulus checks that Congress gave out during the early days of the pandemic were very popular, and almost 3 million people have signed a petition asking for more.

So why are 10 percent of people missing out on the thousands of dollars or more in free money that is available and will continue to be available for some time?

While some people do not know of these programs or do not think they can make use of them, both issues are easily fixed. Here’s how to get what you are owed.

Millions do not max their 401(k)

A 401(k) match from your job is the best thing you can always get that is like free cash.

This perk is part of your compensation when you get hired, so if you do not take complete advantage, it is like you are not taking part of your regular salary.

Say you bring in $60,000 per year, and your employer gives a dollar-for-dollar match of 6% of your salary. That means your maximum is $3,600 per year.

But if you just put $2,000 into your 401(k), your job will only put in $2,000 — and you are leaving $1,600 for someone else to take.

The biggest reason why people don’t take complete advantage is affordability; over one third of people say they just cannot save as much as they want to. That makes a lot of sense, especially during a time when many families’ budgets are getting stretched to the breaking point.

How to start taking complete advantage

If you have enough money to save, your first goal should be creating automatic withdrawals from your weekly salary. A “forget-it” approach that will guarantee you get the highest match.

Remember you can always put more money in than what your employer will match. And because these automatic withdrawals usually come from pre-tax dollars, you will not have to pay taxes on your contributions.

However, if you struggle to find the cash needed to make your complete contributions, a new company was created last year to help with this issue.

The company will send you the money to get the full match, without a credit check or upfront fee. Then, after your job matches your contributions, you will withdraw from your 401(k) to pay this company back, plus a small piece of the money you got from this match. The company’s name is LendTable.

Author: Steven Sinclaire

While adoption of crypto is increasing among investors, helped by last week’s launch of the first Bitcoin ETF (based on futures), it seems that the broader adoption of cryptocurrencies into daily life and mom-and-pop usage could soon escalate dramatically.

Reuters reports that Walmart customers at its United States stores will soon be able to buy bitcoin at ATM-like kiosks which were installed by the company Coinstar.

Coinstar, known for its Bitcoin machines that can change physical coins for USD cash, has partnered with cryptocurrency exchange CoinMe to allow customers purchase bitcoin at its kiosks.

“Coinstar, with Coinme, has created a pilot program that allows customers to use cash to buy bitcoin,” Walmart comms director Molly Blakeman said to CoinDesk through email.

“There are 200 Coinstar kiosks inside Walmarts across the country that are a part of this pilot.”

This is all great news for people who see the network effect leading to more sustainable bitcoin pricing, but, as says, there are ‘complications’.

“After putting in bills, a paper voucher is given. The next stage is setting up a Coinme account and passing a know-your-customer check before this voucher can be redeemed.”

“The machine also charges a 4% fee for bitcoin, plus another 7% as an exchange fee, according to the Coinstar website.”

That is much more complicated than a normal bank ATM and we think it might leave a few eager adopters not jumping into the cryptocurrency.

But the cryptocurrency ATM industry is increasing at a rapid rate, partly driven by the coronavirus pandemic. Coinstar announced its plans back in 2020 to double its 3,500 Coinme BTMs during a spike in adoption. More recently, Coinstar, which began adding bitcoin services in early 2019, added another 300 bitcoin machines at Winn-Dixie, Harveys, Fresco y Más and other grocery stores in the state of Florida.

There are almost 30,000 Crypto ATMs globally…

But Walmart (with 4,700 stores), is long seen as the crown jewel to getting cryptos into the mainstream, is another step in the push of cryptocurrencies into everyday life.

Author: Blake Ambrose

Investors have different objectives. The closer you are to retirement, dividend income might rank higher on your goals.

Many dividend stocks do not provide that much income every year. However, some can help you considerably during your retirement. Investing $100,000 among these two dividend stocks might give you added income close to $5,770 per year.

1. Devon Energy 

You won’t find a stock in the S&P 500 that gives a higher dividend than Devon Energy. Investing one-half of your $100,000 should make you around $3,330 in annual dividends — and maybe even more.

There is one catch with Devon’s dividend. Only some of the this distribution is fixed. Most of it is variable and dependent on the 50% payout from the company’s excess free cash flow. It is possible that your yearly income can be lower in the future than now.

However, Devon’s close-term future looks great. The market seems to be early in another energy upcycle. The firm’s assets might deliver strong free cash flow with oil going higher than they have been in recent years.

You can also be assured that the company is committed to paying a dividend. The company has given dividends for 28 years in a row. It has also boosted its dividend by a compound yearly growth rate of more than 10% since 1993.

2. Enterprise Products Partners

Enterprise Products Partners does not have any catches with the company’s dividend. The midstream energy firm’s dividend yield currently is around 7.3%. If add another half of your $100,000 to purchase shares of Enterprise, you would get income of around $2,440 per year.

Like Devon, Enterprise Products Partners puts a high priority on its dividend paying. The firm has boosted its distribution for 22 consecutive years. The dividend compound yearly growth rate during this time was around 7%.

You just may get impressive share appreciation in addition to the nice income by investing in this company. Wall Street believes the stock might jump over 15% over the incoming 12 months.

What about the move away from fossil fuels to more renewable energy sources? That is almost certainly an unstoppable trend. However, Enterprise’s management thinks the lower-emission natural gas and liquids, and lower-sulfur oil at its core profits will stay a key source of energy production for a very long time. The company’s dividend payments should not face serious threats of disruption in the years to come.

Author: Steven Sinclaire

Well, now it is official. For months, financial experts have been saying that seniors who get Social Security could get a huge raise in 2022. And now this week, the SSA announced that they would be getting a 5.9% cost-of-living increase (COLA), the largest to happen in decades.

In comparison, seniors only got a 1.3% COLA last year. And so a 5.9% increase is actually a lot more buying power.

But while a good Social Security raise is a great thing in theory, there is one situation where it might actually backfire. And seniors should gear up for this possibility.

Will a giant raise end with more taxes?

Seniors are usually shocked to discover that Social Security is taxed. But whether taxes are applied to your benefits in linked to how much you get.

Taxes on Social Security depend on provisional income, which is the amount of your non-Social Security income in addition to 50% of your yearly benefit. For people who are now single, a provisional income less than $25,000 means your Social Security will not be taxed.

But singles with an income range from $25,000 up to $34,000 risk being taxed on up to 50% of their Social Security benefits. And people with a provisional income higher than $34,000 risk taxes on as much as 85% of their Social Security benefits.

These levels are slightly higher for couples who get Social Security. In this case, couples with a provisional income less that $32,000 get to keep all of their benefits.

But having a provisional income between $32,000 and $44,000 means as much as 50% of benefits might be taxed. And over the $44,000, up to 85% of your benefits can be subject to taxes.

Here is where next year’s increase comes into play. Seniors who now are currently about to be taxed on Social Security might see their benefits increase to the place where their provisional income is beyond this above limits. The end result? Getting hit with taxes on your Social Security benefits for the first time.

Author: Scott Dowdy

There is no competition between the stock numbers of Novavax and Ocugen so far this year. Ocugen’s price has gone up around seven times more than Novavax’s stock has.

Does this make Ocugen the better vaccine company to buy right now? Not really. Here are four reasons why Novavax stock is still better than Ocugen.

1. A path to EUA in the United States

Ocugen’s share price went up over 750% year to date twice this year. But much of this huge gain evaporated after the firm disclosed back in June that it would not go for Emergency Use Authorization (EUA) in this country for the covid vaccine Covaxin.

The company chose to go for complete approval once the FDA decided which vaccines would be reviewed for EUA. So far, however, Ocugen has not started the clinical late-stage studies that are needed to get complete FDA approval.

Meanwhile, Novavax does have United States EUA for its vaccine candidate, called NVX-CoV2373 as a top priority. The company will be later than it had wanted in filing for their authorization in the United State However, it has the possibility of launching in the United States much sooner than Ocugen might.

The U.S. is a big prize. And it is a prize for which Novavax certainly has a better opportunity as of now.

2. Supply deals in hand

Some investors could focus mostly on the approval or authorization for coronavirus vaccines. Without supply agreements with at least one nation, though, any regulatory actions will be pointless victories.

Ocugen does not have any supply deals yet finalized. Novavax, however, already has supply deals inside the U.S., the EU, Canada, Australia, New Zealand, and Japan (through its partner Takeda).

3. Complete rights to its covid vaccine

Ocugen has the commercialization rights from partner Bharat Biotech for the Covaxin vaccine only in the United States and Canada. Its agreement with Bharat allow them to keep 45% of the profits sales in those two nations.

Novavax created NVX-CoV2373 by itself. It has kept complete rights to its vaccine, although it has partnered with other companies to target some markets.

4. A better pipeline

Other than Covaxin, Ocugen does not have any other pipeline drug candidates currently undergoing clinical testing. The company has said it plans to push forward their experimental gene therapy called OCU400 into two phase 1/2a clinical trials this year, but those studies have not started yet.

Novavax has already begun positive results from its phase 3 study of its flu vaccine drug NanoFlu. It started phase 1/2 study looking into a combination of NanoFlu and NVX-CoV2373 in September of this year. The company also has two more clinical-stage drug candidates — an Ebola virus vaccine and respiratory syncytial virus vaccine ResVax.

Author: Steven Sinclaire

After Twitter and Facebook banned him, former President Trump has finally delivered on his promise to create his own social media website, called Truth Social. The app is scheduled for a beta launch this November, and for public release in early next year, pending no more complications. It does not stop there, though. The Trump Media & Technology Group, the legal entity under which the platform will work, has already come into an agreement to combine with Digital World Acquisition. This deal has been good for the DWAC stock.

Since the news about the merger was announced yesterday, the stock of DWAC has gone up. It has risen over 85% during the first trading hour and shows no signs of letting up. These gains are great for the acquisition firm, whose shares had flatlined at around $10 each for the whole month before the announcement.

The big social media giants in this space like Twitter and Facebook, who Trump’s website was created to fight against, are not off to a great start today, with mixed results in morning trading.

What This All Means

It is not surprising that Trump is creating a new platform. The power of social media for political candidates, but since his removal from Twitter and Facebook, he has been left without an online platform.

Interest in the new business is strong, in part because it has been months since the public has heard new announcements from him. What is unclear is how the current market momentum is driving the stock and how it might continue. Trump’s attempts to create a blog after his ban from social media this year did not go so well. However, Facebook is now embroiled in controversy, so interest in a new alternative platforms is very high.

It is also worth mentioning that SPACs often start strong but then quickly lose their momentum. DWAC stock and Trump’s Truth Social SPAC could be different, as it will get the benefit of routine media coverage as the platform opens up. It is worth watching as the world awaits for this incredible catalyst that could mean profits and political change.

Author: Steven Sinclaire

Bitcoin has a chance of increasing in the final months of 2021, as the first ETF pegged to the cryptocurrency was launched this week.

According to Tom Lee, the founder of Fundstrat, and crypto expert, the release of the ProShares Trust fund might help bring more money into bitcoin by many new retail and other investors. Because of this, prices for bitcoin might jump higher.

Fund company ProShares created the Bitcoin Strategy ETF using the ticker “BITO” this week, becoming the first United States ETF linked to cryptocurrency, a milestone for the new digital-asset sector, which was started back in 2008.

The potential of an ETF, which in theory will give more people access to bitcoin without needing to worry about custody problems for the virtual asset, has pushed bitcoin prices to almost a record high close to $65,000.

Lee stated that one of the two factors that could push bitcoin even higher is the expectation that this launch will bring in greater inflows. The second reason is that only some investors are currently exposed to bitcoin. With a new avenue to buy cryptocurrencies safely likely to support more buying.

Fundstrat estimated that around 93 million households now own stocks, while only 40 million own some bitcoin, with average balances per household being around $10,000 for bitcoin, a small fraction of the average $200,000 in equities per household.

“Crypto is around 1% of liquid assets,” said the Fundstrat executive.

However, Lee’s “back of the envelope” data suggests inflows into the new ETF will be a key near-term supporter for bitcoin’s price.

“We do not know the exact amount of U.S. households that own bitcoin, but we know it is not as widespread as equities,” Lee stated, in a research note this week.

Lee speculated that the Bitcoin ETF demand might rise by $50 million per day, if the new fund BITO proves anywhere near as popular as the Invesco QQQ Trust QQQ ETD. The QQQs has around $190 billion in assets, and another fund connected to bitcoin, Grayscale Bitcoin Trust GBTC has around $32 billion in their asset pool, making it the top crypto fund in size.

Author: Steven Sinclaire

The total crypto market cap has gone up around 200% this year, reaching $2.5 trillion at the time this was written. Much of that growth has come from Bitcoin, which makes up around 45% of the market. But over the long haul, other cryptos like Cardano and Aave might help support growth and adoption in this exciting sector. Let’s take a look at them.

1. Cardano 

Cardano is a public blockchain that allows peer-to-peer transactions through its cryptocurrency called Ada. Users can program decentralized apps (dApps). And it has an edge over its rivals such as Ethereum because of its more energy friendly proof-of-stake process which is known as Ouroboros.

Unlike proof-of-work protocols, during which miners have to use thousands of computers to solve computational problems to ensure transactions are valid (and create new coins), Ouroboros instead allows miners to validate blockchain transactions based on the amount of coins they have. This system takes less energy, giving Cardano an edge in an increasingly environmentally focused world.

Ada prices have gone up over 1,100% since the beginning of the year, earning Cardano a total market cap of around $69 billion, and making it the fourth largest crypto. Cardano’s environmentally friendly mining and its ecosystem of good dApps could allow for continued long-term increases.

2. Aave

Cryptocurrencies usually rely on the bigger fool theory, which means people buy in order to then sell to someone else for a greater price without thinking about the fundamentals. Assets like Aave push back on this narrative by creating real-world use cases to encourage more adoption.

Aave is an ERC-20 protocol that was programmed on Ethereum. It aims to decentralize consumer finance by giving a way for people to borrow and lend over 20 different cryptos without one central intermediary.

Users deposit their digital assets into “liquidity pools” where they get interest. These pools also serve like funds that borrowers can draw against, with the loans overcollateralized (borrowers must give more than 100% of the loan in other tokens) to lower risk. Lenders get the benefit from earned income from their cryptocurrency holdings, while borrowers can get their holdings without needing to sell.

At a recent price of $301 per coin, Aave has increased around 500% during the previous 12 months. Its market cap is now around $4 billion, making it a small coin compared to Ethereum or Bitcoin, with market values of around $450 billion and $1.2 trillion, respectively.

Author: Blake Ambrose

The Q3 2021 earnings season is now gaining pace. We are early in the reporting cycle and results have been very encouraging so far. This is in comparison to the view of some economists that the momentum of the American economic recovery lowered in the past quarter owing to prolonged supply-chain problems and more inflation.

As of October 15, 41 companies on the S&P 500 had reported their third-quarter numbers. Total earnings for these companies were up 40.4% y/y on 13.4% greater revenues, with and 85.4% of them beating EPS estimates and 70.7% beating revenue estimates.

Our Top Pre-Earnings Report Picks

We have focused our search to the following mid-cap stocks that will report their Q3 earnings this month. Each of these has a strong buy rating from us.

Triumph Bancorp Inc. is a financial holding firm with a diversified commercial finance, community banking, and asset management activities. It operates in three sectors: Banking, Factoring, and Corporate.

The firm has an expected earnings growth of 80.6% for the past year. The estimate for earnings improved 1.3% over the past 30 days. It recorded earnings surprises in the past four quarters, with an average beat of around 48.4%. The company will publish its earnings on Oct 20.

AutoNation Inc. is the largest auto retailer in the country. The company gives vehicle parts, vehicle maintenance and repair services, extended contracts, vehicle protection, and other aftermarket products. Also, it arranges financing for vehicles through third-party sources. It works through three segments: Import, Domestic, and Premium Luxury. The company will release its earnings on Oct 21.

Olin Corp. distributes and manufactures chemical products in the U.S., Europe, and internationally. The company operates like a vertically-integrated global distributor and producer of chemical products. It operates through three sectors: Vinyls, Epoxy, and Winchester.

The company is expected to have an earnings growth of over 100% for the current year. Executives will release the earnings report on Oct 21.

Range Resources Corp. is an independent gas and oil company that works in the development, exploration, and acquisition of gas and oil properties, mostly in North Louisiana and the Appalachian Basin.

The company also has an expected earnings growth rate over 100% for this year. They will release their earnings on Oct 26.

Author: Blake Ambrose

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