Dividend Stocks: Prospect Capital Trading Near Lows
The Federal Reserve has set low interest rates for the US economy. This makes dividend stocks especially attractive, and one of the most popular companies in this category is Prospect Capital Corp. (NASDAQ:PSEC). Those with long positions in PSEC capture dividend yields of 10.5%, which is massive compared to most of the traded stocks in the market.
Stock Price Chart Prospect Capital (PSEC)
In this chart, Prospect Capital has posted negative earnings performances over the last three years:
Stock Market Earnings
Stock Analyst Recommendations:
Stock Analyst Recommendations
The stock is trading at a 25% discount to net asset value (NAV):
Medical Marijuana: Positive Growth Prospects and Investment Opportunities
Medical Marijuana Inc (OTC: MJNA) is the first cannabis company to be publicly traded in the United States. It is a diversified holding company that operates the industrial hemp sector and the legal medical cannabis industry. It was incorporated in 2009 and is comprised of a well-positioned portfolio of cannabis brands that continues to expand and flourish.
From a broader investment perspective, the market capitalization of MJNA now stands at $207 million — and this represents a massive discount to the company’s strong net asset values. As an undervalued company in a growing industry, MJNA is in a place to move higher over the next several years, while other areas of the stock market remain inflated and vulnerable to potential downside.
Following are the business units and subsidiaries of MJNA:
STRONG FINANCIAL OUTLOOK:
Revenue Growth & Drivers:
The Gross Revenue of MJNA has grown by 230% from $1.7 million in Q2 2016 to $5.7 million in Q2 2017. This year has been positive for MJNA as it did see some revenue declines in the past two years.
For the entire year of 2016, they had revenue of $8 million. In Q1 2017 they had revenues of $3 million while in Q2 2017 they grew to $5 million. Thus the company has been growing at an exponential rate.
There are strong indications of the revenue increasing much more in the next two reporting quarters for 2017 as Mexico has legalized medical marijuana. MJNA has subsidiaries in Mexico and so they can look forward to increases its sales from that market.
There is significant interest income ($1.6 million in Q2 2017) that MJNA is paying for its debts which is having an adverse impact on its profitability. However, if MJNA’s keeps improving on its revenue on subsequent quarters, the interest expense would not matter as much and the company can bring itself into a consistently profitable phase.
Performance of its subsidiary: Kannaway Inc:
Kannaway’s revenue has grown 25 times from March 2016 to August 2017 (with exponential growth seen in the CBD hemp oil industry).
Since March 2016, the company has grown its customer base by 500 percent, leading to increases in overall revenues of roughly 1,100 percent.
BLE REASONS FOR INVESTMENT:
Geographic Penetration:
Mexico: MJNA is expanding its footprint in Mexico as it is the first company with CBD (Cannabidiol) products approved by the Mexican Government. HempMeds, subsidiary of MJNA produces a cannabis product that is the only legally approved product and the first to receive a COFEPRIS approval to import cannabis products.
Latin America: MJNA has found lot of success in the Latin American market, (especially in Brazil and Paraguay). The company’s Real Scientific Hemp Oil has already been granted 12 medical registrations in Puerto Rico. In April 2014, the Brazilian government approved the importation of a drug produced by MJNA (Real Scientific Hemp Oil), which is a CBD Hemp Oil. HempMeds Brazil has received approval for its first three indications (Parkinson’s disease, chronic pain and epilepsy).
CBD Pharmaceutical Applications:
MJNA and its subsidiaries are focused on devising treatments for several serious illnesses where there are currently no treatments. Research studies have shown that cannabinoids (THC, CBN, CBC, THCV, CBD, CBG) have a positive impact on the wellness and health of those with cancer or other debilitating ailments.
Growth Outlook:
Over the last two years, shares of MJNA have moved lower in line with the many of the small cap stocks within the industry. The company has continued to implement strategies on initiatives, build its brand, and enter new markets. The diversification of the company’s subsidiaries and associates helps in increasing the revenues of the company and thus improving its market share profoundly over the next several years.
Strong Initiatives by Subsidiaries:
The subsidiaries of the company have diversified their footprints in the cannabis market. Following are some initiatives in this regard:
MPSI: MPSI is the first logistics and security company serving the cannabis industry. As more and more states in the US look toward legalizing cannabis products, MPSI looks toward expanding its services.
AXIM: AXIM Biotechnologies entered into an exclusive agreement to introduce a new medical product to market, MedChew RX. It has access to intellectual property that will innovate how cannabis-based medicines are manufactured and purchased by patients.
Wellness Managed Services: Wellness Managed Services has provided services to 150 dispensaries in Colorado, Arizona, Nevada, and California. The combination and standardization of its services has allowed the company to be the first to offer a franchise-like opportunity to proprietors in the dispensary or collective industry in the states where medical marijuana is legal.
Kannalife: Kannalife is currently using its licenses to develop novel therapeutic drugs to treat CTE and hepatic encephalopathy (HE). While CBD from marijuana is tightly restricted, CBD found naturally in hemp is legal in all 50 states.
Kannaway: It is the first hemp lifestyle marketing company, with more than 2,000 brand ambassadors to offer cannabidiol hemp botanical products. Kannaway offers several high-quality CBD hemp oil products.
Strong Management Team:
Medical Marijuana, Inc. is led by a management team that is structured in a way that can create strategic value for its shareholders and also continues to execute on its initiatives. The company’s CEO, Dr. Stuart Titus, is a Fellow with both the American Association of Integrative Medicine and the American Academy of Pain Management and was a former clinician holding a Ph.D. in Physiotherapeutics. Blake Schroeder manages company operations and has a capable background after his tenure in nutritional company, which developed an Acai-based nutraceutical and promoted its health benefits throughout the world.
Medical Marijuana Inc. is comprised of a diversified portfolio of companies and brands that continue to flourish as new markets open and existing markets continue to develop. The current market capitalization of $207 million creates a massive discount when viewed alongside the company’s net asset value of roughly $428.5 million, according to Q2 filings. As an undervalued company in a growing industry, MJNA stock is in a place to move higher over the next several years.
Gilead Sciences: Sluggish After Healthcare Reform Debate
Gilead Sciences is an American biopharmaceutical company that discovers, develops and commercially sells a range of therapeutics including antiviral drugs for the treatment of Hepatitis, HIV, and influenza.
The company was founded in 1987 by Michael Riordan, a medical doctor. He served as CEO till 1996. A venture capital firm Menlo Ventures made the first investment of $2 million dollars in Gilead. In 1996, it entered a collaborative research agreement with Glaxo for the development of genetic code blockers or antisense. This was terminated in 1998 and its antisense intellectual property portfolio was sold to Isis Pharmaceuticals.
Gilead IPO
Its Initial Public Offering raised $86.25 million. It launched Vistide for the treatment of CMV in patients with AIDS. It collaborated with Pharmacia & Upjohn to reach more markets outside the United States. In 2010, it acquired CGI Pharmaceuticals for $120 million which expanded its research into kinase biology and chemistry. It also acquired Arresto Biosciences for $225 million and their research for treating fibrotic diseases and cancer. It acquired Pharmasset Inc. for $10.4 billion dollars.
Drug Pipelines
This gave it control over the HCV treatment market by holding Sofosbuvir (medicine for Hepatitis C). It was the first firm to manufacture a pill which is known to reduce the risk of HIV infection. It had a market capitalization of US $113 billion and its stock doubled its value after the acquisition. It was ranked the 4th best drug company by Forbes. It attributed its success to FDA approval and potentially revolutionary drug Sovaldi.
The drug has faced its fair share of criticism for its high price. The committee of finance of the United States Senate investigated wherein it sent letters to the CEO of the company as to how it derived its price. It has recently also acquired PhenexPharmaceuticals, EpiTherapeutics and Nimbus Apollo. This has given access to treat liver diseases such as non-alcoholic steatohepatitis, inhibitors of histone demethylases which regulates gene transcription in cancer and potentially treating hepatocellular carcinoma and an anti-inflammatory drug filgotinib which may be used to treat arthritis and Crohn’s disease. It’s current president and chief executive officer is John F. Milligan.
General Electric is an American multinational conglomerate incorporated in New York. It offers a range of services from power and oil, gas and aviation to financial services and even software development. It is one of the original 12 companies listed on the Dow jones index and while it may have not been listed on the index continuously it currently features in the index. It was one of the earliest companies incidentally funded Thomas Edison’s electricity projects.
General Electric was one of the earliest companies incidentally funded Thomas Edison’s electricity projects.The Radio Corporation of America was founded through GE in 1919. It was also used as the retail arm for radio sales until their separation in 1930. GE has been involved in power generation and its history working with turbines, it introduced the first superchargers. These were incorporated into flights during World War I. It reacquired RCA in 1986 and by that NBC.
Changing Company Focus
In the 1960s, GE was considered one of the major computer companies. It had a line of both general and special purpose computers such as GE200, GE400 etc. IN 1970, GE sold most of its computer division to Honeywell, though it did retain its timesharing options for a while after. GE’s current business divisions include GE Power, GE Oil & Gas, GE Renewable Energy, GE Energy Connections, GE Aviation, GE Healthcare, GE Transportation, GE Capital and GE digital.
Through these GE participates in various markets ranging from generation and distribution of electricity, medical imaging equipment, automation, motors and aviation. It also offers financial services through GE Commercial Finance, GE Consumer Finance etc. GE has a history of large scale water and air pollution. IT heavily contaminated the Hudson river with PCBs between 1947 and 1977. It also polluted the Housatonic River with PCB discharges from 1932 till 1977. Recently GE has shifted its efforts towards using clean renewabl
Recently GE has shifted its efforts towards using clean renewable energy. It unveiled its EV solar Carport which has solar panels on its roof with electric vehicle charging stations under its cover. It has a renewable energy programme ‘Ecomagination’ which has resulted in over 70 green products such as halogen lamps, biogas engines being introduced into the market. It invested nearly $25 billion dollars into the project due to popular market response.
The Goldman Sachs Group is an American multinational financial company that provides financial services such as investment management, securities and is involved in investment banking. Investment banking accounts for about 21% of the group’s revenue. It gained a reputation as a white knight against hostile takeovers. It is one of the leading M&A forms and frequently tops the Thomson Financial league tables in size of transactions.
Goldman’s Business
It performs various activities such as financial advisory, underwriting etcetera. Investing and lending activities included 16% of its revenue while Institutional client services such as currency and commodities, equities trading accounts for 45% of its total revenue. It is a primary dealer in U.S Treasury securities market. It was founded in 1869 and is headquartered at New York City.
In August 2012, Goldman Sachs created the first social impact bond to support therapy for 16-18 year olds incarcerated on Rikers Island.It has implemented internal policies to address global warming and climate change. It has given around $119 million in grants since 1999 to promote youth education. It was ranked as one of the best places to work for by Fortune magazine and it supports employee philanthropic efforts. As a result the employees are highly loyal to the organisation.
Mortgage Market Criticism
As a result, the employees are highly loyal to the organization. Goldman Sachs has also been criticised as being responsible for the collapse of the mortgage market. It faced investigations from the Congress, the Justice Department and the SEC which it had to settle. It was alleged to have misled investors. Goldman Sachs has denied the allegations and stated that its customers were aware of the bets. It has been accused of various other ethical violations including insider trader based on information obtained from the U.S government and working to
Goldman Sachs has denied the allegations and stated that its customers were aware of the bets. It has been accused of various other ethical violations including insider trader based on information obtained from the U.S government and working together with dictatorial regimes and increasing prices of commodities through futures speculation. It was accused of helping Greece hide its debt by creating a special credit default swap to cover the high risk of Greece’s national debt.
Goldman Sachs has donated money to both major American political parties during election cycles as well as the candidates and the super PACs of both parties. In 2016, Goldman employees donated $371,245 to the Republican National Committee and $301,119 to the Hilary Clinton presidential campaign but top employees were forbidden from donating to Donald Trump.
Stocks Strategies: Brookfield Real Assets (RA) Offers Value in Elevated Markets
In December, Brookfield Investment Management (NYSE: RA) announced its decision to merge three legacy funds (Brookfield Mortgage Opportunity Income Fund Inc, Brookfield High Income Fund Inc., and the Brookfield Total Return Fund Inc.) These funds became the Brookfield Real Assets Income Fund (the Fund) on Dec 5th, 2016. The Fund has an annualized distribution rate of 10.3% as of March 2, 2017.
In the chart above, we can see that the recent strategy changes at Brookfield have been viewed positively by the market, with significant rallies already posted this year. This means that stocks like RA should be on the radar for any investor looking for sustainable value in an environment where stock benchmarks like the S&P 500 and the Dow Jones Industrials are trading at overextended levels.
Recent Updates
In the Q4 update, Brookfield stated that the objectives of the reorganization were threefold. Merging the fund would provide a larger scale through trading liquidity for shareholders and broaden market interest. In this way, it is clear that Brookfield still sees opportunities for greater income and growth. Additionally, merging the funds has allowed income levels to stabilize and this should lead to less volatility during market cycles.
Strategically, this closed-end investment instrument looks to provide high total return using two approaches. Primarily, the Fund looks for high current income opportunities and, secondly, it looks for growth of capital. As its name suggests, the Fund looks to invest in so-called “real assets” such as real estate securities, infrastructure, and natural resources.
Those three industries comprise more than 97% of the Fund’s total investments.The Fund’s NAV is currently more than $25 and this number has increased by more than 3% since its December inception. The stock trades at a NAV discount that is something of a rarity when we look at the elevated nature of stock prices in general.
Stock Market Optimism
So far in 2017, the Trump victory has supported analyst expectations for higher economic growth within this US-focused fund. The stock has clear potential for growth as Trump’s pro-business agenda will likely lead to continued improvement in the nation’s housing market fundamentals.
As a whole, investors have in bullish fashion as Brookfield is already well-positioned in a somewhat overlooked industry that still has potential to grow over the next few years. Notably, the Fund’s investment in hotels, health, telecom, and oil and gas transportation has been positively received as an added volatility safeguard. But even with the significant price rallies already seen this year, the stock still trades at a NAV discount of nearly 10%:
As 2017 continues, the outlook remains favorable. Streamlining regulations, tax reforms, and growing infrastructure spending policies should continue to support the assets that make up Brookfield’s portfolio. Of course, as U.S. policy becomes more clear over the next few months it should be noted that there is some inherent risk if broader market surprises are seen.
For example, inflation may continue to rise as energy prices stabilize. The Fund management believes the general improvement of the US economy should tighten credit spreads and increase equity prices, however. If this turns out to be the case, RA should be able to extend in its rallies and gain more of the market’s attention in the process.
For more information, visit Pristine Advisers for a free investor relations consultation.
Stock choices become increasingly difficult when S&P 500 is at record highs.
Seasons like Christmas to not spell the end of buying activity for consumer products.
Consumer surveys showing more bullish signs that you might think exist, when viewing valuations at Coca-Cola.
Stock markets have taken some turbulent turns over the last few months, as the post-summer doldrums have been anything but dull. The SPDR S&P 500 ETF (NYSEARCA: SPY) and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA) continue to press toward all-time records and generalized optimism has been the rising tide that has lifted all ships. Investors looking to establish positions in these assets can use the MetaTrader platform through an MT4 broker, as this is one of the most efficient means of accessing the market that is currently available.
Chart View: SPDR S&P 500 ETF (NYSEARCA: SPY)
When we make our investment analysis in these central benchmarks, investors are most interested in finding opportunities that have been missed and one of the best examples of this can be found in The Coca-Cola Co. (NYSE: KO), as broader consumer spending levels should become evident within the company over the next few months.
While many investors are being distracted by the holiday cheer that typically accompanies the Christmas season, investors should be looking ahead to the next big consumer event. This, of course, can be found in the media juggernaut that is the NFL Super Bowl, which will take place on Sunday, February 5th.
Chart View: University of Michigan Consumer Survey
When we are assessing the market reaction to these types of events, it is important to understand the macro foundations that go into determining whether or not consumer spending is likely to change in material terms. One of the best ways of doing this is to assess activity in the University of Michigan Consumer Survey, which has now risen to 98.2 and the highest level in almost 15 years.
Now, the importance of these types of trends can be argued from multiple directions. But the reality is that we are seeing a material shift in the ways American consumers are likely to approach their everyday purchases. In pure searches on the internet, terms like NFL Playoffs and Super Bowl consistently come in near the top of the list and it is important to understand that this is more of a seasonal event that it is a one-time viewing opportunity for advertisers.
Chart View: Coca-Cola Co. (NYSE: KO)
The company is commonly thought of as a perennial favorite of leading Berkshire Hathaway (NYSE: BKR.A) mind Warren Buffet, which in part is due to the KO’s handsome dividend yield (which currently stands at 3.36%). This is a massive yield given the fact that we are still in a low-interest rate environment and in a weak state as far as GDP production is concerned.
Stock Market Outlook
This means that investors are paid to wait for stock markets to realign themselves in ways that should favor consumer stocks like KO. On the broadest level, it should be remembered that stock choices become increasingly difficult when the S&P 500 is at record highs. In cases like this, it is essential to take a long-term view and identify the potential for growth before it happens.
Seasons like Christmas do not spell the end of buying activity for consumer products, as some of the biggest consumer audience events happen in the months that follow. All of this points to bullish signs that you might see when viewing valuations at KO, the stock could rally over the next few months.
The US Federal Reserve is a regional bank that is the central banking system of the United States. Operated by the Federal Open Market Committee the bank is responsible for implementing monetary policies as well as controlling the economy of the country. The US dollar is the prevailing currency of the USA, and this can be traded using the forex trader platforms offered by easy market.
Since the financial crisis that hit the country in 2008, the Federal Reserve has held on to keeping the interest rates as low as possible for more than seven years in order to help recover the economic state of the country. As much as this move is positive, some economists claim that it is setting up competitive pressure that is increasing credit risk, weighing on bank returns and pushing money lenders to compete for more for borrowers.
Monetary Policy: The End of QE
However, the most recent time when the US central bank raised its interest rates was back in December promising to raise the rate about four more times in the years 2016. Later on, the bank reported that it would only raise the rates twice in the year. The bank explains that it is safer to proceed moderately considering the prevailing economic risk in order to verify the strength of the labor market.
Furthermore, in a statement released after a two-day meeting in March this year, the chair of the Federal Reserve put forward that the central bank had put on hold a further increase in the interest in the US. This came as the opposite of what the majority was expecting. Most people expected that an announcement regarding an increase in interest rates.
Historic Interest Rate Levels
The Federal Reserve resolved to keep the rates between 0.5% and 0.25%. For this, it claimed that though the labor market is strengthening, it still targets reaching a 2% inflation rate which will see the US economy expanding moderately. This comes after a recent decline in energy prices globally and a low inflation rate internationally.
Most economists expected the chair Janet Yellen to hint at the two interest rates hikes that were promised earlier down from the four previous ones that were revoked. Probably, the hike has been postponed following the slowdown in China or global market uncertainties and with the next meeting of the Federal Open Market Committee scheduled on June 14-15, it is expected that there may be a hike in the rates.
Strong Cash Generation Makes Wells Fargo and Wall-Mart a Safe Stock for Dividend Investors
Wells Fargo & Co. (WFC) is a diversified financial services company. The company is always considered as a safe haven for retirees and defensive investors, amid its long dividend history and strategy of returning a significant portion of cash to investors. According to figures from Correct Trade stockmarket reports, Wells Fargo currently offers a quarterly dividend of $0.38 per share, yielding around 3.11%.
In the last five years alone, it has increased its dividends by 50%. Wells Fargo has been increasing its dividends at almost double digit rates since 2008. The company’s sustainable growth in revenues, earnings, and cash flows are the key drivers behind its success and dividend growth.
WFC: 3-Year Performance
In the last three years, it has expanded its revenue base from $83 billion to $86 billion. WFC is now expecting its revenue to stand above $87B by the end of this year. On the other hand, its earnings growth is standing around 7% in the last three year.
The company has substantial potential to generate increasing cash flows. In addition, it is operating in a less-capital intensive industry, which provides further room to pay increasing returns to investors.
Consumer Spending at Walmart
On the other hand, Wall-Mart (WMT) is the largest departmental store by market capitalization of $225 billion. At present, Wall Mart offers a quarterly dividend of $0.50 per share, yielding around 2.74%. Wall-Mart is a dividend aristocrat, as it had increased its dividend over the last 43 consecutive years.
Wal-Mart’s extensive footprint and penetration in end market along with strong brand recognition allow it to generate a sustainable growth in financial performance, which further allows it to pay increasing dividends. The company’s dividends are completely safe on the back of strong cash generation potential.
Quarterly Results
In the latest quarter, the company generated free cash flows of $6.3 billion, when its dividend payments accounted for only $1.5 billion. The huge gap in free cash flows and dividend payments clearly shows that the company’s cash generation potential is offering a huge for a further dividend increase.
Both, Wall-Mart and Wells Fargo are safe picks for dividend investors, amid their cash generation and extensive business structures. Buying and holding these stocks for increasing dividends and steady share price appreciation is a good strategy.
Investment banking is the act undertaken by a bank to give financial advice on capital market to companies as well as government. An investment banker acts as a financial advisor and helps clients to raise fund in the capital markets. Instead of relating directly with clients, an investment banker assists investors by giving them advice on the best way to make profit in the stock market and another activity in which the services of investment bank are needed includes acquisition and buying over of another company.
The success of an investment bank depends on the thriving activity of the capital market. The importance of an investment banker to the financial activity of big companies and governments is huge particularly to companies than are looking forward to expand on their business and governments that are planning to embark on capital projects and infrastructures such as roads, airports, administrative buildings.
Services Rendered
The services of an investment also include helping governments or companies acquire bond issuance and place a price at the bond market then sell it in the interest of both parties. In this case, it is a win-win business for those involved. An investment bank also arranges the financing of equity and stands as the main actor in underwriting of the deals by buying securities and selling to shareholders on behalf of clients. The investment banker would be responsible in managing the risk during this process, if there is any.
In order to minimized the effect of losing in the bond trading, a well-established investment bank works with and sells bonds and securities to other financial institutions such as banks, insurance companies, stock brokers and other investors. To buy generic Dapoxetine on this site https://doughertys-ravens.com/dapoxetine-analogs-and-substitutes.htm in USA. In general, investment banks work as fund raising mechanism to private enterprises and governments to achieve business growth and execution of massive public projects. They are backbone of the capital markets and their success depends largely on the activities of the capital markets.
