Author: Dorian Holden

Nothing seems to slow Tesla (TSLA) for long.

After posting its best quarterly profit to take, and with hopes of selling a half million cars this year, the stock is up again.  With plenty of momentum here, we wouldn’t be shocked to see the EV stock well above $1,000 a share again.

Former TSLA bears at Baird just admitted they were “too early” in downgrading the stock earlier this year, as noted by MarketWatch.  Nowadays, ““Clearly incorrect, we are now upgrading share as we think TSLA has the substantial access and ability to deploy capital, and has multiple ways to drive substantial revenue growth.”

“Tesla’s competitive moat over peers is substantial (and growing, enabled buy rapid capital deployment) and we think it is unlikely traditional OEMs [original equipment manufacturers] will be able to effectively compete over time,” added Baird analysts.

The firm also says Tesla is a “must own” stock for investors.

Helping quite a bit, demand for electric vehicles won’t slow down any time soon.

According to the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales.  By 2030, EVs could surpass combustion engine vehicles with a market share of 51%. 

Even better, General Motors just announced that it’s investing $2.2 billion in U.S. manufacturing to increase EV production. 

With plenty of catalysts and strong earnings growth, TSLA is a “must own” here.

The post This Has Become One of the Top “Must Own” Stocks appeared first on Morningology.

It’s ridiculous to say.

But we could see mass riots in the streets after election results.

That’s the unfortunate fear of law enforcement officials across the country.  It’s why authorities are planning for the worst case scenario.  The NYPD for example has been training every day and plans to deploy hundreds of extra officers for the Nov. 3 election, says Daily Mail.

In Los Angeles, officers are being told they may need to reschedule their vacations, according to the Los Angeles Daily News.  “We’re working with all of our partners, both first responders, emergency partners as well as L.A. County (sheriffs) … to talk about the approaching election cycle,” Moore said, adding that he has spoken to state and federal law enforcement as well to plan for any protests or groups that become violent.

In Texas, according to The Texas Tribune:

“Now, with a contentious election just a month away and with a nation bitterly divided, police are again preparing for protests across the state. Agencies in at least four major cities — Austin, El Paso, San Antonio and Fort Worth — confirmed they are planning for potential unrest around the Nov. 3 election.”

And, according to The Washington Post:

“The Justice Department is planning to station officials in a command center at FBI headquarters to coordinate the federal response to any disturbances or other problems with voting that may arise across the country, officials familiar with the matter said.”

While there are many of us civil and adult enough not to get crazed, many others are – which is why law enforcement is buckling down and preparing.

While we hope not to see any further unrest, it’s likely if people don’t get the results they want.  If that unfortunately happens, some of the top stocks to watch will be law enforcement related.

Just as we’ve seen in prior unrest, these are the top stocks to keep an eye on:

·      Axon Enterprises (AAXN)

·      Digital Ally (DGLY) 

·      Cemtrex (CETX)

·      Vislink Technologies (VISL)

·      Smith & Wesson (SWBI)

·      Sturm Ruger & Co. (RGR)

The post Trump v. Biden: The Top 6 Ways to Trade the Election Results appeared first on Morningology.

Keep an eye on clean energy stocks and ETFs like iShares Global Clean Energy (ICLN).

It and some of its top holdings, including First Solar (FSLR), Enphase Energy (ENPH), Meridian Energy (MEL), and Solaredge Technologies (SEDG) are soaring ahead of the U.S. election.

All on the idea that Joe Biden could win the election.

Biden has reportedly outlined a $2 trillion sustainable energy infrastructure plan that could make the U.S. carbon free by 2035.

“With increasing investor expectations of not just a potential Biden win but further upside for renewables tied to a Dem sweep at the Senate, we note broader expectations for the solar industry to benefit broadly,” Bank of America strategist Stephen Suttmeier said, as quoted by CNBC. “On a relative price basis we have seen a very bullish rotation for clean energy relative to utilities on an upside breakout from a 9-year big base vs utilities.”

At the same time, the plan could end the use of natural gas over the next 15 years.

Biden’s energy plan could speed up natural gas becoming “economically and environmentally untenable within the power sector,” Bloomberg notes.   “Biden’s climate plan would only accelerate that outcome, with massive investments in wind, solar and battery storage giving those energy sources a leg up. And his goal of a carbon-neutral grid would severely curb, if not destroy, gas’s share of the pie in favor of cheaper, cleaner renewables.”

At the moment, green energy stocks are attractive on the anticipation of a Biden win.

But with this election, there’s no clear winners at this point.  Invest with caution. 

The post Trump v. Biden: The Top 5 Clean Energy Stocks Soaring Ahead of Election appeared first on Morningology.

The electric vehicle boom shows no signs of slowing.

By 2030, according to Morgan Stanley, battery-powered electric vehicle sales could make up 30% of the global market, as reported by MarketWatch.  

However, that may be a conservative estimate, notes the firm.

But that’s because of other competing technologies, such as “hydrogen fuel cells, battery-cell supply-chain development, and government legislation changes.”  The firm also noted that 15 to 20 countries have now implemented fixed dates for banning internal combustion engines.

“Europe is set to lead the way, with 40% BEV penetration in 2030, up from a previous forecast of 31%, reflecting the European Commission’s proposals to cut average new car emissions to 50% below 2021 levels by 2030. 

And, “In the U.S. the analysts raised BEV penetration assumptions from 7% to 10% of the market in 2025, and from 14% to 25% in 2030—below the global average, which they put down to a lack of regulatory pressure.”

With that kind of growth, pay very close attention to lithium, which is needed in batteries. 

Some of the top stocks you may want to keep an eye on include:

·      Lithium Americas (LAC)

·      American Lithium Corp. (LIACF)

·      Albemarle Corp. (ALB)

·      Sociedad Quimica y Minera (SQM)

·      Piedmont Lithium (PLL) 

Plus, consider this.

There may not be enough supply to meet all of the demand.  According to Reuters, “the electric vehicle industry must pay more for lithium in order to spur investment and prevent future supply crunches of the battery metal, the chief executive of lithium producer Livent Corp said.”  He added, “If every EV company took their 2023 plans and went to the lithium market today, they’d probably only get about 15% of their needed supply of lithium.”

The post Battery EV Sales Now Expected to Make Up 31% of Global Sales appeared first on Morningology.

This coronavirus story is getting old.

Failing businesses, online schooling, limited contact with others has gotten ridiculous.  However, we may be nearing a potential treatment this November 2020.

According to Pfizer (PFE) and BioNTech (BTNX), they could be ready to file for emergency use authorization by the third week of November. 

“We are operating at the speed of science. This means we may know whether or not our vaccine is effective by the end of October. To do so, we must accumulate a certain number of COVID-19 cases in our trial to compare the effectiveness of the vaccine in vaccinated individuals to those who received a placebo. Since we must wait for a certain number of cases to occur, this data may come earlier or later based on changes in the infection rates,” said Pfizer CEO Albert Bourla.

“As Pfizer is blinded to who received the vaccine versus the placebo, a committee of independent scientists will review the complete data and they will inform us if the vaccine is effective or not based on predetermined criteria at key interim analysis points throughout the trial. Pfizer will continue running the trial through its final analysis point even if it is declared effective at an earlier stage. In the spirit of candor, we will share any conclusive readout (positive or negative) with the public as soon as practical, usually a few days after the independent scientists notify us.”

The companies also need to make sure the vaccine is safe.  With the US FDA needing two months of safety data on half of the trial participants following final dose of vaccine, the companies could meet that milestone by mid-November 2020.

Also, the companies need to achieve positive efficacy and a solid safety profile.  Then, they can submit manufacturing that shows quality and consistency of the vaccine.  

Once the companies have all the positive data needed, they can file for emergency use.

With excitement building, keep an eye on Pfizer and BioNTech.  Both could explode from here.

The post Why BioNTech and Pfizer Should be in All Portfolios appeared first on Morningology.

Sports gambling stocks are set to explode.

Penn National Gaming (PENN), MGM Resorts (MGM) and DraftKings (DKNG) are seeing solid momentum on news Michigan is moving closer to finalizing online sportsbook regulations.  Even better, analysts at Oppenheimer say there’s a strong possibility for legalized sports betting in New York by 2021.

“The head of the Michigan Gaming Control Board said this week that online gambling and sports betting could go live by ‘late fall’” a bumped-up timeline amid the COVID-19 pandemic that has casinos across the state operating under significantly limited capacity,” as reported by The Detroit News.

Years after a U.S. Supreme Court decision that cleared the way for online sports gambling, 18 states now have regulated sports betting markets – with more to come.  Plus, investors say more than half of U.S. states could soon offer legal sports betting. 

The stakes are high.

If sports gambling can find solid footing, independent research firm, Gambling Compliance, as noted by Kiplinger, the market could see between $5.9 billion and $8.2 billion by 2024.  Morgan Stanley says the U.S. sports betting market could run to $10 billion.

Globally, it could hit $10 billion a year by 2025.  

And by 2030, Bank of America says we could see the market up to $24 billion.

“Also, the rise of fantasy sports has increased the engagement from the younger generations, leading to a path of growth for many companies in the long-term as sports-betting makes its way throughout the United States and the world.”

Some of the best ways to trade the sports betting boom include:

·      Penn National Gaming (PENN) 

·      MGM Resorts (MGM) 

·      DraftKings (DKNG)

·      William Hill (WIMHY)

Another way is to bet on the Roundhill Sports Betting & iGaming ETF (BETZ).

The Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill Sports Betting & iGaming Index.  Some of its top holdings include William Hill, Penn National Gaming, Kindred Group, DraftKings, Flutter Entertainment, and Churchill Downs Inc.

The post The Top 5 Sports Gambling Stocks to Bet on Now appeared first on Morningology.

There’s no such thing as a perfect trial.

Fortunately, there are safeguards in place to stop trials in the event of a mishap.  We’ve seen two just this week, which could put a good deal of pressure on their stocks.

Hopefully, the events won’t prevent these companies from moving forward for long.

Shares of Eli Lilly (LLY) are under pressure.   “Safety is of the utmost importance to Lilly,” an Eli Lilly spokesperson told Fox Business. “We are aware that, out of an abundance of caution, the ACTIV-3 independent data safety.

Johnson & Johnson is under pressure, too after a halt.  This is now the second time it’s had to pause testing as it races towards a vaccine, says Bloomberg.

“We’re going to have to get used to hearing these sorts of reports of pauses,” Hassan Vally, an associate professor in epidemiology at La Trobe University in Melbourne, said by email. “As you vaccinate more people in these trials the chances are that there will be some illnesses in participants. The only difference here is that in the world that we live in right now, the progress of these trials is in the public eye, and so we are riding every bump.”

Right now, we’re unaware if the participant received the placebo or the vaccine.

At the same time, this does demonstrate that companies do have great safeguards in place.  “One adverse event is serious, especially when you’re considering a vaccine that you’re going to roll out to tens, hundreds of millions of people, maybe even billions,” said Dr. Ezekiel Emanuel, a former health advisor in the Obama administration.  “That’s the ultimate concern.”

At the same time, keep an eye on both stocks as potential buy opportunities.

While both are slipping, trial resumption could see both recovery quickly.

The post These are the Top 2 Vaccine Stocks to Avoid appeared first on Morningology.

Talk about great timing.

On Oct. 8, we noted, “Pay close attention to Apple (AAPL).  We could easily see sizable momentum in the stock ahead of its October 13 iPhone 12 launch.”

At the time, even Wedbush analyst Daniel Ives said, as quoted by CNET said, “We believe iPhone 12 represents the most significant product cycle for Cook & Co. since IPhone 6 in 2014 and will be another defining chapter in the Apple growth story looking ahead despite a softer consumer spending environment.”

He added the launch is a “once in a decade” event for Apple.

The stock traded at $117 when we said that.  It’s now up to $121.36, and running on anticipation of what else could be presented at tomorrow’s big event.

With 5G capabilities, the new iPhone launch could create big opportunity here.   “Only 13% of smartphones sold in the first half of 2020 had 5G capabilities, and only 6% of customers would rank 5G as a primary factor in their next smartphone purchase, according to Ben Stanton, an analyst at research firm Canalys,” as reported by CNN.

Ahead of the event, there’s also speculation we could see other products, including augmented reality glasses, a HomePod smart speaker, and according to Stanton, an “AirTags” product that would include Bluetooth-enabled capabilities to find misplaced valuables, as noted by CNN.

One thing is for certain.  The “once in a decade” event is already creating a lot of excitement.

You’ll be able to watch the Apple event on Tuesday at 10am PDT here.

The post Apple Stock Could Explode Higher on this Event appeared first on Morningology.

There’s a new wave of excitement in cannabis stocks.

After weeks of going nowhere, many are picking up a good deal of momentum, including Canopy Growth (CGC), Aphria (APHA), Aurora Cannabis (ACB), and Tilray (TLRY).

All after Democratic VP nominee Kamala Harris said cannabis would be decriminalized in the U.S. under a Biden Administration.  She also noted the two would expunge the criminal records of anyone convicted of cannabis-related offenses in the past. 

If that’s the case, and Biden were to win, we could see a substantial rally in these stocks.  

Plus, there could be a good deal of demand, too.  

After all, according to a Pew Research Center survey, 67% of us support cannabis legalization.  That’s up from 62% year over year.  And, according to a Gallup survey, 66% of Americans are in favor of legalization. That’s up from just 60% in 2016.  

In addition, over the next decade, spending on worldwide cannabis could reach $57 billion by 2027, according to Arcview Market Research and BDS Analytics.  Analysts at Cowen note the U.S. cannabis market could rocket to $16 billion by 2025.  

Even analysts at Piper Jaffray say we could be looking at a global market value of between $250 billion to $500 billion a year.  

It’ll be interesting to see what happens with these stocks after the election.

The post Here’s Why Cannabis Stocks are Getting High Again appeared first on Morningology.