As I discussed earlier, I was expecting to see new highs on UUUU with the volume and technical indicators turning bullish. It is currently at $2.66 with a move up of 6% in this morning. Expect this stock to continue to go up and down but the long-term road is for it to keep moving up. Bet on US especially if you have the POTUS planning his executive orders to be made for “America to win.”
This is a relatively small-cap stock that has tons of potential. The risk versus reward is definitely worth the purchase. The company is Energy Fuels Inc (UUUU) which is a USA based Uranium company. Technically, it has had nice volume the past few months. It has formed a nice V-indicator and its time for it to push the boundaries off the $2.50 price which it currently sits at this time.
Fundamentally, the uranium sector is still at a market low on pricing. It won’t take much to get this going. Donald Trump tweeted in November that he wants US to ‘strengthen and expand its nuclear capability.’ If Mr. Trump renegotiates NAFTA, it will cost more to import Uranium from Canada to USA. Energy Fuels Inc would get a nice boost of customers being in USA and, therefore, not being part of the tariff. You will bet that Mr. Trump will be most bullish on all USA companies and he will give the most benefits to make sure they grow especially if they can offer more jobs. Also, internationally, if any relations go sour with Russia other suppliers, they won’t want to import Uranium to us.
UUUU is currently at $2.45. I bought some today. It is a small cap that DOES have risk but it is worth the reward.
I mentioned Omega Healthcare Investors Inc (OHI) in an earlier post. It has dropped 5% in the past couple days giving you an opportunity to buy at a undervalued price. The company posted earnings recently and beat forecasts by 0.40 EPS. As we know the market is speculative and sometimes not efficient, therefore, the stock dropped from a recent weekly high of $32.70 down to $30.70.
The stock is sitting nicely at low $31s as of this morning and it still gives you a great price to get in. Remember, you can take further advantage by purchasing through a tax-advantaged account like a ROTH IRA or Traditional IRA.
The oil stocks have all made a nice bullish rise in the past year. Part of the reason was the election of Donald Trump and adding the previously CEO of Exxon to his cabinet staff. This gives investors a more bullish outlet on the oil sector and their oil investments.
This also made huge gains in Exxon Mobile (XOM) and Chevron (CVX) stock price in the past few months. British Petroleum (BP) also went up but it didn’t have the same appreciation gain. BP also still wields at 6.7% dividend at the current stock price. Exxon Mobile and Chevron hold less than a 4% dividend at their current stock price.
You should remember that British Petroleum has finalized the settlement with the government. They have already sold the necessary assets to make the payments. They are actually quite conservative compared to the other oil companies which I believe is a good thing as it is challenging to forsee the oil prices going forward.
You might have remembered an earlier blog post that I said BP follows a Plan B strategy. This means the company believes that oil prices will remain stagnant so they are strategizing their oil investments for low oil prices. This is counter to Exxon and Chevron which are building their portfolio to account for higher oil prices.
With a nice dividend and a undervalued outlook, British Petroleum (BP) should be on your radar for a nice oil company. I do believe Exxon Mobile and Chevron (CVX) are a bit overvalued at their current price as well. I am a holder in Chevron but I will be looking for a time in the immediate future to move some of those holdings to BP where I see much better chance at appreciation in the future.
We have had a great bullish market since October. Many people say the new presidency is part of the bullish market. I also agree that this is true but I also believe we are due for some correction ahead. President Trump will have his inauguration on January 20, 2017. I expect this to get a lot of fanfare as well as many dissidents that would rather oust him from the presidency. Either way, I feel a correction coming to the market.
You cannot have a bull market run forever. When the pigs fly is when they get slaughtered. I see an interest rate dip and market correct coming at the end of January.
What is the best way to play this?
If you see some stocks that you are interested in, I recommend waiting until the end of January. Once you see the dip, then you can get into the stocks you want. I would not recommend buying now where many stocks are at peak highs. I also would recommend you try to get in the previous dividend stocks that I recommended.
In the long-term, I hope the President Trump does make changes that can help the economy. This is the main reason he was voted into office. There were many unemployed citizens that are looking for work. He also suggested ways to bring companies monies back into the USA. These are all things that should spur the economy and bring more jobs. It’s a lot more challenging that I believe and he has a lot to juggle.
I know the government has stated that they will raise interest rates three times in 2017. I highly doubt this will happen. The economy is still in the doldrums and it will take time to get the economy going again. With these concerns, I still believe Bank of America (BAC) will be a good long-term play. The market will give you some nice dips to purchase BAC and I expect end of January will be an opportune time.
As expected, with the rate hike yesterday, dividend stocks have took a drop in prices. The two REITs that I mentioned earlier are both discounted for and you should briefly have some time today to take advantage. You can get Omega Healthcare Investors (OHI) for less than $30 a share. New Senior Investment Group (SNR) also is going for less than $10 a share.
I would recommend the Omega Healthcare Investors (OHI) as the market cap of $5.7B is much bigger than SNR’s market cap as less than $1B. It could be argued that New Senior Investment Group has more potential to go appreciate but I also like knowing that there are multiple hedge funds already in OHI and I’ve already seen it start its move back up in the technical front. SNR has continued to go down since I first started looking at it which makes me rather wait on that one until I see a bottoming pattern.
When I first started investing, I was never really was interested in dividend stocks. I wanted appreciation. I wanted to find the next Google (GOOG), Apple (APPL), Microsoft (MSFT), that next stock that will leap 1000% in appreciation retuns. The further I have gone into stock investing the more I understood that its rare to find these good stocks. I also know for retirement accounts which do not get hit with capital gain taxes when you sell that they are perfect for dividend stocks.
If I have a choice to a brokerage account or retirement account, you always want to invest the dividend stocks into the retirement account. You get the interest without any of the taxes involved. If I had bought the dividend stock in my normal after-tax brokerage account, I would have to pay taxes on the interest. Therefore, I rather load up my retirement accounts with dividend stocks that will pay for the long-term. This means I am looking for dividend stocks that have continued to raise their dividend year-after-year and they have a long-term track record of stock rising. It doesn’t matter that it appreciates only a little at a time because I am getting the nice dividends.
In the past year, I have advocated oil stocks like Chevron (CVX). It pays a nice dividend but it also has appreciated rapidly since my recommendations. The price makes it more tough to recommend such a stock since that means the dividend percentage is lower when you purchase at the price currently at $113 which gives it a 3.87% dividend. This isn’t bad but I also think the price is a little high.
I rather look at stocks that are weak now and undervalued. With the Fed planning to meet in the middle of December, there is a high chance that they will raise interest rates. This means strong dividend stocks will most likely get sold off. I am setting my radar on Omega Healthcare Investors (OHI) which pays over 8% dividend. I am also looking at New Senior Investment Group (SNR) which pays over 10% dividend. I have discussed them in the past article and I think they will be nice long-term holds that will continue to pay the dividend and hopefully raise it long term.
With the presidency of Donald Trump, there has been a steady growth of news that interest rates will rise. The rates even jumped the first week of his presidency. Dividend stocks also have taken a slight drop. Why would people want to invest in dividend stocks when they can get the same interest rate in the bank account?
Well, it will be a while before your bank will give you a similar rate if ever. Most banks are giving 1% or less in the savings account. Even with rising interest rates, I highly doubt that you will see rates rise to a point where it makes sense to move your monies from stocks.
Today, I want you to look at a couple REITs both in the industry of senior housing care. Both are under the radar with good reason. First, their prices have dipped as people expect interest rates to rise. Again, I don’t expect big jump in interest rates. This also has caused their prices to drop recently and it gives better reason to start investing in them. I do think that an increase in December rates maybe the BEST time to get in.
Why invest in Senior Healthcare Facilities?
First, the baby boomers are getting into retirement age. They don’t need a house anymore. The kids are out. They want community still and most importantly they want nursing care to live out their senior years. This is an industry that will be a great investment for many years.
Second, they pay a nice dividend that I expect will continue to increase. OHI, Omega Healthcare Investors, offers a 8% dividend. The stock has dropped from $38 to less than $29 in the past year. This means you get a substantial discount on a dividend that will keep on giving. The CEO has bought stock recently which is a great sign. Scott Black, the president and founder of the Delphi Management fund, has also purchased into this company. This company gets lots of revenue from Government sponsored programs like Medicare. If you expect a cut in these sponsored programs, it may not be a good stock to invest in. With a market cap over $5 billion, I believe this is a fairly stable stock that will continue to pay forward.
The second company is a more risky REIT that was recently spin-off in 2015. It offers a bigger dividend than OHI and I believe it has plenty of reward vs risk. It was once a $20 stock but now trades at 50% that price offering a nice discount. It also offers a 10% dividend at today’s rates. The stock is New Senior Investment Group with stock symbol SNR. With a market cap of less than $1 billion, there isn’t much coverage nor many funds that want to get into this one.
I believe this gives you more risk but the 10% dividend and for the smaller investor you can get into a stock with a substantial discount with plenty of upside. It did recently miss on revenue estimates. However, SNR gets all of it revenue from private payments. It doesn’t get affected by government sponsored programs. You don’t get the risk of the government cutting the program and you know that baby boomers will pay for the care.
Both of these stocks look like good plays for future investment. I expect the december rate hikes that I assume will happen will be a great time to get in one or both of these stocks. Please do your due diligence and research.
Twitter has been on the market news the past couple weeks as suitors like Disney and Salesforce have been on rumor to acquire the company. Twitter has plenty of data and there are many reasons these two companies would be interested in Twitter. However, another suitor and probably the best company to acquire Google has got into the mix. They have hired an advisor to evaluate such a deal.
Think about the possibilities for Google: more data, more remarketing, better advertising targetting. Google would be the perfect company to acquire Twitter. From the current standpoint, I see many reasons for Twitter to get acquired. It will be a matter of Jack Dorsey, the major stock owner and CEO with the board to make a decision who is the best suitor.
Twitter’s stock price has risen as the number of suitors has increased as well. I do believe they will eventually be acquired. I don’t know the timeline but I believe it should happen within the next year. I expect holders will get some premium from the current market price. I don’t have any hard research but I assume it should go for at least $30.
First, we have the fake accounts from Wells Fargo. Now, we are looking at Deutsche Bank dropping to 52 week lows. DB has been having issues for quite a while but today it has made news across the world after hitting an all-time record low on shares. Investors that have had money or investments with Deutsche Bank are quickly moving away which is also bringing their stock price down. Only time will tell but I still think there is a lot of time to go before we see a bear market.