Author: Editor

Cryptocurrencies are exploding higher.

All thanks to a compromise on reporting requirements.  

“A compromise amendment on reporting requirements now appears to have been reached, according to a draft of the amendment obtained by Barron’s. Senators Cynthia Lummis (R., Wyo.) and Pat Toomey (R., Pa.) announced the deal with Democratic colleagues, forging a bipartisan coalition of key Senate negotiators,” as reported by Barron’s.

The compromise comes as a big relief for the cryptocurrency market.  “Crypto advocates lobbied hard against the bill’s original language that didn’t carve out exemptions for miners. That could have swept up miners and software developers in new reporting requirements to the Internal Revenue Service, prompting an exodus of the industry to offshore locations,” added Barron’s.

On the news, Bitcoin is up to $45,809 at the moment.

If the rally continues, it’s time to load up on Bitcoin beneficiaries.  

In fact, as we noted on June 15, “While investors can always buy the cryptocurrency miners, such as Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), HIVE Blockchain (HVBT), and Bit Digital (BTBT), they can also buy the dip in some of the top companies holding Bitcoin, including  Square (SQ), PayPal (PYPL), and MicroStrategy (MSTR).”

• Since June 15, MARA ran from $29 to $36.
• RIOT ran from $34 to $39.
• HVBT ran from $2.60 to $3.24.
• BTBT ran from about $8 to $17.87.
• SQ ran from $226 to $284.
• PYPL ran from $271 to $278.
• MSTR ran from $590 to $770.

All remain solid opportunities at current prices, too.

Better, Bitcoin may even have a shot at $100,000, says Fundstrat’s Tom Lee, as noted Business Insider.  “Lee thinks bitcoin can go even higher before year-end, arguing that a move to $100,000 is reasonable for the popular cryptocurrency, they added.  “$100,000 into year-end is actually pretty reasonable [for bitcoin],” he concluded.

The post $100,000 Bitcoin: The Top Ways to Trade the Crypto Rally appeared first on Morningology.

One of the best ways to find opportunity is to spot “blood in the streets.”

Warren Buffett has said, “Be fearful when others are greedy and greedy when others are fearful.” Sir John Templeton once said, “Buy at the point of maximum pessimism.”

Baron Rothschild would say, “Buy the blood in the streets, even if the blood is your own.”

That’s because fear often breeds opportunity.

It’s one of the world’s greatest wealth-building secrets.

The Rothschild family used it to make millions on the London stock exchange back in 1800. Sir John Templeton used the strategy to quadruple his portfolio after the Great Depression, buying on excessive pessimism. Warren Buffett used this strategy after the financial crisis of 2008 and made billions of dollars.

Even ARK Invest CEO, Cathie Wood uses the strategy, laughing all the way to the bank.

For example, after Robinhood (HOOD) plunged, ARK Invest bought $45 million worth. Since then, the HOOD stock exploded to about $70 a share from its lows. Today, there’s news ARK Invest just bought 2.47 million shares of Zymergen (ZY).

All after the company announced it would not generate product revenue this year, and said that its CEO was stepping down. As reported by Benzinga, “Wood had in May said it believed Zymergen has a unique approach in synthetic biology, including molecular discovery, microbial design, manufacturing scale and that it is watching with interest at the company’s first electronic film product, Hyaline, as evidence of its platform’s strength.”

Buying up the blood in the streets, it’ll be interesting to see how ARK Invest does with ZY.

 

The post One of the Hottest Strategies All Investors Should Use appeared first on Morningology.

The electric vehicle market is about to shift into higher gear.

All with President Biden pushing for EVs to make up 40% to 50% of all new vehicle sales by 2030.

In fact, later today, “The president is set to sign an executive order calling for half of new car sales to be of electric vehicles powered by batteries and fuel cells or plug-in electric hybrids by the end of the decade. Leaders from auto companies and labor unions are expected to join Biden at the White House on Thursday afternoon, according to the senior administration officials, who spoke on the condition of anonymity because they were not authorized to discuss plans publicly,” says The Washington Post.

“In the near term, the Environmental Protection Agency and the Transportation Department were also set Thursday to propose new requirements on greenhouse gas emissions and fuel efficiency for cars, SUVs and pickup trucks through model year 2026,” they added.

It’s why General Motors and Ford are investing billions in EVs. In fact, General Motors just said it’ll boost spending on electric vehicles by $35 billion through 2025. Plus, according to a new study by Ernst & Young, electric vehicles could outpace combustion engines in the next 12 years in the U.S., Europe, and China, according to The Street. “By 2045, non-EV sales were seen plummeting to less than 1% of the global car market.”

With Biden’s coming announcement, we expect to see further upside in related EV names, including Tesla (TSLA), Nio Inc. (NIO), and Li Auto (LI), for example.

Unfortunately, there’s a problem.

Having run short of key metals, such as lithium, cobalt, silver, rare earths, copper, nickel, and graphite, the EV industry is still scrambling for supply.

Even the IEA 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.”

In addition to EV stocks, take a look at lithium, copper, cobalt, and graphite stocks, too.

The post Electric Vehicle Boom Could Accelerate with Biden’s New Announcement appeared first on Morningology.

Investors may want to use weakness in Alzheimer’s stocks as opportunity, we said on August 2.

Those included Cassava Sciences (SAVA), which gapped from $144.63 to $81, and Anavex Life Sciences (AVXL), which fell from about $22 to $18. All after Annovis Bio (ANVS) gapped lower from $109.44 to less than $40 on disappointing data with its Alzheimer’s candidate.

Two days after noting that, Cassava Sciences is back to $87 a share, for example.

Helping, B. Riley just raised its price target to $145 from $111, and reiterated its buy rating.

“With $280M of cash on the balance sheet, management reaffirmed there being no immediate need for a capital raise,” said the firm, as noted by TheFly.com. “The analyst believes perception of a possible raise incrementally contributed to the selloff in the shares following the compelling positive biomarker and cognition efficacy data from the Phase II open-label trial for Cassava’s lead candidate, simufilam, in mild-to-moderate Alzheimer’s disease.”

Even better, B. Riley also believes Cassava’s data represents a “home run scenario.”

All after the company noted:

“In a clinical study funded by the National Institutes of Health (NIH), simufilam significantly improved cognition in Alzheimer’s patients, with no safety issues. Simufilam improved cognition scores 3.0 points on ADAS-Cog11, an 18% mean improvement, baseline to month 9 (p<0.001). This interim analysis summarizes clinical data from the first 50 patients with mild-to-moderate Alzheimer’s disease who completed 9 months of open-label simufilam treatment. Cassava Sciences believes today’s data is the first report of significant cognitive improvements at 9 months that also track with robust improvements in biomarkers in patients with Alzheimer’s.”

 

The post Here’s Why Cassava Sciences Could be One of the Hottest Stocks of the Year appeared first on Morningology.

The solar sector is shining – with things about to get a bit brighter.

All thanks to hopes New Jersey Congresswoman Mikie Sherrill and Georgia Senator Jon Ossoff, can “expand the solar tax credit for residential consumers and small businesses to include entire roofing systems that integrate solar power technology,” as noted by Reuters.

At the moment, the current 26% tax credit covers solar roof tiles, but no other parts of the roof, which is seen as an obstacle for industry growth.

“If we want to take meaningful action towards addressing the climate crisis, the future must be powered by clean energy. Solar energy is a great alternative that needs to be made more accessible to more Americans. The RAISE the Roof Act does just that.” said Rep. Sherrill. “Clarifying and expanding the ITC to include new integrated solar roofing technology will make solar adoption easier and more available to more American families.”

“There is a unique opportunity in front of us to grow our clean energy sector, create jobs here at home, and make it easier for consumers to access renewables like solar — all while fueling our recovery from the economic crisis caused by the pandemic. We’ve already seen the incredible impact the solar ITC has had on our clean energy economy since it was implemented 15 years ago. This legislation will only bolster that growth and incentivize the expansion of the clean energy sector, here in New Jersey and across the country.”

If things go as planned, some of the top solar stocks to consider include:

First Solar (FSLR)

Plenty of analysts are bullish on FSLR. Cowen analysts just raised their price target on the stock to $105 from $104. “We are upbeat about First Solar’s plans to expand capacity in India and Ohio at capex per watt of $0.20/w vs $0.30/w prior. 3.3 GW are planned at both India and Ohio plants and capacity is expected to double to 16 GW by 2024. 9 GW of bookings in the first 7 months are the highest vs. any other year, though freight & shipping costs remain a pain point and will pressure margins through ’21,” they said, as quoted by Street Insider.

Piper Sandler just raised its target to $89 on FSLR. Even Guggenheim just initiated a buy rating on the stock with a price target of $13.

SolarEdge Technologies (SEDG)

At nearly $300, SEDG is a solid opportunity, as well. For one, the company just blew earnings out of the water. SolarEdge reported second quarter earnings of $1.28 and revenue of $480.1M, both better than the expected $1.12 and $454.69M, respectively. Additionally, the company reported 1.64 Gigawatts of inverters shipped. For the third quarter, SolarEdge sees revenue between $520M-$540M, with consensus at $504.68M, and non-GAAP gross margin within the range of 32% to 34%.
Also, Citi just upgraded the stock to a buy rating with a $360 price target. Canaccord Genuity raised its target to $280. UBS raised its target to $230. Truist raised its target to $340.

Sunrun Inc. (RUN)

RUN is up to $53.60 and exploding, too. JP Morgan just raised its target price on RUN to $86 from $81. According to TheFly.com, “Heading into the Q2 prints, alternative energy investor focus will likely remain on supply chain disruptions near-term, potentially creating volatility in the stocks that could present attractive buying opportunities, Strouse tells investors in a research note. The analyst says that with an average trading multiple below the one-year average, he remains positive on the stocks heading into the results.”

The post The Top 3 Solar Stocks All Investors Should Consider appeared first on Morningology.

Investors may want to use weakness in Alzheimer’s treatment stocks as opportunity.

Just the other day, Anavex Life Sciences (AVXL) fell from about $22 to $18.35. Cassava Sciences (SAVA) fell from a high of $144.63 to $81. All after Annovis Bio (ANVS) gapped lower from $109.44 to less than $40 on disappointing data with its Alzheimer’s candidate.

Annovis’ presentation at the Alzheimer’s Association International Conference (AAIC) raised doubts on its treatment.

In fact, as reported by Business Insider:

“Efficacy measured in Alzheimer’s disease patients using the ADAS-Cog11 showed that ANVS401 failed to show statistically significant difference versus placebo, 25 days following the treatment. Efficacy in Alzheimer’s disease and Parkinson’s disease patients using the mini-mental state examination test showed placebo faring better than ANVS401. The not-so-encouraging data sent investors scurrying out of the stock.”

While the news was a real downer for ANVS, it also forced AVXL and SAVA lower, creating a solid buy opportunity.

With Cassava, the company recently announced a positive biomarker for an open-label study of simufilam for Alzheimer’s. In a clinical study funded by the National Institutes of Health (NIH), simufilam significantly improved all measured biomarkers in patients with Alzheimer’s disease following 6 months of open-label treatment, according to a company release.

With AVXL, the company recently reported, “new data that established ANAVEX®2-73 to be a preventive treatment in the pharmacological model of Alzheimer’s disease (AD). Pre-treatment with ANAVEX®2-73, repeated once daily for one week before the Aβ (Abeta) challenge was protective in the Aβ25-35 peptide model of Alzheimer’s disease in mice. ANAVEX®2-73 significantly and dose-dependently prevented Aβ25-35-induced biomarker-correlated cognitive impairments, which were assessed one week after the Aβ (Abeta) insult during which no further ANAVEX®2-73 treatment took place,” as noted in a company press release.

While we wouldn’t race to buy ANVS just yet, the weakness in AVXL and SAVA appear to be strong buy opportunities.

The post Use Weakness in Alzheimer’s Disease Stocks as an Opportunity appeared first on Morningology.

Keep an eye on Affirm Holdings (AFRM).

At the moment, the stock is pushing higher on speculation it could also be acquired.  All after Square announced it was buying its competitor Afterpay in an all-stock transaction worth $29 billion.  All as “buy now, pay later (BNPL)” just begins to gain popularity.

In fact, according to Barron’s, “BNPL is gaining popularity given that interest rates are ultralow, reducing costs for consumers. Other fintech apps have entered the market, including Affirm, a pure play on the sector, and PayPal (PYPL). Apple (AAPL) is also developing a BNPL service with Goldman Sachs Group (GS), its credit-card partner.”

In the first two months of the new year, BNPL saw 215% year over year growth, as noted by Adobe.  Even better, according to Bank of America, BNPL apps could grow 10-15x by 2025, and could eventually process $650 billion to $1 trillion in transactions.  In addition, according to Yahoo Finance, “The trend is also part of a generational shift: The average user of buy now, pay later services is their 30s, BofA found, and the average amount spent was around $200 to $500 (as compared to $5,000 to $6,000 one would spend on a credit card).”

Affirm Holdings Posted Strong Earnings in May

Affirm Holdings is seeing solid growth.  

• Gross merchandise volume for the third quarter of fiscal 2021 was $2.3 billion, an increase of 83%, or 100% excluding Peloton, year over year
• Active merchants more than doubled to nearly 12,000 from March 2020 to March 2021
• Active consumers grew 60% to 5.4 million from March 31, 2020 to March 31, 2021
• Transactions per active consumer were approximately 2.3 as of March 31, 2021, an increase of 10% when compared to March 31, 2020
• Total revenue was $230.7 million, a 67% increase when compared to the third quarter of fiscal 2020, driven primarily by increases in network revenue and interest income, related to growth in GMV and loans held for investment, respectively. Total revenue includes a $3.5 million reduction to revenue recorded in relation to the estimated financial impact of Peloton’s voluntary recall of its Tread+ and Tread products

Total revenue less transaction costs1 was $133.7 million, compared to $(9.3) million in the third quarter of fiscal 2020, primarily as a result of the strong revenue growth; third quarter of fiscal 2021 transaction costs included an $83.3 million year-over-year decrease in provision for credit losses driven by an improved credit outlook

The post Booming Buy Now, Pay Later Market Could Lead to More M&A appeared first on Morningology.

The US CDC just warned the Delta virus is as contagious as chickenpox.

Worse, according to CNBC, it has a longer transmission window, and could make older people sicker—even if they’ve been vaccinated.

“Delta, now in at least 132 countries and already the dominant form of the disease in the United States, is more transmissible than the common cold, the 1918 Spanish flu, smallpox, Ebola, MERS and SARS, according to the document. Only measles appears to spread faster than the variant,” added CNBC.

With that, President Biden just unveiled his plan to get more folks vaccinated, including a payment of $100 to those getting the shot for the first time. The payments would be offered to newly vaccinated Americans to provide “an extra incentive to boost vaccination rates, protect communities, and save lives,” the Treasury Department said, as quoted by The Hill.

That news could send shares of vaccine stocks, like Pfizer (PFE), BioNTech (BNTX), Moderna (MRNA) and Gilead Sciences even higher. In addition, the US CDC is again recommending the use of masks indoors, which has fueled upside for stocks, such as Alpha Pro Tech (APT).

We’re also seeing a big return of testing for businesses and schools.

Los Angeles schools, for example, are now mandating weekly testing for students and teachers when in-person instruction resumes. “All students and employees, both vaccinated and unvaccinated, returning for in-person instruction must participate in baseline and ongoing weekly COVID testing. This is in accordance with the most recent guidance from the Los Angeles County Department of Public Health, as quoted by CBS News.

That being the case, keep an eye on testing stocks, such as Quest Diagnostics (DGX) and Quidel Corporation (QDEL). Until the pandemic is brought under control, these are just some of the stocks that could benefit.

The post US CDC: Delta Virus as Contagious as Chickenpox appeared first on Morningology.

So far, the Robinhood (HOOD) stock has been a letdown.

Since opening for trade today, the stock is down about 5%, or $1.81 a share. And, as it turns out, our way of trading IPOs worked out better so far.

On July 21, we noted:

The best way to trade an IPO is to not buy an IPO at all.

Instead, I would opt to trade the very ETFs that could benefit the from the IPO excitement.
One way is with the First Trust IPO Index Fund (FPX). The FPX tracks hot IPOs in their first 1,000 days of trading. Plus, as you can see on an FPX chart, the stock has done well with winning and losing IPOs. In fact, over the last year, the FPX ETF ran from a low of $55 to about $135. With the FPX, it doesn’t matter if the stock is hot or a dud, the excitement surrounding IPOs could send the ETF higher.

The other way is with the Renaissance IPO ETF (IPO), which holds the most liquid U.S. listed IPOs for a period of two years, according to Renaissance Capital. Over the last year, this ETF ran from a low of about $20.31 to a high of $75. Recent weakness may be a great opportunity.

Since then, the FPX stock ran from $124.93 to a recent high of $128.66, with the Renaissance IPO ETF (IPO) at breakeven at the moment.

Then again, the flop out of the gate doesn’t come as a big shock.

On the positive side, according to The Wall Street Journal, “Robinhood’s growth continued into the second quarter, driven by new users opening accounts and an increase in options and cryptocurrency trading. The company expects to report second-quarter revenue between $546 million and $574 million, more than double what it generated a year earlier. The number of funded Robinhood accounts increased by 4.5 million between the end of March and the end of June, reaching 22.5 million in total.”

However, at the same time, growth is slowing year to date.

As noted by MarketWatch, “There are worries that the retail trading boom that fueled Robinhood’s rapid growth might be fading, the company faces multiple lawsuits over how it restricted trading in some meme stocks in January and there are concerns that fundamentals don’t justify a such a high valuation.”

That said, I wouldn’t touch the stock.

The post Why It’s Best to Just Stay Away from the Robinhood IPO appeared first on Morningology.

Cannabis stocks are pushing higher.

• Sundial Growers (SNDL) is up about 8% at the moment
• OrganiGram Holdings (OGI) is up 9%
• Aurora Cannabis (ACB) is up 6%
• Canopy Growth (CGC) is up about 6%
• HEXO Corp. (HEXO) is up about 6%

All thanks to Tilray (TLRY), which is up about 25% on earnings.

For the fourth quarter, the company posted net income of $33.5 million, or 18 cents a share, as compared to a year-earlier loss of $84.3 million, or 39 cents a share. Revenue jumped to $142.2 million from $113.5 million year over year as well.

Analysts were looking for a loss of 12 cents on revenue of $199 million.

Even better, CEO Irwin Simon has a goal of $4 billion revenue by 2024, which, according to MarketWatch, “assumes full legalization of cannabis in the U.S., along with organic growth, acquisitions and partnerships.”

“Beyond what we have achieved over the last six months, our perseverance during the crisis itself lends further validation to the fact that this team knows how to pivot, execute and get results,” the CEO added, as quoted by MarketWatch. “Consider at the highest level. We lost well over $100 million in revenue as a result of retail store closures in general impact. And yet, we immediately implemented cost saving measures, ultimately helping us build EBITDA to more than $40 million in 2021.”

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