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Elon Musk Brags About His “Untouchable Investment”

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The decentralized foundation of cryptos might be a problem for the Chinese government, Elon Musk has said.

As global officials scrutinize the crypto industry, Elon Musk has shown support for crypto, saying it was indestructible.

“It is not possible to, I believe, destroy cryptocurrency, but it is possible for these authorities to slow its progress,” Musk said during the Code Conference, as reported by CNBC.

According to the CEO of Tesla, the decentralized foundation of cryptos might be a challenge for the government of China, which announced their war against crypto last Friday.

“I suppose cryptocurrency is about lowering the power of a centralized government,” Musk said, adding, “They do not like that.” He also said that the new Chinese crackdown against crypto is possibly to have something to do with the country’s “great electricity generation problems.”

“Part of it might be due to shortages of electricity in many areas of China. A lot of South China is having random power outages since the power demand is so high […] Crypto mining could be playing a role in this,” he said.

Despite Musk not thinking of himself as a “massive crypto expert,” the tech mogul said that regulators should not be attempting to slow down crypto adoption. When asked whether the U.S. government should get involved in regulating cryptocurrency, Musk said:

“I would say, they should do nothing.’”

Musk has come up as a significant cryptocurrency price influencer via Twitter, with many experts connecting his posts to huge price moves for tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and of course Bitcoin (BTC). The Tesla CEO was widely slammed within the cryptocurrency community after suspending Tesla’s Bitcoin payments over what was said to be environmental worries about mining back in May of this year.

Musk previously caused a lot of optimism in the crypto market by saying his company made a huge $1.5-billion Bitcoin buy in February.

This comes at a time when cryptocurrencies like Bitcoin are also being targeted by regulators in the United States due to their connection and uses in the cybercrime industry worldwide, according to officials.

Author: Steven Sinclaire

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Analyst Issues Jaw-Dropping Prediction About Tesla

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Tesla will witness its ‘strongest quarter ever,’ according to a Piper Sandler analyst. Credit Suisse says that the stock has showed ‘resilience.’

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Tesla’s third quarter will be the company’s “strongest ever,” according to an analyst, who repeated his overweight rating of the electric car maker and increased his 2021 estimates.

Shares of the company at last check were around $785.10.

The Piper Sandler analyst, Alexander Potter, who’s Tesla price target is $1,800, said in his note that “Q3 will be Tesla’s strongest ever, and we are boosting our 2021 estimates because of this.”

Potter stated Tesla would give 894,000 cars in 2021, up from his previous estimate of 846,000.

He also increased his third-quarter delivery number to 23,000, “after reports of stronger production.”

“People often think about deliveries, but this metric maybe gets too much attention,” he said. “We are more focused on margins, which we believe could be especially strong in the third quarter.”

Electric vehicles now represent 12% of sales in China, with 10% in Europe and 3% in the United States, Potter said.

Electric-vehicle penetration has steadily gone higher in past months, especially in China and Europe, he said.

Tesla CEO Elon Musk said in his email over the weekend that this will be Tesla’s “most intense delivery week ever,” Electrek said. Musk thanked the workers for their “hardcore delivery push.”

Separately, Credit Suisse Dan Levy stated that he expected Q3 deliveries to go from 225,000 to 230,000, compared with the sell-side expectation of 223,000. Upside was limited by the supply, the analyst stated.

Levy gave the company a neutral rating and a target price of $800.

He said “quarter-close deliveries during a widening ‘quarterly wave’ is an x-factor (around 60% or more of quarterly deliveries in the end month), with Elon Musk noting the increase as being unusually high compared to quarters due to some parts shortages.”

Accordingly, he said “a result of 225,000-230,000 would be great amid the chip shortage.”

“After a sluggish start to 2021, the stock has recovered +27% since back in June,” Levy stated.

“The stock is resilient, overcoming issues with China risk, and also doing well during the product delays, pressures from the chip shortage, and the creation of an investigation into an Tesla autopilot failure by a government safety agency.”

Author: Scott Dowdy

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2 Stable Stocks That Are Primed And Ready To Skyrocket

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Many investors want to buy shares of large pharma companies for the good stability that they can give. But huge growth often is not expected from these kinds of stocks.

That does not mean, though, that stronger growth is never possible with top biopharmaceutical stocks. Here are two big pharma stocks that investors believe might soar by at least 30% in the upcoming 12 months.

1. Bristol Myers Squibb

The consensus price for Bristol Myers Squibb is relative to a premium of almost 34% to the current price. Among the 22 analysts reviewed by Refinitiv, the most pessimistic of them believes that the pharma stock might jump at least 10% more.

This bullishness could be somewhat surprising. BMS’ top product, Revlimid, will have generic competition starting next year. The blood cancer drug created 27% of the company’s overall revenue in Q2.

So why do analysts like the stock so much? For one, that competition will be in limited amounts at first thanks to some contractual agreements. The company also has numerous other blockbuster products with growing sales, notably the popular blood thinner Eliquis and the cancer immunotherapies Yervoy and Opdivo.


BMS’ lineup is filled with newer drugs with huge potential too. Cancer cell therapies Breyanzi and Abecma along with sclerosis and ulcerative colitis drug Zeposia really stand out. Over the incoming few years, these and other products could make up for the sales declines for Revlimid.

2. Sanofi

Analysts search for better performance over the next 12 months from Sanofi. The average target for the French drugmaker is 35% over the current price. The lowest target among the three analysts spoken to expects the stock to increase by around 20%.

Sanofi’s Regeneron partnership gives the firm numerous growth drivers. And sales of Dupixent are going up and might pick up a lot more momentum with the FDA’s new restrictions against JAK inhibitors. Also their cancer drug Libtayo has gained steam with new approved indications.

Regeneron is not helping Sanofi on every front. The big drugmaker has products of its own with good sales growth, including the type 2 diabetes drug Soliqua, rare blood disorder drug Cablivi, and its vaccines.

Plus the company’s dividend is 4%, which makes it one of the most attractive pharma stocks out there today.

Author: Scott Dowdy

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Morgan Stanley Says This Is Better Than Gold (Not Cryptos)

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In their newest commodities report, the economists from Morgan Stanley, the bank analyzes the crucial differences between gold and silver. They start off by reporting that, as we go toward a post-covid world, many investors are seeking ways to prepare for the future. A solution some might have is investing in precious metals, like gold and silver.

The bank broke its report into 5 important areas that every investor should be aware of:

1) Silver may be more connected to the global economy

“Half of all silver is used within heavy industry and high tech industries. As a result, silver is more sensitive to economic shifts than gold is, which has limited uses other than jewelry or investment. When economies increase, demand usually grows for silver.”

2) Silver might be a better inflation hedge

“Historically, both silver and gold have made good gains when inflation is going up. Both metals are valued in USD, so when the dollar goes down in value, gold and silver usually rise since they lower in price using other currencies. Given more industrial demand, silver usually rises more than gold does with increasing inflation and a decreasing dollar.”

3) Silver has more volatility than gold

“The volatility seen in silver can be two to three times more than seen in gold on any given day. While traders can benefit, this volatility can be challenging when dealing with portfolio risk.”

4) Gold is a more powerful diversifier than silver

“Silver is a good portfolio diversifier with some weak positive correlation to stocks, commodities and bonds. However, gold is an even more powerful diversifier. It has consistently been uncorrelated to stocks and has given very low correlations to other top asset classes: Unlike silver and other industrial metals, gold is less moved by economic declines since its industrial uses are very limited.”

5) Silver is cheaper than gold

“Silver is a lot cheaper than gold, causing it to be more accessible to smaller investors. For those who want to just start building their portfolios, the price of silver might make it a much better investment choice to start with.”

Author: Steven Sinclaire

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2 Stocks To Buy Before a Market Meltdown

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Legendary investor Peter Lynch is quoted as saying: “A lot more money is lost by investors trying to predict corrections than gets lost during the corrections themselves.” In other words, even if the market looks like it could crash, no one really knows the future, and attempting to time the market usually leads to missed opportunities.

From this perspective, it is better invest on a routine basis, even if it is a small amount of money. This way, you will build positions using dollar-costing averaging, which helps guard your portfolio from short-term volatility. With this in mind, Elastic and Palantir Technologies seem like smart stocks to snatch up right now. Here’s why.

1. Elastic

Elastic is mostly a search company. At the core of its technology is the Elastic Stack, a set of software created to take in and log data from any possible source, then help clients analyze this information. Broadly speaking, these products have three possible uses: enterprise search, observability, and better security.

Elastic enterprise is a company search engine. This software allows users to move through company resources to get a particular item; it also allows developers to put search bars in their websites and apps. Similarly, Elastic observability bring all logs, metrics, and software traces together, allowing tech teams to look at performance data, troubleshoot issues, and keep critical business systems online. And Elastic security allows the same features to enable better threat detection.

The company has grown its top line fast. And while Elastic is not profitable on a GAAP basis, it generated $9.1 million in free cash flow over the past year.

The company also recently enhanced its security products with the launch of a detection and response system, a product that brings together security information and endpoint protection, event management, and cloud security. The company has also released new features for its enterprise search and observability software, simplifying data analytics to make searching and automating analysis even easier.

2. Palantir Technologies

Palantir helps its customers manage and make better sense of big data. The company’s software — Gotham (for the government) and Foundry (for companies) — simplify data analytics, allowing them to unify siloed data, make better decisions, and building AI models and data-focused applications.

The company’s top line is expanding at a steady rate, and Palantir produced $61.7 million in free cash flow over the previous year.

During the past quarter, Palantir ended 62 new deals worth $1 million or more, and 21 of those contracts are worth over $10 million. The company also expanded its commercial clients by 32% on a sequential basis. This should aid in supercharging revenue from the commercial segment, which has been expanding more slowly than sales in their government sector.

Going forward, digital transformation will accelerate, and companies and governments that possess the tools to use the data will stand to gain a very competitive advantage. This tailwind should be a powerful driver for growth at Palantir.

Author: Steven Sinclaire

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#1 Software “Sleeper Stock” To Buy Today

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There is possibly to be hundreds of billions or trillions in infrastructure spending over the next years, and there are many ways that investors can profit from it. In this article, we talk about why software company Autodesk might be the next big winner in this sector.

The company makes computer-assisted design software. Most of us will know it somewhere in this capacity, but it is a much bigger company. It also tries to give not just this kind of computer modeling, but also software that works specifically inside the construction industry, from the planning stage, all the way to manufacturing.

They are really attempting to be a one stop company for all construction projects. And this business division is one I really love. 

Architectural, engineering, and construction, which is three ideas into a single suite of software. They have made a move to the cloud over the past three years, so they had a time where they were selling their licenses as one time fees and then adding on yearly renewals. By changing over to a cloud-focused model subscription like most of their peers, they have juiced up their cash.

It’s a large company, but it is still growing at a fast rate. The most recent quarter revenues increase by around 16% y/y. Their billings, which is somewhat of a better indicator for future growth were higher by 29%. Now, why I love the company in the future for an infrastructure play is that they have such a crucial role in global infrastructure and investment in infrastructure. They are really well diversified across the world, it’s got a footprint in all major continents.

I like that executives have worked on the theme of convergence. I spoke about this before, the idea that you will help a company go through its planning and construction. What this means in software is that you are making one fluid piece of software that works for design and the design during the manufacturing stage, which are two very similar things.

Autodesk is the kind of company that is almost like a sleeper stock. I like to say it is comparable to Adobe and Intuit two very visible brands that do not get a lot of attention, but usually compound year after year. Over time, they give not only double digit growth, they give double digit stock growth too. That is what Autodesk has been doing. I believe they are going to keep doing that.

Author: Steven Sinclaire

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IRS Cheats Americans — Makes This “Adjustment” To Tax Refunds

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After eight days of getting delays, some families report they finally started getting money for the Sept. 15 payment of Biden’s child tax credit. But not all eligible people got their money, and, strangely, some are saying that the IRS shorted them.

“We got $500. We should be receiving $800,” said Travis Mack, 46, who is a resident of New Mexico.

The family has three kids who are eight, seven and four.

Mack says he is happy he finally got some money to cover expenses, the family’s groceries along with other bills, but he is perplexed about why the payment is lower than what he got in August and July.

The family did not get the Sept. payment on time and that he was not sure what happened.

Early this past Friday afternoon, he finally got a partial payment. He said it was the $250 for the two older kids but nothing for the youngest, who should be receiving $300.

Mack, who is in the gas and oil industry, said his wife’s income went down by around $2,000 to $2,500 one month after the covid-19 pandemic hit last year and she stopped working in retail to homeschool their kids.

“We were making it but it did put a big strain on us,” he said.

The Sept. 15 monthly payout for the advance credit did not arrived as was planned for a sizable group of American families. They waited for their funds – and any answers from the IRS.

The IRS has not revealed a number for how many families have not received their monthly payment for Sept. or why this happened. But the amount seems to be significant, given the number of complaints on social media and emails sent to the Detroit Free Press.

Millions of Americans did get their advance child tax credit on September 15, but somehow another glitch caught other people in a strange trap.

Many, just like Mack, report that they got the payments in August and July and then nothing for Sept..

Mack said the family was caught in a different glitch in August.

The August payment, which was scheduled for Aug. 13, was delayed for over 4 million people who ended up getting checks for their August credit instead of direct deposit as happened in July.

Late September 17, the IRS stated: “We are aware of some people not getting their September payments, although they got payments in August and July.”

The IRS continued: “These people may not yet be able to get a current status on the IRS.gov website. The IRS is reviewing the situation, and we will reveal more details as soon as we can.”

Author: Blake Ambrose

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Insiders Predict A 33% Collapse In These Stocks

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President Biden very often uses research from Moody’s while he is attempting to make a point on the United States economy.

He should use the newest from Moody’s Mark Zandi to stress any point being pushed by his fellow politicians on either side of the aisle about the need to get the debt ceiling deal done fast.

“Stopping the government would not cause immediate harm to America’s economy, but a default would lead to a catastrophic hit to the economic recovery from the pandemic,” stated Zandi, the chief economist from Moody’s.

The hit from a default on our debt because of lawmakers not extending America’s debt ceiling would be especially acute to investors inside the market, according to Zandi.

“Stock prices would lower by one-third in one of the worst sell-offs, wiping away $15 trillion in wealth. Treasury yields, mortgage rates, and other rates would spike, at least until the debt limit was resolved and Treasury payments continue. Even then, rates would never go back to where they were before. Since United States Treasury securities would no longer be without risks, future generations would pay a big price,” said Zandi, speaking about the possible fallout to asset markets.

Mostly, the stock market pressure would be about the huge economic harm dealt by such a default on America’s debt.

Zandi explains, “The hit to business, consumer and investor confidence would be very severe. If the impasse over the limit lasts through November, the U.S. Treasury will not have a choice but to remove a cash deficit of around $200 billion by removing government spending. Annualized, this is equal to over 10% of GDP. The economic blow would really be devastating.”

Zandi’s scary predictions come after Treasury Secretary Janet Yellen warned about a “catastrophe” if the debt ceiling was not settled.

“The United State has never defaulted. Not even once. Doing so would possibly cause a historic financial crisis that would make the damage worse during the continuing health emergency and pandemic. Default could also lead to a spike in interest rates, a large drop in stock prices and other financial problems. Our current recovery would go into a recession, with billions in growth gone and millions of jobs gone,” Yellen said inside her WSJ op-ed.

Author: Blake Ambrose

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Powell Lets It Slip: Feds Are Planning a ‘Crypto Replacement’

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The Fed is pushing forward with its study into implementing its own cryptocurrency and will be putting out a paper on the topic shortly, Chairman Jerome Powell stated this week.

No decision was made on the issue yet, he said, and revealed that the Fed does not feel a need to do anything quickly as other countries move forward with their own similar projects.

“I believe it is important that we get to a spot where we can make a better informed decision about this,” Powell said during his post-meeting media conference. “I don’t think we are behind. I think it is more important to do this correctly than do it fast.”

Powell continued on to say the Fed is “working proactively to look at whether to give a CBDC, and if so in which form.”

Creating a digital dollar was on the Fed’s radar for over a year, and it announced back in May it would create a deeper examination into the topic with a paper to soon follow.

The Boston Fed has taken the lead on the project, along with MIT within an initiative about whether the central bank should create its own digital currency for making the payments system better. Fed Governor Lael Brainard has been a strong supporter of the effort, although several officials, including Vice Chair of Supervision Randal Quarles, have had their doubts.

Advocates like Brainard state that a central bank digital currency’s benefits include accepting payments quickly in times of crisis and can also give services to the unbanked.

“We believe it is really crucial that the central bank keep a stable currency the American public’s benefit. That is one of our jobs,” Powell said. He applauded the “transformational innovation” in the sector of digital payments and said the Fed will work on the matter, including its own system called FedNow which is expected to go online in the year 2023.

The test for the CBDC, he stated, is “are there tangible benefits that outweigh any risks and costs.”

However, a large drumbeat has been increasing as central banks, and notably China, have pushed forward with their own strategy and started the first stages of implementing their own CBDC.

Author: Scott Dowdy

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2 Stocks That Could Make Even Your Grandchildren Wealthy

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Industrial software company PTC and positioning tech company Trimble have significantly outperformed the S&P 500 over the past decade. I believe they could do this again over the next decade or two.

Both of these companies have greater growth opportunity through boosting their revenues from higher-margin software and recurring incoming. Let’s look at how they can create long-term value for their investors.

1. PTC

The case for PTC is based on the idea that the digital movement of the industrial sector will keep going over the next decade. Its core services include CAD and product lifecycle software, while its growth offerings include IoT and augmented reality software.

Demand for CAD and product lifecycle management is supported by their move to the cloud as a software-as-a-service. Not only does this change increase long-term revenues, but it also allows it to be easier for customers to collaborate on their work over the cloud.

Along with this, PTC’s IoT and AR offerings have a long growth runway ahead. For example, with IoT software connecting an owner’s physical assets to the digital world, this allows owners to create masses of data which is then digitally changed and analyzed to help the performance of the asset. 

One example might be the modeling or functioning of a turbine so the manufacturers can increase performance and better predict when it has to be serviced. Meanwhile, AR allows technicians to fix equipment without even being there physically. For example, it can digitally help a worker looking at the wiring on bottling machinery inside a plant.

For all these reasons, PTC has an excellent future ahead of it.

2. Trimble

Positioning technology company Trimble makes hardware and software that aids users in positioning, watching, and modeling their assets. For example, its normal market is geospatial area, but it is also used to monitor trucking fleets, solve problem points in construction, or guide machinery.

The company has three crucial drivers to future growth:

  1. Expanding its position in new growth markets, like precision construction.
  2. Changing its revenue to higher-margin software and recurring income.
  3. Becoming an important part of its clients’ “integrated work process.”

All three are connected and also increase by the data analytics explosion going on now. For example, data analytics created by automated positioning tech will make it easier for a farmer to find a crop and then seed, water, and harvest it. Because of this, the farmer will more likely invest in tech.

The move to more analytics implies more recurring services and software revenue growth. As for getting into the “integrated work process,” investors can think of how 99% of the top 200 trucking companies use Trimble’s tech. Real-time data is used from the fleet to plan routes to maximize productivity.

Wall Street expects Trimble’s earnings to increase by double digits over the medium term, and the long-term looks excellent.

Author: Scott Dowdy

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