Here is your July Wall Street’s Best Digest, Mid-Year Top Picks Update issue 843.
Welcome to our Mid-Year Top Picks Update! While the markets in 2021 have continued to drive higher, so have our Top Picks. Our picks averaged a return of 37.5% so far this year, and our Top 5 gained an average of 242.5%!
Those are some great numbers! And as the markets continue to move higher, so does the economy continue to gain strength.
Job seekers are beginning to come back into the market after months of receiving temporarily increased unemployment benefits; that made the unemployment rate for June edge up to 5.9%. Housing sales continue to rise, as does manufacturing. That’s all great news!
In this month’s issue, we highlight updates on many of our Top Picks from our January issue. We begin with Growth stocks, and here we offer updates on the electric vehicle and travel sectors. In Growth & Income, our updates include a retail pharmacy, a jewelry company, a business that markets cell phone towers, and a tobacco stock.
In Financials, you’ll find several banks that pay nice dividends. Our healthcare offerings are four biotech companies. And in Technology, we profile a search and a software stock.
Our Resources and Energy stocks include gold mining, uranium, and lithium companies. And our Low-Priced stock operates in the therapeutic arena. Our remaining Top Picks updates are several funds that offer exposure to the AI, marijuana, cybersecurity, and income sectors.
In addition to our Top Picks updates, I’ve also included a section of new ideas, beginning with apparel, conglomerate, and gaming companies in the Growth genre. In Growth & Income, you’ll find a railroad company as well as a business that sells ID solutions.
Our Healthcare offerings are an HMO, a life sciences company, a biotech, a REIT, and a healthcare tech business. In Resources, we highlight a gold and a lithium stock. And in Funds & ETFs, our contributors profile a real estate and a genomics company.
I hope you are having a wonderful summer. For me, I’m dipping my toes back into travel, taking a few mini trips. And I’m preparing for our Cabot Smarter Investing, Greater Profits Online Conference, to be held August 17-19, 2021. I hope you will join us. As always, please don’t hesitate to email me with your feedback and questions. My address is nancy@financialfreedom.com.
Mid Year Top Picks 843
2021 has continued to be a great year for the markets, with the Dow Jones Industrial Average up 13.7%; the S&P 500 gaining 15.9%; and the Nasdaq increasing 13.6%. And our contributors did even better! Our picks averaged a return of 47.2% so far this year, and our Top 5 gained an average of 242.5%!
| Contributor | Publication | Stock | Symbol | Return (%) |
| Joseph Cotton | Cotton’s Technically Speaking | Cassava Sciences | SAVA | 506.01 |
| Tom Bishop | BI Research | Anavex Life Sciences | AVXL | 311.04 |
| William Velmer | S.A. Advisory | Predictive Technology | PRED | 214.29 |
| Bruce Kaser | Cabot Turnaround Letter | Signet Jewelers | SIG | 113.05 |
| Nate Pile | Nate’s Notes | MannKind | MNKD | 68.22 |
Congratulations to all of our contributors and their favorites! Researching and choosing stocks is part science/part art. And while there are hundreds of investment newsletters out there, in Wall Street’s Best Digest, we are thrilled that so many of our advisors have been plying their investment prowess for decades and continue to share their best ideas with us. Here are some highlights from each of the Top 5 Picks.
Cassava Sciences — our number one stock—was picked by Joe Cotton of Cotton’s Technically Speaking. In his write-up, Joe said: “Cassava Sciences, Inc. is a clinical stage biotechnology company that develops drugs for nervous system disorders.
“Its lead therapeutic product candidate is PTI-125 which has completed a Phase 2b clinical trial for Alzheimer’s, with very significant results. It actually appeared to improve the symptoms of the disease, not just halt or slow the progress of the disease. The company just raised $75 Million in November to fund its third phase trials, which, if successful, could result in a billion dollar Blockbuster Drug.”
In second place was Anavex, chosen by Tom Bishop, of BI Research. Anavex has been Tom’s favorite for a couple of years, and here are some comments detailing why he chose the stock: “Anavex is working on a number of CNS (central nervous system) diseases, more than doubled in 2020 on more good trial results in Parkinson’s disease dementia (PDD) and Rett syndrome. Meanwhile, it’s Phase 2b/3 Alzheimer’s trial is nearing full enrollment, and recently reported phase 2 PDD success on dementia was encouraging in this regard.
“In fact, the PDD trial results were accepted and presented at an Alzheimer’s conference. Clinical trial results to date for Anavex 2-73 (oral) in all of these diseases have been very positive.
“$10 billion is a reasonable estimate for sales of an Alzheimer’s drug that actually works (nothing on the market really does so far). And if the shares traded at just 2 times revenues, that would be a market cap of $20 billion, not counting success with Rett or PDD. And even using 50% more shares than are outstanding today, that works out to $200 a share.”
Our third place stock, Predictive Technology, was selected by William Velmer of saadvisory.com. When he recommended the stock in January, Bill commented, “PRED still has a collaborative relationship with Thermal Fisher (TMO) and a developmental collaborative relationship with Atrin (cancer therapy). At present, PRED has been ramping-up its COVID 19 saliva testing (6 days/wk) and stem cells sales continues to recover.
“We believe investors have the opportunity to 10-30X their initial investment, even though some might be averaging down from last year’s price recommendation. We rate PRED with our strongest buy recommendation.”
Taking the fourth spot is Signet Jewelers, picked by Bruce Kaser of Cabot Turnaround Letter. Bruce had this to say about Signet: “With capable new leadership since late 2017, Signet is now making impressive progress in reversing all of these problems. Even with the pandemic, third-quarter same store sales rose 15% as positive physical same store sales were bolstered by surging (+71%) online sales.
“The company appears to be in sync with what its customers want while operating with much greater efficiency. Signet’s previously onerous debt burden is now arguably too low. With the shares trading at only 10x forward earnings, the market hasn’t yet recognized that Signet’s turnaround has further to go.”
And rounding out our Top 5 is MannKind, chosen by Nate Pile of Nate’s Notes. Here’s why Nate likes MannKind: “The company’s lead product, Afrezza (a form of ultra-fast acting mealtime insulin that is inhaled rather than injected), is finally starting to make some inroads with both type 1 and type 2 diabetics (and their doctors), and I expect this trend to start accelerating as we get further into the year.
“In addition, the company has licensed its drug delivery platform (Technosphere) to United Therapeutics (UTHR), and United Therapeutics is moving forward aggressively with plans to commercialize a form of treprostinil for the treatment of pulmonary arterial hypertension (PAH) and PAH associated with interstitial lung disease (ILD) using this platform (MannKind will receive royalties on sales if/when the drug is approved).
“Along with this agreement, the company has also licensed the platform to a private company called Receptor Life Sciences that is using it to develop cannabinoid-based pharmaceutical products.“
Here are updates on many of our 2021 Top Picks, as well as some new ideas for your portfolio.
Top Picks - Growth 843
Tesla, Inc. (TSLA) | Daily Alert June 22
52 week high: 900.40, 52 week low: 181.70
Market Cap: $595.03, EPS: 1.00, P/E: 618.93, Beta: 2.00
Since I last wrote about TSLA on December 09, 2020, the stock price as of December 2020, at $612.22/share jumped to $900.40/shr. Tesla enjoyed a record delivery of nearly 500,000 cars and sitting over $15 billion in cash. Allowing TSLA to concentrate to increase its margins and market share and profitability globally.
Technical Picture
In retraction/correction pattern: topping at 900 in mid-Feb ’21. Sinking in repeated plunges, breaking through 50-DMA to the low of 550. V-shaped reversal: (575-625) to (625-675) to (701-725) failed to penetrate upward the 50-DMA (651-658). Slide continued from 750 through 550 in mid-May ’21. The secondary support (543-550) above its 200-DMA has held. Challenging 50-DMA at (592-610). The primary resistance and (701-728), secondary resistance in the offing. Tug of war between bulls/bears is the culprit for the decline and stagnation of TSLA. Potential of short squeeze apparent, where the short sellers will be forced to cover their short positions. VOLATILE.
Joseph Parnes, Shortex Market Letter, shortex.com, 800-877-6555, June 15, 2021
Blink Charging Co. (BLNK) | Daily Alert June 30
I remain bullish on Blink Charging Co. as my top growth pick for 2021. It is on my accumulation list as I have added to the position on price pullbacks multiple times so far this year.
Blink is a leader in electric vehicle (EV) charging equipment and has deployed over 30,000 charging ports across 13 countries, many of which are networked EV charging stations, enabling EV drivers to easily charge at any of the company’s charging locations worldwide.
When I commented on the company at last yearend, Blink had over 23,000 EV charging stations throughout the world. On May 11 Blink acquired Blue Corner, a European EV charging operator. In the right place at the right time, Blink is well-positioned to benefit from the exponential growth in EV’s.
Further, President Joe Biden has proposed spending at least $15 billion to begin rolling out electric vehicle charging stations, with the goal of reaching 500,000 charging stations nationwide by 2030. Don’t blink and miss Blink. It is a BUY.
John J. Gardner, ERPE Excerpts, 925-216-4968, blackhawkwealthadvisors.com, June 28, 2021
*Trivago N.V. (TRVG)
The World Travel & Tourism Council reported that, in 2020, the sector lost nearly $4.5 trillion and 62 million jobs. And airlines alone lost $126 billion. But that is in the past. According to ustravel.org, “nearly nine in 10 American travelers have plans to travel in the next six months.”
During the pandemic, Trivago also took steps to shore up its bottom line, reducing employee costs by about 7 million euros in the first quarter, and also cutting non-marketing costs by 37%.
As well, it worked on some product innovations, including changing its pay from partners in its bidding auctions to bookings rather than clicks. And the company improved user interaction with its travel platform.
Lastly, Trivago bought weekend.com, which is now being used for its trivago Weekend, a product that offers recommendations for local destinations.
For the second quarter, Wall Street expects Trivago to post revenues of $85.9 million, with a loss of $0.03 per share. In 2022, it’s expected that the company will return to profitability. I look for the shares to keep edging up; my price target is $4.50.
Nancy Zambell, Wall Street’s Best Digest, cabotwealth.com, 978-745-5532, June 22, 2021
Top Picks - Growth & Income 843
Walgreens Boots Alliance, Inc. (WBA)| Daily Alert June 28
Our income recommendation for 2021 was Walgreens Boots Alliance. The stock has done well, generating total returns (including dividends) of 39.0% this year (through 6/14/21) versus 14.1% for the S&P 500 ETF (SPY).
And Walgreens as a company has not stood still in 2021. The company changed CEOs on March 15th when Rosalind Brewer succeeded previous CEO Stefano Pessina. Walgreens also closed on its sale of the majority of its Alliance Healthcare business for ~$6.5 billion to AmerisourceBergen (ABC). The company is using proceeds to eliminate $3.3 billion in debt from its balance sheet and for investment and growth purposes.
Finally, the company issued guidance for mid-to-high single digit growth for adjusted earnings-per-share for fiscal 2021.
The news surrounding Walgreens has been largely positive in 2021. As a result of price gains, the stock’s dividend yield has fallen from 4.5% during our initial writeup to around 3.4% now.
We now view Walgreens as a quality Dividend Aristocrat that is trading at a small premium to our fair value estimate. Walgreens is a long-term hold at current prices.
Disclosure: I am long WBA.
Ben Reynolds, Sure Dividend Newsletter, suredividend.com, support@suredividend.com, 800-531-0465, June 15, 2021
*Signet Jewelers (SIG)
With sales of more than $6 billion, the company operates 2,800 stores, including Kay Jewelers, Zales, Jared and others.
With the turnaround, Signet is becoming much more relevant, profitable and valuable.
The most recent quarter produced profits that were sharply higher than estimates and the company raised its full-year profit guidance by nearly 50%.4
The CEO leading the turnaround has focused on the basics: expand the company’s marketing to reach current and potential new customers, offer products that customers want, and make the buying process easy.
One intangible is that Signet’s digital/social media upgrade may be polishing up some of the reputational tarnish of its mall-based stores, such that new customers in prime, higher-income demographic groups are now comfortable with buying from the company.
Signet’s profits and balance sheet are robust. The share valuation remains depressed despite the price run-up.
We continue to like SIG shares.
Bruce Kaser, Cabot Undervalued Stocks Advisor, cabotwealth.com, 978-745-5532, June 22, 2021
*Crown Castle International (CCI)
The stock of cell phone tower and data center REIT Crown Castle is not the screaming value that it was last fall, but it does retain its appeal as a best-inclass company that delivers reliable dividend growth and consistent increases in sales and profits.
Crown Castle grabbed a big piece of business from Verizon in the first half of 2021, and funds from operations grew 20% year-over-year in the most recent quarter. Revenue this year is expected to grow 7.5% to $6.28 billion.
The ongoing rollout of 5G wireless service is a significant tailwind for CCI and its two primary competitors in the tower business: American Tower (AMT) and SBA Communications (SBAC).
Crown Castle has outperformed its rivals in market performance, with a 24% year-to-date total return through June 16, compared to AMT’s 19% and 13% for SBAC.
Crown Castle has taken advantage of the stock’s strength and the favorable business environment to raise additional capital on advantageous terms by issuing both equity and debt. The most recent transaction was the issue of $750 million in 2.50% senior notes due 2031.
The stock is still attractive for long-term investors at current prices near $193. Waiting for a pullback to the 50-day moving average of $185 would get you into the stock at a yield just shy of 2.9%.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, June 22, 2021
*Altria Group, Inc. (MO)
Altria is up an impressive 20% in the first 6 months of the year and on a roll that we believe will continue. MO pays a handsome/safe dividend and the company raised the dividend this year—just like it does every year.
I believe by 2024-2025 MO will be selling POT/sticks right next to the Marlboros. Marlboro is still king of the smokes. States received $27 Billion in tax revenue from smokes last year. Of those funds, a (PITIFUL) 2.4% went to smoking cessation programs; the rest to support the state budgets. In most states tobacco revenues pay for 8-10% of the budget.
It is estimated-about 320 Million people smoke (globally). That number is up about 90 million in the last 30 years. While less people percentage-wise smoke these days, the total number of smokers is still growing.
MO will soon start selling iQOS (vape) products made by sister company PM—which has been a big hit. We note that iQOS product-has higher margins than cigarettes.
The stock is still cheap under $50 especially, and for those looking for total return, MO makes sense.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, June 4, 2021
Top Picks - Financials 843
Banco Santander, S.A. (SAN)| Daily Alert June 17
Banco Santander is Spain’s largest bank. In addition, it is the third largest in Brazil, along with operations in Argentina, Chile, Mexico, Poland, Portugal, the UK, and the United States.
The corporation rebounded to a profit in the first quarter of this year with black ink of $1.94 billion. Chairman Ana Botin forecasts that even better results are in store. Last year, in-line with the European Central Bank’s recommendation, SAN eliminated the dividend. But with the wonderful earnings and the relaxation of the ECB regulations given the economic recovery, a payout has been reestablished. As it increases, there is an excellent chance that the share price will also jump, perhaps to our Initial Sell Target of $8.24. That is well below the $20+ where it traded a number of years ago.5
In many ways, this bank reminds us of Bank of America, which we bought at $6.76. Both of them are major players in their markets, and from our perspective in the “too big to fail” category. We finished unloading the BAC position at $38.79 for a 474% gain. It has continued to go up since.
We are happy to hold this stock and look forward to additional capital appreciation. Toss in a dividend and the returns could be luscious.
Benj Gallander, Contra the Heard Investment Letter, 416-410-4431 gall@pathcom.com contratheheard.com, June 11, 2021/span>
*Wells Fargo & Company (WFC)
Under its previously weak leadership, the company never fully recovered from the 2009 financial crisis and its loose compliance culture led to a fake accounts scandal and other reputation tarnishing problems.
We continue to see early indications of a tighter compliance culture, better strategic focus and more efficient operations. Scharf is reorganizing the bank’s segments to boost transparency and push accountability deeper into the business.
First-quarter results were encouraging. However, like all banks, lending volumes remain weak, which will weigh on the net interest margin. Capital markets revenues should remain reasonably robust.
Wells Fargo’s capital strength is healthy and improving, such that the bank recently purchased $600 million of its shares. Wells looks capable of increasing its dividend next year. We remain only modestly positive on WFC shares, as much of the turnaround has already been discounted by the 1.3x tangible book value multiple.
Bruce Kaser, Cabot Undervalued Stocks Advisor, cabotwealth.com, 978-745-5532, June 22, 2021
Top Picks - Healthcare 843
Sorrento Therapeutics, Inc. (SRNE) | Daily Alert June 29
Our 2021 pick of the year was and remains Sorrento Therapeutics.
There is more to Sorrento excitement causing others now to take a look--besides the U.K., Phase 2 trial, as important and eye-catching as that news was and is regarding MAB (Monoclonal Antibodies) that differ from competitive ones. This is Nose Drops or Nasal Spray and similar to the company’s injectable. NIH and FDA have ignored Sorrento; while it is funded by… DARPA… Department of Defense (seeks a countermeasure that kills Covid flat-out not like vaccine).
I also suspect EUA CoviStix (15 minute antigen test with the highest accuracy and more affordable than others) approval and marketing commencement any day now in Mexico. As to why apply in the U.K.? India, sadly, suffers among the worst with Covid, and tends to follow U.K. leads.
Sorrento also secured an exclusive license agreement for a valuable, potential breakthrough technology, known as ADNICs. These target various types of human diseases including various solid and liquid tumors.
Plus, the company’s ‘non-opioid’ pain relievers and Cart-T oncology drugs are also nearing crucial phases (Sorrento works with Mayo Clinic, Columbia University and other institutions in Sweden as well as acquired a Chinese oncology company).
We’re content with the 20-25 target ‘for now’; and it’s not absurd if anything gets the go-ahead (yes, it’s speculative). Also, depends on whether a big pharma tries to buy the company out or not. And while Sorrento is not for the faint-of-heart, it’s high potential if FDA stops playing favorites with the big pharmas and gets an open-mind toward stocks like San Diego’s Sorrento.
Gene Inger, The Inger Letter, ingerletter.com, June 16, 2021
MannKind Corporation (MNKD) | Daily Alert July 2
It has been an exciting first half of the year so far for my Top Pick for 2021, MannKind Corporation.
The stock has been climbing steadily this year 1) in anticipation of continued growth for the company’s lead product, Afrezza (an inhalable form of mealtime insulin for both Type 1 and Type 2 diabetics); and 2) the fact that one of the company’s partners, United Therapeutics (UTHR), has filed a New Drug Application (NDA) with the FDA for an improved version of treprostinil that utilizes MannKind’s Technosphere drug delivery platform.
In addition, another of the company’s licensees of the technology, a private company called Receptor Life Sciences, announced very exciting clinical data related to its efforts to develop pharmaceutical grade CBD products utilizing the Technosphere platform as well.
After raising over $200 million in a convertible debt offering earlier this year, the company is in the best financial shape it has been in for many years now, and though it is not the same screaming bargain at today’s prices that it was at $1 a little over a year ago, MNKD is still considered a very strong buy under $5 and a buy under $10.
Nate Pile, Nate’s Notes, NotWallStreet.com, 707-433-7903, June 30, 2021
*Anavex Life Sciences Corp. (AVXL)
Anavex with it lead compound Anavex 2-73 (A2-73, oral) is in clinical trials for Alzheimer’s disease (just finished over-enrollment of a phase 2b/3, 450-patient, 48-week clinical trial after very encouraging long term results from the phase 2a trial; Parkinson’s disease dementia (just finished a successful Phase 2 trial, also supportive for Alzheimer’s, with more data due out shortly); and Rett syndrome (for which it has three Rett trials in various stages with encouraging clinical data so far, and more due out shortly).
An estimated 5.7 million Americans (and 50 million worldwide) currently suffer with Alzheimer’s disease which along with other dementias cost our nation an estimated $305 billion in 2020. Alzheimer’s is the third leading cause of death in the U.S. behind heart disease and cancer and the only one of the top 6 diseases in the U.S. where the death rate has risen, rather than declined.
As demonstrated by the instant $20 billion increase in the market cap of Biogen on the FDA’s approval of its Alzheimer’s monthly infusion therapy drug on 6/7 (for which efficacy was so poor that most doubted the FDA would even approve it), a drug that works on Alzheimer’s is clearly a holy grail of medicine. This also demonstrated how desperate patients, and ergo the FDA, were to get anything approved that might help these patients after nothing new was approved in almost 20 years. This approval was actually good news for Anavex because it indicates a lowering of the bar for approval. And based on data so far investors believe A2-73 will be able to show much greater efficacy in any event, plus … A2-73 is an oral drug, so patients would likely flock to it, leaving Biogen with a buggy whip.
As positive statistically significant data continues to come in from the various trials this year, the shares have almost quadupled so far in 2021 to around $20. However, if $10 billion is a reasonable estimate for annual sales for an Alzheimer’s drug that actually works, and Anavex were to just trade at a very low 2 times sales (and Biogen’s recent $20 billion surge bears this out), and even assuming the share count rises another 42% to 100 million, this would equate to a share price of $200.
Meanwhile, Anavex is resisting any partnering interest and has retained 100% until it can demonstrate that A2-73 works and get fair value for its shareholders. Then I think big pharma is quite likely to swoop in.
Tom Bishop, BI Research, biresearch.com, June 14, 2021
*Medexus Pharma (MEDXF, MDP.V)
Medexus is a specialty pharma company focused on rheumatology, auto-immune disease, specialty oncology, allergy and pediatric diseases.
I first learned of Medexus Pharma when it bought a drug called IXINITY from Aptevo Therapeutics (APVO). The beauty of the IXINITY acquisition is that Medexus acquired a drug for an upfront payment of $30 million that was/is growing at 40% annually and generating $14.0 million of gross profit on an annualized basis.
In February 2021, Medexus entered into a licensing agreement with medac Gesellschaft für klinische Spezialpräparate m.b.H. (“medac”) to sell treosulfan in the United States. Treosulfan is given to acute myeloid leukemia (“AML”) and myelodysplastic syndrome (“MDS”) patients prior to stem cell transplantation. Management believes its current drug portfolio (including Treosulfan) has peak sales potential of $350MM to $400MM CAD.
Assuming the company can trade at 3x this revenue estimate (the company will execute additional licensing deals so I expect revenue to ultimately grow even higher) in line with slower-growing peers, MEDXF would trade at ~24 per share, implying significant upside from here.
Medexus is my largest personal holding. Buy under $8.
Rich Howe, Cabot Micro-Insider, cabotwealth.com, 978-745-5532, January 22, 2021
Top Picks - Technology 843
Alphabet Inc. (GOOGL)| Daily Alert June 23
Alphabet has rallied nearly 39% in 2021, but the stock remains one of my top picks for year-ahead gains.
The company increased earnings per share 49% and sales 18% for the 12 months ended March, while operating cash flow grew 35% and free cash flow jumped 75% to $50.74 billion.
Encouragingly, Alphabet has reversed the steady slide in operating profit margin, which had contracted in 11 straight quarters before rising in the last three quarters. The future may look even brighter, with analysts calling for 49% higher earnings per share in 2021 on revenue growth of 29%.
The stock trades at 28 times estimated 2021 earnings, in line with its industry median. Excluding net cash of $156 per share reduces Alphabet’s current-year P/E to 26. Alphabet is a Focus List Buy and a Long-Term Buy.
Richard Moroney, CFA, Dow Theory Forecasts, dowtheory.com, 800-233-5922, June 17, 2021
Nuance Communications, Inc. (NUAN) | Daily Alert June 24
Nuance was an early pioneer in voice recognition technologies and has gone through numerous phases in its evolutionary path. Today, Nuance develops conversational AI solutions that can understand, analyze, and respond to human language. It has a market cap of $15.7 billion.
In recent years management has focused on growing within Nuance’s two strongest markets—Healthcare Solutions and Enterprise Solutions—as well as migrating to the cloud, new product development and international expansion.
Looking forward, Nuance is entering the next big phase of its evolution as it prepares to become part of Microsoft (MSFT). Microsoft announced the acquisition back in April. It was attracted to Nuance because the acquisition will help Microsoft build out Microsoft Cloud for Healthcare (MCH) solutions. More specifically, Microsoft can leverage existing healthcare integrations and develop new AI capabilities using existing data on Azure. Management sees a doubling of its healthcare addressable market (to $500 billion) by bringing Nuance into the fold.
For investors, news of the buyout was welcome. NUAN was trading near 45.5 prior to the announcement, then shot up over 30% to an all-time high of 54 on the news. The stock recently added a few more points because the deal just passed antitrust approval. NUAN now trades just below 55.
Current NUAN investors should hold their shares only if they wish to own stock in MSFT, which should be a core holding in every investor’s portfolio. For new investors, there is no reason to buy NUAN. It makes more sense simply to buy MSFT directly.
Tyler Laundon, Cabot Early Opportunities, cabotwealth.com, 978-745-5532, June 11, 2021
Top Picks - Resources & Energy 843
Newmont Mining Corporation (NEM) | Daily Alert June 18
Earlier this year, I selected large-cap gold mining company Newmont Mining Corp. as my Wall Street’s Best Digest Top Pick for 2021. At that time, Newmont offered the potential for significantly higher dividends with a unique dividend policy. As a result, Newmont started to pay a significant portion of added free cash flow as dividends:
- The base dividend rate is $0.25 per quarter/$1.00 per year. That rate has a base gold reference at $1,200 per ounce.
- Targeting 40% – 60% of incremental free cash flow with gold above $1,200 to be paid as dividends.
- Evaluating dividend increases with gold price increments of approximately $300 per ounce.
The $0.55 dividend rate is based on $1,800 gold. The next increase comes at $2,100.
I use the Momentum Structural Analysis service, for technical indicators, especially gold. MSA says cracking $1,950 for gold would trigger a breakout move higher. That would be good for both the NEM share price and the dividend.
Newmont Mining Corporation remains my stock pick for exposure to precious metals and as an inflation hedge.
Tim Plaehn, The Dividend Hunter, yn345.isrefer.com/go/cabmdpc/cab/, June 11, 2021
*Energy Fuels Inc. (UUUU)
Earlier this year, I selected large-cap gold mining company Newmont Mining Corp. as my Wall Street’s Best Digest Top Pick for 2021. At that time, Newmont offered the potential for significantly higher dividends with a unique dividend policy. As a result, Newmont started to pay a significant portion of added free cash flow as dividends:
- The base dividend rate is $0.25 per quarter/$1.00 per year. That rate has a base gold reference at $1,200 per ounce.
- Targeting 40% – 60% of incremental free cash flow with gold above $1,200 to be paid as dividends.
- Evaluating dividend increases with gold price increments of approximately $300 per ounce.
The $0.55 dividend rate is based on $1,800 gold. The next increase comes at $2,100.
I use the Momentum Structural Analysis service, for technical indicators, especially gold. MSA says cracking $1,950 for gold would trigger a breakout move higher. That would be good for both the NEM share price and the dividend.
Newmont Mining Corporation remains my stock pick for exposure to precious metals and as an inflation hedge.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, June 30, 2021
*Frontier Lithium inc. (LITOF)
Frontier’s more then doubling in share price at 2021’s halfway point (it was higher for a spell, but has corrected with other resource stocks) doesn’t begin to reflect the story of Frontier as a company.
Frontier’s high-grade and low iron content lithium-containing material is spodumene. Lithium mined from such hard rock sources generally has a tiny “footprint” compared to other lithium-hosted sands, salt flats, etc. This already is garnering the attention of ESG proponents and others who are pushing back against some other lithium development and embracing projects like Piedmont’s and Frontier’s.
Indeed, both provincial and national policy makers in Canada are energetically behind Frontier and similar companies as they set themselves up as premier North American and global sources for battery metals.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, June 30, 2021
Top Picks - Low-Priced Stocks 843
Predictive Technology Group, Inc. (PRED) | Daily Alert July 6
We continue to recommend Predictive Technology Group, Inc. as our 2021 stock pick. The stock is geared toward risk/reward strategy, and the company contains severely undervalued and heavily discounted assets with huge revenue potential.
The company is a therapeutics and life science company, with three divisions: PRED Analytics, Laboratories, and Biotech. Predictive is collaborating with Thermo Fisher (TMO)~$32B in revenue, Illumina (ILMN)~ $3.2B; BGI Genomics (300676~Shenzhen exchange)~$8.3B; Nebula Genomics (private-whole genomic sequencing-better than 23andME, and Ancestry); Dr. George Church, known as the father of synthetic biology; and Inherent Biosciences (private developer of genetic test for Autism from male sperm genetic marker).
The company is in late stage before commercialization for Endometriosis Test (market $2B). The infertility treatment market was $2B in 2020, globally $14.2B. The company’s late stage commercialization, ARTguide, is a participant in the Stem Cell Therapy market, valued worldwide at $14.8 billion. The FDA has banned most Stem Cell sales so PRED may reach for international markets (we assume China).
The global DNA sequencing market accounts for $8.4B in 2020, and is projected $40B by 2030 (Nebula, Inherent, BGI, PRED playing ).
PRED has 300k DNA samples with serious maternal and neonatal disorders (believed to be the largest library in the world. It is valued @ $300/sample. Of that, 45k (Total sequenced DNA Strands are valued @ $1000.00/sample). That’s a hidden $120M!
PRED weathered listing difficulties/ COVID, and in our opinion is on the fast track for rapid expansion in its “field of dreams”. We still remain and continue to rate PRED with a strong speculative buy rating at current levels for extraordinary gains.
William Velmer, S.A. Advisory, saadvisory.com, 949-922-9986, June 30, 2021
Top Picks - Funds & ETFs 843
Global X Robotics & Artificial Intelligence ETF (BOTZ) | Daily Alert July 7
I think Global X Robotics & Artificial Intelligence ETF has exciting upside. There are many exciting stocks in this ETF, and two are particularly interesting—ABB Ltd (ABB) & Keyence Corporation (KYCCF).
I think a good way to play this nascent trend is by owning this ETF. It’s plenty liquid as it trades about 400,000 shares a day.
I think the next 5 years should be very rewarding. You want to get into something right when it’s reaching the stage where company earnings are about to see big growth, and in this sector, I think that is just what is happening. I would buy BOTZ up to $36.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, June 4, 2021
*ETFMG Alternative Harvest ETF (MJ)
Despite an encouraging upturn the last nine months of 2020, the North American Marijuana Index was still trading at less than half its January 2018 apex. And momentum in the cannabis industry hadn’t slowed down a bit—far from it, in fact.
Retail sales of medical and recreational cannabis in the U.S. topped $17.5 billion in 2020, a 46% improvement from 2019, and are expected to reach $46 billion by 2025, according to the 2021 Marijuana Business Factbook.
The fund has been building a solid-looking and increasingly tightening base between $19 and $23 for more than three months, which bodes well for another strong upwards breakout in the second half of the year. From a fundamental and technical perspective, marijuana stocks look quite strong. At this point, there appears to be no stopping the trend toward full legalization in the U.S.
Thus, I’m just as bullish on the Alternative Harvest ETF now as I was entering the year. With the fund trading at exactly half its 2018 peak and the climate for marijuana sales improving almost daily, this looks like a prime buying opportunity.
Chris Preston, Chief Analyst, Cabot Wealth Daily, cabotwealth.com, 978-745-5532, January 4, 2021, July 5, 2021
ETFMG Prime Cyber Security ETF (HACK) | Daily Alert June 21
Recent hacks on a pipeline and a meat producer represent reasons to own HACK.
Biden has made it clear he is not doing anything about it. Hacking groups will only get more bold. We need to be aware of potential future China or Russia attacks.
Cyber threats are ramping up. HACK is a good way to combat these threats. The companies involved are actively doing what is necessary to help stop hacking. Continue to buy HACK.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, June 11, 2021
DoubleLine Income Solutions Fund (DSL) | Daily Alert June 16
The DoubleLine Income Solutions Fund closed-end fund is our 2021 Top Pick for income investors seeking a high payout income fund. Through the first five months of 2021 the fund has produced a total return of 13.9% (as of 5/31/2021).
At the recent price of $18.39, the closed-end fund trades at a slight -0.65% discount to net asset value of $18.51. The generous discount available at the start of the year has mostly been erased.
The closed-end fund pays a monthly distribution of $0.11, or approximately $1.32 per year. This represents a distribution yield of 7+% annually at the current market price. The fund seeks high current income with capital appreciation.
Robert M. Brinker, CFS, Brinker Fixed Income Advisor, brinkeradvisor.com, 303-688-2555, June 10, 2021
Top Picks - Updates 843
Sold: Cassava Sciences, Inc. (SAVA) | Daily Alert June 25
SAVA has performed well, and we expect it to go higher—maybe a whole lot higher.
This market is trading at all-time highs, and we want to protect our gains, and a lot of stocks are selling off.
On May 10th, the company reported that it has initiated a 6-month Cognitive Maintenance Study (CMS) targeting 100 subjects. The results of that study and the results of its planned 3rd phase trial, if positive, could push the stock up another hundred points. And if Cassava gets FDA approval, it could move it another 100-200 points. When Biogen received approval for its Alzheimer’s drug, the stock moved from 270 to 460 intraday—in two days. It now trades at 396, and we think Cassava’s drug is superior to Biogen’s.
We bought the SAVA Jun 18 2021 75 Calls on June 15.
We sold Cassava stock at 79.42 on June 17. Nancy’s note: we recommended SAVA at 12.97 in our January 2021 issue #837. Great job, Joe!
Joseph Cotton, Cotton’s Technically Speaking, cottonstocks.net, 727-289-4436, June 15 & 17, 2021
Sold: JetBlue Airways Corporation (JBLU) | Daily Alert July 1
JetBlue’s revenue of $8.1 billion in 2019 makes it a niche flyer compared to the much larger $45 billion in revenues for major legacy carriers and about $22 billion for Southwest Airlines.
Our original thesis on JetBlue played out. With widespread vaccinations in the U.S., consumers (and eventually business travelers) are returning to flying. Recent first-quarter results were encouraging.
We recently sold our position in JetBlue with a healthy profit. Our decision was based partly on valuation and partly on fundamentals. Fundamentally, two new discount airlines are launching this year, and major airlines are becoming more aggressive, raising the specter of new price wars and a collapse of pricing discipline. Also, fuel costs have risen this year along with oil prices, creating a profit margin headwind for 20-25% of its cost structure.
Bruce Kaser, Cabot Undervalued Stocks Advisor, cabotwealth.com, 978-745-5532, June 22, 2021
Sold: U.S. Bancorp (USB)
Unlike its larger peers, it has essentially no investment banking or trading operations. When we purchased USB shares, they were out of favor as investors worried about a potential surge in credit losses due to the pandemic as well as weak earnings due to the low-interest-rate environment.
Our thesis on USB shares played out. Loan losses have remained small, such that the bank is now gradually releasing some of its vast credit reserves. Strong profits have helped add to its already-robust capital. The bank recently commenced a new $3 billion share buyback program.
We recently sold our USB shares at a healthy profit, partly on valuation and partly on fundamentals. The shares had reached our price target, which was set at about 2.4x tangible book value.
Credit and operating costs have little room for improvement. While an increase in interest rates would boost profits, the bank’s bloated deposit base won’t likely be matched by faster lending (common among all banks), weighing on its net interest margin.
The bank remains exceptionally well managed, has attractive payments, investment management and other services businesses and a dividend yield that is modestly above market. But, we saw the overall risk/return trade-off as unfavorable.
Bruce Kaser, Cabot Undervalued Stocks Advisor, cabotwealth.com, 978-745-5532, June 22, 2021
Growth 843
Stitch Fix, Inc. (SFIX) | Daily Alert June 15
Stitch Fix reported strong 3Q21 results as its second-highest quarter of net client additions, improving success rates, and strong engagement with new direct buy and Fix preview features all contributed to robust revenue growth and better-than-expected profitability.
The 4Q21 outlook reflects this momentum, with both revenue and EBITDA guidance coming in well ahead of consensus. Meanwhile, the management transition is on track as Founder and CEO Katrina Lake moves into the Executive Chairperson role in August, when current President Elizabeth Spaulding will take over as CEO.
Strong outlook as recent momentum is expected to persist. Stitch Fix provided 4Q21 net revenue guidance of $540-550M, representing 22-24% y/y growth and above consensus of $523M, raising its FY21 net revenue outlook to $2.07-2.08B (vs. $2.02-2.05B prior). 4Q21 adj. EBITDA guidance of $15-20M was in-line with CGe of $18.5M and above consensus at $5M.
Valuation: We are raising estimates and increasing our price target to $76 (from $68), based on 3.3x FY22 revenue (vs. 3.0x prior) and supported by DCF valuation.
Maria Ripps, CFA, Michael Graham, CFA, Jason Tilchen, CFA, Canaccord Genuity Research, canaccordgenuity.com, June 7, 2021
*Berkshire Hathaway Inc. (BRK-B)
Berkshire Hathaway-B Inc.is an Omaha, Nebraska-based holding company for the various investments CEO Warren Buffett has made over the years. Among its numerous holdings are insurance businesses such as GEICO, large energy and utilities businesses, a major railroad, consumer brands such as ice cream chain Dairy Queen, and manufacturers such as aerospace parts manufacturer Precision Castparts Corp. It also owns a huge portfolio of equities.
The latest investment was in financial technology (fintech). Berkshire invested $500 million in the Brazilian fintech start-up called Nubank, which is best known for issuing credit cards. Nubank has 40 million customers and plans to expand its operations into Mexico and Columbia; there have been rumors the company is considering a U.S. IPO in the future.
Berkshire had Q1 2021 operating earnings of $3.05 per share. The bottom line improved 26.6% year over year. Revenues increased 5% year over year to $64.6 billion; operating earnings of $7 billion increased 19.5% year over year.
Share repurchases during Q1 totaled $6.6 billion. In the last 12 months, management has reduced shares outstanding by 6.028%.
David R. Fried, The Buyback Letter, buybackletter.com, 888-289-2225, June 18, 2021
*Corsair Gaming, Inc. (CRSR)
One company serving this increased for gaming equipment is Corsair Gaming, Inc. Corsair Gaming is a maker of highperformance gear and technology for gamers, including PC components and peripherals, streaming equipment and ambient lighting,
Corsair’s product lineup is extensive, spanning 26 categories in two segments: Gamer & Creator Peripherals and Gaming Components & Systems. In just the twelve months ended March 31, 2021, the company launched 84 new products and shipped 33 million units.
The company also operates three subsidiaries: Elgato, which provides premium studio equipment and accessories for content creators, SCUF Gaming, which builds customdesigned controllers for competitive gamers, and Origin PC, a builder of custom gaming and workstation desktop PCs and laptops.
In the first quarter ended March 31, 2021, the company recorded sales of $529.4 million, a gain of 71.6%. Non-GAAP EPS were up 346.2% to $0.58. Management increased its full-year 2021 guidance to expect $1.9-2.1 billion in revenues. This represents growth of roughly 18% at the midpoint over fiscal 2020’s total revenues.
We project long-term growth of sales and earnings at 12.0%. With future P/Es expected to be between 8.8 and 25.0, the stock is a buy up to $33. The current price of $31.93 represents an upside/downside ratio of 3.4:1 and a potential total return of 21.3%.
Doug Gerlach, Smallcapinformer.com, 1-877-33-ICLUB, June 24, 2021
Growth & Income 843
*CSX Corporation (CSX)
CSX announced a 3 for 1 split a few weeks ago. The railroads are doing well across the board. Profits and balance sheets are very strong.
CSX has been growing earnings at more than 12% a year for the last five years. Analysts expect that number to grow to over 15%/yr over the next five years. The PE ratio is a little high (28) right now but, if the analysts are correct, that should drop to below 20 within the next year.
The quarterly dividend has been growing steadily over the last decade and is more than adequately covered by earnings. In addition to the good numbers, I’m of the belief that the railroads are on the right side of the battle to make our economy more environmentally friendly. Other than river barges, railroads have always been the most efficient way to move goods from point A to point B, and this is becoming more and more important every day.
Neil Macneale, 2 for 1 Stock Split Newsletter, 2-for-1.com, 408-210-6881, June 2021
*Brady Corporation (BRC)
Founded in 1914, Brady makes identification solutions, including labeling systems and digital scanners. The company also sells workplace-safety products. A diverse customer base spans construction, electronics, telecom, and industrial markets.
A steady diet of acquisitions should help sustain growth. Brady has completed three deals so far in 2021, boosting exposure to fast-growing markets. The June acquisition of Code Corp for $173 million expands Brady’s presence in health care and is expected to boost year-ahead revenue by $50 million.
Brady’s operating growth has accelerated, reflected in a Momentum score of 88, versus 30 a year ago. The Earnings Estimates score stands at 96, up from 36. With that in mind, analyst growth estimates seem conservative. The consensus for fiscal 2021 ending July targets 15% profit growth on 5% higher sales. For fiscal 2022, per-share earnings are expected to climb 17% on revenue growth of 11%. Brady is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, upside stocks.com, 800-233-5922, July 5, 2021
Healthcare 843
Progyny, Inc. (PGNY) | Daily Alert July 10
Progyny is basically an HMO of sorts, with plans that work for couples trying to conceive, a growing issue for both want-to-be parents (who are starting families later in life, which increases the odds of problems) and companies (who want a more productive workforce and not stressed-out employees missing time with unsuccessful techniques).
The solutions are popular (100% client retention!), and while it’s possible some big boy comes in and tries to compete, Progyny has such a big lead (nearly 200 clients) and has 800-plus fertility experts and 600 clinic locations (30% of which don’t even participate in carrier networks).
The stock was tossed around for a few months, but etched higher lows during the correction, and as the pressure came off during the past two weeks PGNY has zoomed straight up to new highs.
Importantly, shares can be a little thinly traded (we don’t advise placing overnight orders FYI), but we’re OK taking a half position (5% of the portfolio) and averaging up if all goes well. We’ll likely use a stop near 50 or so, give or take. BUY A HALF.
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, June 3, 2021
*Maravai LifeSciences Holdings, Inc. (MRVI)
Maravai is a newly public, high-growth life sciences company that offers exposure to some of the highest growth areas of the industry, including cell and gene therapy, biologics drug manufacturing and mRNA therapeutics.
Select products, services and processes Maravai provides include reagents for DNA and RNA oligonucleotide synthesis, bioprocess impurity detection/analytics and viral clearance, protein labeling and detection reagents, and RNA synthesis and scale up.
Most relevant to the here and now, Maravai supplies a critical component of Pfizer (PFE) and BioNTech’s (BNTX) COVID-19 mRNA vaccine through its yield-enhancing CleanCap mRNA capping technology. It also provides a component for CureVac’s (CVAC) yet-to-be approved vaccine.
Capping is a key step in the synthesis of mRNA as it increases the stability of the mRNA molecule during production of therapeutics and vaccines. CleanCap is the market leading solution when it comes to efficiency, a key attribute given the importance of manufacturing vaccine at scale.
Rough estimates suggest Maravai earns around $0.28 per vaccine dose. Given that Pfizer and BioNTech had, as of the beginning of May, shipped 450 million doses, have signed agreements for over 1.8 billion doses in 2021, and are prepared to make over 3 billion doses in 2022, there remains a lot of potential revenue for Maravai from just this vaccine.
Beyond COVID-19, Maravai’s CleanCap technology has broad applications for other mRNA therapies, which have gained much wider acceptance due to their success fighting COVID-19.
After Q1 results came out in May, guidance jumped again, to a range of $680 million to $730 million. Consensus estimates currently sit at $710 million, implying 150% revenue growth. Adjusted EPS is seen up 238% to $1.15. Management should report Q2 results around the end of July.
The stock has since rallied as high as 45, then pulled back late last week to close at 42.7 on Friday. At this level it looks modestly extended and I wouldn’t rule out a pullback to the 50-day line (currently at 39.34) within the month of July. However, we can’t ignore the strength of the trend and given the attractiveness of the stock I recommend investors begin to average into a position rather than jumping in at one price.
Timothy Lutts, Cabot Stock of the Week, cabotwealth.com, 978-745-5532, June 28, 2021
*Bio-Techne Corporation (TECH)
Bio-Techne is meeting robust demand for instruments, reagents and proteins from developers of biologics drugs and of COVID-19 vaccines. With new product launches and acquisitions, the company is likely to see revenue growth of more than 15% for the remainder of FY21.
Based on the strong performance from 3Q21, we are raising our FY21 adjusted EPS estimate to $6.40 from $6.10. We are also raising our FY22 forecast to $7.40 from $7.00.
TECH is trading at 60-times our FY22 EPS estimate, well above the average forward P/E multiple of 35.0 for our coverage universe of life sciences stocks. However, we believe the premium is warranted given the company’s solid growth drivers, which include new research tools and COVID-19 test assays. We also see the company making tuck-in acquisitions to expand its product portfolio and geographic reach.
Jim Kelleher, CFA, Argus Weekly Staff Report, argusresearch.com, 212-425-7500, June 28, 2021
*Omega Healthcare Investors, Inc. (OHI)
Omega Healthcare Investors (OHI, $36.84, 7.3% yield) is also up for the year. It owns 950 properties spanning more than 95,000 beds, managed by roughly 70 different operators across 41 states and the United Kingdom.
During 2020, since Omega’s tenants got financial assistance from the government (Medicare and Medicaid), the company was able to avoid cutting its dividend.
Omega reports that more people are released from hospitals to nursing homes than any other type of care, including home care. So, its business is continuing to expand.
Mark Skousen & Jim Woods, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, July 2021
*XP Inc. (XP)
XP Inc. is a leading technology-driven platform providing investment and financial services in Brazil. In its last reported quarter, XP reported a more than doubling of adjusted first-quarter profit as the company added about one million active customers in the first three months of 2021, a 47% jump, while assets under custody surged 96%. Adjusted net income rose 104% to the equivalent of $155.6 million.
This is an aggressive pick in a growth sector that is somewhat insulated from the political and economic turbulence in Brazil. I encourage you to begin a position if you have not already done so. BUY A HALF.
Nancy’s Note: Carl sold XP this morning as emerging market stocks are underperforming.
Carl Delfeld, Cabot Explorer, cabotwealth.com, 978-745-5532, June 1, 2021
Resources 843
Barrick Gold Corporation (GOLD) | Daily Alert June 14
Barrick Gold said it expects Nevada Gold Mines (NGM), which it owns jointly with Newmont (NEM) 61.5%/38.5% and of which it is the operator, to produce around 3.5 million ounces annually for the next 10 years.
The Nevada operations consist of 10 underground and 12 open-pit mines, and 18 processing facilities. Reserves are 45 million ounces, and NGM expects to replace reserves over the 10-year period. Nevada still has significant exploration potential, both in near-term extensions at North Leeville, Goldrush and Turquoise Ridge, longer-term exploration projects.
On a stand-alone basis, NGM would be the third largest gold miner in the world, after Barrick and Newmont themselves. It represents 31% of the NAV for Barrick, 19% for Newmont. Barrick is a buy.
Adrian Day, Adrian Day’s Global Analyst, adriandayglobalanalyst.com, 410-224-8885, June 6, 2021
*Galaxy Resources Limited (GALXF)
Galaxy Resources Limited engages in the production of lithium concentrate and exploration of minerals in Australia, Canada, and Argentina. Its flagship project is the Sal de Vida project located in Catamarca province, Argentina. We would also use weakness in lithium stock GALXF as a buying opportunity.
The world is running into a severe supply-demand situation with lithium. All thanks to electric vehicle (EV) sales that are growing much faster than anyone expected. By 2030, the world will see 125 million EVs on the road, which will only drive further demand for lithium supply. In fact,
The International Energy Agency just warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met. At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets.”
Ian Cooper, The Cheap Investor, support@thecheapinvestor.com, June 28, 2021
Funds & ETFs 843
Principal Real Estate Income Fund (PGZ) | Daily Alert June 11
The Principal Real Estate Income Fund seeks to provide high current income, with capital appreciation as a secondary objective. The fund’s strategy is to invest in higher-yielding debt and commercial real estate-related equity investments.
PGZ recently bumped up its monthly distribution by 3.1% for the May 2021 payment date.
The top five holdings at 03/31/21 were all mortgage-backed securities: BENCHMARK Mortgage Trust (4.72%), Bank 2017-Bnk5 206 (3.75%), COMM 2013-CCRE56 Mortgage Trust (3.25%), Goldman Sachs Mortgage Securities Trust (3.14%), and CFCRE Commercial Mortgage Trust (3.12%).
Distributions on this fund have been taxed historically as ordinary income. Until relatively recently, PGZ’s total return was solid, but 2020’s difficult real estate market conditions weighed on performance, PGZ reported a market price total return of -36.38%, although in the quarter ended 03/21/21 the figure rebounded to 12.85%.
This investment is suitable for medium- to high-risk tax-deferred portfolios. Buy at $18.00 or lower for a 5.53% current yield.
Martin Fridson, CFA, Income Securities Investor, isinewsletter.com, 800-472-2680, June 2021
*ARK Genomic Revolution ETF (ARKG)
The ARK Genomic Revolution ETF holds 60 stocks poised to take advantage of an even bigger paradigm shift: the intersection of artificial intelligence (AI) and gene editing.
Unfortunately, investing in singular biotechnology companies—like Intellia and Regeneron—carries tremendous risk. They are subject to news events from trial data, both internally and from competitors. Buying a basket—in this case with the ARK Genomic Revolution ETF—diversifies and reduces the risk.
The ARK Genomic Revolution ETF was up 44% in 2019 and 180.6% in 2020. The $9.3 billion fund is currently down 3.4% year-to-date as many biotechnology shares digest 2020’s heady gains. But that makes it look like an even more attractive opportunity. Morningstar gives ARK Genomic its highest five-star rating.
Longer-term investors should consider adding new positions in ARK Genomic at current levels.
Jon Markman, Pivotal Point, issues@e.moneyandmarkets.com, 1-800-291-8545, June 28, 2021
Investment Index 843
The next Wall Street’s Best Digest issue will be published on August 12, 2021.
Cabot Wealth Network
Publishing independent investment advice since 1970.
President & CEO: Ed Coburn
Chief Investment Strategist: Timothy Lutts
Cabot Heritage Corporation, doing business as Cabot Wealth Network
176 North Street, PO Box 2049, Salem, MA 01970 USA
800-326-8826 | support@cabotwealth.com | CabotWealth.com
Copyright © 2021. All rights reserved. Copying or electronic transmission of this information without permission is a violation of copyright law. For the protection of our subscribers, copyright violations will result in immediate termination of all subscriptions without refund. Disclosures: Cabot Wealth Network exists to serve you, our readers. We derive 100% of our revenue, or close to it, from selling subscriptions to our publications. Neither Cabot Wealth Network nor our employees are compensated in any way by the companies whose stocks we recommend or providers of associated financial services. Employees of Cabot Wealth Network may own some of the stocks recommended by our advisory services. Disclaimer: Sources of information are believed to be reliable but they are not guaranteed to be complete or error-free. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks involved. Buy/Sell Recommendations: are made in regular issues, updates, or alerts by email and on the private subscriber website.
Subscribers agree to adhere to all terms and conditions which can be found on CabotWealth.com and are subject to change. Violations will result in termination of all subscriptions without refund in addition to any civil and criminal penalties available under the law.