Super Stock Blog

Let's make our own bull run!

Upcoming Super Stock: The Habit

My first visit to the Habit Burger Grill was in Santa Barbara, CA.  At that time, they were not publicly traded.  They weren’t located in multiple states.  They were the local favorite joint for luncheon.  Every table was taken.  They always had a line out the door.  The reason: they have great burgers and they give a lot of value for the price.  You can get a restaurant quality burger at a fast food price.  You can get restaurant style onion rings and french fries which means fresh taste and bigger portions.

The Habit (HABT) is now publicly traded and they are in multiple states.  They are planning to open multiple stores every year.  Consumer Reports rated them “Best Tasting Burger in America.”  They became a publicly traded company over 2 years ago.  Their stock price was over $40 in the first year.  Now it trades undervalued at $15.75.  It was at a low $13.20 within the past 52 weeks.

I believe this stock has hit the bottom.  People loves their burgers but they do not love the stock.  It is at a price where it has no where to go but up.  It might take many years for it to appreciate but you can already see within the past couple weeks that investors are starting to build positions in the company.

Disclosure: I am long HABT and plan to purchase more in the future.

Cheap Price to Get into the Future Uranium Boom

You may have noticed my most recent posts (new highs and bullish view) have been regarding Energy Fuels (UUUU).  You should be able to read those two posts to see why I’m bullish in this stock company.  The price is currently at $1.90 which is really cheap.  Technically, there is a lot of volume in this stock and I believe it is being accumulated slowly by bigger hedge funds.  President Trump has mentioned that the USA needs to become a strong player in the uranium market for both military and for clean energy.  It still plays well into carbon emissions as well.

Disclosure: I do own shares in UUUU.

Fannie Mae – Return > Risk

This week has shown quite a lot of volatility in US’s main housing mortgage companies Fannie Mae and Freddie Mac.  I, in particular, look at Fannie Mae as it is a bigger of the two companies but both have been taking big swings to the upside and downside recently.  FNMA, Federal National Mortgage Association, recently this month almost as high as $4.50 but this week recently dived as low $2.50.  The recent drop was from a court case that showed the appeals court upheld a decision to deny hedge funds the right to challenge government-sponsored enterprises’ (GSEs) net worth sweep.

There is still a lot of work going into this case.  FNMA sits at $3.07.  If this ends up being bullish, it could bring FNMA at least 5x the current levels.  You also have the risk of losing all $3.07 as well.  There is plenty of risk in this one but you will have lots of angry people if the government does not do this one correctly.  FNMA is a major part of the 30 year mortgage that would essentially go away if the company wasn’t recapitalized properly.

I wouldn’t put too much in this trade but I do think you can put a little here and end up with a nice capital gain or a small capital loss at the end.

Energy Fuels Reaching New Highs

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.”

Bullish on Energy Fuels

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.

Great Earnings Report, Dividend Increase, and Great Future Growth!

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.

Best Company to Own in Oil Stocks

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.

Stock Market DIP Ahead!

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.

Why?

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.

Dividend Stocks Have Dropped!

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.

The Allure of Dividend Stocks

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.

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