Month: August 2018

Australian Stock Exchange is the First to Use Blockchain




by Fred Fuld III

The popular cryptocurrency bitcoin operates on the blockchain platform where it serves as the public ledger for all transactions on its network. The blockchain technology has become increasingly popular for business purposes.

Now the Australian Stock Exchange plans to become the world’s first blockchain/distributed ledger technology enabled stock exchange. Many blockchain companies are already listed on the exchange.

Maybe it’s time to invest in Australia. Over the last twelve months, the iShares MSCI Australia ETF (EWA) is practically unchanged. For those who believe that we are due for an upward move in Australian stocks, this ETF, which pays a 4.31% yield, is a diversified way to participate.

If you prefer to pick individual stocks, here are some worth checking out.

BHP Billiton Ltd (BHPLF) is a worldwide mining company which produces iron ore, copper, oil, gas, and coal. The stock trades at 13 times forward earnings and pays a generous dividend payout of 5.2%. 

In the biotech field, CSL Ltd (CMXHF) is a developer of biotherapies derived from immunoglobulins from blood plasma. The forward price to earnings ratio is 37 and it pays a small yield of 0.98%.

Australia and New Zealand Banking Group Ltd ADR (ANZBY) is Australia’s third largest bank. It trades at 12 times forward earnings and pays a healthy 5.61% yield.

Wesfarmers Ltd (WFAFF) is an Australian conglomerate which is involved in the operation of supermarkets, discount department stores, and hardware and home improvement stores. The forward P/E is 19 and the dividend yield is 4.19%. 

Of course, there are numerous other Australian stocks to choose from, all of which trade over the counter in the United States. Hopefully you can find a great stock from down under which will go up above in your portfolio.

Stocks Going Ex Dividend in September 2018

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

Schlumberger N.V. (SLB) 9/4/2018 0.50 3.07%
General Motors Company (GM) 9/6/2018 0.38 4.21%
CBS Corporation (CBS) 9/7/2018 0.18 1.35%
MGM Resorts International (MGM) 9/7/2018 0.12 1.66%
HP Inc. (HPQ) 9/11/2018 0.139 2.28%
Bed Bath & Beyond Inc. (BBBY) 9/13/2018 0.16 3.44%
Domino’s Pizza Inc (DPZ) 9/13/2018 0.55 0.75%
Nasdaq, Inc. (NDAQ) 9/13/2018 0.44 1.90%
World Wrestling Entertainment, Inc. (WWE) 9/13/2018 0.12 0.60%
Las Vegas Sands Corp. (LVS) 9/18/2018 0.75 4.57%
Yamana Gold Inc. (AUY) 9/27/2018 0.005 0.72%
Xerox Corporation (XRX) 9/27/2018 0.25 3.62%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

 

Bernie Madoff’s Arrest Anniversary and His Underpants

by Fred Fuld III

The big day is coming up. On December 11, 2018, it will be the ten year anniversary of Bernard Madoff’s arrest for operating the largest Ponzi Scheme in the history of the world. The swindle amounted to around $65 billion including fabricated gains, with thousands of investors being conned.

Many jokes have been made about Bernie Madoff. (He Madoff with your money.)

Numerous books have been written about him, such as The Wizard of Lies, Too Good to be True, and Betrayal. The book Bernard Madoff and His Accomplices: Anatomy of a Con goes into detail about how he worked with his network of accomplices.

Even a TV movie was made about Madoff, and it was called, what else, Madoff. It starred Richard Dreyfuss as the notorious con man.

Madoff stock confirmation

Madoff collectibles  have become hot since his arrest and are still in demand today. Would you believe that in 2010, when his Manhattan penthouse and a Long Island beach house was confiscated by the Federal government, an auction was held with all the contents, including used socks, black velveteen slippers, luggage, T-shirts, and of course, his underpants (he wore boxers, not briefs).

What would the successful buyer do with these pants? I’m trying to get to the bottom of this. I imagine that the buyer would be the butt of many jokes, and would take a lot of ribbing from a smart ass.

 

Exclusive Interview with Jonathan Nelson – Managing Director at HACK Fund – Speaking About Startups, Raising Money, Cryptocurrency, & Blockchain

by Fred Fuld III

The following informative and fascinating interview was provided by Jonathan Nelson, the founder and CEO of Hackers/Founders, the largest network of tech founders in Silicon Valley and around the world. He is also the managing director at the Hack Fund, and has served on the Board of Advisors for the SEC’s Capital Formation for Small and Emerging Businesses, and has lectured at UC Berkeley and Stanford.

The discussion includes the following:

  • Why so much money is invested in Silicon Valley
  • The half dozen ways for a startup to raise money
  • How a crowdfunding venture capital fund works
  • Blockchain stock certificates
  • The future of cryptocurrencies
  • The cryptocurrency selloff
  • The startup landscape in the next five years
  • The regulation of social media companies
  • Advice for someone who is creating a startup for the first time
  • And much, much more!

To stream the interview, click:

HERE

You can download as an mp3 by right-clicking HERE and choosing “save as.”

More information about Hackers/Founders can be found here:

Hackers/Founders

More information about the Hack Fund can be found here:

The HACK Fund

 

All opinions are those of the interviewee, and do not represent the opinions of this website or the interviewer. Neither this website, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview. No investment advice is expressed or implied. All information is provided for education and general information only.

Walking May Boost Your Health and Your Portfolio: Top Athletic Shoe Stocks

by Nkem Iregbulem

More Americans are walking now than a decade ago. According to a report from the US Government Center for Disease Control, the percentage of men and women who report walking once for at least 10 minutes in the past week increased significantly from 2005 to 2015. A previous report from the CDC highlighted the various potential health benefits to walking and jogging. Physical activity cannot only help control weight, but also help lower one’s risk of type 2 diabetes, depression, heart disease, stroke, and certain cancers. With more people out walking, one would expect companies involved in the athletic shoe industry to benefit.

This trend in walking habits may therefore compel you to invest in some sneaker stocks. You have several choices: Adidas (ADDYY), VF Corp (VFC), ASICS (ASCCY), Nike (NKE), Foot Locker (FL), Wolverine (WWW), and Skechers (SKX). The VFC, NKE, FL, WWW, and SKX stocks are traded on the New York Stock Exchange, while, the ADDYY and ASCCY stocks are both traded over-the-counter.

Founded in 1920 and headquartered in Germany, Adidas is a very popular company that offers athletic products such as shoes, clothes, and equipment. The company’s products fall under two brand divisions: Adidas and Reebok. However, the Adidas division makes up the majority — around 90% — of the company’s sales. As the world’s second largest provider of athletic shoes and apparel, Adidas boasts a market cap of $44.78 billion and pays a dividend yield of 1.41%. The stock has a normal price-to-sales ratio of 1.82 and a price-to-book ratio of 5.69. It trades at 27.09 times trailing earnings and at 23.15 times forward earnings. The company’s revenue has been increasing since 2012, giving it a 3-year revenue growth rate of 13.44% and a 5-year revenue growth rate of 7.35%.

VF Corp is another company to consider. It was founded in 1899 and is based in Greensboro, North Carolina. The company designs and sells outdoor clothing, outdoor gear, activewear, athletic shoes, jeans, and work apparel. Its large product portfolio includes well-known brands like The North Face, Altra, Vans, and Timberland. VF Corp, which produces Altra Running Shoes, has a market cap of $37.04 billion and pays a dividend yield of 1.96%. The company’s stock has a price-to-sales ratio of 3.04, which puts it into the overpriced range. It trades at 48.65 times trailing earnings and at 29.76 times forward earnings. The stock also has a price-to-book ratio of 10.04. Close to 50% of the company’s revenue comes from its international business, and its revenue has been increasing each fiscal year since 2015. The company faces a negative 3-year revenue growth rate of -0.20% but a better 5-year revenue growth rate of 1.66%.

ASICS, founded in 1949 and headquartered in Japan, is a multinational company that designs, manufactures, and distributes sports equipment, activewear, athletic shoes, and outdoor products. Its business is organized into three divisions: athletic sports, sports lifestyle, and health/comfort. The company generates most of its revenue from sports shoes sales. ASICS has a market cap of $2.63 billion and pays a dividend yield of 6.34%. Its stock has a favorable price-to-sales ratio of 0.80 and has a price-to-book ratio of 1.57. It has a PE ratio of 34.93. The company enjoys a 3-year revenue growth rate of 5.31% and an even better 5-year revenue growth rate of 8.68%, bringing in around $400 billion in revenue in 2017.

Founded in 1964 and headquartered in Oregon, Nike has grown to become one of the world’s most well-known athletic shoe and apparel providers. Under brands such as Nike and Converse, the company designs and sells a large selection of athletic shoes, casual shoes, sports clothing, sports equipment, and accessories. Most of the company’s revenue comes from North America, followed by Western Europe, emerging markets, and China, with the rest coming from Japan and Central and Eastern Europe. As a powerhouse in the athletic shoe industry, Nike boasts a market cap of $128.89 billion and pays a dividend yield of 0.99%. With a price-to-sales ratio of 3.67, the stock is considered overpriced. It trades at 68.83 times trailing earnings and at 30.49 times forward earnings. Nike’s stock also has a price-to-book ratio of 13.14. The company’s revenue has been increasing each fiscal year since 2014, giving the company a 3-year revenue growth rate of 5.95% and a 5-year revenue growth rate of 7.53%.

Another option to consider is Foot Locker, a company that primarily sells athletics shoes and apparel to consumers worldwide. The company was founded in 1879 and based in New York. In addition to operating its various stores across the world, Foot Locker runs its e-commerce business through a number of sites, including footlocker.com, ladyfootlocker.com, and eastbay.com. The company offers its products across the world, including the United States, Canada, Australia, New Zealand, and Europe. Nike supplies the majority of Foot Locker’s products. Foot Locker has a market cap of $5.56 billion and pays a dividend yield of 2.90%. Its stock has a favorable price-to-sales ratio of 0.76 and a price-to-book ratio of 2.19. It trades at 13.41 times trailing earnings and at 10.93 times forward earnings. With its revenue increasing since 2014, Foot Locker has a 3-year revenue growth rate of 2.89% and a 5-year revenue growth rate of 4.71%.

You might also consider Wolverine, a company that designs and sells casual, work, and athletic footwear and apparel around the world. The company sells these products under brands like Sperry, Keds, Merrell, Saucony, and various others. Most of the company’s products come from third-party manufacturers in Asia. The company is founded in 1883 and based in Michigan. Wolverine has a market cap of $3.41 billion and pays a dividend yield of 0.89%. The stock has a normal range price-to-sales ratio of 1.53 as well as a price-to-book ratio of 3.67. It trades at 29.37 times trailing earnings and at 17.64 times forward earnings. The company has a negative 3-year revenue growth rate of -5.23% but a much better 5-year revenue growth rate of 7.45%.

Founded in 1992 and headquartered in California, Skechers offers a large selection of products including athletic, work, and casual shoes. Its products are sold in the United States, Canada, Asia, Central America, Europe, North America, and South America. In addition to its revenue from its footwear sales, the company also generates revenue from licensing the Skechers brand. Skechers has a market cap of $4.61 billion and does not pay a dividend yield. Its stock has a normal price-to-sales ratio of 1.02 and a price-to-book ratio of 2.35. The stock trades at 24.23 times trailing earnings and at 16.37 times forward earnings. With its revenue increasing each fiscal year since 2013, the company enjoys a 3-year revenue growth rate of 20.55% and a 5-year revenue growth rate of 21.68%.

So get out there and walk as much as possible. It will benefit your health and maybe benefit some athletic stocks in your portfolio.

The Country of Turkey is Having a Financial Crisis: Time to Buy?

by Fred Fuld III

In case you missed it, the Turkish Lira has dropped over 26% during the last week and tanked 13.7% just on Friday. Many reasons have been claimed for the reasons for the financial crisis in Turkey, including the dissemination of “fake news”.

It’s not just the Turkey currency that has been sinking, the Turkish stocks have also been falling. As an example, the iShares MSCI Turkey ETF (TUR) is down 10.7% today.

For the investors and traders who like to take contrarian positions, Turkey stocks may be oversold and might be a buying opportunity, albeit a speculative one at that.

The fund’s three largest holdings are Turkiye Garanti Bankasi (GARAN), Akbank ( AKBNK), and Eregli Demir Ve Celik Fabrikalari (EREGL). Over 28% of the ETF holdings are in financial services, 18% in industrials, and 17.8% in basic materials.

If you want to invest directly in a Turkish company, you should consider Turkcell Iletisim Hizmetleri (TKC), which trades at 6.01 times trailing earnings and pays a yield of 3.57%. The company is a provider of provides wireless telephone services, sports and news entertainment, Internet services, and other telecommunications services.

Just remember, buying Turkish stocks right now is a very, very speculative play.

Disclosure: Author didn’t own any of the above at the time the article was written.

Why Shorting Puts May Be the Safest Way to Invest or Trade Stocks

by Fred Fuld III

Did you know that one of the safest ways to invest in a stock or trade a stock is to short a put? But wait a minute, you may ask. Doesn’t shorting mean unlimited risk? Yes, if you short a stock, no if you short a put.

Let’s get some terminology out of the way.

When you short something, you sell it even though you don’t own it, hoping that it will drop in price so that you can buy it back at that lower level to lock in your profit. However, if the price of that investment goes up, you lose money on your trade.

Stock options are the right to buy or sell a stock at a particular price within a specific amount of time. A call is the right to buy and a put is the right to sell. The buyer of the put expects the stock to drop in value so that he can buy the stock at a lower price, and put it to you at a higher price (or just sell the put at a profit).

The investor who shorts a put hopes that the price of the stock either stays the same or goes up, causing the put to become worthless and giving a profit of the amount the put was sold for.

So why would someone short a put instead of just buying the stock?

Let’s look at an example. Assume a stock is currently trading for $50 a share and the put option with a strike price of 50 (the price the put can be exercised at) is trading for 2, with 45 days to go. That means it is trading at $200 for the right to sell 100 shares of the stock at $50 per share.

The buyer of the put hopes that the stock will tank. So if the stock drops to 40, the intrinsic value of the put is 10, giving the put buyer a profit of 8, or $800.

So let’s look at the seller of the put.

If the stock stays at 50 by the expiration date, the put becomes worthless and the put seller makes $200. If the stock is above 50 at expiration, the put seller still makes $200. If the stock is at 48 after the 45 day period, the put seller breaks even. And if the stock does drop to 40, the put seller is out $800.

However, suppose the seller of the put, who is bullish on the stock, just buys 100 shares of the stock instead. If the stock dropped to 40 from 50 over that time frame, the buyer would be out $1,000 instead of $800.

Therefore by selling the put instead of buying the stock, you reduce your risk by the amount you sell the put for. There are some traders who continue to sell puts on the same stocks every two or three months over long periods of time.

When would you not want to sell puts?

If the puts are rarely traded and the spread on them, the amount between the bid and asked prices (what you can buy and sell the put for), is very wide, then it may not be worth it to short the put.

If the stock pays a high dividend and you are interested in owning the company for the dividend, then it’s probably not worth selling the puts on it.

If you are concerned about missing out on the opportunity cost of the stock going significantly higher in the time frame, then you are better off buying the stock instead of shorting the puts. In the same example, if the stock goes to 60, the seller of the put still gets $200, however the owner of 100 shares of stock will make $1,000.

So before you buy your next stock for a swing trade, you may want to check out the puts to see if they are worth shorting.

Congressman Accused of Insider Trading Under the STOCK Act

by Fred Fuld III

You may have read recently that New York Congressman Chris Collins has been charged with insider trading, relating to Innate Immunotherapeutics Limited (INNMF) which failed a drug trial.

Once the news was out, the stock dropped by a huge amount. Collins was on the Board of Directors of this company and the largest shareholder.

But wait a minute. Aren’t members of Congress exempt from the Insider Trading Laws? Well that was true, beginning around the time of the Civil War.  However, on April 4, 2012, the STOCK Act was passed and signed into law by President Obama, to no fanfare.

First, what is inside trading? It buying or selling a stock based on news about a company that you become aware of prior to the dissemination of the news to the public. It is illegal.

Members of Congress Now Subject to Insider Trading Laws

OK, so now the STOCK Act. It is the Stop Trading on Congressional Knowledge Act which basic overturned the ability of Congresspeople to freely trade stocks on inside information while being exempt from insider trading laws. The STOCK Act put an end to this governmental bonus.

Details of the STOCK Act:
Answers the President’s Call to Ban Insider Trading for Members and Congressional Staff: The STOCK Act expressly affirms that Members of Congress and staff are not exempt from the insider trading prohibitions of federal securities laws and gives House and Senate ethics committees authority to implement additional ethics rules. The Act makes clear that Members and staff owe a duty to the citizens of the United States not to misappropriate nonpublic information to make a profit.

Increases Transparency in Financial Disclosure Reporting: The STOCK Act amends the Ethics in Government Act of 1978 to require a government-wide shift to electronic reporting and online availability of public financial disclosure information. The STOCK Act provides additional transparency for Members of Congress, legislative staff and other government employees currently required to make public financial disclosures:
• Trade Reporting: requires that Members of Congress and government employees report certain investment transactions within 45 days after a trade.

• Online Availability: mandates that the information in public financial disclosure reports (currently made available on request) be made available on agency websites and ultimately through searchable, sortable databases.

New Ethics Requirements:
• Expands Pension Forfeiture for Corrupt Members: the STOCK Act requires forfeiture of federal pension if a Member of Congress commits one of several corruption offenses while serving as an elected official. Current law forfeits a Member’s pension for conviction of offenses committed while serving in Congress. The STOCK Act expands forfeiture to apply to misconduct by Members committed in other federal, state and local elected offices and adds further federal crimes, including insider trading, for which forfeiture will be required.

• Requires Disclosure of Terms of Mortgages: the STOCK Act will require Members and certain high level government officials to disclose the terms of personal mortgages.

• Bans Special Access to Initial Public Offerings (IPOs): the STOCK Act limits participation in IPOs by Members and senior government employees to purchases available to the public generally.

• Requires Report on Political Intelligence in the Financial Markets: the STOCK Act requires GAO and CRS to produce a report on the role of political intelligence firms in the financial markets.

• Requires Job Seekers to Disclose: the STOCK Act requires that Members of Congress and senior federal employees file a written notification with their ethics office when starting a job negotiation to leave the government.

Bans Bonuses for Fannie & Freddie Executives: the STOCK Act bars senior executives at Fannie Mae and Freddie Mac from receiving bonuses during any period of conservatorship after enactment.

 

How to Invest in Bitcoin & Cryptocurrencies Through Stocks

by Nkem Iregbulem

Bitcoin is a cryptocurrency, or electronic cash, that works independently of a central bank or administrator and can be transferred electronically from one user to another from anywhere in the world. Through the process of Bitcoin mining, Bitcoin is created and brought into circulation by giving them to computers that help maintain the network by keeping track of all Bitcoin transactions. These mining computers race to solve a complex mathematical puzzle. As of today, those with the fastest computers can be rewarded 12.5 Bitcoins– though this number will be cut in half every 4 years. This process will continue until there are around 21 million Bitcoins in the world, which is predicted to occur in 2140.

Similar to the way the price of a stock is determined by bidding on exchanges, the price of Bitcoin constantly changes and is determined through bidding on Bitcoin exchanges. Some treat Bitcoin as an investment rather than a currency due to the cryptocurrency’s volatility. Bitcoin is valued at approximately $7000 today, but this price will likely change tomorrow and has ranged from close to $0 to nearly $20,000 in its history. There are many other cryptocurrencies also in circulation, including but not limited to Ethereum, Litecoin, and Ripple. But these coins do not have as many followers and are therefore not worth as much as Bitcoin is.

Blockchain is the technology behind cryptocurrencies and can be used to make transactions faster and more secure. It is a digital, shared, decentralized public ledger of all cryptocurrency transactions where new transactions — called blocks — are automatically downloaded to every computer, or node, in the network. This technology thus gets rid of the need for a centralized authority because it allows the validity of transactions to instead be checked by users of blockchain. Nowadays, this technology is mainly used to verify transactions.

If you’re looking to invest and gain exposure to Bitcoin and other cryptocurrencies, there are a number of investment opportunities: Advanced Micro Devices (AMD), Bitcoin Investment Trust (GBTC), Bitcoin Services Inc (BTSC), BTCS Inc. (BTCS), First Bitcoin Capital Corp (BITCF), Global Blockchain (BLKCF),  HIVE Blockchain Technologies (HVBTF), Intel (INTC), Marathon Patent Group (MARA), MGT Capital Investments (MGTI), NVIDIA Corp (NVDA), Nxt-ID (NXTD), Overstock (OSTK), and Riot Blockchain (RIOT). These are all traded on the NASDAQ exchange except for MGTI, HVBTF, BITCF, BTCS, GBTC, and BTSC, which are traded over the counter.

Your first option is Advanced Micro Devices, a company that makes semiconductor equipment for mining bitcoin. Founded in 1969 and based in California, the company designs and produces microprocessors and low-power processor solutions for customers within the computer and consumer electronics industries. Most of the company’s sales come from its involvement in the computer market. Advanced Micro Devices has a market cap of $18.36 billion and does not pay a dividend. The stock has a price-to-sales ratio of 3.48, making it slightly overpriced. It trades at 118.38 times trailing earnings and at 41.15 times forward earnings. The company’s stock also has a price-to-book of 25.68. It faces a negative 3-year revenue growth rate of -1.08% and a negative 5-year revenue growth rate of -0.35%.

Bitcoin Investment Trust is another bitcoin investment opportunity to consider. The trust provides the opportunity for investors to bet on bitcoin and speculate on its price. It holds bitcoins on its investors’ behalf, so a share represents ownership of a fraction of a bitcoin. The trust has $1.39 billion in total assets and has a NAV of 6.99. It currently trades above its NAV.

Bitcoin Services is a bitcoin company also involved in the mining of other cryptocurrencies. It was incorporated in 1997 and is headquartered in Michigan. The company provides bitcoin escrow and mining services and also develops and sells blockchain software. Its bitcoin escrow service operates as a neutral intermediary between buyers and sellers in online transactions. Bitcoin Services Inc has market cap of $34.3 million and pays a dividend yield of 3.84%. This low market cap makes the company’s stock speculative.

Another options is BTCS Inc., a company based in Maryland and founded in 2013 that is heavily involved in blockchain technologies and digital currencies. BTCS Inc. operates an online e-commerce platform that allows customers to buy products using bitcoin and other digital currencies. The company has also designed a beta secure digital currency solution called the BTCS Wallet. BTCS Inc. has a market cap of $24.2 million and does not pay a dividend. The company’s very low market cap makes its stock very speculative. The stock has an extremely high price-to-sales ratio of 19817.7, putting it well into the overpriced range. The stock trades at 0.15 times trailing earnings and has a price-to-book ratio of 138.52. The company faces a negative 3-year revenue growth rate of -51.06% and negative 5-year revenue growth rate of -67.77%.

Based in Vancouver, Canada and founded in 1989, First Bitcoin Capital Corp is a company involved in developing digital currencies, blockchain technologies, and the digital currency exchange called CoinQX. The company also operates a cryptocurrency and bitcoin news site and another site than provides mining pool management services. Through its partnership with GoCOIN.com, the company is working to create a beta e-commerce marketplace, BITessentials.com, which accepts various digital currencies. First Bitcoin Capital Corp has a low market cap of $81.50 million, so its stock is considered speculative. The stock does not pay a dividend yield.

You might also consider Global Blockchain Technologies Corp, an investment company involved in identifying and investing in a diversified portfolio of public and private companies for capital growth. These companies primarily come from the cryptocurrency and blockchain industries. Global Blockchain aims to make it easier for investors to gain exposure to the world of cryptocurrencies. The company was incorporated in 2010 and is headquartered in Vancouver, Canada. Most of the company’s revenue comes from its business in Canada. Global Blockchain has a very low market cap of $21.16 million and does not pay a dividend yield. Its low market cap makes its stock speculative. The stock has a price-to-book ratio of 0.58, and the company boasts a 3-year revenue growth rate of 26.51%.

HIVE Blockchain Technologies Ltd is a cryptocurrency mining company that provides infrastructure solutions within the blockchain sector. It mines cryptocurrencies such as Ethereum, Monero, and ZCash. The company aims to bridge the gap between the blockchain sector and traditional capital markets. The company is based in Vancouver, Canada and was founded in 1987. HIVE Blockchain Technologies Ltd has a market cap of $221.56 million, putting its stock into the speculative range. The stock also pays a dividend yield of 2.36%. With a price-to-sales ratio of 10.37, the stock is considered overpriced. It trades at 6.72 times forward earnings and has a price-to-book ratio of 1.47.

Another option is Intel, one of the largest chipmakers in the world. The company was founded in 1968 and is based in California. It designs, builds, and sells microprocessors as well as computer, networking, data storage, and communication platform solutions around the world. Intel aims to find a more reasonable and cost effective way to mine bitcoins than methods that are currently used and has therefore filed a patent for a Bitcoin mining chip accelerator. In May of 2017, the company partnered with PokitDok to help bring blockchain technology to the healthcare industry. Intel has a market cap of $222.19 billion and pays a dividend yield of 2.52%. The stock’s price-to-sales ratio of 3.58 puts the stock in the overpriced range. It trades at 25.79 times trailing earnings and at 11.74 times forward earnings. The stock also has a price-to-book 3.17. With revenue values that have been increasing each fiscal year since 2015, the company has a 3-year revenue growth rate of 3.95% and for 5-year revenue growth rate of 3.31%.

Headquartered in Los Angeles and founded in 2010, Marathon Patent Group is heavily involved in the mining of digital assets. It owns and operates cryptocurrency mining machines as well a data center for mining digital assets. Marathon Patent Group has a very low market cap of $24.05 million, so its stock is very speculative. The stock does not pay a dividend. With a high price-to-sales ratio of 15.67, the company’s stock is overpriced. It trades at 3.05 times forward earnings and has a price-to-book ratio of 2.85. The company faces a negative 3-year revenue growth rate of -71.04%, which was largely caused by its revenue falling from $36.63 million in 2016 to $0.52 million in 2017.

MGT Capital Investments is involved in bitcoin mining activities. The company was founded in 1979 and is based in North Carolina. It has facilities in both northern Sweden and Washington State where it owns and operates numerous bitcoin mining rigs and machines. As one of the largest U.S. based Bitcoin miners, MGT Capital Investments has a market cap of $56.90 million and its speculative stock pays a yield of 2.25%. Its stock has a price-to-sales ratio of 10.53, making it overpriced. It also has a price-to-book ratio of 6.25. The company a high 3-year revenue growth rate of 221.85% and a 5-year revenue growth rate of 50.27%. Its revenue has been increasing since 2014, taking a big jump between 2016 and 2017 from $0.31 million to $3.13 million.

You might also consider NVIDIA Corp, a company based in California and founded in 1993. NVIDIA Corp makes cryptocurrency-specific graphics processing units. The company is also a leading designer of graphics chips for PC graphics applications such as gaming, data centers, artificial intelligence, and autonomous driving. NVIDIA Corp has a market cap of $148.19 billion and pays a dividend yield of 0.24%. Given its high price-to-sales ratio of 14.42, the company’s stock is considered overpriced. It trades at 41.93 times trailing earnings and at 33 times forward earnings. The stock also has a price-to-book ratio of 19.82. With its revenue increasing each fiscal year since 2014, the company enjoys a 3-year revenue growth rate of 27.54% and a 5-year revenue growth rate of 17.81%.

Founded in 2011 and based in Florida, Nxt-ID is a security technology company involved in developing products and solutions for security, healthcare, financial technology, and Internet of Things (IoT) markets. The company operates Flip, a contactless payment device that will allow people to use cryptocurrency to buy products at millions of retail locations. Nxt-ID has a market cap of $39.97 million and its speculative stock does not pay a dividend yield. The company’s stock has a decent price-to-sales ratio of 1.31 and a price-to-book ratio of 2.51. With its revenue increasing since 2015, the company enjoys a 3-year revenue growth rate of 34.88% and an even better 5-year revenue growth rate of 147.44%. Its revenue took big jumps between 2015 and 2017, going from $0.62 million in 2015 to $7.74 million the next year and then to $23.32 million the year after that.

You may have heard of Overstock, the US-based online retailer responsible for Overstock.com, a site that provides various products and services. Based in Utah and founded in 1997, the company offers a number of products, including furniture, home decor, jewelry, clothes, electronics, and many other items. In 2014, Overstock became the first major retailer to adopt Bitcoin as a payment method through its partnership with Coinbase. Overstock has a market cap of $1.04 billion and does not pay a dividend. The company’s stock has a favorable price-to-sales ratio of 0.55 and a price-to-book ratio of 5.98. The company enjoys a 3-year revenue growth rate of 5.24% and a 5-year revenue growth rate of 9.68%.

Another option is Riot Blockchain, a company that builds, supports, and operates blockchain technologies through its cryptocurrency mining operations. The company is based in Colorado and was founded in 2000.  It focuses largely on Bitcoin and general blockchain technology. Riot Blockchain also engages in the buying and selling of cryptocurrencies, provides accounting, audit, and verification services for cryptocurrencies, and operates TessPay, a blockchain solution for supply chain settlements. Riot Blockchain has a market cap of $102.68 million. Its stock is considered speculative due to the company’s low market cap and overpriced due to its high price-to-sales ratio of 51.48. The stock also has a price-to-book ratio of 2.71. With its revenue increasing each fiscal year since 2016, the company has a 3-year revenue growth rate of 0.88% and a much higher 5-year revenue growth rate of 34.12%.

Disclosure: Author didn’t own any of the above at the time the article was written.

Apple is Now Officially a Trillion Dollar Company

by Fred Fuld III

It’s official. At the time I am writing this, Apple (AAPL) is trading at 206.87. The company has 4,842,917,000 shares issued and outstanding, according to the latest Form 10-Q filed with the Securities and Exchange Commission.

If you multiply these two numbers, you get a market capitalization of $1,001,854,239,790. That’s over a trillion dollars.

This makes Apple the first American company to reach the trillion dollar level.

Apple is actually the second stock to reach a trillion dollar valuation. The first was PetroChina (PTR), that hit that level in 2007.

Disclosure: Author owns AAPL.