Stock Market/Share Industry – Online Marketing Scoops

Dave & Buster’s Stock Soars As KKR Boosts Stake Over 10%

Topline: Private equity giant Kohlberg Kravis Roberts & Co. (KKR) disclosed in a filing Friday that it now owns a 10.7% stake in U.S. restaurant chain Dave & Busters, and plans to continue discussions with management as it pushes for changes to the business.

Dave & Buster’s (PLAY) stock surged up to 16% on the news Friday, reaching almost $49, its highest level since June 2019. Shares are currently up 12% for the day while KKR stock increased 2.5%.
KKR, which has invested in businesses such as Lyft, Sonos and FanDuel, is one of the largest private equity firms in the world with over $200 billion in assets under management.
The firm took a rare activist step in disclosing its stake, saying that it has held discussions with Dave & Buster’s management and board as it pushes for changes, though its filing did not include any specific plans or proposals for the company.
KKR, which previously reported a 2.65% stake in Dave & Buster’s last September, also disclosed that it may discuss “any extraordinary corporate transaction” with management and shareholders, including a merger or a change in the board.
KKR reportedly has a “good relationship” with Dave & Buster’s management and the two sides have had a “constructive dialogue,” a source told Axios, while also confirming that KKR isn’t internally talking about attempting a hostile takeover.

Crucial statistics: Wall Street analysts are largely bullish on Dave & Buster’s: It has nine “buy” ratings, four “hold” ratings and zero “sell” ratings, according to Bloomberg data.

Key background: The Dallas-based company, which first opened in 1982, has over 110 locations. Shares of Dave & Buster’s fell 7.5% overall in 2019, while the S&P 500 rose 30%. The company suffered a one-day drop of 20% in June when it reported a surprising decline in quarterly sales that severely rattled investor confidence in the retailer. Facing headwinds like higher wage costs and restaurant oversupply in what is an increasingly competitive industry, Dave & Busters said earlier this week that its comparable store sales would decline between 2.5% to 3% for fiscal year 2019.

Crucial quote: “Based on our review of past engagements, we believe the KKR Fund may undertake a traditional activist campaign and seek to gain board representation if the firm is unable to make progress working directly with management to improve performance,” Stifel analyst Christopher O’Cull said in a note on Friday. He previously predicted that a leveraged buyout of Dave & Buster’s would be possible for around $50 per share, but that the company will be taken private at a significant premium.

Tangent: Raymond James analyst Brian Vaccaro also forecasts a possible leveraged buyout scenario, where KKR, which has steadily increased its stake in Dave & Buster’s since the third quarter of 2019, would pay a price of $55-per share for the company.

Further reading: Gentlemen At The Gate: With Trillions Pouring In, KKR And Its Peers Must Build Up Rather Than Break Up (Antoine Gara)

Follow me on Twitter or LinkedIn. Send me a secure tip.

Sergei Klebnikov

I am a New York—based reporter for Forbes, covering breaking news—with a focus on financial topics. Previously, I’ve reported at Money Magazine, The Villager NYC, and The East Hampton Star. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at sklebnikov@forbes.com

Source: Dave & Buster’s Stock Soars As KKR Boosts Stake Over 10%

Morgan Stanley’s Record Results Boosted By Massive Private Equity Coup In China

marketingscoopsLeave a Comment

With Trump’s Phase 1 trade deal with China now complete after a lengthy signing ceremony on Wednesday cheered on by Wall Street luminaries such as Blackstone cofounder Stephen Schwarzman, hedge funders Ken Griffin and Nelson Peltz, and Mary Callahan Erdoes of JPMorgan, investors now have a new reason to try and play growth in the country. Record earnings released by investment bank Morgan Stanley the morning after trade negotiations wrapped up reveal the profits that can be made by smartly investing in the world’s second-largest economy.

Morgan Stanley’s fourth-quarter earnings revealed strength across the firm. Revenues surged 27%, propelled by growth across important divisions such as trading, underwriting and wealth management. Overall, Morgan Stanley posted $10.8 billion in revenues for the quarter and $2.2 billion in profits, and for the full year, the investment bank generated a record $41.4 billion in revenue and a $9 billion profit, underscoring the success CEO James Gorman has had in managing its vaunted investment bank, building up its wealth management operations and refitting its trading desks to boost profits.

One line item in the results, however, uncovered a new story for Wall Street watchers to follow. Morgan Stanley’s investment management division booked an almost unprecedented investment windfall in Asia, which reflects the potential China and the rest of the region holds to both the firm and its Wall Street peers in banking and private equity.

In 2013, Morgan Stanley’s Asian private equity division helped take Chinese baby-milk producer Feihe International private, working with the company’s controlling family, led by CEO Leng Youbin. The company, founded in 1962, had listed American Depositary receipt shares on the New York Stock Exchange in 2008. After generally languishing in the wake of the listing, shareholders like Youbin and his family trusts looked to privatize the business, working Morgan Stanley’s Asian private equity arm on a $147 million deal to buy out the public shares listed on the NYSE. Morgan Stanley contributed $28.1 million of equity on behalf of its limited partners, Feihe’s CEO ponied up a further $8 million, and the consortium raised $50 million in debt financing from Wing Lung Bank Limited and Cathay United Bank to get the deal done.

This past fall, they re-listed Feihe, now the leading baby-milk seller in China, by selling 893 million shares in Hong Kong and raising about $900 million to pay down debt and make acquisitions. Since the listing, China Feihe’s shares have skyrocketed from about HK$7.5 to KK$10.98, per Sentieo data, as investors gained interest in its 15% market baby formula share and revenues and profits of $1.5 billion and $317 million, respectively.

For the participants, the 2013 deal has turned into one of the big windfalls of this era. The Leng family’s shares are now worth $5.2 billion according to Forbes calculations and Morgan Stanley’s shares are worth some $2.3 billion. When Morgan Stanley released full-year earnings, the deal even moved the needle for the 60,000 worker investment bank.

The firm’s investment management division saw revenues more than double to $1.4 billion, led by $670 million in quarterly investment revenue versus $82 million in the year prior. Of the windfall, Morgan Stanley said its investment revenues “increased from a year ago on accrued carried interest related to an underlying investment’s initial public offering, subject to sales restrictions, within an Asia private equity fund managed on behalf of clients.” The carry and gains appear have boosted the firm’s overall earnings by at least 15% for the quarter. Typically half of private equity investment fee revenue will go back to employees in the form of earned carried interest.

On a conference call with analysts, CFO Jonathan Pruzan elaborated about China Feihe, “The company has been quite successful and grown quite nicely. … To give you some sort of context around the round numbers, the investment that we made was less than $50 million, and the current investment value is approximately $2 billion.” (Morgan Stanley declined to comment further.)

China is the preeminent driver of wealth in the world. When Forbes released its 2019 list of China’s wealthiest people, reporters uncovered 60 new billionaires in the country, many of whom are building businesses domestically that may one day resemble companies like Procter & Gamble, Starbucks, Pfizer and Nike. Wall Street has to pay attention, especially with domestic markets richly valued after a decade-long bull run.

For years, dealmakers like Blackstone’s Schwarzman, JPMorgan’s Jamie Dimon and Blackrock’s Larry Fink have been studying ways to build their presence in the region and either bank, partner or invest on behalf of the country’s growing business elite. While groundwork is mostly still just being laid, deals like Morgan Stanley’s recent coup underscore the potential remaining in China.

The Phase 1 trade deal signed on Wednesday signaled China’s intention to continue opening its financial system to foreign banks and investors. Vice premier Liu He, carrying a note from premier Xi Jinping, said at the Phase 1 signing China is transitioning from a high-growth economy to one more focused on quality increases. Presumably, that pertains to consumption, financial products and markets, and the capitalization of corporation. Some new developments reached in the deal appeared to make headway for U.S. firms excited about this potential.

The deal further opened Chinese markets to U.S. credit rating agencies, distressed debt investors and foreign financial firms seeking to fully own and manage subsidiaries in the region. Bankers have long wanted to own subsidiaries in the region and mostly unwound joint ventures that helped build China’s state-owned banking giants like ICBC.

In fact, a good way to gauge whether the Phase 1 trade agreement did in fact make substantial inroads, will be to watch how the largest U.S. financial firms respond. New action from the likes of JPMorgan’s Jamie Dimon and Blackstone’s Schwarzman would signal the effectiveness of Wednesday’s deal.

Follow me on Twitter. Send me a secure tip.

Antoine Gara

I’m a staff writer at Forbes, where I cover finance and investing. My beat includes hedge funds, private equity, fintech, mutual funds, M&A and banks. I’m a graduate of Middlebury College and the Columbia University Graduate School of Journalism, and I’ve worked at TheStreet and Businessweek. Before becoming a financial scribe, I was a part of the fateful 2008 analyst class at Lehman Brothers. Email thoughts and tips to agara@forbes.com. Follow me on Twitter at @antoinegara

Source: Morgan Stanley’s Record Results Boosted By Massive Private Equity Coup In China

Why Facebook’s Stock Seems Indestructible

marketingscoopsLeave a Comment

For more than two years, Facebook has found itself at the center of a string of controversies, from privacy and data concerns to accusations of democracy-destroying behavior and antitrust investigations from the Federal Trade Commission. CEO Mark Zuckerberg has been called to testify in Washington not once but twice over his company’s policies. For most companies, a string of shaky headlines might affect the company’s outlook.

For Facebook, the company’s stock continues to rise.

After climbing over 50% last year, Facebook’s stock is already up over 5% so far in 2020. Despite a number of looming investigations from U.S. government agencies over competition and antitrust issues, the stock has hit several new all-time highs in recent weeks. The company saw its market cap rise by more than $200 billion in 2019, and is now worth nearly $630 billion today.

Facebook appears to be making a comeback from its historic slump in mid-2018, when the company unexpectedly warned of slower user and sales growth. A day after that announcement, the stock plunged 20%. The forecast of slowing profits also came amid wider concerns over data privacy. Facebook for months faced backlash over its handling of users’ privacy, as well as its role in not stopping the spread of “fake news.” Among mounting criticism, Facebook was lambasted for damaging democracy after British consulting firm Cambridge Analytica was able to leverage personal user data from millions for its political advertising strategies.The criticism caused Facebook stock to undergo an extended sell-off during the rest of 2018, where it lost nearly half of its overall market value.

The stock largely recovered in the first half of 2019, but plunged again nearly 10% in May, amid calls for the company’s breakup. The Federal Trade Commission then opened an antitrust probe into the social media giant in June, with many Wall Street analysts predicting that growing calls for regulation would be damaging for the company. Facebook was eventually slapped with a $5 billion fine from the FTC, its largest penalty in history, for violating consumers’ privacy.

Facebook also faced criticism over the launch of its new digital currency, Libra, last year. And as the 2020 U.S. election draws nearer, the world’s largest social media network is under intense pressure to adjust its policies on fake news and political advertising. But Facebook recently confirmed that it won’t change its policy of allowing false political advertisements on its platform. That contrasts with other social media companies, like Twitter, which banned all political ads from its site last October. What’s more, last September, 47 state attorneys general announced an investigation into Facebook for antitrust violations, sending the stock down 4%.

Despite the recent criticism and increased calls for regulation looming on the horizon, Facebook stock’s recent momentum and new record highs may signal that investors are so far unconcerned by the regulatory fears. Indeed, Wall Street is predicting a big year ahead for Facebook.

Facebook for months faced criticism and backlash over its handling of users’ privacy, as well as its role in the spread of fake news.

The company has in recent quarters continued to grow revenue by adding news users to its core platform as well as to its family of apps, like Instagram, Messenger and WhatsApp. Optimism is reportedly growing over Facebook’s ability to monetize those apps, like they have been with Instagram through video ads and commerce.

The stock’s most recent rally came on the back of stronger-than-expected earnings in the third quarter. Revenue growth actually accelerated in 2019, with the company reporting a year-over-year revenue growth rate of 26% in the first quarter, 28% in the second quarter and 29% in the third quarter. Even as Facebook tries to improve its reputation, it continues to dominate the digital advertising market: Businesses continue to use Facebook’s advertising platform, with analysts on average expecting its revenue from ads to increase 26% in 2019, according to Refinitiv.

In a recent note, Deutsche Bank analysts predicted “renewed strength in the core Facebook app” in 2020, thanks to company initiatives like reworking the core Newsfeed, rolling out Stories, scaling Marketplace and building its Groups product. Bank of America analysts, on the other hand, recently argued that Facebook’s Messenger and WhatsApp offerings are still undervalued and not fully reflected in the stock price, which they think can rise 20% higher. “While the firm remains under scrutiny and faces regulatory risks, it continues to execute exceptionally well,” writes Morningstar analyst Ali Mogharabi in his analysis of Facebook’s latest earnings report.

Even as Facebook tries to improve its reputation, it continues to dominate the digital advertising market.

Despite facing another year of criticism for allowing fake news on Facebook, Zuckerberg said in an annual blog post that “One of the big questions for the next decade is: how should we govern the large new digital communities that the internet has enabled?” The Facebook CEO, who is now worth almost $82 billion according to Forbes’ estimates, suggested that the best way to address this would be “by establishing new ways for communities to govern themselves.”

Since Trump’s inauguration day, Zuckerberg’s net worth has increased by an estimated $27.8 billion—the fifth-most of anyone in the world and the third-most of any American over that period, according to Forbes’ calculations.

Facebook’s fourth-quarter earnings and full-year results for 2019, which will be reported after the market closes on January 29, are a key indicator of whether the company can continue its momentum in 2020. But if 2019 was anything to go by, turbulent political times for Facebook may not have much effect on the ability of its stock to climb higher.

Follow me on Twitter or LinkedIn. Send me a secure tip.

Sergei Klebnikov

Source: Why Facebook’s Stock Seems Indestructible

20 Great Stock Ideas For 2020, From The Best Fund Managers

marketingscoopsLeave a Comment

The stock market went on a tear in 2019. Major indexes hit numerous record highs in the second half of the year with the S&P 500 rising more than 29%. This puts it on track to be the best yearly return since at least 2013.

As stocks continued to rise, Wall Street put recession fears on the back burner: The market has been boosted by the fact that the U.S. economy’s moderate expansions holds steady. Solid consumer spending, a robust labor market and now an apparent recovery in the housing market have all allayed investor fears. There has been renewed trade optimism on Wall Street as well, thanks to the signing of several new trade agreements—a revised North American trade agreement and the long-awaited phase one trade deal with China—in the closing months of 2019. Going into 2020, the market is optimistic that economic growth can continue, especially with diminishing tariff pressures and a Federal Reserve on hold.

We queried Morningstar to identify some of the best performing fund managers, all of whom beat their benchmarks both in 2019 as well as on a longer-term basis over either a three-year, five-year or ten-year period. Below are the portfolio managers and their best ideas for the coming year.

Chris Retzler

Needham Small-Cap Growth Fund: A blend of growth and value small companies.

YTD: 53.5%, 5-year average annual return: 14.7%

Saxonburg, Pennsylvania-based II-VI is a global manufacturer of high-performance, high-tech specialty materials that go into a whole host of different industries and end markets, from consumer and communications to aerospace and defense. “It’s a broad economic play to the end markets that utilize their technologies,” says Retzler, who highlights the “stellar management team” and its recent acquisition of optical communications manufacturer, Finisar.

While topline growth has been in the double-digits, that will accelerate thanks to cost savings and revenue synergies from integrating Finisar. While $1.4 billion revenue II-VI has exposure to trade relations with China, which weighed on the stock’s performance in the last few years, a thawing in those relations will brighten its outlook. Retzler expects growth to generate free cash that will ultimately “provide the opportunity to de-lever the balance sheet.”

Navigator Holdings (NVGS)

Reitzler calls $303 million (revenues) Navigator Holdings, an energy shipping business that delivers liquid propane gas (LPG), “a play on resurgence in global economic growth.” He expects it to be a beneficiary of thawing trade tensions and subsequent increased commodity sales: “If you see a recovery in emerging markets, which we think will begin to happen globally, LPG is key to energy usage in a great part of the world.” While Navigator Holdings has been under pressure for the last four years, investments the company has made in infrastructure and partnerships should begin to payout, Reitzler predicts, adding that the company has also expanded to new terminals that will allow it to export more products globally. Another catalyst is the “continued production of sizable energy byproducts within the U.S. that will need to be delivered to global markets.” As a heavy shipping company, there is debt on the business—but it’s manageable, says Reitzler.

Neal Rosenberg

Baron Growth Fund: Small-cap U.S. growth companies

YTD: 40.7%, 3-year average annual return: 19.8%

Vail Resorts (MTN)

This operator of world-class mountain and ski resorts is divided into separate divisions for its resorts, hospitality and real estate. The company has seen continued growth in full season pass sales as well as early benefits from its mid-2019 acquisition of Peak Resorts, which helped integrate millions more people into its network. Rosenberg expects good earnings growth with robust free cash flow going forward. This could lead to opportunistic mergers, debt reduction and dividend growth. Vail, which had $2 billion in revenues in fiscal 2019, is very digitally focused and is increasing the number of skiers on season or day passes, using more data to do enhanced targeted marketing and increasing the skier experience to enable continued same store pricing increases.

CoStar Group (CSGP)

CoStar, is a $1.2 billion (revenues) provider of info analytics and online marketing services for commercial and multifamily real estate offices. Rosenberg expects organic revenue growth to accelerate toward 20% in 2020 and beyond, as the company continues to significantly expand its salesforce and enter new markets—selling to owners and investors rather than just brokers and property managers. Growth will also come from its Apartments.com division, which matches renters with landlords. CoStar is also expanding internationally, moving beyond the U.S. and Canada to places like Western Europe. The company also has a pristine balance sheet and a huge amount of free cash flow.

Jeffrey James

Driehaus Small-Cap Growth Fund: Fast-growing small companies.

YTD: 40.4%, Average annual return since inception (2017): 26%

Everbridge (EVBG)

This cloud software company works with corporations, governments and their agencies to provide tools for mass notifications and population alerts. Its software helps alert employees or citizens of whatever is happening—from natural disasters to cyberattacks. According to James the $147 million (revs) company, which has yet to turn a profit, is growing at 30% per year, and is increasingly winning contracts with big companies and the Federal government. “It’s the next generation amber alert,” he describes. While Amber alerts, for example, are a homegrown custom government solution, Everbridge is far more sophisticated in its software, James says, since they are able to use various technologies—like location services—to notify people in a specific geographic area. He also highlights that the European Union’s mandate to select a mass notification system for all their member countries—where several have picked Everbridge thus far.

MyoKardia (MYOK)

This $3.5 billion market cap clinical-stage biotech company focuses on precision medicine targeting genetic cardiovascular disease—the number one cause of death in the world. “Virtually all drugs that treat this do so indirectly by lowering cholesterol or treating symptoms,” James describes, “but MyoKardia is one of the first to target the source of the disease—the underlying genetic defects of the cardiac function.” One disease it’s targeting, for instance, is hypertrophic cardiomyopathy (widening of heart valves). Going into next year, James highlights a phase three study that is expected to read out well, as the previous phases have. “For a biotech company of this size and this pipeline, its balance sheet is quite strong,” he says (Myokardia has no revenues or profits yet). “That should be sufficient for the company to fund studies and develop its pipeline for the foreseeable future.”

Joe Dennison

Zevenbergen Growth Fund: Large-cap consumer and tech companies.

YTD return: 38.4%, 3-year average annual return: 24.3%

Exact Sciences (EXAS)

Madison, Wisconsin’s Exact Science’s core product, Cologuard, has seen “strong organic growth” thanks to an 80% increase in revenue this year—and is expected to hit that again next year, according to Dennison. Cologuard allows for at-home stool screening as an alternative to getting a colonoscopy. Company’s partnership with Pfizer—a co-promotional sales agreement—has been beneficial, since it helps give Exact Sciences access to the pharma giant’s salespeople, marketing expertise and relationships. Exact Sciences has continued to grow its network of doctors, adding new primary care and GI specialists. Dennison says there’s much to look forward to next year: The company plans to test Cologuard 2.0—a more accurate and economical version of its signature product—and is reportedly planning on coming out with a diagnostic for liver cancer. “It’s making the right investments to drive growth for the next decade,” says Dennison. “The competitive chatter has been misunderstood and weighed on the stock, but we think that could clear up.”

Wayfair (W)

A market leader in online home furnishings, Wayfair has been popular among young consumers as they move out and buy homes. He emphasizes that the company has revenue growth in the mid-20% range, though losses are higher since its still in investment mode—but profitability is expected in the next five years.

Wayfair is further boosted by international investments, primarily in Western Europe, “where they’re following the same playbook that’s been successful domestically,” according to Dennison. Competition comes from brick-and-mortar players and larger players like Amazon, he says.

Stephen DeNichilo

Federated Kaufmann Large Cap Fund: Large-cap growth companies.

YTD: 37.7%, 10-year average annual return: 14.9%

Vulcan Materials (VMC)

DeNichilo likes this $4.8 billion (revenues) materials company, the largest producer of construction aggregates in the U.S., because it is entering “an exciting period of both increasing volume and pricing.” The business is growing thanks to a strong focus on infrastructure spending at the state level—driven by increased gas taxes, says DeNichilo. What’s more, “solid federal support” for infrastructure on both sides of the aisle on Capitol Hill will be an added boost going into next year.

Ingersoll-Rand (IR)

This 149-year old company is a leading producer of heating, ventilation and air-conditioning (HVAC) equipment globally. It will spin off its more cyclical compressor business to Gardner Denver in the first quarter of 2020. That would leave $16 billion (revenues) Ingersoll-Rand as a “pure play HVAC company,” not to mention one with high market share, powerful recurring revenue—from installing, replacing and servicing parts, strong pricing power and “a balance sheet prepared to participate in further HVAC industry consolidation.”

Kimberly Scott

Ivy Mid-Cap Growth Fund: Fast-growing mid-cap companies.

YTD return: 37.6%, 3-year average annual return: 20.1%

National Vision Holdings (EYE)

This $1.7 billion (sales) optical retailer sells eyeglasses, contact lenses and other products, as well as offering comprehensive eye exams. The company has seen continued growth as it serves an important medical need at good value, according to Scott. “It’s a compelling story in that it has a unique position as a growth retailer outside of e-commerce,” she points out. As the company brings in more customers and gains market share, comparable store sales have increased.

Overall revenue is growing by just over 10%, and the company continues to deleverage, Scott says. While risks include tariff headwinds and concerns that Walmart may not renew a strategic partnership to operate its Vision Centers, she believes that these are priced into the stock. The company is also starting to leverage its new investments in areas like cybersecurity and lab research for making new eyewear.

CoStar Group (CSGP)

A leading provider of commercial real estate data and marketplace listing services, Washington, D.C.-based CoStar has “high-caliber growth and great cash flow,” according to Scott. She highlights the company’s founder-led management team and pristine balance sheet—with no debt. CoStar’s revenue has been growing at a 20% clip and Scott expects continued innovation in new areas including a recent acquisition of Smith Travel Research, which will allow CoStar to begin expanding into data and analytics for the hospitality sector. The market usually backs off from the stock when the company announces new investment cycles, as it just has, she points out, but while this hurts near-term margins it actually sets CoStar up for its next phase of growth. The company’s expectation is that the business will have $3 billion in revenue by the end of 2023.

Scott Klimo

Amana Growth Fund: Low-debt, high-growth large companies; Run according to Islamic principles.

YTD: 31.7%, 3-year average annual return: 19.9%

Sextant Growth Fund: Low-turnover portfolio of large growth companies.

YTD: 35.3%, 3-year average annual return: 17.9%

Lowe’s Companies (LOW)

Klimo calls Lowe’s “a compelling self-help story” that will benefit from a strong housing market next year, supported by low interest rates. Lowe’s new CEO Marvin Ellison has improved operating efficiencies and Klimo highlights new investments in tech, like migrating systems to the cloud and improving online experience, as another boost for the company. What’s more, while “nothing is bulletproof,” and recession and housing market risks are somewhat mitigated by the cost cutting and other internal improvements, which should protect margins,” according to Klimo.

Ally Financial (ALLY)

Financial service firm Ally dabbles in everything from car loans and online banking to mortgages and loans. It is a leader in auto lending, particularly in used car financing: “An area that takes some skill.” Klimo points out that “even if you think about potential disruptions like new car prices increasing, the secondhand market is still attractive.” Ally has good prospects for growth, he says, with the general consensus for the economy looking pretty good and the housing market expected to be solid. The stock has a low PE of under 8 time trailing 12 month earnings, a 2.2% dividend yield and earnings are growing at 10% annually. Says Klimo, “What’s really remarkable is the valuation that its trading at, despite the fact that the stock is up 37% this year.”

Tom Slater

Baillie Gifford U.S. Equity Growth Fund: Concentrated portfolio of growth companies.

YTD Return: 29.4%, Average annual return since inception (2017): 20.7%

Yext (YEXT)

New York City’s Yext is a small-cap technology company that allows businesses to use its cloud-based network of search engines, maps and other software to boost awareness and build their brand. As more companies integrate digital components into their business strategies, Yext gives them the tools to do so, as well as share information with publishers in a way that becomes accessible to end users. Yext Answers, which is aimed at streamlining consumer questions about different companies or products.

“While Yext is still a loss making business—and path to profitability has become the buzzword in the aftermath of WeWork—we’re happy to tolerate that if we can see the trajectory of growth going forward,” according to Slater. “We see them having a really big addressable market in the long term.”

MarketAxess (MKTX)

This fintech company operates an electronic trading platform for institutional credit markets, bringing digital tools to bond trading. “What’s interesting here is that we’ve seen equity markets move to digital trading, but that’s been a much harder problem to solve for bonds—as they’re generally much less liquid,” Slater points out. Digitizing these markets is a big win for asset owners because it takes out the cost aspect of intermediation that’s associated with traditional bond trading. MarketAxess has topline growth of at least 15% going into next year, accompanied by very high margins of around 50%, both of which are likely to grow in the future, Slater forecasts.

Chase Sheridan and Greg Steinmetz

Sequoia Fund: Run by RCG investment committee since 2016; Focus on undervalued companies.

YTD return: 29.3%, 10-year average annual return: 11.5%

Credit Acceptance (CACC)

Credit Acceptance Corp. is a subprime auto loan lender that the Sequoia fund likes to think of as “the best house in a tough neighborhood.” The company is countercyclical, as it doubled its profits during the financial crisis according to Sheridan and Steinmetz. They emphasize that Credit Acceptance doesn’t face the same set of risks as a typical subprime lender, thanks to a “portfolio program” with its dealers where it shares both the costs and payouts of loan underwriting. That means that in a downturn, Credit Acceptance will suffer less than its peers, and it can use those periods of stress to gain more market share. The company has been growing—earnings were up 22% in 2019—and it has room to continue to do so without M&A. While some bad actors in the car loan industry prey on the working poor, “Credit Acceptance Corp plays by the rules and plays fairly,” Sheridan and Steinmetz describe. “They have excellent computer systems that keep their collection agents within the bounds of what the government allows them to do.”

Alphabet (GOOGL)

“Sometimes a good idea is right in front of your nose,” says Sheridan and Steinmetz. “Alphabet’s balance sheet ( with $130 billion in cash) is like Fort Knox, and the resilience and quality of the business is extraordinary.”The company has averaged near 20% growth, and its “search revenue is driven by mobile and Youtube in terms of its fastest growing segments.” With $25 billion spent on research and development per year—second in the world behind Amazon—”that’s basically Dell Labs and Xerox Park on steroids,” according to Sheridan and Steinmetz. “Google’s competitive strengths are nearly insurmountable in its core business of advertising,” they point out. The tech giant also has ambitions to move up the ladder in the burgeoning business of cloud computing, where it currently ranks behind Amazon and Microsoft.

Chris Mack

Harding Loevner Global Equity Fund: High-quality growth companies.

YTD: 28.5%, 5-year average annual return: 10.2%

PayPal (PYPL)

PayPal is a “household name,” but the general opportunity here is the “under penetration of digital transformation in financial services,” according to Mack. It’s a “long tail opportunity,” especially given that some 85% of the world’s transactions are still settled in cash. What’s different, he points out, is that PayPal is crucially partnering with more financial institutions and increasing its number of merchant accounts.

Partnerships with Bank of America and HSBC, for example, have started to pay off as they make PayPal an option in their digital wallet offerings. Mack emphasizes that PayPal’s large user base and the scale of transactions its processes, which are both growing near 20%, is another positive. While the company is up against some other big tech players, like Apple, “there’s room for more than one winner here,” Mack says.

Vertex Pharmaceuticals (VRTX)

Vertex is a $56 billion market cap biotech company focused on drugs to treat cystic fibrosis. Mack sees it as an overlooked growth opportunity, “it’s overlooked because of its small addressable population—of 100,000 our so globally—in the scheme of things.” But when thinking about pharmaceuticals and drug pricing, “this is a company that is delivering value,” he says. It has taken an existing set of approved drugs on the market and added a new one: While they can reach about 56% of existing cystic fibrosis, Vertex’s new “triple combination” drug combination to treat the disease will see that number rise to around 90%, according to Mack. Although the drug is expensive and patients are on them for life, a rising life expectancy and number of treatable cases bode well for Vertex. The company is profitable, with good margins and is growing by over 25%.

Follow me on Twitter or LinkedIn. Send me a secure tip.

Sergei Klebnikov

Source: 20 Great Stock Ideas For 2020, From The Best Fund Managers

The Motley Fool

248K subscribers

To get our 5 top stocks for 2019, head to http://www.Fool.com/YT 2019 has been a pretty darn good year for the stock market. The S&P 500 is up over 25% year-to-date, and I bet you noticed the bump in your retirement and brokerage accounts. While those returns are good, investors that scooped up shares of some of the year’s hottest stocks did even better. Maybe you were one of the folks who saw their portfolios soar thanks to: – Docusign (up 80% YTD) – MercadoLibre (up 95% YTD) – The Trade Desk (up 115% YTD) These stocks are some of the best performers in the market this year, they’re also stocks our analysts recommended in one of our premium services before 2019. Our team is happy to see their picks do well, but they also have some new companies they think could break out in 2020. In this video they’re going to break down: – How the stock market did in 2019 – The major stories investors need to know about 2020 – The best stocks to buy for 2020 ———————————————————————— Subscribe to The Motley Fool’s YouTube Channel: http://www.youtube.com/TheMotleyFool Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool

Category

News & Politics

Don’t Give Your Kids An Inheritance, Give This Instead

marketingscoopsLeave a Comment

What Can Be Better Than An Inheritance? A Personal Matching Program

Getting an inheritance can be a good thing – or a bad thing.

While Millennials may wish their inheritance will someday pay for their retirement, that may or may not happen. According to a 2018 Charles Schwab Study, more than half (53%) of young people ages 16-25, “believe their parents will leave them an inheritance, versus the average 21% of people who actually received an inheritance of any kind.”

And, if they do receive an inheritance when they are close to retirement, that may not help them. It turns out that one out of three Baby Boomers who received an inheritance spent it within two years, according to research conducted by Dr. Jay Zagorsky, Senior Lecturer at Boston University Questrom School of Business, based on data from the Federal Reserve and a National Longitudinal Survey funded by the Bureau of Labor Statistics that studied the period 1985-2008.

A Better Option: A Savings Program With A Kick

Wouldn’t it be a better option to help youthful members of the family set up a savings program with a kick to it – a match that you arrange to ignite interest, leverage time and boost returns through compounding?

Let’s say your son “Steve” is a 20-year-old college student who lives at home with you. Steve has a part-time job during the school year and works full time over summer breaks.

Steve hasn’t developed a rule set for saving money. He is not eligible for a 401(k) at work. He is not thinking about a far-off retirement, but he believes he might benefit from a nice inheritance, probably just when he might need the money when he retires.

As Steve’s Mom or Dad, you know better. You’d like Steve to learn how to become financially secure in his own right.

Let’s Make A Deal

Here’s how you can help. You make a deal with Steve:

“For every dollar you save, I will match you dollar-for dollar for five years. But there is a catch. My match goes into a retirement plan for you, a Roth IRA, that you must agree not to touch until you retire someday in the far away future.”

That gives Steve something to think about. If he saved, say $500 a month of his own money, he would have $30,000 of savings in five years. He would also have an additional $30,000 funded by his parents in a Roth IRA that he would agree not to touch. Nothing wrong with that deal. . . But what about the constraint on not using that Roth money until retirement?

Maximizing Roth Limits While Avoiding Gift Taxes

That $500 monthly ($6,000 yearly) figure is magical.

It is the maximum ($6,000) that can be contributed to a Roth IRA per year, the annual limit for funding a Roth, according to the IRS.

It also happens to avoid a gift tax obligation (the parents’ match is a gift). Since $6,000 is well under the $15,000 annual exclusion, Steve’s parents would not be subject to gift taxes for funding the Roth. (Read “IRS Announces High Estate And Gift Tax Limits For 2020.”)

Will Steve Accept The Offer?

For Steve to see the full potential of the matching program, you’ll want to show him what the Roth can accomplish over the decades between now (age 20) and age 65, a period of 45 years. The Roth will need to be invested for long-term capital appreciation potential. The best way to do that is through a simple S&P 500 Index Fund.

What If The 45 Years Turn Out To Be Terrible Markets?

This is where history comes in handy.

For skeptics, we can look at the worst performing 45 year market periods since the 1920s. For the optimists, we can review the best. While history will not repeat itself exactly, history does provide a frame of reference.

Let’s go back in time to see the worst outcome for a five year program of monthly investments in an S&P 500 Index Fund with a 45 year horizon.

That 45-year period ended with the Financial Crisis (1963-2008).

Had Steve started his five-year, $500 a month program ($30,000 invested) at the worst of times, his age 65 value would have grown to $1,192,643, an average annual return of 9%.

What If The Next 45 Years Turn Out To Be Terrific Markets?

If Steve had lucked into the best 45 year period (1946-1991), he would have had $4,368,046 at age 65 (highest 45-year holding period), an average annual return of 12.4%.

What If Returns Are Just Average?

What about the median return (1931-1976)? Steve would have had $2,421,743 at age 65, an average annual return of 10.9%.

What If Steve Wanted Safety Over Capital Appreciation?

If Steve had been very conservative, he may have considered the safest option, a money market fund that tracked 90 day T-Bills. The best 45-year period for money market funds (1956-2001) would given Steve an age-65 retirement nest egg of only $356,519, a 6% average annual return.

You can see these comparisons graphically in the chart below.

Graph showing ending values of $500 monthly investments for 5 years, held for 40 years — Graph showing ending values of $500 monthly investments for 5 years then held for 40 years (S&P … [+]

Jackson, Grant Investment Advisers, Inc.

The point is this: Steve can’t control what type of market he will experience. But history can give him a frame of reference.

Is Steve Convinced?

To accept his parent’s matching proposal, Steve needs to see the benefit of investing in himself (and having others invest in him through the match). His interest needs to be ignited through the math behind the market, the math that leverages time and boosts returns through compounding.

Your Role As A Parent

As we approach the holidays, there will be opportunities to get together with young adults in your family. Why not impart some sage advice – in fact, not just once, but as often as possible.

Your Advice

Start saving now in a Roth IRA. Fund your 401(k) at work as soon as you become eligible; contribute each payroll period without stopping until you retire; maximize your match. Choose investments based on long-term capital appreciation potential. Take advantage of the math of compounding. And, if a parent or family member is willing to match your savings, go for it.

Survey Question

After reading this post, what is the likelihood that you will make a Roth matching proposal with your child, grandchild, niece or nephew? I’d like to know what you think. Click here to take a quick survey.

Look for my next post on what happens when someone in Steve’s position starts contributing to his 401(k) at work.

Follow me on Twitter or LinkedIn. Check out my website.

Julie Jason, JD, LLM

I got my start on Wall Street as a lawyer before moving to money management more than 25 years ago. My firm, Jackson, Grant Investment Advisers, Inc. (www.jacksongrant.us) of Stamford, CT, is a fiduciary high-net-worth boutique specializing in managing retirement portfolios. I approach investing with a blend of optimism (everyone can do something to improve their financial situations) and a dose of healthy skepticism (don’t invest unless you understand what can go wrong). These themes describe my “voice” whether on-air (NBC Nightly News, CNBC, NPR) or presenting (AARP, AAII, BetterInvesting) or in print. I began writing in earnest in 1996 (You and Your 401(k), an investor’s view of 401(k)s). Recent books are: Retire Securely (2018), offering concise action-oriented insights for retirees, pre-retirees and Millennials (Excellence in Financial Literacy Award “EIFLE”); The Retirement Survival Guide (2009/2017), a comprehensive tool chest for all financial levels and ages (EIFLE Award); and Managing Retirement Wealth (2011/2017), a guide for high net worth individuals (EIFLE Award). I’ve written over 1,000 weekly columns (Clarion Award, syndicated by King Features). When the time is right, I comment on SEC rule proposals.

Source: Don’t Give Your Kids An Inheritance, Give This Instead

Financial Education

372K subscribers

This is Stock Market For Beginners 2019 edition video! This video should help out all beginners in the stock market who want to know how to invest in the stock market in 2019. I try to do a stock market for beginners video each year and this is the 2019 edition. We will discuss how to buy stocks, where to buy stocks, how much money do you need to buy stocks, how to invest in the stock market, what is the best brokerage for buying stocks and so much more. I hope you get a tremendous amount of value out of this stock market for beginners video today. Enjoy! Learn How I pick Stocks in this course linked below. Enjoy! https://bit.ly/2DT5ER9 Learn How To Make Money From Trading Stock Options Here https://bit.ly/2QaHSX6 To join my private stock group click below. https://bit.ly/2OSUMDS * My Instagram is : FinancialEducationJeremy Financial Education Channel Sign Up to Get The Top 5 Investing Apps I Use And How I Use Them http://bit.ly/jeremystop5

Category

Education

The Long-Term Argument for Buying Uber and Lyft Can be Summed Up in One Word

marketingscoopsLeave a Comment

The long-term potential of Uber (UBER) – Get Report and Lyft (LYFT) – Get Report — and one main reason to buy their stocks — can be encapsulated in just one word.

“It is all about liquidity for Uber and Lyft,” analyst Pierre Ferragu told TheStreet. Ferragu follows Uber for New Street Research and rates its shares a Buy with a $50 price target; he does not formally cover Lyft. Both stocks are currently in the doldrums since they first went public this past spring, with Uber shares down 31% at a recent price of $28.65, and Lyft is down 43% at $44.87.

But Ferragu sees Uber reaching profitability in a couple of years’ time, while continuing to grow revenue at double-digit rates, as it settles into a comfortable duopoly with Lyft that proves difficult for other companies to break into.

Uber’s ability to efficiently make more rides available in the markets it enters is a “game changer,” according to Ferragu. The crux of his argument is the difference between fixed capacity and flexibility capacity in a market.

In 2012, the year Uber started operating, there were 1.5 billion rides annually in the U.S. by taxi services, Ferragu noted. That total had only risen about 3% each year over a decade. The reason there wasn’t much growth in taxi rides was because of fixed capacity. As a city added more cabbies to serve more customers, fares for rides had to rise in order to make sure each cabbie still earned enough, since each cabbie was now splitting the market with more competitors.

Rising fares discouraged passengers, so the system reached a kind of equilibrium at some point, with little growth in ridership.

Rather than managing a fixed number of drivers, however, Uber and Lyft can automatically adjust the number of drivers based on demand – i.e., they can manage liquidity. “Liquidity means that at any point in time, at any place in the city, they can influence the number of cars available and riders available,” Ferragu said. By optimizing supply in that way, Uber and Lyft can keep fares competitive and thereby encourage more and more ridership.

The number of paid rides has now risen to 5 billion annually in the U.S, with ride sharing taking over 85% of the market, according to Ferragu. “When you have a new technology that increases the market three-fold in six years, that is technology that is creating a lot of value,” Ferragu said.

That value will endure, Ferragu believes, because new entrants will find it difficult to compete with the Uber-Lyft duopoly. “If you arrive after the number one and number two are established in a market, you cannot achieve the same liquidity as them,” said Ferragu. In other words, the economics of Uber and Lyft become so efficient, given their scale, that any new entrant is at a disadvantage, and so they won’t get startup capital to compete.

The remaining question, however, is whether Uber can make a profit. It is projected to lose $2.85 billion this year on an Ebitda basis (earnings before interest, taxes, depreciation and amortization), on revenue of $14 billion. The company has told Wall Street that it will be profitable for the full year 2021.

“We just still struggle to get comfortable with visibility of the financials,” Tom White of D.A. Davidson, who has a Neutral rating on Uber stock, told TheStreet. The average estimate for Ebitda in 2021 is still negative, he noted, evidence that “the market doesn’t entirely believe” the company’s promise to become profitable at that time.

As for valuation, Uber trades at a multiple of just three times its sales, based on its enterprise value, notes White. “A lot of people would look at that and say, that’s pretty compelling already,” he said. “The only thing that’s different is, the magnitude of the losses they are incurring is so large, in absolute dollar terms, that [it] gives pause.”

Another concern is that to reach profit more quickly, Uber will have to spend less money on investments in its “Uber Eats” initiative for meal delivery, as well as on its development of autonomous vehicle technology and expansion into new global markets.

“To get profitable faster they are going to invest in fewer markets,” said Ferragu. “They are going to exit the markets where they are the less-well-positioned.”

And no one knows exactly what that trade-off of growth for profit will look like. “That accelerated time frame [to get to profitability] raises questions,” White said. “What does it mean for the size of the core business, or the likelihood that some of their longer term bets, like autonomous freight, and such might be starved of capital they could otherwise have used?”

Uber trades at about 0.4 times its projected “bookings” this year of $65 billion, which is the total dollar value of rides it enables. With improving profitability, the stock can see that multiple expand much the way Amazon’s multiple expanded in the 2000s as it became profitable, Ferragu argued.

“If [Uber is] growing revenue, say, 20% per year, and they are becoming profitable, you could see that multiple expand to 0.9,” said Ferragu. “That could double the stock.”

By: Tiernan Ray Dec 6, 2019 11:54 AM EST

Source: The Long-Term Argument for Buying Uber and Lyft Can be Summed Up in One Word

The Apptrepreneur

16.4K subscribers

Check out our sponsors website, Gig Worker: https://forum.GigWorker.com Jalopnik article: https://jalopnik.com/the-legal-argume… ►Get free money just from buying gas! Download GetUpside to start making an average of $50 a day: https://upside.app.link/5TMVT ►PATREON: https://www.patreon.com/KevinTRod ►PAYPAL: paypal.me/apptrepreneur ►LYFT REFERRAL CODE: https://www.lyft.com/drivers/KEVIN599168 ►TRYP SIGN-UP : http://signin.tryprides.com?re=trypke… ►SHIPT REFERRAL CODE: https://mbsy.co/shipt/43727979 ►BOUNCE REFERRAL CODE: http://app.joinbounce.com/referral/re… ►POSTMATES REFERRAL CODE: FL-r5jf (https://pmfleet.app.link/Qxd1H2DbyK ) ►CARGO: https://app.getcargo.today/referred_b… ►Want to invest in stocks commission free? Use Robinhood! Sign up through this link to get a free stock: https://share.robinhood.com/kevin1823 ►Want to start investing in a 401k, Roth IRA, and get stock back with a completely digital bank? Try out Stash! Sign up using this link to get a free gift: https://get.stashinvest.com/kevinvptk5 ►Cancelling MoviePass? Give SINEMIA a try and get $5: https://www.sinemia.com/R/Y8R89L ►TWITCH CHANNEL: https://go.twitch.tv/kevintrod ►The Apptrepreneur VLOG’s: https://www.youtube.com/channel/UCU0W… ►Kevin T. Rodriguez (Main Channel): https://www.youtube.com/user/KevinTRod ►Autograph Hound: https://www.youtube.com/channel/UCNKy… Website: http://www.icritic.net E-Mail: greatmediauniverse@gmail.com Facebook: https://www.facebook.com/groups/96720… Instagram: https://www.instagram.com/theapptrepr… Minds: https://www.minds.com/KevinTRod Pinterest: https://www.pinterest.com/kevintrod/p… Twitter: https://twitter.com/KevinTRod My Amazon Wish List: https://www.amazon.com/registry/wishl… My Criterion Wish List: https://www.criterion.com/wishlist/39… If you would like to send me snail mail, please send all (legal) packages to: Apptrepreneur PO Box 2130 Huntington Beach, CA 92647 All view are protected by the First Amendment and all images and video clips used are protected under Fair Use.

Category

Education

Stocks Rise On Solid Economic Data, Despite Looming China Tariff Deadline

marketingscoopsLeave a Comment

Topline: Wall Street is rallying on the back of solid economic data, with Friday’s blockbuster jobs report showing that the labor market is still a bright spot for the U.S. economy, which could help the stock market finish off the year strong despite ongoing uncertainty over the looming China tariff deadline on December 15.

The S&P 500 is up more than 1% while the Dow Jones Industrial Average has risen 1.24% so far on Friday, a rally which helped both indexes recover losses from earlier this week, when markets struggled with mixed signals on U.S.-China trade.
The Labor Department’s November jobs report showed that the U.S. labor market grew at its best rate since January, adding 266,000 jobs, easily beating the 187,000 expected by Wall Street and suggesting that the economy’s momentum can continue into next year.
Stocks also surged on news that the unemployment rate ticked down to 3.5% from 3.6%, which matches the lowest level since 1969.
As the Federal Reserve prepares to meet again next week, strategists see November’s strong jobs report making another interest rate cut less likely (the Fed has cut rates three times so far this year), according to CNBC.
Despite solid job growth and steady consumer spending dampening recession fears, the big remaining variable is the looming tariff deadline, with the Trump administration poised to tax another $156 billion of Chinese goods on December 15.
If Trump imposes tariffs, which China has asked to be canceled as part of a phase one trade deal, that could cause tensions to escalate and threaten the stock market’s year-end run.

Crucial quotes: “Markets are fairly confident we will see President Trump pass on the December 15 tariff threat,” says Edward Moya, senior market analyst at Oanda.

“If China tariffs go into place on December 15, we’ll see some real volatility and it won’t be as cheerful holiday season,” predicts Mark Freeman, chief investment officer at Socorro Asset Management. “If Trump holds off on tariffs, we’ll see the stock market’s positive momentum carry into year-end.”

Key background: November’s blockbuster jobs report comes amid a challenging year for the U.S. economy, with a slowdown in global economic growth and the ongoing U.S.-China trade war weighing on Wall Street investors. But recession fears have been on the back-burner recently, as the stock market reached several new highs, and other economic indicators, like consumer spending, remain solid.

Earlier this week, however, trade tensions appeared to escalate—especially after Trump signed into law a bill supporting pro-democracy protests in Hong Kong, which caused China to retaliate by sanctioning several U.S.-based NGOs. Trump’s approval of the Hong Kong legislation notably “stalled” trade negotiations, according to Axios, which reported that Trump is expected to hold off on his planned December tariffs to keep a phase one deal alive.

Chinese officials have indicated that for a deal to be signed, the U.S. must also remove existing tariffs—and not just halt those planned to take effect on December 15, according to the Global Times. Trump later said on Thursday that the two countries were making progress with a phase one deal, and on Friday, China extended an olive branch by announcing that it would waive tariffs on some U.S. soybeans and pork imports.

What to watch for: Whether or not the president imposes additional tariffs on Chinese goods, starting on December 15, could make or break the stock market’s year-end rally.

Follow me on Twitter or LinkedIn. Send me a secure tip.

Sergei Klebnikov

Source: Stocks Rise On Solid Economic Data, Despite Looming China Tariff Deadline

CNBC Television

312K subscribers

CNBC’s Bob Pisani looks ahead at the day’s market action.

Category

News & Politics

Apple, Google, Nike And Other Big Stocks Just Hit All-Time Highs. Here’s Why

marketingscoopsLeave a Comment

Topline: Wall Street cheered the release of November’s blockbuster jobs report on Friday, helping the market recover its trade-war-related losses from earlier in the week and putting a number of major stocks at new all-time highs.

Here are the major companies hitting new records:

Technology giant Apple hit a new record stock price on Friday, currently near $270 per share, after Citigroup boosted the company’s upside price target by 20% yesterday, predicting blockbuster holiday sales for products like Airpods and the Apple Watch.
Another of the big four tech companies, Google, also reached a new all-time high, trading near $1,342 per share. The company’s stock went higher after cofounders Larry Page and Sergey Brin stepped down from their leadership roles earlier this week, giving Google CEO Sundar Pichai the top job at parent company Alphabet.
Big financial services companies hit new record prices too, boosted by Wall Street’s big rally on Friday: JPMorgan Chase shares passed the $135 mark, just a few months after a third-quarter earnings report that saw record revenue, while U.S. Bancorp, one of Warren Buffett’s biggest holdings, traded above $60 per share.
Upscale furniture chain Restoration Hardware, which recently got a $206 million investment from Warren Buffett, achieved new highs of around $242 per share, following a successful third-quarter earnings beat that exceeded Wall Street expectations.
Shares of yoga pants maker Lululemon Athletica, which has led the popular athleisure apparel trend in recent years, hit a new record high of more than $232 per share on Friday. Lululemon’s stock continued a surging run this year (up more than 85% so far in 2019), as the retailer looks to expand into areas like menswear, e-commerce and international sales.
Nike, the world’s most dominant athletic footwear and apparel brand, also hit an all-time high price on Friday. The stock traded above $97 per share, thanks to a recent price target upgrade from Goldman Sachs analysts, who see a 20% upside as the retailer continues to be wildly popular with consumers and expands into growing markets like China.

Key background: Despite ongoing trade uncertainty, the stock market ended the first week of December back near record highs. Solid economic data, namely a blockbuster November jobs report that far exceeded analyst expectations, drove the big Wall Street rally on Friday. Recession fears have cooled recently, as economic indicators like consumer spending and holiday sales remain solid as well.

Crucial quote: “A killer jobs report put to rest concerns that the U.S. economy was starting to show signs of slowing down,” says Edward Moya, senior market analyst at Oanda.

Today In: Money

What to watch for: Trade news—it’s anyone’s guess at this point, with the crucial December 15 deadline for additional U.S. tariffs on $156 billion worth of Chinese goods fast approaching. If Trump imposes tariffs, which China has asked to be canceled as part of a phase one trade deal, that could heat up tensions and threaten the stock market’s year-end run.

The Trump administration has spent months going back and forth with China on trade negotiations, with tensions constantly escalating and de-escalating. With both sides yet to sign a phase one trade deal, Trump’s recent approval of U.S. legislation on Hong Kong further “stalled” trade progress, according to Axios. That could make it more likely that Trump will hold off on planned December tariffs to keep the deal alive.

Follow me on Twitter or LinkedIn. Send me a secure tip.

Sergei Klebnikov

Source: Apple, Google, Nike And Other Big Stocks Just Hit All-Time Highs. Here’s Why.

CNBC Television

312K subscribers

Apple is getting a vote of confidence from Raymond James as it raised its price target to $280 from $250 per share. In response, shares of the tech giant hit a new all-time high and could add more gains by the end of the year.

Category

News & Politics

US Futures Higher Ahead of November’s Jobs Report

marketingscoopsLeave a Comment

At around 02:15 a.m. ET, Dow futures rose 55 points, indicating a positive open of more than 56 points.

Futures on the S&P and Nasdaq were both slightly higher.

On the data front, the Labor Department will release nonfarm payrolls for November at 8:30 a.m. ET.

At around 02:15 a.m. ET, Dow futures rose 55 points, indicating a positive open of more than 56 points. Futures on the S&P and Nasdaq were both slightly higher.

Market focus is largely attuned to global trade developments, following an upbeat tone from Donald Trump.

On Thursday, Trump said the world’s two largest economies were inching closer to a trade deal. His comments come as investors continue to closely monitor the prospect of a so-called “phase one” trade agreement, with less than 10 days to go before Washington is poised to impose even more tariffs on Chinese goods.

Dec. 15 is the date when tariffs on another $156 billion in Chinese goods will go into effect.

The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Nonfarm payrolls

On the data front, the Labor Department will release nonfarm payrolls for November at 8:30 a.m. ET.

The eagerly-anticipated figures are expected to show strong job growth last month, reflecting a temporary boost from returning General Motors autoworkers. Economists polled by Dow Jones are expecting 187,000 jobs added in November — one of the highest estimates this year ahead of a jobs report.

Unemployment rate data and average hourly wages for November will both be released at the same time.

Consumer sentiment for December, wholesale trade figures for October and the latest reading of consumer credit will all follow slightly later in the session.

In corporate news, Big Lots will publish its latest quarterly figures before the opening bell.

By: Sam Meredith

Source: http://www.msn.com/en-us/money/markets/us-futures-higher

FreeOptionTrader.com

11K subscribers

http://www.StockMarketFunding.com Stock Futures Gain Ahead of Key November Jobs Report (VIDEO). Stock index futures pointed to a sharply higher open for equities on Wall Street on Friday ahead of the government’s November employment report, which is expected to set the tone for the month of December. The knee jerk reaction on the jobs report was initially positive and the (SPY) was able to hange on to the majority of the gains it had in pre-market before the report. A few minutes after the trading report the SPY was trading at $126.45. After the markets had some time to digest the number, the SPY gave up $.20. Stocks are set to rise on the opening bell and we’ll be closely monitoring the today’s price action and trading ranges. Stocks Gapping Up List PCLN GOOG AAPL AGQ SINA TQQQ SI WYNN WLT BIDU AMZN CF ERX PVH CMI GS APA JOYG LULU NTES GOLD GPOR GLD GMCR FFIV SOHU CVX MA DE DECK WHR TZOO RIO MOS CAT SOXL SLB CLF WLL APH Stocks Gapping Down List TVIX SOXS FAZ VXX BIG INFY RIMM EDZ TLT ERY AVGO Please like, share, subscribe & comment! “Stock Market Google +1” http://gplus.to/StockMarket Video RSS Feed http://feeds.feedburner.com/traderedu… Free Trial Signup http://onlinetradinginvesting.eventbr… Trading Community (Free to Join) http://www.DailyStockCharts.com Follow us on Facebook: http://www.facebook.com/OnlineTrading… Tags “stock market” “smf street” “smf analysis” technical analysis” “stocks trading” “technical analysis stock market” “the stock market” “options trading videos” “technical analysis” “stock market live” “dow analysis” “stock market trading education” “technical analysis stocks” “market analysis” “stock charts” “stock analysis” “stock chart” “chart analysis” “stock technical analysis” “stock market analysis” stocks trading stock market markets “stock markets” “stock market news” “financial news” “trader education” “trading education” “stock options” “Day Trading” “Stock Market” “Learn How to Trade Stocks” “Online Trading” “Online Stock Trading” “Trading Education” “Trader Education” “Stock Trade” “Trading Stocks” “Swing Trading” “Learn To Trade” “Free Stock Market Education” “Online Stock Trading Training” “Stock Trading Course” “Stock Day Trading Strategies” “Stock Trading Strategies” “Day Trading Strategies” “Stocks Education” Stock Trading Analysis Online Stock Trading market stocks finance economy news tutorial investment technical options futures stocks Stock Report Video Market Trading Forex Business November “Futures Contract” Analysis Finance Economy News Technical Trade Investment Options Markets “jobs report” “November jobs” “stock futures” “Stock Market” SPY DIA QQQ Nasdaq NYSE Market

Category

News & Politics

20 Stocks That Could Double Your Money in 2020

marketingscoopsLeave a Comment

It might be hard to believe, but in just seven weeks we’ll be saying our goodbyes to 2019. Although investors have endured a couple of short-lived rough patches, it’s been an exceptionally strong year for the stock market. The broad-based S&P 500 is up 23%, the iconic Dow Jones Industrial Average has gained 18%, and the tech-heavy Nasdaq Composite has returned almost 27%.

How good are these returns? Well, let’s just say that the S&P 500, inclusive of dividends and when adjusted for inflation, has historically returned 7% annually, with the Dow closer to 5.7% a year, on average, over its 123-year history.

And it’s not just these indexes that stand out. Of companies with a market cap of $300 million or larger, 124 have gained at least 100% year to date, through Nov. 5. Just because the calendar is about to change over to a new year doesn’t mean this optimism can’t carry over.

If you’re looking for a number of intriguing investment ideas for next year, consider these 20 stocks as possible candidates to double your money in 2020.

1. Innovative Industrial Properties

Yes, cannabis real estate investment trusts (REIT) are a real thing, and they can be quite lucrative! Innovative Industrial Properties (NYSE:IIPR), the best-known marijuana REIT on Wall Street, is already profitable and growing at a lightning-quick pace. After beginning 2019 with 11 medical marijuana-growing and processing properties in its portfolio, it now owns 38 properties in 13 states that span 2.8 million square feet of rentable space.

The beauty of Innovative industrial Properties’ business model is that it creates highly predictable cash flow. The company’s weighted-average remaining lease term is 15.6 years, and its average current yield on its $403.3 million in invested capital is a cool 13.8%. At this rate, it’ll net a complete payback on its invested capital in just over five years.

As long as marijuana remains illicit at the federal level in the U.S., access to capital will be dicey for cannabis cultivators. That makes Innovative Industrial’s acquisition-and-lease model a veritable green rush gold mine for 2020.

A user pinning interests to a virtual board while using a tablet.

Image source: Pinterest.

2. Pinterest

If you missed out on the Facebook IPO and have been kicking yourself for the past seven years, don’t fret. Social media photo-sharing site Pinterest (NYSE:PINS), which allows users to create their own virtual boards based on their interests, could be your second chance to profit.

Like most brand-name social media sites, Pinterest has seen exceptionally strong user growth. Monthly active user (MAU) count rose to 322 million by the end of September, up 71 million from the prior-year period. What’s most notable about this growth is that it’s mostly coming from international markets (38% MAU growth vs. 8% in the U.S.). Even though ad-based revenue is minimal in foreign markets, it nevertheless demonstrates that Pinterest has global appeal.

The company is also making serious strides to monetize these users by boosting average revenue per user (ARPU) globally. In recent quarters, Pinterest has simplified its ad system for smaller businesses, focused its efforts on boosting ARPU in overseas markets, and pushed for video, which has a much higher repost rate than static images. These efforts appear to be paying early dividends, with international ARPU more the doubling to $0.13 from $0.06 over the past year.

With Pinterest forecast to push into recurring profitability next year, a doubling of its stock is certainly not out of the question.

A biotech lab researcher using multiple pipettes to fill test tubes.

Image source: Getty Images.

3. Intercept Pharmaceuticals

Never overlook a first-mover advantage — especially when it pertains to a $35 billion indication!

Nonalcoholic steatohepatitis (NASH) is a liver disease that affects between 2% and 5% of all U.S. adults, has no cure or Food and Drug Administration (FDA)-approved treatments, and is expected to be the leading cause of liver transplants by the midpoint of the next decade. And according to Wall Street, it’s a $35 billion untapped disease.

In late September, Intercept Pharmaceuticals (NASDAQ:ICPT) submitted a new drug application for Ocaliva, a treatment for NASH. While the high dose of Ocaliva did lead to an unsettling number of pruritus (itching)-based dropouts in late-stage studies, it also produced a statistically significant reduction in liver fibrosis levels, relative to baseline and the placebo, without a worsening in NASH at the 18-month mark. Even if Intercept’s Ocaliva only secures a small subset of the NASH market, it has the potential, if approved by the FDA, to quickly earn blockbuster status of $1 billion or more in annual sales. Suffice it to say that 2020 could be a banner year for this midcap biotech stock.

A Redfin for sale sign on the front lawn of a home, with a black sold sign attached.

Image source: Redfin.

4. Redfin

With interest rates and mortgage rates on the rise throughout much of 2018, it looked as if the fun had come to an end for a hot housing market. But following a trio of Federal Reserve rate cuts and a big drop in Treasury yields, the housing industry is hotter than it’s been in more than a year. That, along with low mortgage rates, could be the perfect recipe for online real estate brokerage company Redfin (NASDAQ:RDFN) to double in 2020.

Unlike some of the companies you’ll see on this list, profitability isn’t a near-term priority for Redfin. Rather, scaling its tech-driven platform and taking real estate service market share are its primary goals. One way Redfin is doing this is by undercutting traditional real estate agents with its salaried agents. With a listing fee of just 1%, Redfin cuts out costs that generally irritate buyers and sellers.

More so, Redfin is looking to infiltrate the high-margin servicing business to make the buying and selling experience less of a hassle. It’s expanding nationally and consolidating tasks, such as title, appraisal, and home inspection, into a single package that consumers can designate the company to handle, thereby removing a key buying or selling objection. Perhaps it’s no surprise that this real estate disruptor grew sales by 39% in the second quarter and saw its market share rise 11 basis points to 0.94% of U.S. existing home sales from Q1 2019.

Two smiling young women texting on their smartphones.

Image source: Getty Images.

5. Meet Group

The online dating industry is worth, by some accounts, $3 billion in annual revenue, and Meet Group (NASDAQ:MEET), which specializes in livestreaming and social media interaction (including online dating), is a company that growth and value investors should be swiping right on.

Whereas most of the tech world focuses on bigger names with broader brand recognition, Meet Group’s mobile portfolio of apps, which includes MeetMe, Lovoo, Skout, Tagged, and Growl, has done an admirable job of growing the business. More specifically, the company’s laser focus on bolstering its video business is really paying dividends. During the second quarter, daily active video users increased to 892,000, representing 21% of total users where Live is available on their app. This is important given that video revenue per daily active user grew to $0.26 in Q2 2019 from $0.15 in the prior-year quarter.

Furthermore, Meet Group’s big spending on security enhancements is now in the rearview mirror, according to a third-quarter preliminary update. This mobile livestreaming site is growing at a double-digit rate, has a focus on high-margin video, and sports a forward price-to-earnings ratio of eight (yes, eight!). This multiple, and stock, could both easily double and still have room to run.

A prescription drug capsule with a boxing glove coming out of it that's knocking out a cancer cell.

Image source: Getty Images.

6. Exelixis

In all fairness, Exelixis (NASDAQ:EXEL) has had an incredible run on the coattails of lead drug Cabometyx. Following its approval to treat second-line renal cell carcinoma (RCC), and first-line RCC, the company’s share price rose from $4 to $32 between Jan. 2016 and Jan. 2018. Now, back at $16, Wall Street is wondering, what’s next?

In the early months of 2020, Exelixis and partner Bristol-Myers Squibb may have that answer. The duo are expected to reveal results from the CheckMate 9ER late-stage trial that combines Cabometyx with Bristol-Myers’ blockbuster immunotherapy Opdivo, which also happens to be an RCC rival. If this combination therapy dazzles, the duo could snag an even greater share of the RCC market, further boosting Cabometyx’s case as a blockbuster drug.

Investors should also know that Exelixis offers a rare value proposition in the highly competitive and often money-losing biotech space. This is a company offering double-digit sales growth, a forward P/E of 16, and a PEG ratio of a minuscule 0.36. With patent cliffs remaining challenging for Big Pharma, Exelixis, in addition to potentially notching a win with CheckMate 9ER, might find itself as a buyout candidate in 2020.

A person inserting a credit card into a reader in a retail store.

Image source: Getty Images.

7. StoneCo

Although Warren Buffett is best known for buying value stocks, the fastest-growing stock in Buffett’s portfolio (at least from a revenue perspective), StoneCo (NASDAQ:STNE), could be primed to double in 2020.

StoneCo isn’t exactly a household name, but this $10 billion payment solutions and business management software developer is finding plenty of interest for its fintech offerings in Brazil. During the second quarter, which StoneCo reported in mid-August, the company saw total payment volume for its merchants rise 61% year over year, while active clients increased 80% to 360,200 from the prior-year period. Since Brazil remains largely underbanked, there’s a long-tail opportunity for StoneCo to make its mark with small-and-medium-sized businesses in the country.

StoneCo is also investing heavily into its software subscription model. On a sequential quarterly basis, subscribed clients more than doubled to approximately 70,000 in Q2 from 32,000 in Q1 2019. While StoneCo won’t appear cheap in 2020 due to its aggressive reinvestment strategy, its Wall Street-estimated top-line growth rate of 38% may have enough firepower to double this stock.

The facade of the Planet 13 SuperStore in Las Vegas, Nevada.

Image source: Planet 13.

8. Planet 13 Holdings

Although legalizing marijuana across the U.S. would make life easier for vertically integrated multistate operators (MSO), it’s not exactly a problem for Planet 13 Holdings (OTC:PLNHF), which approaches its seed-to-sale model a bit differently than other MSOs.

Planet 13 is all about creating the most unique experience imaginable for cannabis consumers. The company’s SuperStore in Las Vegas, Nevada, just west of the Strip, spans 112,000 square feet and will feature a pizzeria, coffee shop, events center, and consumer-facing processing site. At 112,000 square feet, it’s the largest dispensary in the U.S., and is actually 7,000 square feet bigger than the average Walmart. The company is also developing a second location that’ll open next year in Santa Ana, Calif., just minutes from Disneyland.

Aside from its sheer size and selection, Planet 13’s transparency and technology stand out. The company is utilizing self-pay kiosks in its stores to facilitate the payment process, and provides monthly updates on foot traffic and average paying ticket size for investors. Maybe most striking, Planet 13 has about 10% of Nevada’s entire cannabis market share. It could have its investors seeing green in 2020.

An up-close view of a shiny one ounce silver ingot.

Image source: Getty Images.

9. First Majestic Silver

Precious-metal mining isn’t exactly known as a high-growth industry. However, following years of conservative spending, and after witnessing gold and silver spot prices soar in 2019, miners like First Majestic Silver (NYSE:AG) are suddenly sitting pretty.

Even before gold and silver moved higher by a double-digit percentage in response to falling U.S. Treasury yields, First Majestic was making waves. In May 2018, it closed a deal to acquire Primero Mining and its flagship San Dimas mine. Between incorporating the low-cost San Dimas into its portfolio, and looking at ways to bolster its existing assets (e.g., modifying the roasting circuit at its La Encantada mine to add up to 1.5 million ounces of silver production per year), First Majestic has seen its silver equivalent ounce (SEO) production grow from 16.2 million ounces in 2017 to perhaps north of 26 million SEO in 2019.

First Majestic should also benefit from a return to historic norms in the gold-to-silver ratio (i.e., the amount of silver it takes to buy one ounce of gold). Historically, the gold-to-silver ratio has hovered around 65, but is currently at closer to 84. This would suggest silver has the potential to outperform gold in the intermediate-term; and no mining company has greater exposure to silver as a percentage of total revenue than First Majestic Silver.

A veterinarian with a stethoscope around her neck examining a small white dog.

Image source: Getty Images.

10. Trupanion

According to the American Pet Products Association, an estimated $75.4 billion will be spent on our pets in 2019, with $19 billion alone on veterinary care. Given that 63.4 million U.S. households have a dog, and 42.7 million have a cat, the opportunity for the pet insurance market is huge. That’s where Trupanion (NASDAQ:TRUP) comes in.

Trupanion is a provider of lifelong insurance policies for cats and dogs. Like any insurance company, Trupanion is built for long-term profitability. Most insurers offer predictable cash flow and have exceptional pricing power, which is a necessity if they’re to cover claims. But Trupanion is going where few insurers have gone before. U.S. and Canadian pet insurance market penetration is just 1% and 2%, respectively, which is providing some learning curve bumps along the way, but also giving Trupanion an incredibly long runway to growth.

Trupanion is currently unprofitable, but it appears close to turning the corner to profitability. Sales grew by 26% in the second quarter, and are expected to romp higher by 20% in 2020, according to Wall Street. If the company continues to find success with referrals, it’s very possible it could surprise in the earnings column next year.

A hacker wearing black gloves who's typing on a keyboard.

Image source: Getty Images.

11. Ping Identity

What do you get when you combine some of the hottest tech trends into one company? None other than identity solutions provider Ping Identity (NYSE:PING), which recently IPO’d in September.

While there are plenty of cybersecurity providers, Ping’s uniqueness derives from its use of artificial intelligence and machine learning to attempt to identify users and computers as trusted. Being able to operate within the confines of traditional enterprise networks, or being tasked with securing cloud networks, Ping offers an assortment of products that should be able to meet the needs of small, medium, and large-scale businesses. Not surprisingly, it should be capable of double-digit sales growth in the near-term, like its peers.

What also can’t be overlooked in the fast-growing security space is that Ping’s valuation is a modest $1.3 billion. After being acquired by private equity firm Vista Equity for $600 million in 2016, Ping delivered a doubling of that value in three years, following its IPO. This demonstrates the potential of focused individual security, and makes it all the more likely that Ping Identity could be quickly scooped up by a larger rival.

A woman checking her blood glucose readings on a connected device.

Image source: Livongo Health.

12. Livongo Health

As you’ve probably caught on by now, this list of stocks that could double in 2020 is full of disruptors, and Livongo Health (NASDAQ:LVGO) certainly fits the bill.

Livongo is a developer of solutions that helps people change their health habits. By supplying testing kits that connect to smartphones, and utilizing data science, Livongo works to change the behavior of diabetics, and can also be used to assist patients with hypertension. Given that over 30 million people have diabetes (most being type 2 diabetics), and a number of these folks could use some serious help managing their symptoms, Livongo Health’s products are exactly the disruptor needed in this space.

According to the company’s second-quarter results, the number of clients in Livongo’s ecosystem nearly doubled on a year-over-year basis to 720, while the number of enrolled diabetes members did more than double to 192,934. More importantly, Livongo’s triple-digit sales growth rate cannot be overlooked. While profits are highly unlikely in 2020, a year of market-topping revenue growth is very possible.

An assortment of couch sectionals pushed together in a living room.

Image source: Lovesac.

13. Lovesac

When the calendar changes to 2020, relax, put your feet up, and let small-cap Lovesac (NASDAQ:LOVE) do the heavy lifting for your portfolio.

Lovesac, the home furnishings company that sells beanbag chairs, sectional couches, and a host of other in-home decorations, has struggled in 2019 amid trade-war concerns. It’s been hit hard by higher tariff costs, and that’s clearly brought investor worry to the forefront.

However, a quick look at Lovesac’s second-quarter operating results should relieve most worries. By passing along modest price hikes to consumers, as well as reducing its reliance on China from 75% to 44% of its manufacturing, the company has, in a very short time frame, reduced the impact of the trade war going forward.

What’s more, these price hikes don’t appear to be adversely impacting the company’s fast-growing and niche furnishings business. Lovesac reiterated full-year sales growth of 40% to 45%, with comparable store sales growth coming in at 40.7% in the second quarter, and noted that new customers and repeat clients are driving growth. Although profitability is still probably two years away, sales growth of at least 40%, with a price-to-sales ratio of right around 1, could be more than enough to send this stock rocketing higher.

A lab researcher in a white coat holding a vial of blood in his left hand while reading from a blue clipboard in his right hand.

Image source: Getty Images.

14. Amarin

The biotech industry is always a good bet for a volatility, and Ireland-based Amarin (NASDAQ:AMRN) might have a real shot to grow from a midcap to a large-cap valuation in 2020 thanks to its lead drug, Vasecpa.

Vascepa, a purified fish oil derivative, was approved by the FDA all the way back in 2012 to treat patients with severe hypertriglyceridemia (SHTG). But it’s not Vascepa’s potential in treating SHTG patients that’s got Wall Street excited. Rather, it’s a supplemental new drug application stemming from a five-year Harvard study in 8,179 people with milder (but still high) triglyceride levels. The results showed that Vascepa lowered the aggregate risk of heart attack, stroke, and death in these patients by 25%. In other words, if Vascepa were to be approved for an expanded label indication to reduce the risk of major adverse cardiovascular events, its potential pool of patients could grow tenfold, as would its sales potential.

Later this month, on Nov. 14, an AdCom meeting will take place to discuss Amarin’s marketing application for Vascepa, as well as to vote on whether or not the members of the committee favor approval. By January 2020, at the latest, Amarin should have the FDA’s official decision on Vascepa (the FDA isn’t required to follow the AdCom’s vote, but it often does). If I were a betting man, I’d count on positive reviews all around.

A large city canvased by blue dots, representative of a wirelessly connected society.

Image source: Getty Images.

15. CalAmp

In Aug. 2018, Bain & Co. predicted that the Internet of Things global market would more than double from $235 billion in spending to $520 billion in just four years’ time (between 2017 and 2021). That global opportunity is too lucrative to overlook for small-cap CalAmp (NASDAQ:CAMP).

CalAmp, which provides software and subscription-based services, as well as cloud platforms that support a connected economy, has been hurt in recent quarters by the trade war with China, as well as sales weakness in its Telematics segment that’s been tied to a few core customers. However, CalAmp has reduced its Telematics product sourcing from China to around 50% from 70% to 80% earlier in the year, thereby minimizing the pain it feels from the trade war. Also, a number of customers blamed for its sales slowdown in Telematics (e.g., Caterpillar) are on the cusp of ramping up production as upgrades are made from 3G to 4G.

As Telematics growth picks back up, the company has seen record sales from its software subscription segment. Sales rose 65% year over year in the latest quarter, and now account for a third of total quarterly revenue. In short, the CalAmp growth story is just getting started, and 2020 could feature some very favorable year-on-year comparisons.

A female physician high-fiving a young child sitting on her mother's lap.

Image source: Getty Images.

16. Aimmune Therapeutics

Another biotech stock with a potential first-mover advantage in 2020 is Aimmune Therapeutics (NASDAQ:AIMT).

Aimmune’s lead drug is Palforzia, an oral drug that’s designed to lessen the symptoms associated with peanut allergy in children and teens. There is no FDA drug currently approved to treat peanut allergy in adolescents, and an estimated 4% to 6% of all children in the U.S. have some form of allergy to peanuts.

Now, here’s the great news: Palforzia looked like a star in late-stage clinical trials. Patients aged 4 to 17 were administered increasingly larger doses of peanut protein during the study, and 67.2% taking Palforzia completed the study without needing to discontinue the trial. This compared to a mere 4% on the placebo who completed the trial.

More good news: Palforzia has already been given the thumbs up by the FDA’s Allergenic Products Advisory Committee. Even though the FDA isn’t required to follow the vote of its panel of experts, it does so more often than not. It appears likely that Palforzia will get a green light in January, and it could be on track for more than $470 million in annual sales (by Wall Street’s consensus) by 2022. With other treatments in development for egg and walnut allergies, Aimmune looks well on its way to carving its own niche in the biotech space, and potentially doubling its stock in 2020.

Oil and gas pipeline leading to storage tanks.

Image source: Getty Images.

17. Antero Midstream

Midstream is the unsung hero of the energy infrastructure space. While drillers retrieve fossil fuels and refiners process them, it’s midstream providers that are the essential middlemen providing transmission, storage, and a host of other services that ensure these products make it to refineries for processing. Antero Midstream (NYSE:AM) may be just one of many midstream operators in the U.S., but it also might hold the distinction of being the cheapest and most likely to rebound in 2020.

Antero Midstream acts as the middleman for Antero Resources, a producer of natural gas and natural gas liquids (NGL) operating out of the Marcellus Shale and Utica Shale region in the Appalachia. This region is known for its natural gas and NGL production, which is worth noting given that LNG demand in North America could quadruple between 2018 and 2030, according to estimates from the McKinsey Energy/Insights Global Energy perspective model. This should provide a solid foundation of fee-based revenue for Antero Midstream.

Antero Midstream also recently announced a $300 million share repurchase program, suggesting that its board feels its stock is too cheap. If fully executed, this share buyback would remove about 8% of the company’s outstanding shares, and it shouldn’t impact the company’s jaw-dropping, yet seemingly sustainable, 17% dividend yield. Including this payout, Antero Midstream could very well double next year.

A gloved individual holding a full vial and dropper of cannabinoid-rich liquid in front of a hemp plant.

Image source: Getty Images.

18. MediPharm Labs

Marijuana stocks throughout Canada have suffered through supply issues since day one of adult-use legalization more than one year ago. But one ancillary niche that should be immune to these struggles is extraction services. The company you’ll want to know in this space is MediPharm Labs (OTC:MEDIF).

Extraction-service providers like MediPharm take cannabis and hemp biomass and produce resins, distillates, concentrates, and targeted cannabinoids for their clients. These are all used in the creation of high-margin derivatives, such as edibles and infused beverages, which were just legalized in Canada on Oct. 17, and will hit dispensary shelves in a little over a month. Since derivatives offer much juicier margins than dried cannabis flower, demand for cannabis and hemp extraction services should remain strong.

What’s more, extraction providers like MediPharm often secure contracts ranging from 18-to-36 months, leading to highly predictable cash flow. With MediPharm’s Barrie, Ontario, processing facility eventually on its way to 500,000 kilos of annual processing potential, and the company already profitable, it would not be the least bit surprising if MediPharm doubled in 2020.

A woman opening up a personalized box of clothing.

Image source: Stitch Fix.

19. Stitch Fix

Even high growth stocks can hit a rough patch; just ask the shareholders of online apparel company Stitch Fix (NASDAQ:SFIX). Following poorly received fourth-quarter results and weaker-than-expected sales guidance for the first quarter, Stitch Fix is a lot closer to its 52-week low than 52-week high at this point. However, things could change in a big way in 2020.

For starters, Stitch Fix is a potential retail disruptor that can capitalize on consumers in two ways. First, there’s the subscription side of the business that includes a stylist who picks outfits and accessories out for customers, who then to decide to keep (buy) or return these items. Secondly, but more recently, Stitch Fix has also been finding success with its direct buy program, which allows its members to skip the stylist and purchase highly curated and personalized product directly off its website. The company believes this dual-growth approach will play a key role in revenue growth reacceleration. It’s worth noting that despite its fourth-quarter report being poorly received by Wall Street, active clients grew 18% to 3.2 million from the prior-year period.

Stitch Fix is also planning to expand its offerings to men and children, and would be expected to bolster advertising as these new lines roll out. The company pointed out in its most recent quarter that fiscal first-quarter sales guidance is weaker because it lifted its foot off the gas pedal with regard to advertising. That’s an easy fix that should have Stitch Fix mending its weakness pretty quickly in 2020.

A white prescription generic drug tablet with a dollar sign stamped on it.

Image source: Getty Images.

20. Teva Pharmaceutical Industries

Not every stock that doubles has to be growing at 20%, 30%, or more, per year. Sometimes, it just requires Wall Street and investors to readjust their outlook.

Brand-name and generic drug giant Teva Pharmaceutical Industries (NYSE:TEVA) has had a miserable go of things for nearly four years. A combination of generic-drug pricing weakness, opioid lawsuits, bribery allegations, high debt levels, and the shelving of its once-hefty dividend, have sunk Teva’s stock by almost 90%. But a renaissance of sorts may be on the horizon.

You see, Teva lost more than half of its value in 2019 after 44 U.S. states sued the company, and many of its related peers, over the manufacture and sale of opioids. However, Teva appears to be making progress on these lawsuits by offering free medicine to select states, and, more importantly, not having to outlay much of its precious cash. If these opioid suits are resolved, it’s not crazy to think Teva regains pretty much all of the ground it lost when they were announced.

At the same time, Teva’s turnaround specialist, CEO Kare Schulze, has reduced annual operating expenses by $3 billion and lowered net debt by $8 billion in a couple of years. Teva has the potential to really change some opinions in 2020, and that could lead to a doubling in its share price.

A man in a tie who's holding a stopwatch behind an ascending stack of coins.

Image source: Getty Images.

Don’t forget the most important “secret” to wealth creation

While it’s possible that many, or only a small number, of these 20 companies doubles next year, the important thing for investors to remember is that great ideas often take time to develop. The grandiose secret to wealth creation isn’t going to be found by day-trading or trying to time the market. Rather, it’s discovered by investing in high-quality businesses that you believe in, and allowing your investments to grow for five, 10, or even 20 years, if not longer.

It can be fun to predict next year’s top performers and potentially find yourself a proverbial gold mine, but don’t take your eyes off the horizon, which is where the big money is being made.

10 stocks we like better than Stitch Fix

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Stitch Fix wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 1, 2019

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sean Williams owns shares of Exelixis, First Majestic Silver, Intercept Pharmaceuticals, and Teva Pharmaceutical Industries. The Motley Fool owns shares of and recommends Facebook, Livongo Health Inc, Pinterest, Stitch Fix, and Trupanion. The Motley Fool owns shares of Stoneco LTD. The Motley Fool recommends CalAmp, Exelixis, Innovative Industrial Properties, Intercept Pharmaceuticals, and Redfin. The Motley Fool has a disclosure policy.

This Marijuana Stock Could be Like Buying Amazon for $3.19
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 10 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company…and you need to hear this story today if you have even considered investing in pot stocks.

Simply click here to get the full story now.

Sean Williams

(TMFUltraLong)

Learn more

Source: https://www.fool.com/investing/2019/11/11/20-stocks-that-could-double-your-money-in-2020.aspx

Stock Market Investing

11.7K subscribers

GROWTH STOCKS THAT WILL DOUBLE YOUR MONEY! Stocks that will double your money. Top Stocks To Buy for 2020. Analysts forecast that over the long term Disney could potentially reach 160 Million Subscribers. Even with all those potential customers $7 per subscriber will translate into huge income for Disney. If Disney hit 50 million subscribers, that would generate revenue of between $3 billion and $5 billion in the first full year alone. At 160 million subscribers, we’re talking between $9 billion and $13 billion annually. To put that into perspective, Disney produced $59 billion in fiscal 2018. If Disney were to achieve these estimates, it could increase its revenue by between 5% and 7% in the first year and could eventually boost its top line by between 16% and 22%. Hulu Is Growing Faster Than Netflix The streaming service released some end-of-year numbers. Hulu ended 2018 with over 25 million subscribers. That’s more than 8 million more than last year and a 48% year-over-year increase. That’s better growth than Netflix (NASDAQ:NFLX) on both a relative and absolute basis in the United States. For reference, Netflix added 5.7 million U.S. subscribers in the 12 months ended in September.Is Disney Stock A Buy? DISNEY STOCK 2019| DISNEY STOCK ANALYSIS (Top Growth Stocks 2019). Costco Stock|Disney Stock| Growth Stock Investing 2019. Costco Net sales totaled $138 billion, an increase of 9.7 percent, with a comparable sales increase of 9 percent. Net income for the 52-week fiscal year was $3.134 billion, or $7.09 per share, an increase of 17 percent. Revenue from membership fees increased 10.1 percent to $3.142 billion.In 2018, Costco reached a milestone with 750􏰀􏰁 warehouse locations. Fiscal 2018 expansion included the opening of 21 new warehouses around the globe, the 100th location in Canada. Costco continues adding gas stations and other ancillary services to locations in different countries. In 2019, Costco expects to open 23 new warehouses and relocate up to 4 warehouses to more ideal locations. Growth Stock Investing. Dividend Stock Investing. Undervalued Stocks 2019. Best Stocks 2019. Top Stocks 2019. Stock Market. Stocks. Best Growth Stocks 2019. Best Growth Stocks 2019. Best Growth Stocks to buy 2019. Top Growth stock picks 2019. Best technology stocks to buy 2019. Top investments 2019. Best investments 2019. Best stocks to buy and hold forever. Top stocks to buy 2019. #stocks #stockmarket #investing

Category

Education

Share this:

Like this:

Share this:

Like this:

Share this:

Like this:

Chris Retzler

Neal Rosenberg

Jeffrey James

Joe Dennison

Stephen DeNichilo

Kimberly Scott

Scott Klimo

Tom Slater

Chase Sheridan and Greg Steinmetz

Chris Mack

Category

Share this:

Like this:

Category

Share this:

Like this:

Category

Share this:

Like this:

Category

Share this:

Like this:

Category

Share this:

Like this:

Nonfarm payrolls

Category

Share this:

Like this:

1. Innovative Industrial Properties

2. Pinterest

3. Intercept Pharmaceuticals

4. Redfin

5. Meet Group

6. Exelixis

7. StoneCo

8. Planet 13 Holdings

9. First Majestic Silver

10. Trupanion

11. Ping Identity

12. Livongo Health

13. Lovesac

14. Amarin

15. CalAmp

16. Aimmune Therapeutics

17. Antero Midstream

18. MediPharm Labs

19. Stitch Fix

20. Teva Pharmaceutical Industries

Don’t forget the most important “secret” to wealth creation

10 stocks we like better than Stitch Fix

Category

Share this:

Like this: