NovoCure (NVCR) is a global oncology company with patented “Tumor Treating Fields” (“TTF”) technology. It has multiple programs in phase 2 and phase 3 of clinical trials which can potentially result in exponential revenue growth and Total Addressable Market (“TAM”) expansion. As a result, and due to improving market penetration, the stock more than doubled in 2020. In this report, we review NovoCure’s business model, competitive strengths, financial position and valuation, and then conclude with our opinion on investing from a risk-versus-reward standpoint.
Fiverr: Attractive High-Income Options Trade
Fiverr (FVRR) is a global marketplace connecting freelancers and businesses for their digital service needs. The business was already growing rapidly, and the pandemic accelerated it. The trade in this report generates very high upfront premium income (that you get to keep no matter what) and it gives you a chance to pick up shares of this attractive business at a significantly lower price. The premium income available on this trade is very high because the share price has been volatile, but the business remains attractive in the long-term. We believe this is an attractive trade to place today and potentially over the next few trading sessions as long as the share price doesn’t move too dramatically before then.
Magnite: Massive Total Addressable Market
Magnite is a digital advertising industry company that has made inroads into the fast-growing Connected TV (“CTV”) space (thanks to its April 2020 merger with Telaria). The company is now the world’s largest sell-side platform (“SSP”) for buying and selling advertising inventory available across multiple channels, including mobile, desktop and CTV. Magnite experienced demand erosion in 2020 as the global pandemic resulted in reduced ad spending. However, revenues have started to re-accelerate, and the share price has been rebounding dramatically off 2020 lows. What’s more, there is a massive total addressable market opportunity ahead. In this report, we analyze Magnite’s business model, its market opportunity, challenges, current valuation, and conclude with our opinion on investing (including a specific trading idea).
New Options Trade: Very High Upfront Income, Bullish Vertical Put Spread
The market has been strong, particularly technology stocks, and in this report we review a very attractive CPaaS (Communication Platform as a Service) technology stock. In particular, we share an attractive options trade, that generates high upfront premium income (that you get to put in your pocket and keep no matter what), and the trade also gives you a shot of picking up shares of this very attractive CPaaS stock (if the price falls below your strike price prior to the option contract expiration in 1-month). We believe this is a very attractive trade to place today, and potentially over the next few trading sessions, as long as the price doesn’t move too dramatically before then.
Pfizer's 4.3% Dividend Yield: Worth a Closer Look
The 4.3% dividend yield of mega-cap pharmaceutical company Pfizer (PFE) is worth a closer look. Specifically, its return on capital is above its cost of capital (a good thing), its margins should increase as a result of the Upjohn spinoff, its covid vaccine is in addition to an already strong core business, it’s paid 328 consecutive quarterly dividend (and has increased the dividend 11 years straight), and the share price just dipped. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion on investing.
FuboTV: The Ride Will be Bumpy
FuboTV is a “sports first” streaming platform with a very high growth trajectory and a large total addressable market (i.e. lots of room to run). Specifically, it is benefiting from the the secular decline in traditional TV, the shift to connected TV advertising, and the potential growth in online sports wagering. This report reviews the health of the business, growth prospects, valuation, risks and concludes with our opinion on investing.
New Options Trade: Very High Upfront Income, Attractive DevOps Company
There is a certain breed of companies that has continued to perform extremely well in our rapidly evolving economy (i.e. software-as-a-service businesses that operate on a subscription basis, with high revenue growth and large total addressable markets). We write about one such company (that focuses on “dev ops”) in this report that completed its initial public offering in September, and the share price has been steadily reverting lower after an initial share price pop to more than double the IPO price. In particular we write about an attractive high income-generating options trade that also gives us a chance to pick up shares of this compelling company at an even lower price. We believe this is an attractive trade to place today—and potentially into early next week—as long as the share price doesn’t move too dramatically before then.
This Chip Stock: A Rare and Powerful Tech Turnaround
It’s not often that a tech company can successfully reinvent itself considering immense global competition in a rapidly changing marketplace. However, this report covers a semiconductor (chip) company, that has successfully turned itself around and has continuing powerful long-term price appreciation potential ahead. In this report, we take a detailed look at the business, the market opportunity, risks and valuation, and then conclude with our opinion on investing.
Performance Update: Disciplined Growth Portfolio +53.0% in 2020, Positioning for 2021
Iron Mountain's 8.6% Yield: High Risk, High Reward
Iron Mountain’s 8.6% dividend yield is compelling for some investors but comes with risks. The company remains confident of sustaining the current dividend, but we’ll describe the big risks that investors should consider (such as debt load, lack of growth in its core storage business, and high capital intensity). While the company has taken some measures to counter these risks, it’s prudent for risk-averse investor to understand the risk-reward tradeoff. This report reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about investing in Iron Mountain.
New Options Trade: High Upfront Income, Attractive Digital Advertiser
In the last couple weeks we’ve seen many of the top growth stocks take a bit of a healthy breather (i.e. the share prices have pulled back a bit). This not only creates a better entry point for long-term investors, but it also sets up some very attractive opportunities to generate high upfront premium income in the options market. This report reviews a very high-income-generating options trade on an attractive digital advertising stock. The trade not only gives us the chance to pick up shares of this attractive company at a compelling price, but it puts high upfront income in our pocket that we get to keep no matter what. We believe this is an attractive trade to place today—and potentially over the next few days—as long as the share price doesn’t move too dramatically before then.
Top 10 Big-Dividend REITs: Contrarian Value
2020 was a challenging year for Real Estate Investment Trusts (“REITs”). The sector (as measured by (XLRE)) was down ~3.% (and that includes dividends) as compared to +17.8% for the overall S&P 500 (SPY). And the performance was even more sharply divergent by REIT subsectors (for example, retail REITs performed even worse) versus the tech-heavy Nasdaq (QQQ) for example which gained 48.3% for the year. Obviously, the social-distancing aspects of the terrible coronavirus pandemic had a big impact on market performance, and with the continuing rollout of vaccines there are some reasons for increased optimism. However, the story is much deeper and much more nuanced than that. In this report, we countdown our top 10 big-dividend REITs (starting with #10 and concluding with our top #1 idea), including our careful consideration for current market conditions combined with company-specific opportunities.
Top 10 Growth Stocks: Options Trading Edition
Top Growth Stocks have been getting volatile in the last few trading sessions. To some, this is a “buy the dip” opportunity, but to others it’s a warning of something more dangerous to come. My personal investment philosophy is to always buy good businesses and then hang on (despite potential volatility) the for long term. And in this article, I will rank my top 10 growth stocks. However, I’ll also share specific options trading strategies that I believe are particularly compelling (based on current market conditions), potentially very lucrative and also consistent with my long-term philosophy. But before we start counting down the Top 10, it’s worth considering the tremendous and wide-ranging recent performance, valuation and expected revenue growth for top growth stock opportunities.