Author: Editor

Keep an eye on Digital World Acquisition Corp. (DWAC).

Shares of the company connected to a planned social media app from President Trump are on the move after the former president set a target launch date of February 21.

At the moment, the app – called Truth Social – is being marketed as an alternative to current social media. All after Trump once noted, “We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” as quoted by the Associated Press. “This is unacceptable.”

“The app’s launch would come 13 months after Meta Platforms and Twitter banned Trump for encouraging his supporters to participate in the Jan. 6 attack on the U.S. Capitol based on unsubstantiated claims of widespread fraud in the 2020 presidential election,” added Reuters.

Plus, if you take a look at the slideshow found here, some of the top competitors could include Twitter, Facebook, even Amazon Web Services, Azure, Stripe, and Google Cloud. Other potential competitors include Netflix, Disney, and iHeartMedia, with Trump’s plans to also launch TMTG, an on-demand streaming service.

The slideshow also points out Trump had 146.5 million social media followers at one point.
That includes 89 million Twitter follows, 24 million, and 24.5 million Instagram followers.

From here, it’ll be interesting to hear and see the reaction of voters, the press, and those in Congress to the launch. Stay tuned for more. This could get hot.

With millions of people and governments pushing for a greener, clean future, we wanted to highlight some of the top ways to trade the story.

In this report, we focus on three key investing ideas:

1. The $12 Trillion Green Hydrogen Opportunity
2. The Top Ways to Trade Lithium with the EV Market Exploding
3. The Top Ways to Trade the Coming Graphite Market Boom

THE $12 TRILLION GREEN HYDROGEN OPPORTUNITY

With millions concerned about climate change, people are looking for green resources to replace current pollution-heavy processes.

One way to do just that is with green hydrogen, “which is formed through electrolysis, which uses electricity from renewable sources such as wind or solar power to split water into hydrogen and oxygen. Since the source is from renewable energy, the fuel is truly emission-free and clean, making it green,” as noted by Engineering.com.

Goldman Sachs is already calling it a “once in a lifetime opportunity,” says Barron’s. The firm also notes the addressable market could be worth up to $11.7 trillion in the next 30 years with the U.S., Asia, and Europe leading the way.

Analysts at Bank of America says green hydrogen could be worth more than $11 trillion by 2050, as well. In fact, the firm compared green hydrogen to smartphones pre-2007 and the Internet prior to the dot-com boom, as also highlighted by Barron’s.

“Hydrogen, the first, lightest, and most abundant element in the universe, could supply our energy needs, fuel our cars, heat our homes and help to fight climate change,” said Haim Israel, the bank’s head of global thematic investing research.

In short, it would be smart for investors to start jumping in now.

In fact, here are three of the top ways to trade the explosive opportunity.

PLUG POWER (PLUG)
Plug Power Inc. provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe. It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and related hydrogen storage and dispensing infrastructure.

According to the company, “Plug Power customer demand for hydrogen has grown 10x in five years – nearly a 200% annual growth rate. From a market perspective, McKinsey expects hydrogen will provide 18% of global energy by 2050. As the world’s largest supplier and user of liquid hydrogen, we’re positioned as the forward-thinking company, leading the expansion of green hydrogen technologies while growing their use into a range of transportation and stationary power applications.”

“We’re projecting using more than 80 tons of hydrogen in 2024, and have made a commitment to achieve 50% green content,” they added.

In addition, analysts at Citi just initiated a buy rating on the stock with a $35 price target.

According to analyst P.J. Juvekar, as quoted by TheFly.com:

“Plug Power is ‘leading the way’ in the nascent hydrogen economy, which is ‘at the cusp of a breakout,’ Juvekar tells investors. Plug has ‘positioned itself at the center of the hydrogen economy’ with its unique vertical integration from making electrolyzers to hydrogen production, delivery and building fuel cell modules.”

BALLARD POWER SYSTEMS (BLDP)
Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane fuel cell products. The company offers heavy duty modules, fuel cell stacks, backup power systems, and portable power/ unmanned aerial vehicles (UAV), and material handling products.

According to President and CEO, Randy MacEwen, as quoted in a company press release, “Global policy announcements supporting decarbonization continue to move at record pace. The Fit for 55 initiative in Europe, and Hydrogen Earth Shot program in the U.S., both represent clear commitments to accelerate the expansion of a clean hydrogen economy. These policies, and with further clarity regarding the China hydrogen and fuel cell policy still to come, will support future order growth from our customers and scaling of our business.”

BLOOM ENERGY (BE)
Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuel cell systems for on-site power generation. It offers Bloom Energy Server, a stationary power generation platform that converts standard low-pressure natural gas, biogas, or hydrogen into electricity through an electrochemical process without combustion.

Bloom Energy recently announced it entered into the commercial hydrogen market by introducing hydrogen-powered fuel cells and electrolyzers that produce renewable hydrogen.
These products will be first introduced to the South Korean market in 2021 through an expanded partnership with SK Engineering and Construction (SK E&C).

Bloom’s technologies are critical in enabling South Korea to execute on its government-mandated Hydrogen Economy Roadmap. Bloom’s existing partnership with SK E&C has already sold 120 megawatts (MW) of fuel cells in South Korea, generating over $1 billion in equipment and future services revenue for Bloom.

THE TOP WAYS TO TRADE LITHIUM WITH THE EV MARKET EXPLODING

With the electric vehicle boom accelerating, the world must get its hands on lithium supply.

“Money needs to start flowing into the lithium market quickly, or the road to electrification will be stunted by lithium supply, in even the most conservative of forecasts,” says Benchmark Minerals Intelligence, as quoted by Reuters.

In fact, after falling out of favor on oversupply concerns, the world is running into a major issue that could send lithium back to historical highs – and fast.

Electric vehicles for example will drive lithium higher.

All as EV demand grows much faster than anyone expected.

Analysts at Cairn Energy Research Advisors say we’re likely to see a monster surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles, reports CNBC.

In addition, by 2025, EV sales could surpass internal combustion engine vehicles with up to a third of EV market share. And, according to the International Energy Agency, the world could see 130 million EVs on the road by 2030, a massive jump from just 5.1 million in 2018.

For that to happen, we need more lithium – which is falling into short supply.

According to CleanTechnica:

“Miners have barely scratched the surface of the global lithium potential. The challenge is to match the mining timeline with the electric vehicle manufacturing timeline. It can take years to start up a new mining operation, and meantime automakers are already gearing up for an electric vehicle recovery after the COVID-19 downturn.”

That will only lead to a monster supply crunch – and interest in beaten down lithium stocks.

THE GLOBAL X LITHIUM ETF (LIT)
The Global X Lithium ETF (LIT) invests in the full lithium cycle, from mining and refining the metal, through battery production. The ETF gives investors exposure to Albemarle Corp., LG Chem Ltd., Tesla Inc., Panasonic, and BYD Company Ltd.

In the last lithium boom, the LIT ETF rocketed from a low of $16 to nearly $40. We believe it could be setting up for another sizable run, as demand picks up steam with supply issues. While the ETF has exploded from a March 2020 low of $17.83 to $85, LIT could see higher highs.

ALBEMARLE CORP. (ALB)
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. One of the segments it operates in is lithium.

The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties, as well as reagents, such as butyllithium and lithium aluminum hydride for applications in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes, life science, pharmaceutical, and other markets.

With big exposure to lithium, ALB should easily see higher highs moving forward. Better, the company expects to see very strong demand for lithium thanks to consumer electronics and the electric vehicle boom. In fact, the company expects for the EV market could see a nearly 600% increase in lithium demand through 2025.

LITHIUM AMERICAS (LAC)
Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and owns a 100% interest in the Thacker Pass lithium project located in Humboldt County in northern Nevada.

At the moment, it’s developing the 40,000 tpa (tonnes per annum) Caucharí-Olaroz lithium project in Argentina with Ganfeng Lithium.

In addition, “The Thacker Pass Project is being engineered to produce low-cost, battery-quality lithium products reliably and at scale, however, the environmental design is a point of pride for the project team. Our goal is to produce the first carbon neutral lithium products, representing an innovative benchmark in the industry,” commented Alexi Zawadzki, CEO of Lithium Nevada. “Our vision is for a more sustainable battery supply chain in the US, with cathode and cell manufacturing located in close proximity to the proposed Thacker Pass mine site.”

THE TOP WAY TO TRADE THE COMING GRAPHITE MARKET BOOM

With the electric vehicle boom well under way, there’s big demand for lithium.

That we already know.

At the same time, there’s also big demand for graphite, which is essential for producing anode of lithium-ion batteries found in EVs.

Considering the world could see 125 million EVs on the road over the next 10 years, the industry will also need plenty of graphite.

Heavy dependence on graphite is also why the USGS lists graphite on its list of 35 minerals and metals considered critical to the United States. “USGS also sees a major spike in U.S. demand for graphite when Tesla Motor’s Gigafactory, an enormous lithium-ion battery facility being constructed in Nevada, is fully operational.”

We’ll see even more demand because of governments all over the world, which want millions of electric vehicles on the roads.

President Biden, for example, is pushing for EVs to make up 40% to 50% of all new vehicle sales by 2030. In fact, “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.”

Plus, “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.

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.”

While there aren’t a ton of graphite stocks to buy and hold, one of the top ways to trade graphite demand is with an ETF.

AMPLIFY LITHIUM & BATTERY TECHNOLOGY ETF (BATT)
This ETF has been in a solid uptrend since bottoming out in March 2020. From here, the ETF could run even higher with the EV boom accelerating.

According to Amplify ETFs:
“BATT is a portfolio of companies generating significant revenue from the development, production and use of lithium battery technology, including: 1) battery storage solutions, 2) battery metals & materials, and 3) electric vehicles. BATT seeks investment results that correspond generally to the EQM Lithium & Battery Technology Index. (BATTIDX)”

The BATTIDX has exposure to global companies associated the development and production of lithium battery technology and/or battery storage solutions; the exploration, production, development, processing, and/or recycling of the materials and metals used in lithium battery chemistries such as Lithium, Cobalt, Nickel, Manganese, Vanadium and/or Graphite; and/or the development and production of electric vehicles.

Some of the greatest opportunities can be found in beaten down, ignored stocks under $11.

Especially those with solid long-term growth and strong fundamentals.

• Look at Advanced Micro Devices (AMD), for example. At one point, it was left for dead at $8 a share. It’s now up to $106 for a return of 1,225%.
• Fate Therapeutics (FATE) was ignored at $8.50. It’s now up to $67 for 688%.
• Digital Turbine (APPS) ran from about $1.20 to a high of $102.56 for 8,447%.

While we often hear that sub-10 stocks are “there for a reason” and “should be avoided at all costs,” that’s bad advice. Instead, with a little digging, you may just uncover the next Advanced Micro Devices, Fate Therapeutics, or Digital Turbine.

In fact, here are three hot opportunities trading under $10, we believe could pop with patience.

Opportunity No. 1 – Standard Lithium (SLI)

By now, most of you are familiar with the lithium story.

There’s short supply, and massive demand because of the electric vehicle story. Plus, there’s the fact that governments all over the world want millions of EVs on the roads to reduce emissions, and save the world.

As lithium demand pushes aggressively higher, so are stocks like Standard Lithium, a company focused on its 3,140,000 tonne LCE Indicated Resource -150,000-acre joint venture Lanxess Project, located in south Arkansas, as noted by the company. Interesting to note, the company doesn’t mine for lithium by crushing rocks, it extracts lithium from saltwater brine.

With its involvement in the lithium space, its stock popped from 30 cents to $8.20.

While the stock is up big, it could see further upside.

All thanks to its lithium project in southern Arkansas. For one, according to CEO Robert Mintak’s interview with CNBC’s Jim Cramer, its Lanxess Project in Arkansas is well positioned to serve the U.S. EV market, and could help facilitate exports to Europe as well.

Two, the 150,000-acre project is located in the Smackover brine region of Arkansas – which is known to hold some of the richest lithium resources. Even more impressive, Standard Lithium is reportedly the first to develop a lithium project in that region.

Three, according to a 2020 press release from the company, “No new lithium mine has been built in the United States in almost 60 years and the country currently produces less than 2% of global lithium production. Standard Lithium’s south Arkansas lithium project represents the most immediate opportunity to change that.”

Those are major catalysts that could fuel big upside for Standard Lithium near-term.

Opportunity No. 2 – FuelCell Energy Inc. (FCEL)

Beaten down hydrogen stocks like FCEL could see significant upside.

For one, hydrogen could play a major role with green energy.

“Global discussions around the potential for a hydrogen (H2) economy have accelerated in the past 12-months…H2 has been well discussed as one of the major contributing forces in helping decarbonize the world’s economy, in particular given that some industries cannot easily make the battery shift,” according to analysts at UBS, as quoted by CNBC.

Two, Goldman Sachs believes the hydrogen market could be worth up to $11.7 trillion in the next 30 years. Three, some of the major automakers are looking to build hydrogen models, according to Reuters. BMW for example is planning a model, and has built a hydrogen car prototype. Even Volkswagen’s Audi brand says it’s researching hydrogen technology.

There’s a good deal of federal and state support for hydrogen.

All are major catalysts for companies like FuelCell Energy (FCEL), which just reported revenues of $26.8 million, as compared to $18.7 million. The company also posted gross profits of $1.1 million, as compared to gross loss of $(3.1) million.

In addition, the company saw a backlog of $1.30 billion as of July 31, 2021, as compared to $1.33 billion as of July 31, 2020.

The company is also benefiting from California’s Senate Bill 155, which includes a two-year extension of the Fuel Cell Net Energy Metering program, or Fuel Cell NEM.

“Fuel Cell NEM allows businesses to invest their own private capital in clean, firm technology that reduces their energy consumption and lowers their environmental footprint by reducing Scope 1, 2, and 3 emissions, while the State benefits from maintaining and creating new jobs, reducing greenhouse gas emissions, criteria air pollutants and water use without any direct incentives,” said Jason Few, President and Chief Executive Officer, FuelCell Energy.

Opportunity No. 3 –EVgo Inc. (EVGO)

EVGO is a fast charging network for electric vehicles.

With more than 800 fast charging spots, its network services more than 68 metropolitan areas across 35 states and more than 300,000 customer accounts. Plus, according to Tip Ranks, more than 130 million people (39% of population) live within 10 miles of an EVGO charging station.

While it’s been beaten down in recent months to less than $10, don’t count it out just yet.

There’s still plenty of rev left in EVGO’s engine.

For example, in its most recent quarter, the company nearly doubled its deployments quarter over quarter with 104 new charging stations now operational, as noted in an investor deck. It also has 2,067 in its “Active Engineering & Construction Pipeline.” Once those 2,067 stations are up and running, it could provide a massive revenue boost.

Two, by 2040, the company expects for nearly 28% of all U.S. vehicles to be battery electric, which could provide massive growth opportunities, as well. Three, EVGO is guiding for $54 million, with its sights set on $596 million by 2025.

By 2027, EVGO sees revenue as high as $1.289 billion.

EVGO also announced that its customer accounts crossed the 300,000 mark.

“With EV sales increasing rapidly across the US, drivers are looking for charging locations that fit neatly into their lifestyles. EVgo is that brand – and the 300,000 customer account milestone demonstrates it,” said Cathy Zoi, CEO of EVgo, as quoted in a company press release.

Analysts appear to like the stock just as much. In fact, Credit Suisse recently initiated coverage of EVGO with a buy rating and an $11 price target. They believe EVGO is a “market leader,” as noted by MarketWatch.com. All as it continues to benefit from EV adoption and incentives.

That, and it doesn’t hurt that General Motors named EVGO a preferred provider for its Ultium Charge 360 fleet service. All as General Motors gets underway with plans to spend $35 billion on EVs and AVs through 2025.

In short, buckle up. EVGO could accelerate – and fast.

One way to spot potential opportunities is by following company insiders.

After all, who knows the company better than insiders?

If they’re buying a sizable number of shares, it’s often a good idea to start looking into why.
We have to consider that insiders buying their stock would not put up their own money unless they believed the move would be profitable.

Here are three recent stocks with respectable insider buying.

MP Materials (MP)

Over the last few weeks, MP Materials inked a deal with General Motors to “develop a fully integrated U.S. supply chain rare earth magnets.”

While that news already sent MP shares from $30 to $43, company insider, Director Randall
Weisenburger just bought 86,901 shares for $3.5 million.

Helping, JP Morgan analysts recently increased their price target on the MP stock to $52 from $45. All thanks to forecasts for higher rare earth prices.

In addition, “The MP Materials team continues to deliver, with record quarterly production and shipments driving strong growth in revenue and Adjusted EBITDA,” said Chairman and CEO, James H. Litinsky. “Our performance reflects continued execution and cost discipline at Mountain Pass coupled with strong global demand for rare earth materials.”

Cleveland-Cliffs (CLF)

Over the last few weeks, there’s been a considerable amount of insider buying. Chairman, President, and CEO Lourenco Gonclaves for example bought 50,000 shares for $1 million.

Chief Financial Officer Celso Goncalves bought 10,000 shares for $206,500. Keith Koci, president of Cleveland-Cliffs paid $218,270 for 10,000 shares. In addition, Director Ralph Michael III bought 10,000 shares for $201,000. All after the stock just pulled back to strong support dating back to May 2021. Even better, there’s solid growth at CLF.

Q3 2021 consolidated revenues came in at $6 billion from $1.6 billion year over year. For the first nine months of 2021, it recorded revenues of $15.1 billion and net income of $2.1 billion, or $3.69 per diluted share. A year earlier, it posted revenues of $3.1 billion and a net loss of $155 million, or a loss of $0.51 per diluted share, as reported in a company press release.

Asana Inc. (ASAN)

Keep an eye on Asana Inc. (ASAN).

After gapping from about $145 to about $60 over the last few weeks, Asana’s billionaire co-founder and CEO bought $81 million worth of the stock. That brought his purchases of the stock to just over $195 million for the month, says CNBC.

Most recently, the company posted a narrower than expected quarterly loss.

“Q3 was another strong quarter, led by record user adoption and large enterprise wins,” said Moskovitz, as quoted in a company press release.

“We are excited to be announcing that we exceeded two million paid seats and we are landing bigger with larger customers and expanding significantly across our customer base. With some of the most valuable companies in the world deploying Asana to manage initiatives across entire divisions, Asana exemplifies what cross-functional work management at scale looks like.”

One of the best ways to create a solid income stream is with dividend stocks.

Not only do you get to collect dividends, you can capitalize on stock appreciation—especially with companies with a strong history of performance and dividend increases.

Three top dividend stocks to consider for 2022 include:

Apple (AAPL)

On the verge of becoming a $3 trillion stock, Apple is one of the top “must own” stocks of the new year, with a dividend of 0.5% to boot. All thanks to booming demand for iPhones, and subscription services such as Apple Music, Apple TV, and its App store.

While the company recently missed earnings expectations, supply issues were to blame.

“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” CEO Tim Cook told CNBC. “The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia.”

However, Apple revenues were still up 29%, with solid growth in each of its product categories. Even better, analysts still love the stock, including Citi’s Jim Suva, who just raised his price target to $200 from $170 with a buy rating.

“Demand for Apple’s products and services should be “resilient” in fiscal 2022 following market share gains in 2021,” he said, as quoted by TheFly.com. “The analyst believes Apple’s current market value fails to fully reflect its launches in new categories. He sees this changing with the launch of an augmented reality/virtual reality headset. While regulation is an overhang, it presents ‘headline risk rather than fundamental risk’ and any near-term pullback in Apple shares would be a buying opportunity.”

Microsoft (MSFT)

Microsoft had quite a year.

After bottoming out around $210, the stock popped to $335, and could see higher highs moving forward – especially if it can break above double top resistance around $350.

Helping, the company declared a quarterly dividend of $0.62 per share, an 11% increase over the previous quarter’s dividend. The dividend was payable Dec. 9, 2021, to shareholders of record on Nov. 18, 2021. MSFT also approved a new $60 billion buyback program.

Earnings have been solid, too.

EPS of $2.27 was above $2.07 expectations. Revenue of $45.32 billion was also above expectations for $43.97 billion. In addition, according to CNBC, “With respect to guidance, Microsoft called for $50.15 billion to $51.05 billion in fiscal second-quarter revenue.”

Pfizer (PFE)

Even after a substantial run from about $40 to $60, Pfizer could see higher highs on COVID booster shots moving forward. In fact, the company – which pays out a yield of 2.73% — could see further interest after the US FDA authorized Pfizer’s COVID pill.

“The authorization represents an extraordinary coup for Pfizer, its second of the pandemic. Analysts expect Pfizer to sell $21.7 billion worth of the drug in 2022, according to FactSet, though the company now says that it will make 120 million courses of the drug next year, 40 million more than previously forecast, which will probably drive those estimates higher,” as reported by Barron’s.

 

After months of dealing with the coronavirus, geopolitical issues, fears of inflation, Fed action, and depressing economic outlooks, investors want to know what’s going to happen next.

Unfortunately, we can’t tell you that with 100% certainty. Our crystal ball is in the shop.

However, we can point you in the direction of red hot stocks that could run even higher in the New Year.

Top Stock for 2022: Albemarle Corporation (ALB)

At $223 a share, Albemarle could easily see higher highs.

All thanks to a lithium bull market that shows no signs of slowing – at least not soon. For one, by 2030, it’s expected we’ll see up to 125 million electric vehicles on the road. Two, major automakers are starting to abandon internal combustion engines for EVs.

However, for millions of EVs to hit the roads, each will need around 22 pounds of lithium.

Unfortunately, we don’t have enough.

Even the International Energy Agency is warning that the, “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.”

It’s why Albemarle could see higher highs.

Analysts seem to like the stock, too. Loop Capital, for example, just raised its price target to $280 from $253. Analyst Christopher Kapsch “cites the continued acceleration in demand growth, surging lithium prices, the favorable messaging from the company’s recent Investor Day presentation and the emerging trends from China as reasons to believe that the ‘carbonate market will be even larger than previously contemplated,’” as noted by TheFly.com.

Citi analyst P.J. Juvekar also raised his target to $266 from $262, with a buy rating. All as the lithium sector benefits from tight supply-demand issues.

Top Stock for 2022: FuelCell Energy (FCEL)

For months, shares of hydrogen-fuel stock FCEL have been stuck in a tight channel between $6 and $7.65. However, with the hydrogen story heating up, the stock could break to higher highs.

For one, analysts at Goldman Sachs love the hydrogen story, believing hydrogen could be an $12 trillion market by 2030. Two, the International Energy Agency says the world still needs an investment of $1.2 trillion by 2030 to meet global net zero emission goals. Even automakers – like Volkswagen are now looking into hydrogen technology.

Even more impressive, FCEL is growing. In fact, for the third quarter of 2021, the company reported revenues of $26.8 million, as compared to $18.7 million year over year. Gross profits shot up to $1.1 million from a loss of $3.1 million year over year.

Top Stock for 2022: Affirm Holdings (AFRM)

These days, what’s not to like about Affirm?

After bottoming out around $47, the BNPL – or Buy Now, Pay Later stock ran to $145. From here, it could see $200, with industry growth booming.

For one, 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.”

Two, BNPL has some major players coming in.

PayPal for example just bought BNPL company Paidy for $2.7 billion. Square just bought Afterpay for $29 billion. Amazon.com just partnered with Affirm Holdings.

Three, Bank of America just raised its price target on AFRM to $160 from $119. Even better, Affirm just blew earnings estimates out of the water. Its gross merchandise volumes (GMV) more than doubled year over year to $2.5 billion. Active customer base rocketed to 7.1 million. Revenues were up 70% to $261.8 million. Heading into 2022, it sees GMVs up by 70%, with revenues of between $1.16 billion and $1.19 billion.

With the BNPL market only heating up, AFRM has become a leader.

Again, from a current price of $145, we could see it at $200, maybe even $250 in the New Year.

Top Stock for 2022: Cassava Sciences (SAVA)

Cassava Sciences could be one of the most talked about Alzheimer’s stocks of 2022.

Despite recent negative accusations of wrongdoing, the SAVA stock continues to push higher. After bottoming out around $40, it could test $70 resistance next. From there, we’d like to see a bearish gap refill around $120 a share.

After seeing positive cognition scores with its drug candidate, simufilam, the company just initiated Phase 3 efficacy trials.

According to a recent press release, “Cassava Sciences’ Phase 3 efficacy studies of simufilam in Alzheimer’s disease are being conducted under Special Protocol Assessments (SPA) from the U.S. Food and Drug Administration (FDA). The SPAs document that FDA has reviewed and agreed upon the key design features of Cassava Sciences’ Phase 3 study protocols.”

Should Phase 3 results be as impressive as prior reports, SAVA could easily race back to $120. Especially if it can successfully help millions of people with mild to moderate Alzheimer’s.

Cassava Sciences’ Phase 3 efficacy studies of simufilam in Alzheimer’s disease are being conducted under Special Protocol Assessments (SPA) from the U.S. Food and Drug Administration (FDA). The SPAs document that FDA has reviewed and agreed upon the key design features of Cassava Sciences’ Phase 3 study protocols.

Top Stock for 2022: Nio Inc. (NIO)

When it comes to electric vehicle stocks, one of the top stocks is, of course, Tesla (TSLA). After running from a low of $550 in May 2021, it’s now up to $811. From here, it could easily see $1,000 a share, as the EV boom accelerates. It’s a great opportunity.

However, if you’re looking for a far less expensive EV stock, consider NIO.

At the moment, NIO is sitting at major support at $36.25, dating back to March 2021. From here, we’d like to see an initial test of $40 a share. Moving forward, we’d like to see it closer to its July 2021 high of $55. All as the company continues to produce solid numbers.

Most recently, the company reported:

“With the concerted efforts of NIO teams and supply chain partners, NIO delivered 10,628 vehicles globally in September 2021, an all-time high monthly record representing a robust growth of 125.7% year-over-year. NIO delivered 24,439 vehicles in the third quarter of 2021, representing an increase of 100.2% year-over-year and exceeding the higher end of the Company’s quarterly guidance.”

Goldman Sachs’ analyst Fei Fang also just upgraded the stock to a buy rating, with a $56 price target. Mizuho analyst Vijay Rakesh is also positive on NIO heading into Q4 earnings.

Eight years ago, Bitcoin traded at $100.

At that price, you could have bought 100 of them for $10,000.

Today, Bitcoin trades at $63,928 – a gain of 63,828%. That means if you bought 100 Bitcoin eight years ago for $10,000, your investment would be worth about $6.4 million.

$6.4 million. I’m still kicking myself for not buying.

However, $63,928 may be nothing, as compared to what’s possible.

Fundstrat Global Advisors’ Tom Lee, for example, says Bitcoin could run to $100,000 this year. Fidelity’s director of global macro, Jurrien Timmer, as noted by Yahoo Finance, says Bitcoin could hit $100,000 by 2023.

“So this move up [in bitcoin] has come without the help of momentum chasers, which I think is a good sign because it means there is something else making bitcoin go up. And, that is the fundamental demand for bitcoin and its network. When I come up with $100,000 [for bitcoin prices], that’s a conservative estimate based on the intersections of my supply model and my demand model,” says Timmer.

MicroStrategy CEO Michael Saylor told CNBC Bitcoin could one day have a market cap of up to $100 trillion. Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, as noted by CNBC, says Bitcoin could rally to $500,000 by the end of the decade.

All thanks to big interest from retail and institutional support.

According to Gemini’s 2021 State of Crypto in the U.S.:

“In 2020 we witnessed institutional investors step forward in public support of cryptocurrency and major companies like PayPal, MicroStrategy, and Twitter put forward plans to either support crypto payments or openly invest in it themselves by adding it to their balance sheets. The first few months of 2021 have shown no signs of crypto slowing down, as decentralized finance takes hold as a megatrend and bitcoin’s bull run continues to break price records.”

In addition, that report found that about 14% of the U.S. population owns cryptocurrency, or about 21.2 million people.

Even major companies have also gotten involved. PayPal, MicroStrategy, Tesla, Mastercard, Goldman Sachs, JP Morgan, Citi are all getting in on the cryptocurrency boom.

While investors can always buy Bitcoin, there’s also a great deal of opportunity in undervalued Bitcoin mining stocks and related ETFs, including:

Marathon Digital (MARA)
Riot Blockchain (RIOT)
Bit Digital (BTBT)
HIVE Blockchain Technologies (HIVE)
Amplify Transformational Data Sharing ETF (BLOK)

Top Stock No. 1 — Marathon Digital Holdings (MARA)

Bitcoin miner, Marathon Digital is one of the top beneficiaries of the cryptocurrency boom.

Since bottoming out around 62 cents in early 2020, MARA exploded to a recent high of $53.91 – good for a return of about 8,600%.

If it can now break above prior resistance at $57.75, it could test $60 next with solid catalysts.

At the moment, the company has about 7,035 Bitcoins, valued at about $336.3 million. All after adding another 340.6 Bitcoin just in the month of September.

It also has an existing fleet of about 25,272 active miners, which produce 2.7 EH/s. By the middle of 2022, the company plans to have about 133,120 miners deployers, generating up to 13.3 EH/s. That could help lead to massive growth down the line.

In addition, as noted by Fred Thiel, Marathon’s CEO:

“In the third quarter, we increased our bitcoin production by 91% quarter-over-quarter to 1,252 BTC, which increased our total bitcoin holdings to approximately 7,035 BTC,” said CEO Fred Thiel. “Our September production figures were impacted by a material increase in the total network’s hash rate, the ‘luck’ factor inherent in bitcoin mining.”

“While some amount of downtime and ‘luck’ will always be present in bitcoin mining, affecting results in the near-term, we believe our production will become more stable over time as we continue to bring new miners online and achieve greater scale,” he added.

Analysts like the stock, as well. DA Davidson analyst Christopher Brendler, for example, has a buy rating and a $65 price target thanks to new mining rigs coming online.

Top Stock No. 2 – Riot Blockchain (RIOT)

Riot Blockchain has been just as explosive.

Since bottoming out 51 cents in early 2020, RIOT hit a high of $61.27 earlier this year. Following some bumps, bruises, and Bitcoin downside, the RIOT stock is oversold at $30.83 at the moment. However, we don’t expect that to last too long. In fact, with Bitcoin pushing to new highs, we believe RIOT could re-test its prior high before long.

Most recently, the company announced it produced 406 Bitcoin in September – a year over year increase of about 346%. Year to date, through September, the company has now produced about 2,457 Bitcoin, an increase of 236% year over year, as well.

Growth does not appear to be an issue here. Unless Bitcoin decides to plummet, RIOT could see higher highs. Again, we’d like to see it test that prior high of $61.27.

Even more impressive were second quarter earnings. Mining revenue was up 1,540% to $31.5 million for the quarter, as compared to $1.9 million year over year. Mining revenue margins jumped 70% from 25% year over year. It also produced net income of $19.3 million, or 22 cents a share, as compared to a year-earlier loss of $10.6 million, or 31 cents a share.

Down the line, the company wants to achieve a total hash rate of 7.7 EH/s, assuming it can deploy its fleet of 81,146 active miners.

DA Davidson analyst Christopher Brendler is also a fan, initiating a buy rating on the RIOT stock with a price target of $42 a share. “The analyst cites the company’s largest mining operation in the U.S. providing them with scale, along with its “cheap” power and experienced management team,” as reported by TheFly.com.

Again, at the moment, RIOT is oversold and could test $61.27 on the Bitcoin rally.

Top Stock No. 3 – Bit Digital (BTBT)

At $11.35, Bit Digital is another hot miner to consider.

After bottoming out around 38 cents in early 2020, the BTBT stock ran to a high of $33 before sliding to $4.54 on a Bitcoin pullback. Now back to $11.35, we believe the stock could re-test its prior high of $33 with Bitcoin hitting new highs.

Helping, the company posted Q2 2021 revenue of $28.3 million from mining operations. It also produced 562.9 Bitcoins in the quarter – a hefty number, especially with Bitcoin above $60,000.

More impressive, since inception, the company has mined 3,086.50 Bitcoin. Bit Digital also has 32,500 Bitcoin miners since inception, too. Better still, with China’s ban on Bitcoin mining, the company moved its operations to the United States. It also picked up a buy rating from H.C. Wainwright analyst Kevin Dede, who has a $14 price target.

“The company has transformed ‘from an obscure technology opportunist, to a full-fledged, transparent, North American-based industrial bitcoin miner,’” Dede said, as quoted by TheFly.com. “The analyst says Bit Digital is leveraging relationships to build a ‘formidable’ North American footprint and industrial bitcoin mining hash.”

We have no doubt BTBT is committed to success here. In fact, the more we learn about BTBT, the more we like it.

Top Stock No. 4 – HIVE Blockchain Technologies Ltd. (HIVE)

Or, take a look at $1.4 billion HIVE Blockchain Ltd., which runs green energy-powered data facilities in Canada, Sweden, and Ireland.

All of which produce digital currencies, such as Bitcoin and Ethereum.

In early 2020, HIVE traded around seven cents. It’s now up to $3.64. From here, if it can break above prior resistance at $3.75, it could test $5 shortly after with solid catalysts.

One, in its most recent earnings report, the company reported gross revenue of $37.2 million from mining – a massive 466% jump year over year. Net income came in at $18.6 million from $1.8 million year over year. Gross mining margins were up to $31 million from $2.6 million as well. Even net income per share rocketed from nil to five cents.

Two, over the last few months, HIVE received approval from NASDAQ to list its common shares. That should give it far more exposure to millions of investors.

Three, the company recently achieved its target of 1 Exashash per second, or EX/s of the Bitcoin mining hashrate. From here, the company wants to achieve 3 EX/s by the end of 2022. It also has 1,845 Bitcoin miners deployed in Quebec and New Brunswick.

Top Stock No. 5 – Amplify Transformational Data Sharing ETF (BLOK)

The Amplify Transformational Data Sharing ETF is a great way to gain exposure to multiple companies that are involved in the development and utilization of blockchain technologies.

With an expense ratio of 0.71%, the ETF offers exposure to Marathon Digital Holdings, Hut 8 Mining, HIVE Blockchain, as well as large cap companies that have invested millions in Bitcoin. That includes Coinbase Global, Microstrategy Inc., Paypal Holdings, and Square for example.

Investors can gain exposure to these top companies at $52 a share.

While the BLOK ETF has been trading sideways around $52 for the last few months, it could break out, and re-test its $60 highs. For one, the ETF holds some of the hottest mining stocks, and Bitcoin investors. Two, a new Bitcoin futures ETF just launched, which is a great catalyst for Bitcoin and related stocks. Three, we like how well positioned this stock is for massive growth.

Since bottoming out around $13.33 in early 2020, the ETF is now up to $52. From here, we’d like to see a near-term retest of $60 highs.

 

Apple changed the world.

They’ve revolutionized computers, smart gadgets, introduced iPods and iPads, television, watches, apps, cameras, cloud services you name it.

No wonder Apple is a $2.53 trillion company.

Now, they’re getting serious about an Apple Car. While we don’t know much about it just yet, we do know it could be a massive game-changer in a $2 trillion industry. In addition, we’re also learning, per Appleinsider that:

• The Apple Car could be a self-driving EV and could launch by 2024
• Apple wants car batteries manufactured in the U.S.
• Windshield could be used for augmented reality display
• LG and Magna International could win an “Apple Car” contract

Of course, that’s all speculation at the moment—but it all sounds exciting. In addition, should the Apple Car become reality, here are some of the top stocks we believe could accelerate.

Opportunity No. 1 – Aptiv (APTV)

An intelligent car from Apple could lead to potential business for Aptiv, whose self-driving technology would be required for full autonomous driving.

In early 2021, Aptiv unveiled its next-gen platform for automated driving, says Reuters, “which can be used across a range of vehicles and be updated wirelessly so carmakers can upgrade car features and fix glitches. In 2019, Hyundai and Aptiv launched a $4 billion venture called Motional to develop self-driving technologies and be among the first to deploy fully autonomous cars on public roads.”

Analysts love the stock, too. Deutsche Bank just raised its target price to $176 with a buy rating. Barclays raised its target to $174 with an overweight rating. Jefferies raised its target to $182.

Opportunity No. 2 – Luminar Technologies (LAZR)

Lidar stocks, like Luminar Technologies soared the last time Apple said it was working on a car. With renewed talk of an Apple car, we could see the stock pop again.

Lidar is an essential piece of the self-driving puzzle. It’s what allows their computers to take a 3D image of the area around them. The sensors can then measure the range or speed of objects, bounce lasers off the objects, and be able to calculate its distance to the car. Essentially, it’s the eyes and ears of autonomous vehicles, and helps the car avoid hitting people, animals, and other cars.

According to Forbes, Luminar “is focused on building sensors that can be used in mass-market vehicles. The company’s sensors are expected to hit the sweet spot for automakers, costing under $1,000 per unit while offering very strong performance relative to their price.”

In addition, Luminar Technologies expects to have its products on cars by 2023. Plus, Volvo recently announced Luminar lidar would be standard on its electric vehicles.

Opportunity No. 3—Magna International (MGA)

Over the last year, shares of Magna International exploded from a low of about $25 to a high of $103.74. Since then, it pulled back to support around $80, where it’s starting to pivot higher. The last time we were excited about the MGA stock was when Apple was reportedly close to signing an auto manufacturing deal with it.

While those talks petered out, there’s new speculation it could happen ahead of a potential Apple car launch. In fact, in April 2021, the Korea Times reported Apple was near signing a deal with Magna International and with tech giant LG.

As noted by The Drive, “The move would make sense, as Apple has a long-standing relationship with LG, which has supplied LCD screens and other components for the company’s smartphone lines in the past. Similarly, teaming up with Magna, a well-established contract manufacturer in the automotive business, is also a logical move.”

Opportunity No. 4 – QuantumScape Corp. (QS)

Beaten down shares of QuantumScape could get charged up again with an Apple Car.

Last December, the stock exploded to a high of $132.73 on speculation Apple could EV production by 2024, powered by a “breakthrough” monocell battery design. If talk of an Apple car heat up again, perhaps QS could see upside on speculation.

After all, according to Yahoo Finance, “QuantumScape’s data showed its battery cell could charge to 80% of capacity in 15 minutes. Further, it retains more than 80% of its capacity after 800 charging cycles, is non-combustible and boasts nearly double the energy density of high-end commercial lithium batteries.”

“QuantumScape may have developed the battery that addresses some of the biggest problems with electric vehicles: speed to charge and safety. And secondarily, the company’s battery breakthrough may be leveraged across other commercial applications,” they added.

Opportunity No. 5 – Lumentum Holdings Inc. (LITE)

Apple has already said it may use augmented reality on windshields.

According to Apple Insider:

“The windshield of Apple Car may present the driver with an augmented reality view for lane control, hazard avoidance, and otherwise obscured details of the environment. Apple has previously been researching how a heads-up display (HUD) could project information onto the Apple Car windshield. Now it’s examining just what that information should be, and when exactly to display it.”

That could potentially be big news for Lumentum Holdings – a key Apple partner, which could benefit from the rollout of an Apple car, as well.

According to Forbes, Lumentum “is the largest supplier of 3-D sensing laser diode — a tech is critical to future AR applications. This means Lumentum is in the sweet spot. Its best customer is ramping up AR. If history is any indication, Apple competitors will follow. The potential smartphone market outside of iPhone is 4x. Add cars and factory robots and new market may be billions of devices.”

Opportunity No. 6 – Albemarle Corporation (ALB)

If an Apple Car is on its way, we can’t overlook lithium.

At the moment, Apple is reportedly exploring the use of lithium iron phosphate (LFP) batteries, which could be cheaper, safer, and far less prone to overheating. Plus, according to The Financial Star, “These batteries will have an energy density of about 50% higher than that of the current generation. This means that the battery packs more power per pound of weight.”

When and if Apple does decide to roll out an Apple Car, lithium prices could explode even higher on severe supply-demand issues. In fact, with lithium demand rising faster than expected, what we’re beginning to see is the potential for long delays in production. Worse, there’s no telling how long EV auto makers will have to deal with inadequate supply, which could send lithium prices even higher.

That being the case, one of the standout winners here could be Albemarle (ALB), which has plans to double its lithium production at its facility in Silver Peak, Nevada.

Opportunity No. 7— Global X Lithium & Battery Tech ETF (LIT)

Or, if you’re looking for broader exposure to the lithium market, you can always pick up the Global X Lithium & Battery Tech ETF (LIT), which invests in the full lithium cycle. Some of the ETFs top holdings include Albemarle, BYD Co., Tesla, LG Chem Ltd., Livent Corporation, and dozens more, offering solid diversification among top lithium and battery tech names.

Cannabis stocks may have gone up in smoke in 2021.

But 2022 could see many of them hitting higher highs.

Reportedly, Congress is looking to decriminalize cannabis this spring. In fact, according to The Hill, federal proposals could establish banking services for the cannabis industry, and purge the criminal records of marijuana offenders.

“The growing bipartisan momentum for cannabis reform shows that Congress is primed for progress in 2022, and we are closer than ever to bringing our cannabis policies and laws in line with the American people,” Reps. Earl Blumenauer (D-Ore.) and Barbara Lee (D-Calif.) wrote in a memo to the Congressional Cannabis Caucus.”

Helping, a growing number of Americans want to see cannabis legalization.

According to a Gallup Poll, for example, 68% of U.S. adults support it. “Americans are more likely now than at any point in the past five decades to support the legalization of marijuana in the U.S. The 68% of U.S. adults who currently back the measure is not statistically different from last year’s 66%; however, it is nominally Gallup’s highest reading, exceeding the 64% to 66% range seen from 2017 to 2019,” notes Gallup.

Should we begin to see further progress with legalization, some of the top stocks to consider are Canopy Growth (CGC), Tilray (TLRY), Aurora Cannabis (ACB), Cresco Labs (CRLBF), Grow Generation (GRWG), and OrganiGram Holdings (OGI).

Or, investors can even look at cannabis related ETFs, such as:

ETFMG Alternative Harvest ETF (MJ)

At $11.45 with an expense ratio of 0.75%, the ETFMG Alternative Harvest ETF (MJ) offers investors access to the Canadian and global marijuana sector. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing or distribution of cannabis products for either medical or nonmedical purposes. Some of its top holdings include Aurora Cannabis, Tilray Inc., Canopy Growth, Cronos Group, and GrowGeneration Corp.

The Cannabis ETF (THCX)

At $8.80 with an expense ratio of 0.95%, the THCX ETF was “constructed to make investing in cannabis easier by helping investors get exposure to a basket of stocks that are expected to benefit from growth of the hemp and legal marijuana industries,” according to the THCX Fact Sheet. Some of its top holdings include OrganiGram Holdings, Scotts Miracle-Gro Company, Village Farms International, High Tide Inc., The Valens Co. Inc., and Charlotte’s Web Holdings.

Global X Cannabis ETF (POTX)

Another ETF to keep an eye on is POTX. At just $6.50, it’s also pushing higher in anticipation of potential legalization. Some of its top holdings include Aphria Inc., Canopy Growth, Cronos Group, Tilray Inc., GW Pharmaceuticals, and HEXO Corp.

Helping, according to a Global X survey on recreational cannabis, it was found that:

• A majority of Americans support legalizing cannabis on the federal level in the U.S.
• Older millennials & younger gen-Xers support federal legalization, followed by gen-Z & older demographics
• Positive attitudes toward the federal legalization of recreational cannabis have increased in recent years
• More Americans plan on increasing their recreational cannabis use than those who plan on decreasing use
• Gen X & baby boomers plan on increasing recreational cannabis use as they approach retirement years
• A majority of Americans believe cannabis should be taxed similarly to alcohol/tobacco

If you have an extra grand sitting around, you may want to consider investing in some of the top, most oversold stocks on the market. Three of the hottest stocks to consider include:

Albemarle (ALB)

The lithium bull market is far from over.

Countries around the world are pushing for millions of electric vehicles to hit the roads.

However, for that to happen, we must have far more lithium supply.

Even the International Energy Agency 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.”

ALB is also technically oversold. After dropping from $290, the stock just found support at $222.89. RSI, MACD, and Williams’ %R are also over-extended. Near-term, as markets regain momentum, we’d like to see the ALB stock race back to $290 a share.

Advanced Micro Devices (AMD)

After dropping from $165 to $142.66, AMD is holding strong support, and is already starting to pivot higher. From its current price, we’d like to see AMD challenge $165 again soon.

Helping, analysts at Rosenblatt seem to like the stock, noting, “AMD will be boosted by its pending acquisition of San Jose-based Xilinx Inc., which he says should ‘add to the sustainability and diversification prospects for the company,’” as noted by the Silicon Valley Business Journal.

Other analysts are just as bullish. Wells Fargo recently raised its price target on AMD to $180 from $145. Wedbush raised its price from $140 to $165. Susquehanna raised its target from $145 to $175.

Microsoft (MSFT)

MSFT had an explosive year.

After opening at $220.68 in January 2021, the stock raced to a high of $349.67.

Nowadays, after pulling back with other major tech stocks, MSFT is sitting at double bottom support around $326.17, with RSI, MACD, and Williams’ %R pivoting higher. From current prices, we’d like to see MSFT run back to $349.67, and potentially test $400 in the new year.
Better, earnings continue to impress. In its most recent quarter, Apple reported revenue of $45.3 billion, up 22% year over year. That was also above expectations for $44 billion. Non-GAAP profits came in at $2.27, which was about 20 cents higher than estimates.