Global Market Comments
January 6, 2023
Fiat Lux
Featured Trades:
(TESTIMONIAL)
(PLAYING THE SHORT SIDE WITH VERTICAL BEAR PUT SPREADS), (TLT)
Mad Hedge Biotech and Healthcare Letter
January 5, 2023
Fiat Lux
Featured Trade:
(TAKE ADVANTAGE OF THIS DISCOUNTED STOCK)
(MDT)
If you have a solid portfolio that rakes in dividend income every few months, you’re in an excellent position to enjoy an early retirement.
Having a dividend income not only means ensuring that you pad your returns and grow your portfolio’s worth over the years but also eases the pressure to look for other revenue streams.
On top of that, if the businesses you’ve put your money in over the years boost their dividend payments, then you’ll also be receiving more recurring income, making it even easier to retire early.
In the biotechnology and healthcare world, the list of dividend stocks that hold outstanding track records in terms of delivering dividend payments regularly includes Medtronic (MDT). This stock can form part of the pillars to build your strong portfolio and is an investment worth considering for those who aim to retire early.
Medtronic qualifies as a dividend aristocrat, recording an impressive 45 consecutive years of payout increases. Unfortunately, shares of this business have not been less impressive lately. In fact, its stock is down 28% thus far.
At first blush, this stock performance looks discouraging. However, there are reasonable explanations behind it. A key factor is that practically half of Medtronic’s profits come from the international market. Taking into consideration the strength of the US dollar against other currencies, Medtronic’s constant-currency revenue should have risen.
Either way, Medtronic has been active in its research and development plans. In 2021, the company spent $2.7 billion on these efforts. As Medtronic sustains its record of clearing more than 200 regulatory approvals in the past 12 months and with the anticipated cooling off of the inflation woes, profitability will likely rebound.
Nonetheless, Medtronic’s consistent payouts make it an attractive buy for dividend growth investors looking for a stock that can serve as an anchor in their portfolio.
Medtronic offers a 3.6% dividend yield, which is more than twice the S&P 500 index of 1.7% yield. If this isn’t enough to entice shareholders to stay, the company is actually on pace to turn into a Dividend King by 2027. For context, a Dividend King is a stock in the S&P 500 that has boosted its dividend every year for at least 50 consecutive years.
Here’s a quick background on Medtronic.
The company is a titan in the medical device sector, boasting a dominant presence in more than 150 countries and generating a total of roughly $31 billion over the past trailing 12 months.
Its impressive array of products covers insulin pumps, pacemakers, and stents, offering treatments for about 70 different health conditions and reaching more than 76 million patients annually.
It has a solid patent base and stellar track record of medical innovation, equipping it with pricing power and practically insulating the company from headwinds that may affect any of its product categories or territory.
Thanks to its extensive and diverse product portfolio, Medtronic is considered the biggest pure-play medical devices company across the world, recording a whopping $104 billion in market capitalization.
All in all, this medical devices giant continues to be one of the most reliable names in the healthcare industry. Its longstanding history of success, continuous innovation, and solid business model all but guarantee that it can sustain its momentum no matter the economic conditions. While some factors have hurt its near-term performance, it’s clear that these setbacks are temporary.
The dip in Medtronic's share price is good news for long-term investors, especially since the company would recover from the setbacks soon enough. The recent bearishness has turned it into an even better buy, as it’s trading at only 15 times future earnings based on estimates.
Global Market Comments
January 5, 2023
Fiat Lux
Featured Trades:
(TESTIMONIAL),
(THE DEATH OF PASSIVE INVESTING),
(SPY), (SPX), (INDU)
I just closed out a January (TLT) $150 put option for the biggest single trade profit in my life. I just made 20% of my annual salary today alone.
THANK YOU, JOHN!
Kyle,
Jersey City, NJ
I Have Big Shoes to Fill
Passive investing, or piling all your money in major stock indexes like the S&P 500 (SPX) or the Dow Average (INDU), just got killed off by the bear market.
The days when you could just index and then go play golf for the rest of the day are gone for good.
Rest in Peace.
On a good day, your investments reliably underperformed the indexes, less management fees and hidden expenses. Even indexers have to work to earn a living.
That was fine as long as the indexes went up like clockwork, as they did almost every year for the last 12 years. Enter Covid-19. Many individual investors will instantly have heart attacks when they opened their annual pension fund and 401k statements.
I have to admit that I was getting pretty sick of index investing. People like me would slave over their computers all day long in some years barely beating the returns of those who never lifted a finger. That is now ancient history.
Look no further than my own performance year to date. Last year, I managed to clock an 86.62% gain, compared to a pitiful 18% for the Dow Average. 2023 could be another great year for me.
How will your index fund perform when US pandemic deaths hit over 1 million as reported by Johns Hopkins University?
The global pandemic is creating a brave new world on countless fronts, and management of your retirement funds is no different. Passive investing will be replaced by active investment whereby educated individuals pick winning stocks and judiciously avoid the awful ones.
The bad news is that you will have to work harder to oversee your nest egg. The good news is that you will make a lot more money. The difference between passive and active investment is now greater than at any time in history, and that chasm is set to increase.
While the bull market allowed all stocks to go up equally, the new one is totally different. There is about to be a huge differentiation between winners and losers like never seen before. The difference between the wheat and the chaff will be enormous.
Those who figure out the new game early will prosper mightily. Those who don’t will crash and burn.
I have been fighting a daily battle with some of my own subscribers, as they are arguing that the biggest gains will simply be made from buying the biggest losers.
I’m not buying that logic for a nanosecond. Many of the worst performers are never coming back to their former glory, such as airlines, cruise lines, hotels, movie theaters, restaurant chains, and casinos. Sure, they may have a brief dead cat bounce off the bottom for a trade. But the long-term outlook for these ill-fated industries is grim at best.
No, the future lies in buying Teslas and Rolls Royces at KIA prices. Come in today and these distressed levels and you may earn as much as 15% a year for the next decade.
You know the companies I am talking about, the ones I have been covering at great length in Global Trading Dispatch, The Mad Hedge Technology Letter, and the Mad Hedge Biotech & Healthcare Letter. If you are missing any of these publications, please feel free to pick them up at our store. Please note that all our prices are going up substantially soon.
This is going to lead to a very interesting future. Those who continue to index are looking at years of subpar performance. Those who go active and do it the right way are going to be looking pretty.
It’s going to be a fun decade. The Roaring Twenties have only just begun.
Good Luck and Good Trading,
John Thomas
Mad Hedge Fund Trader
"Since 9-11, the government knows a lot more about you than you know about them, and the government likes that. But that's not what the American people want," said California Republican Congressman, Daryl Issa.
Hello everyone,
Happy New Year to you all.
Another year is upon us and I’m sure we have all made plans to save money, eat healthy, exercise more, learn something new, spend time with friends and family, etc.
I didn’t.
I don’t make New Year's resolutions anymore.
I got wise.
There are people out there making a fortune on your willingness to achieve each resolution but all too often, the desire fades after the first month or two.
So, instead, I just plan on being a better version of myself each year. That takes all the pressure off. Phew!!
So, what’s ahead this year?
Hawaii strategy luncheon on February 17, 2023
Queen Mary II strategy update on July 13 while you enjoy a transatlantic crossing.
Go to Luncheons on John’s site to book.
Sounds good to me.
At the beginning of the year, it is natural to reassess what is in your portfolio and what is not.
So, I always ask this question. What does everyone need the most outside food, water, and shelter?
Security.
In other words, protection against the myriad of ways criminals invade the privacy of your life.
Here, I’m particularly talking about cyber security. The thought of my computer being hacked, or my identity being stolen is enough to keep me wide-eyed all night.
Therefore, I’m going to list the top cybersecurity stocks that you should be watching. Please make sure at least a couple are in your portfolio.
These cybersecurity companies provide critical support and services to businesses that operate online and through electronic communication networks.
1. Zscaler (ZSUS)
2. Fortinet (FTNT)
3. Palo Alto Networks (PANW)
4. CrowdStrike (CRWD)
All these security companies specialise in a different area of security. Basically, they all focus on safeguarding data and systems from unauthorised users.
As more and more companies move online, there is an increasing threat from cybercriminals. Let’s take a closer look at the four listed above.
1. Zscaler (ZSUS)
Zscaler was founded in 2007 and became a publicly traded cybersecurity company in 2018. It’s now listed on the Nasdaq and in 2022 had a market cap of more than $25 billion with more than 100 data centres around the world, serving customers in 185 countries.
ZSUS is an authorised partner for Microsoft Office 365 and more than 450 companies on the Forbes 2,000 list use Zscaler.
In the last four quarters, Zscaler achieved revenue of more than $125 million. In the last quarter, revenue was up 60% year on year at $176.4 million.
Presently, they are a company that is focused on growth rather than profitability. In other words, they are continually pouring money into marketing, growth, and acquisition – a clear, long-term strategy.
2. Fortinet (FTNT)
Fortinet is one of the oldest cybersecurity companies and has been around since 2000, achieving a market cap of more than $35 billion. The company develops and sells a whole range of different cybersecurity products and services. This includes firewalls, anti-virus protection, endpoint security components, and much more.
An increase in revenue and increased forward guidance were reported in the company’s most recent earnings announcement. They have also taken part in an aggressive expansion plan with more than 65 deals last year, including a $75 million investment into Linksys.
3. Palo Alto Networks (PANW)
Palo Alto Networks is a multinational cybersecurity company that was founded in 2005. Last year, revenues topped $3 billion as the company services 70,000 businesses in more than 150 countries. The company was listed eighth in the Forbes Digital 100 list, and they count 85 companies of the Fortune 100 list as a client.
The main focus of products offered by the company revolves around network security, advanced firewalls, cloud security, and endpoint protection among other niches. PANW also operates Unit 42 which is an advanced threat intelligence team focused on finding new cyber threats and working with the FBI.
Shareholder returns are very good, and the company also has an excellent track record of consistent sales. The uptrend in the stock has accelerated since the lows of the pandemic in 2020.
4. CrowdStrike (CRWD)
CrowdStrike was founded in 2011 and focuses on proactive and incident response services. Its products include cloud systems for threat intelligence, endpoint security, and more. The company, with a former FBI official as one of its founders, has been active in the cyber-attacks of Sony Pictures in 2014 and the Democratic National Committee (DNC) in 2016.
Analysts believe the company still has huge growth potential as it can tap into international markets.
Since the company’s (IPO) launch in 2019, it has already become a market leader in the cybersecurity space. CrowdStrike is well-positioned to meet the issues faced by businesses today. Dealing with threats when they come is no longer viable. Companies must build the right infrastructure to mitigate threats in the first place. We just need to think about Medibank Private to know how important the right infrastructure really is.
CrowdStrike shines as a cloud-based platform. Its stock price is trading much higher than when it first launched in 2019. It is one to watch this year.
Ransomware demands amounted to nearly $20 billion last year. There is now huge pressure on companies to build the right infrastructure and systems before the threat.
The growth potential for cybersecurity stocks is now very interesting. It is not hard to see why investors are keen to focus on this sector and the companies leading the race forward.
Now, which one will I choose…
On Friday I will summarize John’s All Asset Class look at 2023.
You’ll get to see what’s in favour and what’s not.
May 2023 bless you with all you desire.
Cheers,
Jacque
“The big lesson in life, baby, is never be scared of anyone or anything.” - Frank Sinatra
“Do all the good you can, for all the people you can, in all the ways you can, as long as you can.” - Hilary Clinton (inspired by John Wesley quote).
Those of you who have received Jacque's Post for the last two years have been getting it for free. However, in this inflationary world, ever high bills have to be met and colleges paid for. So, I am asking you to chip in a modest $170 to continue your subscription for the coming year. Just click here and complete the form.
If for some reason the link doesn't work, please google Mad Hedge Fund Trader to get to our main site, click on the Store tab at the top, and click on the blue BUY NOW tab for Jacque's Post.
Many thanks for your support and I look forward to working with you for another year.
Jacque
Mad Hedge Technology Letter
January 4, 2023
Fiat Lux
Featured Trade:
(CREATIVE CLOUD SEEKS AN EDGE)
(ADBE)
Global Market Comments
January 4, 2023
Fiat Lux
2023 Annual Asset Class Review
A Global Vision
FOR PAID SUBSCRIBERS ONLY
Featured Trades:
(SPX), (QQQ), (IWM) (AAPL), (XLF), (BAC) (JPM), (BAC), (C), (MS), (GS),
(X), (CAT), (DE),(TLT), (TBT), (JNK), (PHB), (HYG), (MUB), (LQD), (FXE), (EUO),
(FXC), (FXA), (YCS), (FXY), (CYB), (DIG), (RIG), (USO), (DUG), (UNG), (USO),
(XLE), (AMLP),(GLD), (DGP), (SLV), (PPTL), (PALL), (ITB), (LEN), (KBH), (PHM)
