Quick Note: Here is a look at updated performance for BDCs over recent (and longer) time periods. As you can see, the group has been strong this year, with many outpacing the S&P 500 yet still trading below reported book value. A few key observations, starting with Ares Capital and then moving on to some of the more “growth-focused” BDCs:
Rivian: Big Risks, Big Rewards. Buy, Sell or Hold?
You’re likely aware electric vehicle (“EV”) sales are on a high-growth trajectory. And you may also sense the growing popularity of Rivian Automotive (RIVN) Trucks, SUVs and Electric Delivery Vans. But are Rivian shares a buy, sell or hold? In this report, we review Rivian’s business model, its market opportunity, financials, valuation, risks, and then conclude with our strong opinion about investing in Rivian.
BMEZ: Big Distribution Cut, 17.0% Discount to NAV
Income Equity Portfolio Updates (New Positions)
The Income Equity Portfolio Tracker Sheet has been updated for September, and there are a few new buys and sells (we highlight them in this note). As a reminder, the objective of the Income Equity Portfolio is “steady income and long-term capital appreciation” by investing in blue-chip companies with earnings growth potential, attractive valuations (multiple expansion opportunity) and prudent capital allocation (including reinvesting in the business, dividends, share repurchase and strong balance sheet management). Here are the latest updates.
Quick Note: Barron's Says Enphase Shares Can Jump 80%. We Agree.
Quick Note: Barron’s thinks this beaten-down solar stock could jump 80%. We agree. It made our top 10 growth stocks list for this month, and in the quarters and years ahead, we believe the shares will be trading dramatically higher. You can read our previous full report on the business here.
Top Chip & Hardware Stocks Benefiting from AI and Cloud Migration
In this report, we review market sector performance. Technology continues to dominate, semiconductors in particular. We consider the themes behind the sector strength (e.g. Artificial Intelligence and the digitization of everything), and then dive into our top semiconductor (and related hardware) companies benefiting from the secular trends, including our current holdings.
Nvidia: Despite Price Gains, Valuation Now Lower
Updates: High Income NOW Portfolio
The Income Game Has Changed: Treasuries, Money Market Funds
If you haven’t been paying attention, shorter-term interest rates have risen sharpy, and investments that seemed absurdly inappropriate just two years ago—are now worth considering. For example, a 6-month treasury bill (see chart below) now yields its highest rate in over 20 years! Specifically, it’ll pay you over 5.4%--whereas 2 years ago it was ~0.0%! And interestingly, short-term treasuries yield more than long-term treasuries (i.e. an inverted yield curve which some suggest is a sign of economic challenges on the horizon).
Top Technology Sector Growth Stocks (Copy)
Top 10 Growth Stocks (Attractive Entry Points)
A lot of top growth stocks have sold off hard over the last month, and a select few of them provide extremely attractive entry points right now. In this report we share data on over 100 top growth stocks, briefly review macroeconomic conditions, discuss several massively disruptive secular trends, and then count down our top 10 growth stock rankings. We believe the names on this list have dramatic upside potential in the quarters and years ahead. However, if you are not a growth stock investor, this report is absolutely not for you.
Quick Note: Disciplined Growth Portfolio Updated
SoFi Stock: Outlook, Despite Biden, Student Loans Resuming, Growth Accelerating
The Supreme Court has ruled, and the Biden Administration is largely abandoning its fight to permanently cancel student loan debt for millions of Americans (until 2024, an election year, when the new plan will be touted). So what does this mean for SoFi, an already fast-growing fintech that expects its revenue to accelerate as federal student loan payments are now set to resume? In this report, we review how SoFi has been growing its business during the student loan pause, how it will benefit going forward, the company’s recent financial performance, valuation and risks. We conclude with our strong opinion on investing in SoFi.
Top 10 Big Yields: CEFs, BDCs, REITs, MLPs
If you are an income-focused investor, there are a lot of opportunities and pitfalls, especially considering the current macroeconomic environment. In this report, we share data on over 100 big-yield opportunities (including CEFs, BDCs, REITs and MLPs), and then rank our top 10 big-yielders, counting down from #10 and finishing with our top ideas.
Super Micro Computer: Big Volatile Secular Growth (Artificial Intelligence, High-Powered Computing)
If you like to invest in powerful secular growth opportunities, Super Micro Computer (SMCI) has likely caught your eye. This developer and manufacturer of high-performance servers and storage systems is benefitting dramatically from explosive secular growth in artificial intelligence (“AI”) and high-powered computing. The total addressable market opportunity is enormous. In this report, we review the business, the market opportunity, financials, valuation and risks, and then conclude with our strong opinion on investing.
PDI: Attractive 14% Yield, Big Hidden Costs
PIMCO’s Dynamic Income Fund (PDI) is popular among income-focused investors, and it should be. It offers big monthly distribution payments (that have increased over time), and it occasionally pays additional special dividends too. Plus, the fund is managed by a world-class company, PIMCO. However, there are significant costs, both implicit and explicit. In this report, we weigh the fund’s attractive qualities against its various costs, and then conclude with our strong opinion on investing.
Quick Note: Big-Yield CEF Data
Quick Note: The tables below include updated data for 75 big-yield Closed-End Funds (CEFs) from across many categories. As you can see, there are some very interesting discount/premium things happening, as well as a wide variety of year-to-date returns (based on category). We’ll have more to say about this data soon (with regards to our High Income NOW portfolio) but a few noteworthy items include…
Quick Note: Sea Limited, Down After Earnings
Energy Transfer: Tempting Big Yield, Dynamic Big Risks
If you are an income-focused investor, Energy Transfer offers a tempting 9.7% yield. Especially considering the stable fee-based income, the healthy distribution coverage ratio and the ongoing volume growth trajectory. However, there are variety of big risk factors that investors should consider, including debt levels, MLP tax considerations, management team, the lack of a strong competitive moat, rising interest rates, regulations, environmental concerns and the overall volatility profile of the industry. In this report, we provide an overview of the business, consider the attractive qualities that make the distribution so tempting, review the risks, evaluate the current valuation and then conclude with our opinion on investing.
Is Quantum Computing The Future? This High-Growth Stock Is Worth Considering
The company we review in this report harnesses the power of atomic ions found in nature to develop quantum computing systems that are widely regarded as surpassing traditional computer technologies in both quality and scalability. Founded in 2015 and first trading publicly in late 2021, the company is relatively small, but growing rapidly and supported by very large long-term secular disruption opportunities. We review the business, the market opportunity, financials, valuation, risks and then conclude with our opinion on investing.