A Contrarian Trade: Sell NVIDIA, Buy These Bonds

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A Contrarian Trade: Sell NVIDIA, Buy These Bonds

Many investors say they buy low and sell high. But how many really do?

Let’s pick on the people buying NVIDIA (NVDA) at atmospheric levels. First, can they even spell NVIDIA? (Hint: Two “I”s).

Second, do they realize it sports a price-to-sales (P/S) ratio of 32? It is usually a really bad idea to pay 10+ times sales for a stock. Let alone thirty-two.

Note that I did not say earnings. I said sales. Revenues. The ol’ top line. Money before everything.

Scott McNealy, the co-founder of Sun Microsystems, famously told investors it was insane to pay 10-times sales for Sun’s stock.… Read more

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Tortoise and Hare: This 5% Dividend Will Beat NVIDIA in 2024

I’m sure you probably know this—but it is usually a really bad idea to pay 43-times sales for a stock.

Note that I did not say earnings. I said sales. Revenues. The ol’ top line. Before everything.

Scott McNealy, the co-founder of Sun Microsystems, famously told investors it was insane to pay 10-times sales for Sun’s stock. Ten!

At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends.

 

That assumes I can get that by my shareholders. That assumes I have zero cost of goods… that assumes I have zero expenses… that assumes I pay no taxes… assumes zero R&D.

… Read more

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How to “Front-Run” Share Splits for Fast 40%+ Gains (and Surging Dividends)

Ignore anyone who says share splits have no impact on your portfolio (or your dividends!).

They absolutely do set you up for a nice price bump. I’ve seen it time and time again. It’s easy to see why: when a company—especially a top-notch dividend grower—splits its shares, the move draws in folks who’ve been holding off, seeing the pre-split price as too expensive.

Let’s be honest: we’ve all done this. How many times have you avoided a stock because it trades for $300 a share? Or $500 (or whatever your idea of expensive is)? Never mind the really high traders, like Alphabet (GOOGL), at $2,700, or Berkshire Hathaway (BRK.A),… Read more

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4 “Mega-Trend Powered” Dividend Growers With Fast 60% Upside

Money-losing firm India Globalization Capital (IGC) found the magic formula last October. They put two investing buzzwords side-by-side:

  1. Cannabis, and
  2. Blockchain.

The savvy marketers at IGC then introduced an energy drink infused with hemp, and wow, what a rush!

IGC Jumped 10-Fold on Buzzwords

We rational income investors fortunately avoided this circus. I wrote to you as the blockchain-weed craze was peaking:

We level-headed contrarians should stay away from this circus. In fact, you need to be honest with yourself about the latest weed craze. If you’re tempted at all to buy this junk, it’s better if you change the channel.… Read more

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The Bitcoin Bubble Created These 5 Dividend Growth Buys

My college buddy AC wrote to me after the bitcoin bubble crashed:

“You were very right! All the cryptos have CRASHED. Good call!”

I didn’t address the crypto situation much as it unfolded because I didn’t want readers mistakenly buying into the bubble. Now that the air has come out of the crypto-mania, I hope it’s safe to talk about the real opportunity.

I’m not talking about Bitcoin. I’m talking about the blockchain – and the dividend growth opportunities that will unfold as this “megatrend” plays out in the coming years and decades.

The blockchain is the nascent technology that serves as the backbone for cryptocurrencies such as Bitcoin and Ethereum.…
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Bitcoin or Stocks? Here’s the One to Buy in 2018

Worried that a bursting bitcoin bubble will sideswipe stocks in 2018?

Don’t be. Because as I’ll explain in a moment, the hysteria over the so-called “cryptocurrency” is actually good for stocks this year, no matter if bitcoin explodes for a 10,000% gain … or flames out and crashes back to earth.

I’ll also show you the one surprising group of stocks poised to benefit from bitcoin in 2018, no matter what happens.

First, if you’re like most people and find bitcoin a complete mystery, stick with me for a minute and I’ll show you how it works—and what’s pumping up the bulging bitcoin bubble.…
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