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Bitcoin Hits ‘The Point Of No Return’

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Asset management and investment banking firm JMP Securities reports that “The cryptocurrency economy is now breaking into the mainstream,” stressing that cryptocurrency “adoption cases have created ‘escape velocity.” However, the company’s analysts also say that “the sector is still in its early stage.”

‘The Crypto Economy Is Now Breaking Into The Mainstream’

JMP Securities recently released a research note that talks about cryptocurrency use. Noting that “The cryptocurrency economy is breaking into the mainstream,” the analysts said:

“The crypto sector has traveled a long way in its short life, and we think both adoption cases and early use have created an ‘escape velocity,’ where binary arguments concerning its future are pretty much removed from the table at this time.”

The analysts further said that “The sector is not perfect today, scams are there, regulation is not developed, and the industry requires more education about the technical parts that are not always intuitive.”

Nonetheless, they think the industry’s future “justifies continued development and investment,” adding, “We expect the perceived negatives in this sector will keep getting better and improve with more time and maturation.”

They added that in the early years of bitcoin, “the crypto ecosystem was uncertain and unproven.” However, they continued: “Today, we think the negative view has been greatly de-risked with adoption accelerating and its utility and foundation already seeming more like an established network, even with what we see to be the early innings inside of an exponential growth cycle.”

 

The analysts also said that the NYSE-listed crypto company Coibnase was “a flagbearer for the creation of the larger cryptocurrency economy.” They said:

“Even with the exponential increase of adoption, we believe the industry is still in its early stage, and as use cases for cryptocurrency rapidly increase, we see huge upside for these companies (such as Coinbase) that give infrastructure to help its growth.”

This comes at a time when many experts are touting Bitcoin as reaching a breakout phase where it could have another huge increase. Still, others are skeptical of Bitcoin with some banking insiders questioning if the crypto is truly limited in coins as is said to be the case.

Author: Scott Dowdy

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2 High-Tech Stocks That Could Explode In 2022

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The S&P 500 index has gone up around 19% this year (so far). And while there are a combination of factors that might dampen this performance going forward, it does not mean all returns will be lackluster. Investors could be more selective about which stocks they invest in, though, to generate good performance.

The two semiconductor companies below are currently profiting from these industry supply shortages, and their services and products are likely to be in greater demand in 2022 (and going forward). This might mean market-beating returns. Let’s find out some more about these two stocks forecasted to do well in 2022.

1. Cohu

If you’ve tried to buying a new gaming console, high-level computer equipment, or maybe a new car in 2021, you have likely had a difficult time getting what you want. The problem is a worldwide lack of semiconductors — the cpus that back all of our electronics. This global shortage is now set to go into the new year.

The auto sector has arguably been the worst affected since vehicles have become more feature-heavy, making them require more advanced cpu power. Many car makers have been forced to lower production this year since they cannot get enough supply of the needed chips.

Cohu is a chip service company that gives handling equipment and testing for some of the top producers worldwide, helping them to increase capacity to alleviate their pressures.

Cohu grew its revenue by 9% between 2019 and 2020, but it is now set to over quadruple that number this year to 41%.

The stock trades at a great discount to its peers as shown by the iShares Semiconductor ETF. This ETF trades with a p/e multiple of 31, with Cohu’s being 10 times (based on the estimated earnings for this year).

As the chip shortage is now expected to go into the new year, so is Cohu’s large opportunity. That may be why one Wall Street investing company believes the stock might go up by over 109%.

2. Axcelis Technologies

Axcelis Technologies also helps the top semiconductor makers in the world, so it is also in line for a really big 2022. But its part in the industry is more technical, as it builds and designs ion implantation equipment used inside the actual fab process.

The company has also changed its focus to the auto segment, which comes under its “Power Device” product line. In fact, in Sept. the company shipped a whole family of its Power implanters to numerous chip manufacturers across Europe and Asia. The company said it is a sign of the increasing electrification of the auto sector — and since this trend is just getting better, Axcelis is very well-positioned for a lot more future growth.

In fact, Axcelis is in line to grow its EPS by around 400% since 2019 thanks to increasing gross margin. Since the firm’s products are in such great demand, it’s creating more of them, which aids in creating scale as fixed costs turn into a smaller amount of overall costs. Also, customers are now willing to pay more; both of these facts have lead to much higher profits.

Author: Blake Ambrose

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Man Who Predicted 2008 Now Recommends These 2 Stocks

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“The Big Short” guy is now sounding the alarm yet again.

Michael Burry, who is the hedge fund manager that famously bet against the nation’s housing market back in 2008, recently said in a now deleted tweet, “Stock markets and bonds depend on the Fed being stripped of all credibility.”

This was not his first warning.

“All speculation and hype is doing is bringing in retail right before the mother of all crashes,” Burry said in another deleted tweet he made earlier this year.

Burry does a lot more than just talking.

As of June 30, the top position in his company was a huge $730 million bet against Tesla (using put options).

Still, Burry is not down on everything. Let us take a look at two companies that the top investor is very bullish about .

Facebook

Burry’s largest “long” position is interesting to many investors: call options for 941,000 Facebook shares.

Call options give investors more upside possibility than simply owning the company shares, but they are also more risky.

To be sure, Facebook has had a rough time recently. The company had a huge outage last week and has faced criticism over a whistleblower’s recent testimony.

The stock is lower by around 13% over the previous month. But year to date, the stock has returned a good 23%.

Facebook is without a doubt the biggest social media platform out there, with its family of services having a whopping 3.51 billion monthly active users as of June.

Financials are also on the increase. In the second quarter 2021, revenue went up by 56% year-over-year to a $29.1 billion value while the company’s earnings per share (EPS) more than doubled from one year ago.

Alphabet

Alphabet now controls a market cap of more $1.8 trillion as the parent company of Google. But Burry believes it might get even larger.

At the close of June, his company had call options on 91,900 Alphabet shares.

The search engine handily beat Wall Street’s predictions in the second quarter this year, getting a 62% revenue growth and a net income increase of 166% from last year.

In their recent earnings call, Ruth Porat, Alphabet’s CFO, said she anticipates “a more muted tailwind to company revenues in Q3.” But that didn’t stop shares of Google from going up.

Author: Scott Dowdy

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2 Dividend Stocks That Can Survive a Collapse

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Fluctuations in the stock market can be difficult to deal with, but volatility is the price you pay for better returns. However, dividend growth stocks can usually give investors more security from dramatic moves during corrections or even recessions.

Furthermore, these dividend growth stocks can give you stability in the form of goods or services that are never cut back by customers — even during uncertain times. Today we will look at two of these S&P 500 growth stocks that should keep regardless of what the market is doing.

Waste Management

Operating in a sector that will go away only if humanity stops existing, aptly-named Waste Management offers a good 1.5% dividend that has gone up for 18 years in a row. Reporting earnings for its Q2, the company had cash from operations of more than $1 billion for the quarter and guidance of $2.5 billion in free cash flow for the whole year of 2021.

For investors, these cash flow numbers show just how well-funded the firm’s dividends are as it spent less than $1 billion in dividends during the previous 12 months. But maybe what makes Waste Management even more interesting to investors is that the stock has greatly outperformed the S&P 500 over the past two and five years, increasing 140% and 350% over both time frames, respectively.

Looking to keep going with its growth, the company bought Advanced Disposal in late 2020 and now expects 15% revenue for fiscal year 2021 as it completely integrates the new company. Looking ahead, Waste Management might be a quiet reopening move with the pandemic ending and daily life getting back to normal leading to even better things for the company.

McCormick

McCormick’s various flavorings and spices can raise the taste of any meal. In short, McCormick’s products are a cheap way to keep normalcy in life, regardless of what might happen to someone’s finances or the economy overall. Similarly, owning McCormick stock is a wonderful way to add better stability to a portfolio since it gives a nice 1.7% dividend with 35 years in a row of increases.

Also, after having sales increase of 8% in its latest quarter, the firm has been revealing that it is growth-focused and not just about income. Led by their flavor solutions segment, McCormick is also somewhat of a reopening play, since this segment sells to restaurants and other foodservice companies that slowed down during the pandemic.

Author: Blake Ambrose

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Putin Sends Bitcoin Investors Into a Frenzy With This Announcement

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The President of Russia, Vladimir Putin, made new remarks suggesting there is a growing tolerance for Bitcoin and cryptos in the Kremlin during his interview with CNBC that was published on the Kremlin’s website this Thursday, Bloomberg says.

“I believe it has some value,” Putin said to CNBC’s Hadley Gamble at the Russian Energy event being held in Moscow this week. “But I do not think it can be used within the oil trade.”

The questions came out of concern for how Russia might exit dollar-denominated oil agreements due to United States economic sanctions.

Putin stated that while Bitcoin and cryptocurrency might exist as a payment means, it is still “too soon” to talk about crude contracts being completed with Bitcoin or crypto instead of with dollars.

The Russian president also showed concerns about the energy needed to keep the Bitcoin network, however, he conveyed a clear goal to move Russia away from its United States dollar reliance.

“I believe the United States makes a huge mistake in using their dollar as an instrument of sanction,” he said. “We have no other choice but to go to other currencies.” In June, Russia said it would remove the U.S. dollar asset from its wealth fund.

“About this, we can say the U.S. bites the hand that feeds it,” Putin said. “This dollar is their competitive advantage. It is a universal reserve currency, and the United States today uses it to push political goals, and they hurt their economic and strategic interests because of this.”

While it not clear enough to report if Russia is thinking about replacing the U.S. dollar with Bitcoin, it is clear that its officials understand the dollar is not a good reserve currency in the long term and that Bitcoin might pose a possible neutral alternative.

This comes almost one month after the acting media secretary for Putin, Dmitry Peskov, stated that Russia has no cause to recognize Bitcoin.

Many Bitcoiners want to see which nation will adopt Bitcoin next in state capacity. While Russia might not be a close-term contender for Bitcoin usage, its government is now talking about it like it’s on the table.

Author: Blake Ambrose

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How Rent Control Is Destroying The Real Estate Market

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Author: Ken McElroy

Source: YouTube: Why Rent Control is HURTING Tenants… – Ken McElroy LIVE!

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Retirees In 13 States Lose Social Security Benefits

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Chances are good that Social Security benefits will be crucial for you during retirement. Obviously, you will need to know exactly how much monthly income those benefits will give you so you can make a good assessment of whether you are ready to leave work and support yourself without any wages.

Unfortunately, millions of people in America who are retired are now at risk of losing some of these benefits they might expect to get. Here is why.

If you live in these states, you might lose some of your Social Security benefits

Retirees are now at risk of losing some of their benefits if they live in any of these 13 states that charge state taxes on Social Security funds. The 13 states that tax your Social Security income include:

  • Colorado
  • Connecticut
  • Kansas
  • Montana
  • Minnesota
  • New Mexico
  • Vermont
  • Missouri
  • Nebraska
  • Utah
  • North Dakota
  • Rhode Island
  • West Virginia

Now, if you live in these states, it is not necessarily a given that you will always lose some part of your retirement income to your government because to its tax laws. That is because many states do not start enforcing a Social Security tax until a retiree hits a certain income amount. Most often, it is the upper middle class and those who are wealthy who find themselves in danger of losing some of their retirement funds to taxes, while low income retirees will not have this problem.

Still, there is a chance you might see some of your benefits stolen by your state if you reside in any of those 13 places. And if you want to ensure that does not happen, it’s a good idea to go to your state’s Dept. of Revenue so you can find out if you are liable for any tax rules on your benefits.

If it turns out that you will lose some of your Social Security money, consider moving — especially if your state has even more bad tax policies that could affect the income you will get as a senior. When you are on a fixed income, every dollar matters and losing some of your retirement checks to taxes might be a big hit you simply cannot afford.

Author: Blake Ambrose

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How To Transform Your Job Income Into A Million-Dollar Portfolio

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Author: Ken McElroy

Source: YouTube: Your First Million: How to Invest with a Full-Time Job (with Joseph Chantry @your_first_million)

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Analysts: These 2 Stocks Could Quadruple Your Money

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For much of the previous 18 months, investors have enjoyed the historic rally. Since bottoming out in March of last year, the S&P 500 has now doubled in value. For some context, the S&P 500 has had an average annualized return (including dividends) of nearly 11% since the start of 1980.

But for some stocks, there is still plenty of upside left. According to high-water price targets from some analysts, the following two growth stocks can give you a share-price upside ranging from 187% to 434% over the next 12 months.

Plug Power: Possible upside of 187%

The first high-growth stock with the possibility to get your motors running is the hydrogen fuel-cell company called Plug Power. Analyst Amit Dayal of H.C. Wainwright thinks Plug Power is going toward $78, which is far from its ending price of $27.19, as of this previous weekend. Dayal’s Street-high price target implies a 187% boost in the company’s shares.

The excitement about Plug Power has to do with developed nations emphasizing greener energy to lower carbon emissions. Plug’s hydrogen fuel cells can then be used to power commercial and consumer vehicles, and they have other applications too (like forklifts). Further, there is an opportunity for the company to benefit at many levels of this green-energy change, like in building hydrogen refilling stations.

The buzz around this company reached a crescendo back in January, shortly after Plug got two major partnerships. First, SK Group got a 10% equity stake in the company and agreed to create a joint venture to have fuel-cell technology brought to South Korea and other Asian nations. A few days after, Plug and French vehicle maker Renault made an agreement to create a joint venture to go after Europe’s light commercial-vehicle sector.

There is absolutely no question that Plug Power has top partners and an amazing opportunity at its doorstep. The next question is: Can it grow into its current $16 billion cap with profitability still so far away? To that end, I am not so certain.

Inovio Pharmaceuticals: Possible upside of 434%

The top upside opportunity, at least in this article, is the biotech stock Inovio Pharmaceuticals. According to analyst Hartaj Singh from Oppenheimer, Inovio is expected to hit $35 per share. Based on its $6.55 ending price last week, this implies a possible 434% upside to the company’s shares.

Singh’s bullishness is mostly centered around the company’s development of a covid disease vaccine. With billions of people still not being inoculated, there is room for new vaccine players.

On the other hand, Inovio’s development of its coronavirus vaccine, INO-4800, has only been as dubious as its long-term drug-creation record. Last year, it seemed as though Inovio had a real shot at having one of the first vaccines to hit the market. Unfortunately, their plans were derailed by partial clinical holds in the U.S. To boot, the United States eventually pulled phase 3 trial funding, which then forced Inovio to have its large-scale phase 3 study within Mexico and other nations around the world.

Perhaps the bigger issue here is that, even with robust clinical pipelines, Inovio has not yet brought a drug to market more than 40 years after it was created. The company has been lucky enough to bring in capital to keep its work going, but it has never been able to deliver on the hype around the company. Suffice it to say, I do not foresee a $35 price target working out anytime soon, if ever.

Author: Steven Sinclaire

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Insiders Launch Plan To Take Bitcoin Mainstream — Here’s When

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Binance, the world’s top blockchain ecosystem and crypto platform, has created a $1 billion Growth Fund for the Binance Smart Chain, to expand the use of digital assets and better blockchain technology.

In the upcoming months numerous programs will be created under it to empower the spread of cryptocurrencies globally. Designed to help rising crypto projects this fund will help run advanced tech development programs.

“BSC’s growth has brought in 100M+ DeFi users with an initial fund of $100 million.” said Changpeng Zhao, who is the CEO of Binance. “With this new contribution of $1B, we will further disrupt traditional banking and speed up global usage of digital assets to turn into the first-ever one billion user blockchain ecosystem,” he said.

The $1 billion new fund will be sectioned into 4 larger categories:

1 — Talent Development

$100M of the funds are being kept for Talent Development which concerns mentoring communities, educating new investors, giving academic scholarships, running and supporting research and development around Cryptography more.

2 — Liquidity Incentive Program – Trading

The Liquidity Incentive program will run sub-programs to help increase participation in traditional bank markets as well as crypto and give support to traders and groups to allow more liquidity in DeFi protocols.

3 — Builder Program – Technological startups

The Builder Program will be increased with another $300 million. $100 million of which will be used to conduct global hackathons, bug hunting programs, developer meetings and will support mainstream development. The other $200 million will be used to help 100 new dApps built on top of BSC who will also get mentoring from top VCs and support from the core community.

4 — Investment Program for Industrial development

To increase mainstream usage and allow disruption a total of $500 million will be held back. This fund will be used to expand decentralized computing, metaverse, gaming, virtual reality, AI and blockchain-based banking services.

“The thriving blockchain ecosystem has caused us to invest our efforts, time and resources in aiding companies going from 0 to 1. With this $1 billion initiative, our drive will be increased to building cross-chain infrastructures that work with different types of blockchains. We are gearing up to boost the adoption of crypto and accelerate its global growth.” said Gwendolyn Regina, Director at the BSC Accelerator Fund

Author: Scott Dowdy

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