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Bitcoin Makes Another Jaw-Dropping Shift

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Bitcoin and other cryptos recovered this Wednesday after a short sell-off, with the world’s top digital cryptocurrency reaching back over $30,000.

The price of bitcoin went as high as $32,765 this Wednesday, according to the website Coin Metrics, and last sold at 31,641, around 6% higher on the day. Smaller cryptos ether and XRP also returned with around 6% each.

The crypto market witnessed greater selling this week on Tuesday, with bitcoin declining under $30,000 for the first time since June 22nd.

The decrease came after news that the NJ A.G. gave a cease-and-desist message to crypto lending company BlockFi, ordering them to stop giving interest-bearing accounts.

The cause for the move higher Wednesday was not immediately clear. Cryptocurrencies usually have severe price swings. Bitcoin, for example, went higher to an all-time high of nearly $65,000 in the month of April before splitting in value in the months after.

The price of ether increased around 1.5% in the afternoon after Elon Musk says he has some of the cryptocurrency, in addition to bitcoin and dogecoin, during the online event called “The B Word.”

Vijay Ayyar, leader of Asia-Pacific at crypto exchange Luno, said Wednesday’s rise was possibly a “dead cat bounce,” where an asset momentarily recovers from a prolonged decrease before sliding more.

Unless bitcoin can get higher than $32,000-$33,000, Ayyar says he expects more downside, with the top crypto possibly going as low as $24,000.

“We witnessed broad market rallies last night as well, and I believe crypto is only playing off of that,” Ayyar said.

“In general, there are many macro factors pushing down on risk-on assets right now — inflation, Covid, and with cryptocurrency we have worries like more regulatory oversight.”

Cryptocurrencies have been going down during an increasing crackdown on the technology and industry from regulators.

In China, authorities have tried to remove cryptomining, the technique that processes transactions and creates new coins. Binance, the world’s top crypto exchange, is coming under more pressure from regulators in Italy, the U.K. and elsewhere.

Author: Blake Ambrose

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Instant Millionaires: Washington Could Soon Be Full Of Them

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In the quest to alter cannabis laws in the country, the House has not been much of an issue. The challenge has always been the U.S. Senate.

Last week, however, Senate Majority Leader Chuck Schumer announced his proposed law to decriminalize marijuana and make it legal at the federal level that he wishes to bring to the Senate.

With the possibility of complete federal cannabis legalization on the way, is it time to buy up a lot of marijuana stocks?

Possible winners

As you may expect, there are many winners if marijuana is made legal at the federal level in this country Canadian cannabis producers have long wanted to go into the huge American market. But they can’t do this and still list their shares on top United States stock exchanges while cannabis stays illegal.

If this roadblock is overcome, Canopy Growth is a stand out as an especially good beneficiary. Canopy already has an option to buy U.S. cannabis company Acreage Holdings. It also has a big partner (and biggest shareholder) based in the States — Constellation Brands. Canopy might be the first to move into the American market if Senator Schumer’s bill succeeds.

Also don’t overlook the opportunities for the companies that are already operating in the country, though. Cresco Labs, for example, is ranked as one of the best valued multistate cannabis companies. One reason why its stock is cheap when compared to Canadian pot stocks is they can’t list their shares on a top U.S. stock exchange.

It’s a similar issue for Trulieve Cannabis, one of the largest cannabis operators in the united states. If Trulieve were priced the same price-to-sales ratio that Canopy Growth is at, its cap would bet at $10.3 billion — a lot more than its current number of $6 billion.

Don’t jump in just yet

With so much uncertainty in the U.S. Senate, investors probably should not load up just yet. That does not mean, however, that there are not stocks that you should take a hard look at.

One cannabis stock that looks like a good choice regardless of what happens in D.C. is Cresco Labs. They company is expanding in its core areas. It has also gone into new states, including the huge market of Florida and Ohio.

Author: Steven Sinclaire

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2 Stocks To Sell Before The Market Collapses

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The market has been coming back to new heights in the past weeks, even with coronavirus persisting in news coverage and politics, and the economy not being fully recovered, and stimulus payments still helping to prop things up.

All this means a bigger risk that as we get back to normal, the market might experience a correction. If I owned the following two stocks, I would be considering selling them ASAP. Both of these companies’ share prices have doubled in one year, going way past the S&P 500 and its 35% boost.

But with increased price and the possibility of a crash coming in, they get riskier as every day passes.

1. Moderna

Moderna has went up by 250% in one year, and for good reason — its covid vaccine got emergency use authorization from the FDA last year. The company thinks it will generate over $18 billion in revenue from the vaccine this year, and its bottom line will finally be shaded black — in 2020 it lost a total of $747 million, triple its numbers in 2017.

Things are looking good for Moderna, especially since rival Pfizer is seeking FDA approval for a third dose of its vaccine. If Pfizer does this successfully, it’s very possible Moderna will follow suit, which might bring in even more cash for the company.

But even with the vaccine success, Moderna’s future looks like a question mark to me, and while its forward p/e ratio of 11 seems cheap, that might quickly change post-COVID. Even on a forward basis, the stock is selling over 6 times revenue — Pfizer is 3. Although Moderna seems to be doing well at the moment, its stock is too expensive to withstand a possible correction.

2. fuboTV

Streaming company fuboTV is not profitable, nor does its profitability look to be getting close. But that has not stopped investors from jumping onboard, pushing shares higher by 160% in 12 months. Its subscriber count as of March reached 590,000 — a y/y increase of 105%. And the company might continue attracting more customers thanks to plans to create a sportsbook before the end of 2021.

However, while fuboTV is growing, my issue is that its approach could be too aggressive in reaching for revenue. In its recent results, for the time frame ending March 31, revenue of $120 million was not anywhere close enough to cover its $185 million in expenses. Of particular concern is that fuboTV has had subscriber-related expenses of $113 million — over the $107 million it got from its subscription revenue.

Without healthy margins to support the company’s continued growth, the problem for investors is that fuboTV’s numbers might not get better as it grows, which could mean an inevitable need to bring in more cash — diluting the current shareholders. For all these reasons, if we have a crash, fuboTV’s stock could fall quickly.

Author: Steven Sinclaire

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Bitcoin Goes Belly Up As Investors Go Into Panic Mode

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Bitcoin was on the path to end on Tuesday under $30,000 per coin for the first time in 2021.

Bitcoin, the top cryptocurrency by market cap., decreased by as much up to 4.6% to $29,393 per coin. It has not ended under $30,000 since December 31.

“The latest fast sell-off in the cryptocurrency sector is seeing giants like Bitcoin and Ethereum hitting vital support levels that are turning more fragile,” said Nicholas Cawley, who is an analyst at DailyFX. “The lack of a return over the previous three weeks means that traders are no longer wanting to ‘buy the dip.’”

Tuesday’s decrease comes one day after a broad downfall in risky assets and as the current Treasury Secretary, Janet Yellen, has called on officials to create a legal framework for regulating stablecoins, which are supported by a reserve asset such as the U.S. dollars. Stablecoins give holders the privacy of crypto and the stability of fiat money.

Bitcoin’s value had spent the previous two months going between $30,000 and $40,000 after China in May caused a selloff after urging a crackdown on cryptocurrency mining.

The price of bitcoin had gone up by as much as 116% in 2021, hitting a top at $63,503 in April, as a number of United States companies, including Tesla and MicroStrategy, started investing in the crypto as a strategy to diversify their holdings.

Analysts state that bitcoin’s bear run still has the ability to go lower.

J.P. Morgan researchers said last month that the cryptocurrency’s share of the overall crypto market would have to go back over 50% before they get more comfortable and believe the selloff is over.

Tuesday’s selling pushed bitcoin’s market cap down to $555.6 billion, or around 46% of the total $1.2 trillion crypto sector.

Bitcoin’s market cap hit a high over over $1.1 trillion back in April, or 70% of the total crypto space.

This comes at a time when more alternative cryptocurrencies are making news and getting support, such as Dogecoin as alternatives to Bitcoin, along with its number one competitor, Ethereum.

Author: Steven Sinclaire

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Breaking: Big Tech Companies Now Banning Bitcoin

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Chinese-owned widely popular app TikTok has changed its policy to block all financial products and services, including preventing influencers from supporting cryptocurrency.

The firm says the change is targeted at preventing the increasing abuse of the platform to commit scams and other dishonest actions that might infringe upon someone’s privacy.

But it has come only weeks after the CCP cracked down on crypto-mining over their alleged “climate concerns,” forcing miners to move out of China. TikTok’s new policy will harm legitimate financial companies, which won’t be able to take advantage of influencers for promotion.

Without the ability to pay for advertising or influencers, cryptocurrency’s time on TikTok could be over. However, their ad policy, which lets financial services advertise to those older than 18, stays unchanged.

TikTok changed their policy about cryptocurrency

In their new policy, the company says under the title that “Globally Prohibited Industries” that all content promoting financial products are not allowed, including credit cards, loans, trading platforms, forex trading, cryptocurrency and so on.

Many crypto-centered companies use influencers on the TikTok platform, which is known as “Fintok” advisors, to increase their reach. Sometimes this leads to some of them delivering unregulated and misleading financial advice about putting money into assets such as Bitcoin and Dogecoin to young investors who wish to grow their funds quickly without any understanding of crypto.

Google follows

Just like TikTok, even Google took a hard stance on scammy ads on its platform. A few weeks back, Google UK had said that from Sept. the company will request that financial services companies prove their identities to reduce the scam advertisements on the platform.

Meanwhile, the CCP has increased their crackdown on crypto with authorities recently blocking the trading in highly volatile coins in the Anhui province to get the power consumption lowered to a manageable level. The action effectively started in late May, starting with large mining hubs like Inner Mongolia, Sichuan, and Xinjiang, which led to a massive decrease in the crypto market. Before the crackdown, China had made up around 70 per cent of total Bitcoin production.

Author: Scott Dowdy

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Hit The Jackpot Daily With These Gambling Stocks

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Growth stocks are in general going through a volatile time this year. Many growth stocks also benefited from the stay-at-home pandemic trend. Now that economies are restarting, the attention of investors is changing to stocks that could gain as consumers start traveling again.

That does not totally explain why these two growing stocks have catapulted down by over 20% this year, but it does start to reveal the story. Nevertheless, each of these stocks has good long-term possibility that have improved. Let’s look at why you should think about each one of these down-trodden growth stocks.

Skillz

Skillz is a gaming system on a large growth trajectory. It is unique because it gives players the chance to place bets on the games they are playing. The wager ability makes them more interesting than other games. The outcome of the game has the benefit of winning prize money.

Importantly, it takes Skillz far less money to get customers than the money it gets from them. Indeed, from 2018 to 2020, lifetime customer value went higher than the expense of getting them by 3.8 times. That gives room for Skillz to use more money to acquire new customers to power its profits. More players leads to more developers being interested in allowing their games to be compatible with the platform.

Penn National Gaming 

Penn National Gaming was hit hard during the covid pandemic when it had to close down its land-based casinos. It is coming back after reopening and revenue is almost back to 2019 numbers. And Penn is not exposed to the convention market in the same way Las Vegas casinos are, so there will be no long-term damage from lowered travel.

The online sportsbook is just only now getting started, with 400,000 total players. Compare that to its competitor, DraftKings, which has signed up almost 1.5 million monthly players. Given that Penn has the increased advantage of land-based casinos to bring in online players, it might surpass DraftKings over time. And so it is a much better bet for investors who want growth, and want it for cheap.

Author: Scott Dowdy

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2 Sky-Rocketing Stocks To Own Now

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In June, the CPI increased year over year by 5.4%, the biggest increase since Aug. 2008. As inflation pressures start showing more durable than previously expected, market volatility might spike in the short term.

With the Fed highlighting its support for the economy by keeping low-interest rates in its most recent monetary policy to Congress, a small pullback caused by the inflation report might prove to be an opportunity for smart investors.

If you have $5,000 and you want to invest, and don’t need the money for bills, then the following stocks can make you richer in what is left of 2021 and beyond.

1. Cloudflare

Cloudflare is a top edge-based content delivery network company and a cybersecurity firm. The demand for their edge computing and security services are rising due to the greater adoption of cloud-based architectures.

The company’s total addressable market (TAM) is thought to expand from $72 billion last year to $100 billion going into 2024. The company’s freemium strategy has proven to be very successful. Cloudflare gives its CDN services to users and businesses for free and only charges if they want to upgrade to get premium features.

Since 2016, the company has managed to grow its revenue every year by around 50%. Their dollar-based net retention was 123% in Q1, which implies the same customers spent 21% more than the previous quarter. This metric shows the success of the company’s freemium-and-upgrade model.

2. CrowdStrike

CrowdStrike Holdings has benefited greatly from greater demand from cybersecurity services due to covid-accelerated digitization programs. Most of the changes in workforce behavior will continue even in the post-covid era.

With its real-time protection called CrowdStrike Falcon and a software-as-a-service (SaaS) model, the company is well-positioned to get a large share of the global cybersecurity market. In turn, the market is estimated to expand from $217.9 billion this year to $345.4 billion going into 2026. Indexing over 6 trillion events every week, CrowdStrike Falcon is getting even more effective due to better network effects.

CrowdStrike reported a 74% y/y increase in annual recurring revenue (ARR) to $1.19 billion. And they have been quite successful in getting new customers, as shown by the 82% y/y increase in customer subscriptions to 11,420 at the close of Q1. They are also guiding for a 54% y/y jump in fiscal 2022 revenue.

Author: Steven Sinclaire

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IRS Readies New Checks For July, Here’s How Much

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The IRS has started sending out unemployment money to people who filed their taxes in 2020 before the American Rescue Plan was enacted into law. If you got unemployment benefits in 2020 and filed last year’s tax return early, you might not have gotten the unemployment funds that are now available to you because of the covid stimulus bill.

Many American taxpayers were worried they would miss the new unemployment benefits if they filed early, but as pledged, the IRS has automatically changed taxpayers’ incomes from 2020 and taken into account how it would change their eligibility for unemployment after March of 2020, when the legislation became law. It started giving automatic tax refunds to eligible people in May. While it has already mailed millions of checks, the IRS says it will keep doing this through the end of this summer.

The American Rescue Plan makes it so that as much as $10,200 for singles (or $20,400 for couples) of unemployment funds gotten in 2020 are exempt from federal income tax. The threshold for someone being eligible is an AGI of under $150,000 on your 2020 return. Only the initial $10,200 is exempt from taxation — any dollar higher than that is subject to tax.

Important to understand: This exemption deals with federal taxes, not with your state taxes. Although many states don’t tax unemployment funds regardless of the new stimulus bill, some states do, so it is important to find out what rules apply in your state.

The IRS says further action is not needed if you are among the people affected by this new change because the agency will automatically alter the tax returns of those people who are eligible.

With this being said, if you have filed early and your recalculated AGI now means you are eligible for more unemployment benefits not included in your initial return, you may need to send in a new amended return.

Either way, a new check in July will be a much needed relief for most Americans as inflation creeps in and prices increase to cause more pain for the American consumer.

Author: Blake Ambrose

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Survive Any Market Collapse With This 1 Strategy

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When the market is having a bull market and the prices of certain securities are going up in value, investing seems easy.

But since all good things eventually end. And sooner or later the market is going to crash. This change does not mean you should not invest. Instead, try this easy strategy.

Dollar cost averaging explained 

When you do dollar-cost averaging, you are investing a pre-decided amount of money into a certain investment over a particular period of time. This happens no matter what the market is doing or the price of shares. This will end with you getting lower prices during some months while also getting higher prices in other months.

With this strategy, let’s say you invested $1,000 into SPDR S&P 500 ETF Trust each month. This would have gotten you a total of $12,000 and got 31.84 shares for the average price of $376.88. Over the previous 12 months, the cost of SPY has gone up in value by nearly $100 per share, but if the opposite occurred and we were in a time of declining prices, your average share price would be the same.

When this works

If you could determine exactly when the stock market will go into a bear market, you would perfectly time your sells and avoid losses. And if you understood when it will rebound, you could then get shares back at the perfect time. But timing like this is very hard, and although you could get lucky, most of the time you will miss the mark. Sometimes a little, sometimes a lot.

Dollar cost averaging works during bear markets, flat markets, or bull markets. But it might also be very helpful in soothing your nerves and getting you in line for profits instead of waiting on the sidelines in cash if you are anxious about a market crash.

When the market went down by 34% in March of 2020 because of fears of coronavirus, you might have seen yourself in this kind of scenario. But instead of lasting a long time, the market crash quickly turned around, and shares of SPY are now priced 200% higher — double what they were then.

If you were sitting and waiting for the perfect opportunity, you would still be keeping cash. If instead, you would committed to this form of investing, and slowly put your money into the stock market over the past year and a half, you would have reaped these profits.

Author: Steven Sinclaire

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Is Now The Best Time To Buy Gold And Silver?

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Although the Q1 should give the low in precious metals, one strategist says that investors should not chase the market at the current numbers.

During an interview, Carley Garner, who is the co-founder of the brokerage firm DeCarley Trading, stated that she was bullish on the yellow metal since March and is now expecting the price to be much higher at year’s end.

However, she also said there is a risk that the precious metal might see another washout before it’s ready to go even higher.

“There is some pretty big resistance near $1,850. So, if you are attempting to purchase nearly $1830, it is somewhat dangerous,” she said. “You want to ensure you have hedges in place.”

Garner added that she enjoys the idea of getting in on dips and revealed there is the potential for gold to retest support right below $1,800 per ounce.

The gold market is not only getting strong support during a low interest rate climate, but Garner says the precious metal is also going into a positive season.

“Late summer, early fall is normally a great time for silver and gold,” she said.

Looking at gold’s numbers, Garner says that she does not expect inflation to give much more support, stressing the drop in commodity prices such as the one in lumber. With lumber giving back its gains after having a historic rally during the first part of this year. Garner said that she sees comparable patterns among a broad group of commodities from copper to hog futures.

However, Garner also said that weak commodities cause the issue of deflation or maybe even stagflation instead of inflation. It is not likely that the Fed will move fast to tighten its policy in this climate, she said.

She further expects the deflation danger to show itself later on this year as she believes oil prices will lower to $50 a barrel. She explained that United States shale producers have been reluctant to raise oil production; however, with oil being higher than $70 per barrel, crude oil supply is rising.

Looking at the price of gold, Garner says that if the price can get to $1,900 per ounce by summer’s end, then she would anticipate the yellow metal to get back to $2,000 per ounce by year-end.

Author: Scott Dowdy

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