Advertisements

Toxic Signs Of A Multifamily Investment

uncaptioned

When investing in multifamily properties, there are other factors outside the cap rate, P&L, rent rolls and cash on cash that you should consider. In fact, the numbers, although highly critical in your analysis, are only a portion of what should dictate the decision to proceed. As you begin your due diligence period, you may want to consider these other potential pitfalls before you seal the deal.

What To Look For

The pulse of a multifamily investment doesn’t always come from what the books are saying. In fact, if you fail to investigate the day-to-day culture of tenants and demeanor of the current property, you could be in for a big surprise.

Unless you have the privilege of being one of the few investors that can walk into a new property and completely clean house and not worry about cash flow, these indicators may be warning signs of a much deeper-rooted problem that may not be worth the investment.

• Excessive wear of interior of units: Normal wear and tear is one thing, but severe deferred maintenance found amongst a higher percentage of units could be a telling sign of trouble. Outside issues found in inspections, walking each unit is by far one of the most effective ways to determine if this is an issue.

• Consistent negative feedback from tenants: The key here is listing any repetitive, serious issues that keep coming up and being able to discern from the minor issues. Talking to tenants is a great resource for information, and you should capitalize on the opportunity while you are walking each unit. Understanding that tenants have no real incentive to speak anything but the truth typically makes the feedback more reliable and genuine.

• High traffic at night: How a property operates at night is another piece of the puzzle you may want to consider when analyzing a multifamily investment. Typically, during the day, people are at work and there is not much activity. A visit at night can give you the insight you may need to see if the safety of the property is adequate or not. Extremely high traffic at night could be a potential indicator of crime, but, more importantly, it can be a deterrent for future tenants.

• The unhappiness of tenants: Are the tenants unhappy or happy? It might seem like a silly question at first; however, the crux of the sustainability and future of the investment can lie within the answer. Do you see more positive feedback than negative? If this answer is no, you may want to find out why and see if the solutions are in line with the budget and the vision of the investment. Solutions to these issues could be as simple as a more secure entry room door or better lighting outside the walkways. However, if it’s due to criminal behavior or domestic issues in the complex, this can help open your eyes to the entire picture and consider factors the numbers fail to disclose.

As investors scream through the numbers, it’s easy to bypass the human side of the transaction. Where the human component of multifamily should be considered just as crucial to the decision, it’s not uncommon to be an afterthought or one of the lower priorities of the analysis. Focusing solely on the bottom line and not taking this factor into consideration is a recipe for disaster.

The damage that a toxic culture in a property can do is much more impactful because it not only affects the individual, it can spread to the entire community. You can fix a leaky sink, a broken heater or clean up the landscaping, but not addressing these issues can take a major strain on the investment if you’re not prepared.

Forbes Real Estate Council is an invitation-only community for executives in the real estate industry. Do I qualify?

Owner and Qualifying Broker at Rhino Realty Property Management and Rhino Realty B&B, entrepreneur, investor, advisor, author and speaker. Read Alex Vasquez’ full executive profile here.

Source: Council Post: Toxic Signs Of A Multifamily Investment

436K subscribers
http://www.biggerpockets.com – The 50% Rule is a great tool for quickly estimating the potential cash flow from a real estate investment. This video will walk you step by step through the math and show you how quickly and easily a cash flow estimate can be – for any size real estate investment.

Advertisements

3 Purchases or Investments You Can Make to Save Money on Your Business Taxes

With a little over one month to go in 2019, small business owners should think about purchases or investments that make good business sense and will give them a break on their taxes.

Owners with available cash and a wish list should consider what equipment they need. Or, do they want to create a retirement plan or make a big contribution to an existing one? If they have home offices, are there repairs or improvements that can be done by Dec. 31? But owners should also remember the advice from tax professionals: Don’t make a decision based on saving on taxes. Any big expenditure should be made because it fits with your ongoing business strategy.

A look at some possible purchases or investments:

Need a PC or SUV?

Small businesses can deduct up-front as much as $1,020,000 in equipment, vehicles and many other types of property under what’s known as the Section 179 deduction. Named for part of the federal tax code, it’s aimed at helping small companies expand by accelerating their tax breaks. Larger businesses have to deduct property expenses under depreciation rules.

There is a wide range of property that can be deducted under Section 179 including computers, furniture, machinery, vehicles and building improvements like roofs and heating, air conditioning and ventilation systems. But to be deducted, the equipment has to be operational, or what the IRS calls in service, by Dec. 31. So a PC that’s up and running or an SUV that’s already in use can be deducted, but if that HVAC system has been ordered but not yet delivered or set up, it can’t be deducted.

It’s OK to buy the equipment and use it but not pay for it by year-end — even if a business buys the property on credit, the full purchase price can be deducted.

You can learn more on the IRS website, www.irs.gov. Search for Form 4562, Depreciation and Amortization, and the instructions for the form.

Home Office Repairs

Owners who run their businesses out of their homes and want to do some repairs, painting or redecorating may be able to get a deduction for the work. If the home office or work space itself is getting a makeover, those costs may be completely deductible. If the whole house is getting a new roof or furnace, then part of the costs can be deducted.

To claim the deduction, an owner can use a formula set by the IRS. The owner determines the percentage of a residence that is exclusively and regularly used for business. That percentage is applied to actual expenses on the home including repairs and renovation and costs such as mortgage or rent, taxes, insurance and maintenance.

There’s an alternate way to claim the deduction — the owner computes the number of square feet dedicated to the business, up to 300 square feet, and multiplies that number by $5 to arrive at the deductible amount. However, repairs or renovations cannot be included in this calculation.

Owners should remember that the home office deduction can only be taken if the office or work area is exclusively used for the business — setting up a desk in a corner of the family room doesn’t quality. And it must be your principal place of business. More information is available on www.irs.gov; search for Publication 587, Business Use of Your Home.

Retirement Plans

Owners actually have more than a month to set up or contribute to an employee retirement plans — while some can still be set up by Dec. 31, plans known as Simplified Employee Pensions, or SEPs, can be set up as late as the filing deadline for the owner’s return. If the owner gets a six-month extension of the April 15 filing deadline, a SEP can be set up as late as Oct. 15, 2020, and still qualify as a deduction for the 2019 tax year.

Similarly, contributions to any employee retirement plan can be made as late as Oct. 15, 2020, as long as the owner obtained an extension. This means owners can decide well into next year how much money they want to contribute, and in turn, how big a deduction they can take for the contribution.

You can learn more at www.irs.gov. Search for Publication 560, Retirement Plans for Small Business.

–The Associated Press

By Joyce M. Rosenberg AP Business Writer

Source: 3 Purchases or Investments You Can Make to Save Money on Your Business Taxes

856K subscribers
FREE COURSE To Start Your Online Business: http://projectlifemastery.com/freecou… In this video, Stefan talks about investing for beginners, and gives advice on how to get started. In particular, he highlights five investment success principles. When Stefan was 18 years old, he read a finance book called, “The Wealthy Barber”, by David Chilton. After reading this book, he realized that the most important thing that he could do was to start investing as soon as possible. The earlier you start investing, the sooner you can make mistakes and learn from them, and you have a higher risk tolerance. Stefan started from nothing, and has been able to build himself up to a millionaire, at 30 years old. Are you ready to invest in your future? It will be one of the best decisions you make! ★☆★ VIEW THE BLOG POST: ★☆★ http://projectlifemastery.com/investi… ★☆★ SUBSCRIBE TO ME ON YOUTUBE: ★☆★ Subscribe ► https://projectlifemastery.com/youtube ★☆★ FOLLOW ME BELOW: ★☆★ Blog ► https://projectlifemastery.com/?utm_m… Twitter ► https://projectlifemastery.com/twitter Twitter ► https://twitter.com/stefanjames23 Facebook ► https://projectlifemastery.com/facebook Facebook ► https://www.facebook.com/stefanjames23 Instagram ► https://projectlifemastery.com/instagram Instagram ► https://www.instagram.com/stefanjames23 Snapchat ► https://www.projectlifemastery.com/sn… Periscope ► https://projectlifemastery.com/periscope iTunes Podcast ► https://projectlifemastery.com/itunes ★☆★ MY PRODUCTS & COURSES: ★☆★ Morning Ritual Mastery ► https://projectlifemastery.com/mornin… Affiliate Marketing Mastery ► https://projectlifemastery.com/affili… Kindle Money Mastery ► https://projectlifemastery.com/kmoney… 24 Hour Book ► https://projectlifemastery.com/24hour… Kindle Optimizer ► https://projectlifemastery.com/koptim… ★☆★ WANT TO BE COACHED BY ME? ★☆★ You can apply for my 1-on-1 and group coaching programs here: http://projectlifemastery.com/coaching ★☆★ RECOMMENDED RESOURCES: ★☆★ https://projectlifemastery.com/resour… If you found this video valuable, give it a like. If you know someone who needs to see it, share it. Leave a comment below with your thoughts. Add it to a playlist if you want to watch it later.

 

Measuring The Total Economic Impact Of Unified Endpoint Management

Today, the average IT organization is spending at least 5% of their organization’s annual revenue on IT investments – and the cost of each investment spans far beyond its price tag. Each one needs to be deployed and maintained by IT staff that is grappling with more tools and software products than ever before. Of course, supporting an IT staff comes with its own set of costs and challenges. CIOs, CTOs, and their teams are human resource scarce and spread extremely thin, so the opportunity cost of focusing on one tool versus another has never been greater.

This complexity comes at a time where clearly defined IT strategies that bring about positive impact to the business are non-negotiable. According to IDG’s 2019 State of the CIO report, “62% of CIOs say that the creation of new revenue generating initiatives is among their job responsibilities.” 88% claim to be “more involved in leading digital transformation initiatives compared to their business counterparts.” Net-net, the onus is on IT leaders to streamline efficiencies, reduce total cost of ownership (TCO), and net a return on investment (ROI) for the business.

IT investment decisions driven by real customer data

Forrester has been instrumental in helping business decision-makers overcome their resource, budget, and investment challenges by introducing a Total Economic Impact™ (TEI) methodology. Not only does the TEI take costs and benefits into account, but also the time saved and economic impact of strategic decisions made. Forrester’s TEI assessments are drawn from real client experiences with vendor products and services. The team diligently documents customer outcomes to better understand their positive or negative business impact. Consulting this unique research methodology helps business decision makers justify and future-proof their investments.

Making the transition to unified endpoint management

If your organization is like most, it has a mix of devices that employees use to get work done – whether they’re corporate-liable or supported under a bring your own device (BYOD) program. With 464 custom apps deployed across the average enterprise, procuring a means to manage devices and everything on them (not just apps, but also content and data) has become mission-critical for businesses.

Traditionally, mobile device management (MDM), enterprise mobility management (EMM), and client management tools (CMTs) have been relied upon to get the job done. However, business use cases for devices have become more complex and wide ranging. These shifts are necessitating a tool that makes it possible to manage everything from one place. This is unified endpoint management (UEM).

Commissioned by IBM, Forrester Consulting recently conducted a TEI analysis of IBM Security MaaS360 UEM customers to determine whether they are reducing TCO and netting a quick break-even on their investment. The Forrester team took the time to glean feedback from 19 MaaS360 UEM clients representing financial services, nonprofit, utilities, manufacturing, and professional services industries. These individuals are responsible for managing anywhere from 500 to 100,000 devices for their respective businesses each day.

How UEM from IBM resulted in significant ROI1

Across the 19 clients that were interviewed, Forrester identified the following key benefits. These amount to a three-year 160% ROI and payback in less than 3 months:

  • Endpoint configuration: a 96% reduction in time spend provisioning devices
  • End-user setup: a 47% reduction in time spent getting employees up and running
  • Modern management: $22,960 saved from simplifying their management approach
  • Support ticket remediation: 50% fewer tickets and 55% less time taken to resolve them
  • Security breach remediation: 80% reduction in number of incidents experienced

Of course, these benefits were experienced by a composite organization used to represent the 19 customers surveyed by Forrester. Organizations considering UEM that are actively seeking their own customized TEI assessment can now work with IBMers to do just that. Request your own complementary assessment today to understand whether you can expect a return on your UEM investment, and if so, how quickly you can expect your payback period to arrive.

Request a custom Forrester TEI assessment now

1 The Total Economic Impact™ Of IBM MaaS360 With Watson, a commissioned study conducted by Forrester Consulting, April 2019

John Harrington is a Program Director at IBM Security, overseeing product marketing for data security and unified endpoint management (UEM). In this capacity, he works with product managers, product marketers, and account managers to provide guidance for businesses encountering modern cybersecurity challenges. He’s focused on helping clients learn how to establish digital trust and the various ways Guardium and MaaS360 can help them keep their data and endpoints protected. John is also working towards an MBA graduate degree at Villanova School of Business, and spends his spare time exploring the city of Philadelphia with his wife and their two beagles.

Source: IBM Security BrandVoice: Measuring The Total Economic Impact Of Unified Endpoint Management

Keeping Up With E-commerce: Last-Mile Delivery Service Deploys ‘Ninjas’ In Online Shopping Boom

Packages are piled higher than people at Ninja Van’s biggest sorting center at a freight facility near Singapore’s Jurong port. Southeast Asia’s big e-commerce operator, Shopee, has just finished its “9/9” online shopping sale and says it got a record 17 million orders in one day. Ninja Van now has the task of delivering most of those orders. “We spend months preparing for how much capacity they require, making sure that we change our processes and have enough drivers,” says Ninja Van’s 32-year-old founder Lai Chang Wen.

Today, Ninja Van delivers on average one million parcels a day around the region, deploying some 20,000 full-time delivery staff, who are dubbed ninjas. Ninja Van’s sales in 2017 rose 9% from a year ago to $13 million and Singaporean Lai was inducted into Forbes 30 Under 30 Asia in 2016.

Ninja Van has so far raised $140 million from a group of investors that includes B Capital and super app Grab. “They’ve really been a leader in last-mile delivery. They are today, we believe, the best service in terms of delivery rates. Everything they’ve achieved using technology is driven to increase customer satisfaction,” says B Capital cofounder Eduardo Saverin, who is a director on the company’s board (and cofounder of Facebook).

Today In: Asia

Lai cofounded Ninja Van in 2014 after a stint as a derivatives trader at Barclays and then setting up Marcella, a custom menswear shop based in Singapore. Monk’s Hill Ventures Managing Partner Lim Kuo-Yi remembers passing on Lai’s pitch to invest in Marcella, but was intrigued by Lai’s proposed solution to the firm’s delivery hurdles.

That proposal is now Ninja Van. Its value proposition is providing a more effective way for Southeast Asia’s small and midsized enterprises to deliver their products as e-commerce in the region explodes. Over 150 million Southeast Asians are now buying and selling online, triple the number from 2015, according a recent report by Bain, Google and Temasek. “What Ninja Van has shown in the last four or five years is the ability to grow the business threefold year-on-year,” says Lim.

Ninja Van is one of a slew of companies offering logistics services for e-commerce deliveries such as Lalamove, GoGoVan and UrbanFox. Competing on cost, speed and reliability isn’t enough, Lai says. Ninja Van also works with SMEs to cut costs and expand their markets. Ninja Van in September introduced a program in Indonesia called Ninja Academy that teaches SME owners about social marketing, inventory management, procurement and sales strategy. “A big part of the question around Ninja Van is how do I evolve my customer base to enable the long tail of commerce,” says Saverin.

Ninja Van entered the logistics scene at an opportune time. Photo: Sean Lee for Forbes Asia

Sean Lee for Forbes Asia

Ninja Van also mines its data to find hidden efficiencies. For example, when multiple merchants are buying the same raw material or product, Ninja Van can then broker a deal to buy in bulk for a lower price on behalf of several customers. The same goes for freight space. “We are the biggest purchaser of air cargo across Indonesia,” says Lai.

With as much as 70% of its transactions still cash on delivery, Ninja Van processes more than a billion dollars in payments a year. While processing those payments, it’s sitting on a massive pool of liquid capital. “There’s opportunity there to extend some level of working capital financing to bridge that gap,” says Lim.

Grab’s investment in Ninja Van is the culmination of an ongoing discussion about collaboration. “We kept finding ways to work together,” says Lai, who first started talking with Grab’s cofounder Anthony Tan four years ago about merging their fleets to improve efficiency.

The two eventually decided that having separate, specialized fleets was more efficient than a combined one, but they have developed a special partnership. Grab customers can access Ninja Van on Grab’s app depending on the kind of delivery. Grab deploys its drivers for on-demand pickups and deliveries, but offers Ninja Van as a discount option for less urgent, next-day courier service to SMEs. Grab has already integrated Ninja Van into its service offering in Indonesia and the Philippines, and plans to do so in Vietnam later this year.

Lai, meanwhile, spends much of his time now in Malaysia and Indonesia, where Ninja Van launched in 2015. “The landscape is very exciting right now, comprised of a lot of small merchants selling on marketable channels,” Lai says. But the real prize, he says, lies beyond Southeast Asia. “There’s a lot more global flow,” he says. Lai won’t name any potential partners, but says the U.S. is “definitely a target.”

Pamela covers entrepreneurs, wealth, blockchain and the crypto economy as a senior reporter across digital and print platforms. Prior to Forbes, she served as on-air foreign correspondent for Thomson Reuters’ broadcast team, during which she reported on global markets, central bank policies, and breaking business news. Before Asia, she was a journalist at NBC Comcast, and started her career at CNBC and Bloomberg as a financial news producer in New York. She is a graduate of Columbia Journalism School and holds an MBA from Thunderbird School of Global Management. Her work has appeared in The New York Times, Washington Post, Yahoo, USA Today, Huffington Post, and Nasdaq. Pamela’s previous incarnation was on the buy side in M&A research and asset management, inspired by Michael Lewis’ book “Liar’s Poker”. Follow me on Twitter at @pamambler

Source: Keeping Up With E-commerce: Last-Mile Delivery Service Deploys ‘Ninjas’ In Online Shopping Boom

220K subscribers
Sick of online shopping deliveries that go MIA or take forever? Ninja Van’s Lai Chang Wen saw how traditional couriers were spoiling the experience – so he jumped in to spoil the market. Even though he had zero experience. Catch the series Game Changers on Monday, 8pm SG/HK. Watch catch-up episodes on Toggle http://bit.ly/2nRyB7Q

20 Stocks That Could Double Your Money in 2020

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

Sean Williams

(TMFUltraLong)

Learn more

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

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

Former Uber CEO Adapts A Copy From China Idea With His U.S. Startup CloudKitchens

The latest example of the copy from China innovation trend comes from former Uber CEO Travis Kalanick and his new startup CloudKitchens, a kitchen sharing concept for restaurants and take-out orders.

This shared kitchen model originated in China, with a Beijing-based startup named Panda Selected. Little doubt that Kalanick saw this idea at work in China. He has China experience and some scars to show from his ventures a few years ago with Uber in China doing battle with Chinese ride-sharing leader Didi and eventually selling to the rival.

These shared food preparation services are part of the sharing economy that has blossomed in China. Sharing has extended from taxi rides to bikes to even shared umbrellas and battery chargers.

The shared kitchen could disrupt the traditional restaurant business. It caters to a young on-the-go population who order food by mobile app and get quick take-out deliveries. No need for large dining areas or kitchens that serve just one restaurant. The shared model lowers the cost of doing business for commercial restaurants and makes it easier to do business around the clock in a hurry and manage operations.

Today In: Innovation

The model has already caught on in China, where new business ideas particularly for mobile gain traction quickly and have no problem in attracting customers. Panda Selected, which was started in 2016 by CEO Li Haipeng, has more than 120 locations in China’s major business hubs.

This shared kitchen concept could gain quick uptake in the U.S. too. On-demand instant delivery for take-out food ordered by mobile app hasn’t yet caught on in the U.S. like it has in China’s congested cities but that doesn’t mean that the model can’t work in the U.S.

Venture capital investors have already decided the business could scale quickly and have funded the shared kitchen business model. CloudKitchens has funding of $400 million from Saudi Arabia’s Public Investment Fund on top of initial seed capital from Kalanick. Panda Selected has attracted $80 million in funding from DCM Ventures, Genbridge Capital and Tiger Global.

It is interesting to see successful serial entrepreneurs like Kalanick trying their hand at new ideas they’ve seen work in China. No doubt more ideas from China’s advanced digital economy will filter into the U.S. Already, we have digital entertainment app. How long before we see the social commerce model that Pinduoduo has perfected in China get transported over to the U.S.?

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Rebecca A. Fannin is a leading expert on global innovation. As a technology writer, author and media entrepreneur, she began her career as a journalist covering venture capital from Silicon Valley. Following the VC money, she became one of the first American journalists to write about China’s entrepreneurial boom, reporting from Beijing, Shanghai and Hong Kong. Today, Rebecca pens a weekly column for Forbes, and is a special correspondent for CNBC.com. Rebecca’s journalistic career has taken her to the world’s leading hubs of tech innovation, and her articles have appeared in Harvard Business Review, Fast Company and Inc., and Techonomy. Her next book. Tech Titans of China, is being published this year. (Hachette Book Group, 2019).Rebecca’s first book, Silicon Dragon: How China is Winning the Tech Race (McGraw-Hill 2008), profiled Jack Ma of Alibaba and Robin Li of Baidu, and she has followed these Chinese tech titans ever since. Her second book, Startup Asia (Wiley 2011), explored how India is the next up and comer, which again predicted a leading-edge trend. She also contributed the Asia chapter to a textbook, Innovation in Emerging Markets (Palgrave Macmillan 2016). Inspired by the entrepreneurs she met and interviewed in China, Rebecca became a media entrepreneur herself. In 2010, she formed media and events platform Silicon Dragon Ventures, which publishes a weekly e-newsletter, produces videos and podcasts, and programs and produces events annually in innovation hubs globally. Rebecca also frequently speaks at major business, tech and policy forums, and has provided testimony to a US Congressional panel about China’s Internet. She resides in New York City and San Francisco, and logs major frequent flier miles in her grassroots search to cover the next, new thing.

Source: Former Uber CEO Adapts A Copy From China Idea With His U.S. Startup CloudKitchens

11K subscribers
Business Insider reports that former Uber CEO Travis Kalanick is making progress with his food-delivery and “dark kitchen” startup. CloudKitchens is the venture, it’s one of the units of Kalanick’s company City Storage Systems. The CloudKitchens unit builds kitchens for chefs who want to start food-delivery businesses. CloudRetail builds facilities to support online retailers. The company has hired dozens of people including former Uber employees. Employees are being asked to keep mum about it all, not even publicly acknowledging they work there. Kalanick is said to be focused on growing his food delivery fast as he did with Uber. https://www.businessinsider.com/stock… http://www.wochit.com This video was produced by YT Wochit Tech using http://wochit.com

Last Week Confirms It. Goodbye, Recession – Hello, Bull Market

 

It is time to get excited, optimistic and bullish. Last week put the final nails in the “Oh, woe is me” recession coffin. RIP.

Last week’s good news supported and confirmed recent anti-negative and pro-positive improvements. Here is the wonderful list:

Earnings reports are driving a shift to the positive

Compare these two headlines from The Wall Street Journal:

  • October 9: “U.S. Earnings Flash a Worrying Signal”
  • November 2: “Earnings Tide Lifts Most Stocks – Investors are getting a more positive picture of American corporations’ health than that painted by analysts in buildup to earnings season”
Today In: Money

The cause? Earnings reports continue to be positive on balance, with most of the September quarter-end earnings reports now in. The 336 S&P 500 companies reporting September results so far (from October 15 through November 1) represent 67% of the 500 companies and 75% of the $27T market capitalization. (Many of the remaining 164 companies will report October or November quarter-end results later.)

While reports of companies beating expectations are widespread, a good way to view investors’ complete evaluation is by examining stock performance. Below is a graph of the one-month returns (including dividend income) for all of the 336 reporting companies. I have broken out the so-called “safe” stocks (REITs and utilities) because they have been beneficiaries of both reduced interest rates and bearish thinking – therefore, expect them to underperform.

Clearly, Wall Street views this earnings report season as favorable. Additionally, the need and desire for “safe” stocks has given way to the pursuit of growth.

The Federal Reserve cuts and quits

Finally! While rates remain abnormally low (meaning there is music to be faced in the future), at least the game of will-they-or-won’t-they looks over for now. That is helpful because businesses, consumers and investors now can make decisions based on a stable rate environment.

GDP growth is just fine

A good example of how negativity can take time to turn positive is the last week’s third quarter GDP growth report. Expectations had been for a seasonally adjusted, real (adjusted for inflation), annualized rate of 1.6%, down from 2% last quarter. Instead, it came in at 1.9%. That is good news, but most reports focused on the “continued slowing” instead of the desirable surprise.

Think of that report this way. For a quarter that had its problems, growth was still around 2%, in line with the average post-recession growth rate. Looking at a longer time period provides a good perspective for that 1.9% growth rate.

Employment and consumer spending are good

The recession pundits keep expecting these shoes to drop, but they do not. The problem is the factors leading up to reduced employment are absent. Following, so long as consumers are employed, they will spend. Therefore, in spite of that previous sharp drop in consumer confidence, consumer spending has remained strong and consumer confidence has improved.

The Wall Street Journal’s November 2 lead story (print edition) says it best: “Jobs, Consumers Buoy Economy, Defying Slowdown Across Globe.”

The bottom line

Last week offered an outstanding combination of good news that removes recession pessimism and reintroduces growth optimism for 2020. Stock ownership (excluding “safe” stocks) continues to look desirable.

Follow me on Twitter or LinkedIn.

During my 30-year career, I managed and consulted to multi-billion dollar funds. Using the “multi-manager” approach, I worked with leading investment managers. I now manage personal accounts and write about my analysis and decisions. … From my 50-year personal/professional investment experience, I developed the skills I use to find opportunities and avoid risks. Because markets are ever changing, I choose the strategies (safety, income, value and growth) that conditions warrant. … My one regular activity is to seek developments and trends being ignored or misinterpreted by investors. These are the situations that consistently produce higher return opportunities (or higher risk levels). … I am a CFA charterholder with an MBA from Stanford Graduate School of Business and a BS in Finance from San Diego State University. I am a former Washington DC CFA board member and currently serve on the AAUW Investment Advisers Committee and the City of Vista Investment Advisory Committee. … For more, please see my LinkedIn bio at http://www.linkedin.com/in/johntobeycfa

Source: Last Week Confirms It. Goodbye, Recession – Hello, Bull Market

292K subscribers
Traders Jon and Pete Najarian are joined by Sarat Sethi, managing partner at Douglas C. Lane & Associates, and Anastasia Amoroso, global investment strategist at J.P. Morgan Private Bank, to discuss calls on Netflix, Apple and Juniper Networks.

Now That Commissions Are Free, Here’s How To Avoid The Big Costs Of Investing

TRADE FOR FREE! NO COMMISSIONS! Sounds too good to be true? Well, it is and it isn’t. Allow me to explain.

Within the past few weeks, a slew of brokerage firms reduced the rate their customers pay for online stock and ETF trades. In fact, they reduced them to dust. Interactive Brokers (IB) started it. Schwab joined in. Then, the cavalry arrived. Many of the largest firms followed suit in different forms. They joined IB, Schwab and the many robo-advisors who have offered free trading for a while.

What does it all mean for you?

Let’s start with the simplest part. Whether you trade your own accounts, or a professional advisor manages your assets, there is a very good chance your costs to execute trades has been reduced. It might even be zero.

However, that does not mean that investing is now “free.” It never was. Now, I know what you are thinking. You don’t use mutual funds, and you don’t use ETFs. So, your returns are not reduced by those “expense ratios” that are embedded in managed funds. If you buy and sell individual stocks, that is true.

You may also point out that you have most of your assets in tax-deferred accounts, such as an IRA or your 401(k) plan. Again, you are correct in assuming that you will not be taxed on those assets until you take them out or reach age 70 1/2. So far, investing sounds pretty darn inexpensive to me!

Today In: Money

The real costs of investing

One of the most frustrating things to me after more than 3 decades in the investment business is how quickly people jump at the chance to get something for “free” without considering the whole picture. Zero commissions on stock and ETF trades is just the latest example.

Trading, execution (how good a price you get when you place an order with a brokerage firm), and expense ratios get all the hype in the “race to the bottom” that is today’s big Wall Street.

Taxes…and how Wall Street tries to make them exciting

Taxes get some respect as a cost to reckon with. However, here too, the industry (especially the Robo firms) has created unnecessary drama by touting something call “tax loss harvesting (TLH).” This is something many of us in the field have done religiously for taxable client accounts for years. And we have done so with a focus on each client’s specific tax situation.

Now, firms will put your account on an automated system that hyper-actively swaps you from one security to another similar one, in order to generate a constant stream of tax losses. These can be posted against gains to reduce your tax bill. Great in theory.

TLH does not mean TLC

However, from the live examples I have seen, these TLH programs crowd out some very good investment strategy work. This would take an entirely separate article to explain. Perhaps I will post one.

For now, suffice it to say that in some instances, investment firms are charging an extra fee for something that is potentially overkill. That same service can be done more carefully and inexpensively as custom work for each client. It is just one of those things that you need to be aware of.

In an era of zero commissions, these for-profit firms are not going to find other ways to profit. In no way am I saying they don’t provide a helpful service. Just don’t get caught up in the hype.

Money market rates…also going to zero?

For example, the interest rate paid on money market funds at brokerage firms is, shall we say, in a bear market. That is, the rates are plunging. This is because brokerages are returning to one of their most profitable business, now that short-term interest rates have popped up from 0%.

For example, if T-bills yield 1.50%, you would hope that the money market fund that is used to sweep cash in and out of when you trade would pay somewhere in that range. Check carefully. Many firms have dropped those rates so that they are way, way lower than T-bills.

Cash management: the new tool in your toolbox?

That does not mean that it is a bad deal for you. If you trade actively, and don’t hold a high cash balance anyway, your interest in dollar terms is quite tiny to begin with. But if this is not the case, perhaps you are better off sharpening your skills as a “cash manager.”

I know I have done this in the accounts I manage over the past year. There are ETFs that invest in short-term, high-quality bonds like Treasuries. And, now that there is no commission cost to trade them through many firms, they may be worth considering as a money market surrogate.

The BIG cost of investing that gets too little attention

Drum roll, please…its lousy performance in down markets. Or, as David Letterman said, its all fun and games until someone loses an eye. So, amid all of the excitement about how little it will cost you to “play the market” with no trading costs and low expense ratios, there is still an issue. If the stock market drops 20%, 30%, 40% or more, you had better have a plan.

And, the plan can’t be to figure it out on the fly. Ask the folks who were suddenly faced with that in 2000 and 2007, the winds shifted. We all want to get our “fair share” of the ups. But when markets freak out and $20 of every $100 you had in your portfolio can potentially vanish in a few weeks (as stock index funds did around this time last year), lack of risk-management becomes the only cost that matters.

To try to put a bow on this cost discussion, consider the following if you have $500,000 to invest, and you are not a day trader, nor a straight buy-and-hold investor:

* The cost of 40 trades a year used to be about $5 each. That’s $200 a year you saved, with commissions going to zero.

* You switched to index funds from active funds, and maybe mixed in some stocks. Let’s say that shaved your portfolio expense ratio from 1.00% to 0.20%. You saved $4,000 on that $500,000 portfolio.

* Taxes: you generated capital gains of $30,000, but used TLH to knock that down to $10,000. Assuming a 30% tax rate, you saved $6,000 in taxes. This is getting better and better!

Minimal risk-management: the market fell by 20%, and you escaped with “only” a 18% loss. But that’s still a $90,000 decline in the portfolio! If you had practiced risk-management using some of the techniques I discussed in recent articles (tactical positioning, options, inverse ETFs, etc.), you might have kept that loss to half that.

Naturally, everyone’s situation and objectives are different. However, the key is to recognize the relative impact of the different types of investment “cost.” In the examples above, the cost of trading was well under 1%. The impact of expense ratio was a bit under 1%. TLH helped (assuming you had gains to offset with losses), to the tune of just over 1%.

However, risk-management can be “worth” well over 1%. That’s the point, and what you should focus on when evaluating your total “cost” of investing.

Comments provided are informational only, not individual investment advice or recommendations. Sungarden provides Advisory Services through Dynamic Wealth Advisors

To read more, click HERE

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

I am an investment strategist and portfolio manager for high net worth families with over 30 years of industry experience. A thought-leader, book author and founder of a boutique investment advisory firm in South Florida. My work for Forbes.com aims to break investment myths and bring common sense analysis to my audience. Connect with me on Linked In, follow me on Twitter @robisbitts. Visit our website at www.SungardenInvestment.com.  What do you think? I welcome your questions and feedback at rob@sungardeninvestment.com. For more on this and related topics, click here.

Source: Now That Commissions Are Free, Here’s How To Avoid The Big Costs Of Investing

887 subscribers
https://www.sbmoneytips.com/ Learn the first secret of successful investing with Part I of our three-part series! *** Did you know that the average individual investor does worse in the stock market than the market itself? In other words, if you just held a broad index fund and did nothing but hold on until you hit retirement you would do better than most. It turns out that the problem has nothing to do with a lack of market savvy or anything like that. Instead, it has everything to do with human emotions. Once you learn the enemy you can master it! So let’s take a quick look in the mirror and get acquainted with our opponent! The first secret is simply to invest as soon as you can. Don’t sit on the sidelines! Start now and let compounding do the heavy lifting over time. Make the effort to learn something new: like how to set up an account and put some money to work. Either do it on line or call one of the big brokerages. You’ll be richly repaid for your efforts! The next secret is to avoid being too conservative when investing for long-term goals. Many people are reluctant to invest in the stock market because they are afraid they’ll lose money. And they’re right – they will! But allow enough time and the results come back to the long term averages. Take a look at this chart showing the S&P500’s results from 2007 through 2015. That drop in 2008-2009 was pretty terrifying – I know! I personally lost over a third of my money in it! And it was really uncomfortable. But look what happened after that. It took several years but the market came back and is now well above where it was before the great recession. The right thing to do is to stay the course. Invest when you have money to do so and only sell when you need the money. This is really important. Hang on when you’re in the middle of one of these lurches and don’t sell or change your game plan.

Investors Are Pouring Billions Into Proptech Here’s Who’s Getting It

The real estate business is finally getting renovated, as a new wave of startups build property-technology platforms that improve or simplify the complicated process of buying, selling, renting, or owning a home. And VCs have been more than willing to open their checkbooks: Since 2013, annual investment in U.S. proptech companies has grown at a rate five times that of investment in all U.S. businesses. In 2019, investment in U.S. proptech is on pace to exceed $10 billion. Here’s where some of this year’s money has gone.

$370 million

Compass hosts real estate listings on an easy-to-use online platform. It also provides tools for agents, including real-time pricing, marketing software, and automated multiplatform listings, leaving more time for face-to-face meetings with clients.

$300 million

Opendoor buys homes directly from sellers in exchange for cash, which helps them afford down payments on their new digs. The company holds DIY open houses that allow almost anybody with a smartphone to tour a home–without an agent–between 6 a.m. and 9 p.m.

$160 million

Better, a direct lender, allows homebuyers to quickly get a mortgage via a simple online application. Plus, no commissions and no fees mean borrowers pay only interest.

$170 million

Nextdoor keeps people up-to-date on events in their neighborhood. The social network also helps neighbors find babysitters and pet sitters, swap safety tips, and, of course, gossip.

$200 million

Clutter packs, stores, and moves its customers’ belongings­–and lets them track their inventory online. A forthcoming feature will help customers decide what to move, sell, or donate with a few clicks.

$300 million

Lemonade’s app lets homeowners and renters buy insurance against life’s lemons, such as losses from fire, water damage, and theft.

By: By Kevin J. RyanStaff writer, Inc. @wheresKR

 

Source: Investors Are Pouring Billions Into Proptech. Here’s Who’s Getting It

37K subscribers
Read the full report here: https://www.sbs.ox.ac.uk/news-and-eve… Will we soon be able to buy a house with the click of a button? A new report released by Saïd Business School, University of Oxford takes an expansive look at property technology (PropTech), and its findings detail the dramatic changes facing the real estate industry. The 95-page report was written by Andrew Baum, Visiting Professor of Management Practice at Oxford Saïd and real estate industry veteran, using data from PropTech venture capital firm PiLabs and interviews from over 50 real estate professionals.

FAANG (Facebook, Amazon, Etc.) Stocks Have Lagged This Year. Here’s Why

Topline: The once high-flying FAANG stocks—Facebook, Apple, Amazon, Netflix and Google parent Alphabet—have mostly lagged the broader S&P 500 index over the past year, signaling that the market may turn to new leadership for the next leg of its advance.

  • With the recent exception of Apple—which reached a new record high last week, the FAANGs have been in somewhat of a slump, as high price volatility takes a toll on their long-time status as momentum stocks.
  • Amazon and Facebook are both 13% off their record highs, while Netflix is down 31% from its peak last year; Google, on the other hand, is just 4% from its record high.
  • These popular, high-profile names have driven the bull market to new heights in recent years, and as a result were increasingly treated as parts of a whole when it came to trading patterns.
  • But over the last 6 to 12 months, the FAANGs have not been leading the market as they once did, with Wall Street now pricing in slower growth rates, rising costs and the potential for more government oversight.
  • “These stocks have made people a lot of money, but they won’t trade as a group the way they did for several years,” says Charles Lemonides, chief investment officer of ValueWorks LLC.
  • Lemonides predicts that Wall Street will increasingly stop talking about the FAANGs as a group, as they go from being growth stocks absolutely adored by the investing public to companies that are perceived to have their own different business challenges.
Today In: Money

Key background: Analyst recommendations are increasingly varied on each of the FAANGs, which adds to the notion that they aren’t viewed as a group anymore. Most Wall Street analysts still assign “buy” ratings, though: 52% for Apple, 87.5% for Alphabet, 69% for Netflix, 96% for Amazon and 87% for Facebook, according to Bloomberg data.

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

 

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: FAANG (Facebook, Amazon, Etc.) Stocks Have Lagged This Year. Here’s Why

281K subscribers
Jim Cramer explains his latest take on the FAANG stocks, plus Microsoft.

%d bloggers like this:
Skip to toolbar