Month: May 2024

Stocks Going Ex Dividend in June of 2024

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

McDonald’s Corporation (MCD)6/3/20241.672.59%
Harley-Davidson, Inc. (HOG)6/5/20240.17251.96%
Bank of America Corporation (BAC)6/7/20240.242.42%
NVIDIA Corporation (NVDA)6/11/20240.010.04%
Macy’s Inc (M)6/14/20240.17373.44%
Southwest Airlines Company (LUV)6/18/20240.182.68%
Main Street Capital Corporation (MAIN)6/21/20240.308.30%
Dillard’s, Inc. (DDS)6/28/20240.250.22%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author owns MCD, HOG, BAC, and MAIN.

Unearthing Wealth: Exploring the Rising Value and Vitality of Copper

Recently, we posted an article about gold and silver. Now it is time to cover copper.

The prices of key commodities such as gold, silver, and copper have been on the rise, reflecting various underlying economic trends and market dynamics. As investors seek safe havens amid economic uncertainties, and industries ramp up production in response to technological advancements and green energy initiatives, the supply and demand dynamics of these commodities have led to notable price increases. Understanding the factors behind these price movements provides insight into broader economic conditions and the evolving market landscape.

The prices of gold and silver have been increasing due to various economic factors. One primary reason is their role as safe-haven assets during times of economic uncertainty. Investors flock to these precious metals to hedge against inflation and currency devaluation. Additionally, the persistent low-interest-rate environment makes holding non-yielding assets like gold and silver more attractive compared to traditional savings and bonds. The increase in demand, coupled with relatively stable supply, has driven prices higher.

Silver’s price movements often mirror those of gold, but with greater volatility. This is partly because silver has significant industrial applications, in addition to its use as an investment vehicle. Technological advancements and the push towards green energy have increased the demand for silver in electronics, solar panels, and other industrial uses. The heightened industrial demand, along with its investment appeal, has contributed to its rising price, often outpacing gold’s increases during bullish market trends.

Copper prices have also been on the rise, driven by a surge in demand from various industries. As a key component in electrical wiring, electronics, and construction, copper benefits from broader economic growth and industrial activity. Recently, the transition to renewable energy sources and the growth in electric vehicle production have further boosted copper demand. This increased demand, amid concerns about supply constraints, has pushed copper prices higher, reflecting its critical role in the global economy.

Increased Demand: The surge in copper prices is significantly driven by increased global demand. This demand is particularly strong in the renewable energy sector and the production of electric vehicles, both of which require substantial amounts of copper. The push towards green technology has heightened the need for copper in various applications.

Supply Constraints: There have been concerns about the supply of copper, which have contributed to the price increases. Issues such as mining disruptions, reduced ore grades, and geopolitical tensions affecting major copper-producing regions have constrained the supply of copper, further driving up prices.

Macroeconomic Factors: Economic policies, such as China’s massive stimulus package aimed at boosting infrastructure and construction, have significantly impacted copper prices. This stimulus has led to a surge in construction activities and industrial production, which in turn has increased the demand for copper. Additionally, global economic recovery efforts and inflation concerns have made copper an attractive investment.

Listed below are the top five Copper stocks:

  1. Southern Copper Corporation (SCCO) is one of the largest and most cost-efficient copper producers globally, benefiting from extensive, high-quality copper reserves primarily in Peru and Mexico. SCCO’s vertical integration, which includes mining, smelting, and refining operations, allows for greater operational efficiency and cost control. 
  • Freeport-McMoRan Inc. (FCX)  has a vast portfolio of mineral resources, particularly copper and gold, essential for the growing electric vehicle and renewable energy sectors. FCX’s strategic operations in key mining regions, including the Grasberg mine in Indonesia, one of the world’s largest copper and gold deposits, provide a robust production base. The company’s focus on innovation, cost-efficiency, and sustainable practices enhances its ability to capitalize on rising commodity prices and meet increasing demand. 
  • Metals Acquisition Corp. (MTAL)  strategy involves acquiring and developing high-quality metal and mining assets. MTAL’s management team brings extensive experience in the mining sector, ensuring effective operational execution and value creation. MTAL focuses on sustainable mining practices by leveraging advanced technologies to meet the growing global demand for essential metals, driven by sectors such as renewable energy, electric vehicles, and infrastructure development. 
  • Taseko Mines Limited (TGB) has a strong operational focus on copper production. TGB’s flagship Gibraltar Mine in British Columbia is one of the largest open-pit copper mines in North America, providing a stable and scalable production base. The company is also advancing additional projects, such as the Florence Copper Project in Arizona, which promises to enhance future production and profitability. TGB’s emphasis on cost-efficient operations, strategic project development, and commitment to environmental sustainability.
  • Ivanhoe Electric Inc. (IE) focuses on developing and producing critical metals such as copper, gold, and other key resources essential for the green energy transition. IE leverages advanced geophysical technology to discover and develop high-quality mineral deposits, significantly enhancing exploration efficiency and success rates. The company’s flagship projects, such as the Santa Cruz Copper Project in Arizona, offer substantial resource potential and long-term growth prospects. 
CompanyCompany SymbolPrice to BookPEGPEPrice to SalesForward PEYield
Southern Copper CorporationSCCO12.17NA38.899.4625.442.74%
Freeport-McMoRan IncFCX4.361.8445.293.1124.010.58%
Metals Acquisition LimitedMTAL1.91NANA51.3228.79NA
Taseko Mines Ltd.TGB2.41NA11.592.0112.94NA
Ivanhoe Electric IncIE4.25NANA393.53NANA

The prices of key commodities such as gold, silver, and copper have been rising due to various economic factors and market dynamics. Precious metals are viewed as safe-haven assets, to attract investors during economic uncertainties to hedge against inflation and currency devaluation. Copper prices are driven by increased global demand, particularly from the renewable energy and electric vehicle sectors, alongside supply constraints and China’s infrastructure stimulus. 

Disclosure: Author owns FCX.

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Grocery Stocks: A Stable Choice for Uncertain Times

Investing in grocery stocks offers a unique opportunity for those looking to build a resilient and diversified portfolio. The history of grocery stocks dates back to the inception of modern stock exchanges in the seventeenth century, and the industry has undergone significant transformations over the decades. From the rise of discount retailers to the recent emphasis on health-focused products, grocery stocks continue to evolve and adapt to changing consumer preferences. 

Throughout history, grocery stocks are often considered a good investment because they are tied to an industry that is essential for everyday life. Here are a few reasons why they can be recession-proof and inflation-proof:

  1. Essential Goods: Groceries are necessary for daily living, and demand remains relatively stable regardless of economic conditions. People need to eat, so they continue to purchase food even during a recession.
  • Consistent Demand: Unlike luxury items, groceries are a necessity. This consistent demand helps grocery stores maintain steady sales and revenue, which can provide stability to their stock prices. 
  • Inflation Pass-Through: Grocery stores can often pass the increased costs of goods onto consumers. While this may lead to higher prices, it allows these businesses to maintain their profit margins despite inflationary pressures.

During economic downturns, people tend to modify their spending habits, including their grocery shopping behavior. While they may cut back on more expensive foods, they will still continue to buy essentials from grocery stores. This behavior supports the stability of grocery stocks for several reasons:

  1. Shift to Economical Options: Consumers often switch to more economical food options, such as generic brands, discounted items, and bulk purchases. This shift ensures that grocery stores maintain steady sales volumes even if the average transaction value decreases.
  • Increased Coupon Usage: During recessions, people tend to increase their use of coupons and seek out sales more frequently. This behavior drives traffic to grocery stores and supports consistent sales levels.
  • Essential Nature of Food: Regardless of economic conditions, food remains a necessity. This ensures a continuous demand for grocery products, helping grocery stores maintain revenue streams and supporting their stock prices.

Listed below are the top five Grocery stocks:

  1. Albertsons Companies, Inc. (ACI) is a prominent American grocery company headquartered in Boise, Idaho. Founded in 1939, Albertsons has grown to become one of the largest food and drug retailers in the United States. The company operates over 2,200 stores across 35 states and the District of Columbia under 20 well-known banners, including Safeway, Vons, Jewel-Osco, Shaw’s, and Acme. Albertsons combines a strong local presence with national scale, providing a wide range of products and services to meet the diverse needs of its customers. The company’s approach focuses on being “locally great, nationally strong,” leveraging its extensive network to deliver quality and value
  • Grocery Outlet Holding Corp. (GO) is an American discount closeout retailer founded in 1946, specializing in offering deeply discounted, name-brand consumables and fresh products. The company operates through a network of independently owned and operated stores across the United States. Known for its “extreme value” retail model, Grocery Outlet provides customers with savings of 40-70% compared to conventional grocery stores by sourcing overstock and closeout products. Headquartered in Emeryville, California, the company continues to grow its footprint, appealing to value-conscious consumers looking for quality products at lower prices. 
  • Kroger Co. (KR) headquartered in Cincinnati, Ohio, is one of the world’s largest food retailers, operating approximately 2,750 grocery retail stores under various banner names including Kroger, Ralphs, Dillons, Smith’s, and King Soopers. With fiscal 2022 sales of $148.3 billion, Kroger provides a wide range of products and services through combination food and drug stores, multi-department stores, and price-impact warehouses. The company also offers seamless digital shopping options, enhancing customer convenience through its robust online and delivery services. Kroger’s extensive reach and diverse retail formats make it a significant player in the grocery industry.
  • Sprouts Farmers Market (SFM) is a Phoenix-based specialty retailer focusing on fresh, natural, and organic food. Founded in 2002, Sprouts aims to make healthy living accessible to everyone by offering a wide selection of fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, body care, and household items. With a commitment to sustainability and community wellness, Sprouts operates hundreds of stores across the United States and is known for its farmer’s market-style shopping experience that emphasizes quality and affordability.
  • Weis Markets, Inc. (WMK) is a mid-Atlantic food retailer headquartered in Sunbury, Pennsylvania, founded in 1912. The company operates over 200 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, Virginia, and West Virginia, providing customers with a wide range of grocery products, including fresh produce, meat, dairy, and baked goods. Weis Markets is committed to delivering an exceptional shopping experience by focusing on high-quality service, value, and fresh products. The company emphasizes community engagement and sustainability initiatives, making it a reliable and respected player in the regional grocery market
CompanyCompany SymbolPrice to BookPEGPEPrice to SalesForward PEYield
Albertsons Companies IncACI4.271.149.140.157.942.36%
Grocery Outlet Holding CorpGO1.854.535.280.5619.38NA
Kroger Co.KR3.282.2417.90.2611.682.19
Sprouts Farmers Market IncSFM6.893.3328.61.1924.6NA
Weis Markets, Inc.WMK1.27NA17.460.37NA2.07

Investing in grocery stocks offers a resilient option for portfolio diversification, thanks to the stable demand for essential goods. Grocery stocks are considered strong investments due to their recession-proof nature, consistent demand, and ability to pass on inflation costs to consumers. During economic downturns, consumers often shift to more economical options and increase coupon usage, ensuring steady sales for grocery stores.

Disclosure: Author had no positions in any of the above at the time the article was written.

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Do You Have Your Eye on Vision Care Stocks?

Eye care is essential for maintaining our overall health and well-being. Regular eye exams not only address vision problems but also help detect underlying health issues like diabetes, hypertension, and high cholesterol, as these conditions can manifest through symptoms in the eyes. By ensuring comprehensive eye care, we can catch these issues early, manage them effectively, and prevent severe complications, ultimately enhancing our quality of life.

Investing in eye health offers significant economic benefits. Vision problems can lead to reduced productivity and higher healthcare costs. By prioritizing eye care, individuals can continue to work efficiently and perform daily tasks without hindrance. This personal economic stability contributes to overall economic productivity, making eye health a vital part of public health initiatives aimed at reducing healthcare expenses and improving workforce efficiency.

From an investment perspective, the eye care industry is full of opportunities. Companies producing eyeglasses, contact lenses, surgical instruments, and other eye care products play a crucial role in meeting the growing demand for vision care services. Leading stocks in this sector often belong to companies that excel in innovation and market share, such as those developing advanced treatments for eye diseases or pioneering vision correction technologies.

The growing awareness of eye health and an aging population are driving the eye care market’s expansion. For investors seeking stable and growing opportunities, eye care stocks are an attractive option. These stocks tend to perform well in both bull and bear markets due to the essential nature of their products and services. This intersection of health importance and financial performance makes eye care stocks a smart choice for savvy investors.

The top five eyecare stocks are leading companies in the field, each offering unique products and services:

  1. Alcon Inc. (ALC): A global frontrunner in eye care, Alcon specializes in a wide range of ophthalmic devices, pharmaceuticals, and consumer vision care products. Its portfolio includes surgical equipment, pharmaceutical eye treatments, and contact lenses designed for various eye conditions and lifestyles. Alcon’s commitment to innovation, comprehensive education for eye care professionals, and diversified product offerings position it as a key player in the industry. Analysts foresee positive growth potential for Alcon, reflecting its strong market sentiment.
  2. The Cooper Companies Inc. (COO): This global medical device company focuses on two primary business units: CooperVision and CooperSurgical. CooperVision specializes in manufacturing and marketing soft contact lenses tailored to correct a spectrum of vision issues, while CooperSurgical specializes in women’s health and fertility solutions. With its wide-ranging product line and commitment to vision correction and women’s healthcare, The Cooper Companies Inc. presents investment opportunities backed by stable finances and market optimism.
  3. Bausch + Lomb Corporation (BLCO): Listed on the NYSE, Bausch + Lomb is renowned for its comprehensive eye health solutions, including contact lenses, pharmaceuticals, and surgical devices. Its product offerings cater to various eye health needs, from vision correction to treating eye diseases like glaucoma and dry eye syndrome. With its focus on innovation and market-leading position, Bausch + Lomb presents promising growth prospects for investors, supported by analysts’ forecasts.
  4. RxSight, Inc. (RXST): Specializing in advanced vision technology, RxSight is at the forefront of cataract surgery innovation. Its Light Adjustable Lens technology allows for personalized vision correction post-surgery through non-invasive light treatments. By providing patients with the flexibility to fine-tune their vision, RxSight enhances post-operative outcomes and reduces dependence on corrective eyewear. Strong financial performance and growth prospects make RxSight an attractive investment option in the evolving landscape of eye care.
  5. National Vision Holdings, Inc. (EYE): As one of the largest optical retailers in the US, National Vision Holdings, Inc. focuses on making vision care accessible and affordable. Through its retail brands, the company offers a wide range of eyewear products and comprehensive eye care services, including eye exams conducted by licensed professionals. With its commitment to customer satisfaction and competitive pricing, National Vision Holdings, Inc. is well-positioned for growth in the optical retail sector, presenting investment opportunities supported by analysts’ forecasts.
CompanyCompany SymbolPrice to BookPEGPEPrice to SalesForward PEYield
Alcon Inc.ALC2.112.6441.964.5825.380.24%
The Cooper Companies, Inc.COO2.515.9466.805.3824.630.01%
Bausch + Lomb CorporationBLCO0.77nana1.1916.76na
RxSight, Inc.RXST-13.75nana23.38nana
National Vision Holdings, Inc.EYE1.47nana0.5920.82na

Eye care is integral to maintaining overall health and detecting underlying medical conditions. Regular eye exams not only address vision problems but also serve as preventive measures for systemic diseases like diabetes and hypertension, which can manifest through ocular symptoms. Investing in eye health not only benefits individuals by ensuring productivity and reducing healthcare costs but also contributes to economic stability and public health initiatives aimed at enhancing workforce efficiency.

The eye care industry offers lucrative investment opportunities, with leading companies like Alcon Inc., The Cooper Companies Inc., Bausch + Lomb Corporation, RxSight, Inc., and National Vision Holdings, Inc. dominating the market with innovative products and services tailored to meet diverse eye care needs. These companies’ strong financial performance, market dominance, and commitment to innovation make them attractive investments for both short-term gains and long-term growth, aligning with the growing awareness of eye health and the expanding market demand for vision care services.

Disclosure: Author had no positions in any of the above at the time the article was written.

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Identifying Potential Short Squeeze Opportunities on the NYSE

Have you ever been in a situation where you’ve shorted a stock, only to witness a sudden surge, leading to an immediate scramble to close your position?

What occurred is commonly referred to as a Short Squeeze. Even veteran traders have encountered this event. Yet, do they truly grasp what happened?

A short squeeze occurs when a heavily shorted stock experiences a significant surge in buying volume, prompting short sellers to close their positions, thus driving prices higher due to the resulting covers.

Shorting a stock involves aiming to profit from its price decline. Essentially, you borrow shares, sell them, and later repurchase them ideally at a lower price to return. This process occurs electronically, so you won’t physically witness the borrowing and returning; instead, it reflects as a negative share count on your screen.

Short sellers can see profits, but when a stock starts to move against them, rising in value, they often rush to buy shares to close their positions, resulting in a short squeeze. This rapid increase in share prices during a short squeeze can be triggered by any positive news.

Finding a stock for a short squeeze involves identifying certain characteristics that make it a potential candidate: 

  1. Look for stocks with high short interest ratios (the ratio of shares sold short compared to shares available for trading), as these indicate a large number of investors betting against the stock. 
  • Additionally, consider stocks with low float (the number of shares available for trading), as a smaller float can exacerbate price movements, especially if demand suddenly increases.
  • Lastly, monitor stocks with upcoming catalysts such as earnings reports or significant news announcements, as positive developments can trigger short squeezes by prompting short sellers to cover their positions quickly.

Some traders capitalize on this scenario by seeking out stocks with potential for a short squeeze. Below, you’ll find further elaboration on the information provided above:

Short Percentage of Float indicates the portion of shares held short divided by the total float, representing freely tradable shares. A short percentage exceeding 10% to 20% is often seen as high and may suggest potential opportunities for short squeezes.

The Short Ratio, also referred to as Days to Cover or Short Interest Ratio, is a critical measure for identifying potential short squeeze opportunities. It signifies the number of days it would take for short sellers to repurchase their positions based on the average daily trading volume of shares. This ratio is significant because it reveals the challenge short sellers encounter in covering their positions without significantly impacting the stock price. A higher number of days to cover implies a more prolonged squeeze, amplifying potential losses for short sellers.

Short Percentage Increase denotes the percentage rise in the number of short sellers compared to the previous month.

The following are some heavily shorted NYSE stocks that may be worth considering for a short squeeze.

CompanyCompany SymbolShort InterestShort % ChangeShort Interest Ratio
Kohl’s CorporationKSS33.39%3%6.9
Guess?, Inc.GES32.34%4%6.7
C3.ai IncAI31.85%1%4.7
Virgin Galactic Holdings IncSPCE29.18%11%7.5
ChargePoint Holdings IncCHPT28.58%-2%7.9
Carvana CoCVNA28.54%-4%4.2
Big Lots, Inc.BIG28.37%6%5.1

The first stock on the list, Kohl’s Corporation (KSS) has over 33% of its float shorted, an increase of 3% over last month. The short interest ratio is 6.9, which means that it would take the short sellers over six days to cover their position, based on recent average volume.

The second stock on the list, Guess?, Inc. (GES) has over 32% of its float shorted, an increase of 4% over last month. The short interest ratio is 6.7, which means that it would take the short sellers under seven days to cover their position, based on recent average volume. 

An interesting stock on the list, Virgin Galactic Holdings Inc. (SPCE) has over 29% of its float shorted, a large increase of 11% over last month. The short interest ratio is 7.5, which means that it would take the short sellers just over a week to cover their position, based on recent average volume. 

While a stock might display promising ratios and draw considerable short interest, it’s essential to understand that these indicators alone don’t assure an upward price movement, especially in a bear market. Moreover, elevated levels of short interest in a stock may indicate underlying issues or concerns that have led investors to take positions against its performance.

Disclosure: Author had no positions in any of the above at the time the article was written.

5 Under 10: Low Share Price, Debt Free, Lots of Cash

by Fred Fuld III

It is amazing that there are still debt free stocks with lots of cash and trade for less than $10 per share. The following are five of these low priced stocks with lots of cash per share, and no or very low debt. Most of them have very low cap stocks and should be considered very speculative.

Green Dot Corporation (GDOT) is a financial technology company headquartered in Austin, Texas, with a mission to transform how people manage their money. Founded in 1999, they’ve grown into a leader in the prepaid debit card market, holding the world’s largest market share by capitalization. However, their reach extends beyond prepaid cards. Green Dot also functions as a payment platform company, powering solutions for well-known brands like Apple Cash, Uber, and Intuit.

Green Dot initially targeted teenagers with their prepaid debit cards, offering a way to shop online safely. They quickly pivoted in 2001 to focus on the “unbanked” and “underbanked” communities, providing essential financial services to those who might not have access to traditional banking options. This focus on financial inclusion has remained a core part of their mission.

Green Dot operates as a “branchless bank,” relying on a network of over 90,000 retail locations across the country for distribution. They’ve also established Green Dot Bank, a subsidiary that’s FDIC-insured, ensuring customer deposits are protected. Green Dot’s proprietary technology allows for fast and efficient electronic payments and money management,providing users with secure and intuitive tools to spend, send, save, and control their finances.

Green Dot trades at an incredibly low 43% of cash per share, and it has no long term debt.

The stock trades at 5.4 time forward earnings, and has an extremely favorable price to sales ratio of 0.33. It also sells at 58% of book value.

Long term annual growth estimate of earnings per share over the next five years is 12.9%.

Aeva Technologies, Inc. (AEVA) is a company on the cutting edge of LiDAR technology, a system used in self-driving cars, robotics, and consumer electronics. Their journey began in December of 2016 when Soroush Salehian and Mina Rezk,with experience from Apple and Nikon, founded the company.

In 2017, after securing $3.5 million in funding, Aeva emerged from stealth mode and quickly gained momentum. They secured $45 million in Series A funding from Lux Capital and Canaan Partners, followed by additional investment from strategic partners like Porsche SE and Lockheed Martin.

A significant milestone came in 2021 when Aeva went public through a merger with InterPrivate Acquisition Corp. This merger raised over $560 million and allowed Aeva to begin trading on the NYSE under the ticker symbol AEVA.

Since going public, Aeva has continued to achieve important milestones. They partnered with Fabrinet to manufacture their CoreVision “LiDAR-on-Chip” modules and secured Nikon as their first industrial metrology customer. Notably,Aeva collaborated with TuSimple on the industry’s first fully autonomous drive using their sensor technology.

Their achievements extend beyond the automotive industry. Aeva became the first 4D LiDAR company compatible with Nvidia Drive, a key platform for autonomous vehicles. Additionally, their technology impressed NASA, who contracted Aeva to develop solutions for lunar exploration missions. Most recently, Aeva partnered with SICK AG to provide their 4D LiDAR technology for industrial automation equipment.

Aeva has a price to cash ratio of 0.93. That means that the price of the stock is less than the amount of cash the company has per share. In addition, the company has almost no debt.

The stock is trading at 83% of book value. Unfortunately, the company is generating negative earnings. Sales growth year over year is up over 25%.

Atea Pharmaceuticals, Inc. (AVIR) is a biopharmaceutical company dedicated to developing innovative antiviral treatments. Their focus lies on creating oral therapies to address serious viral infections and improve patient outcomes.

The company leverages its expertise in antiviral drug development, nucleos(t)ide chemistry, and virology to discover and advance novel drug candidates. These candidates target single-stranded ribonucleic acid (ssRNA) viruses, a common cause of severe viral diseases. Currently, their pipeline prioritizes treatments for SARS-CoV-2, the virus responsible for COVID-19, and Hepatitis C Virus (HCV).

Atea operates at the clinical stage, which means their drug candidates are undergoing clinical trials to assess their safety and efficacy. Their commitment to efficient and scalable manufacturing ensures potential stockpiling of their medications for future outbreaks.

Beyond just scientific expertise, Atea fosters a culture of diversity, equity, and inclusion within their workforce. They believe this approach fosters innovation and allows employees to contribute their unique perspectives for the benefit of the company and future patients.

Atea trades at only 57% of its cash per share, and is totally debt free. That means that if the company stopped operating today, and all the company’s non-cash assets were totally worthless, investors would almost double their money just from the cash.

However, since this is a biotech company, the burn rate can be high. The burn rate is, in simple terms, the amount of cash the company is spending of its cash on an ongoing basis.

The stock trades at 58% of book value. The company generates negative earnings and hasn’t yet generated sales.

American Well Corporation (AMWL), known simply as Amwell, is a frontrunner in the telehealth industry. They focus on creating digital healthcare solutions that make medical care more accessible and convenient.

Founded in 2006, Amwell offers a comprehensive platform called Amwell Converge. This platform equips healthcare systems, health plans, government agencies, and even universities with the tools they need to provide efficient virtual care. Amwell Converge facilitates a variety of healthcare interactions, including both on-demand and scheduled consultations, ranging from primary and urgent care to specialty consultations like telestroke and telepsychiatry.

Amwell operates across the United States, partnering with over 240 health systems and 55 health plans, collectively reaching over 80 million covered lives. Their reach extends beyond basic consultations as well. Amwell offers Amwell Medical Group, a subscription-based service that connects patients with a network of licensed physicians for ongoing care needs.

Looking beyond the platform itself, Amwell prioritizes partnerships. They collaborate with a wide range of healthcare providers, payers, and innovators to create a comprehensive care ecosystem that seamlessly blends in-person, virtual, and even automated care options. This patient-centered approach aims to improve healthcare outcomes and make quality care more accessible to everyone.

The stock, which has very low debt, sells at 45% of cash, 34% of book value, and has a price sales ratio of 0.55. The company has been generating negative earnings.

ContextLogic Inc. (WISH), better known by its shopping platform Wish, is an e-commerce company that thrives on mobile technology. Established in 2010, they’ve carved a niche for themselves in the online shopping world, particularly in Europe and North America, with a presence in South America and other regions as well.

Wish’s core function is to connect consumers with a vast network of merchants. They utilize a user-friendly mobile app to showcase a wide array of products, often at competitive prices. Their personalized product recommendations and gamified shopping experience have become hallmarks of the Wish platform.

ContextLogic Inc. doesn’t just connect buyers and sellers; they also provide valuable services to their merchants. The company offers marketplace and logistics support, streamlining the process for businesses to reach new customers and efficiently deliver their products. This focus on both sides of the e-commerce equation has been instrumental in Wish’s growth and success.

Headquartered in San Francisco, California, ContextLogic Inc. continues to innovate and expand its reach, making online shopping more accessible and convenient for millions of users worldwide.

The stock has a price to cash ratio of 0.41, a price to book ratio of 0.76, and a price sales ratio of 0.57. The company has been generating negative earnings.

Keep in mind that there are all very low market cap companies that should be considered very speculative.

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

Can Weight Loss Companies Fuel Gains in Your Stock Portfolio?

by Fred Fuld III

The past year has seen a surge in the popularity of injectable medications for weight loss. Drugs like Ozempic and Wegovy, both made by Novo Nordisk (NVO), and Zepbound and Mounjaro, which are manufactured by Eli Lilly (LLY), are finding themselves in high demand, despite their hefty price tags and limited insurance coverage.

This trend reflects a growing openness to pharmaceutical solutions for weight management, alongside traditional methods like diet and exercise. These injectable drugs, which mimic natural gut hormones, work by curbing appetite and promoting feelings of fullness. Studies have shown significant weight loss in patients using these medications.

Ozempic and Wegovy are both GLP-1 receptor agonists, targeting a specific hormone that regulates appetite and blood sugar. Ozempic was originally approved for type 2 diabetes, but its weight loss side effects have driven its use in that area as well. Wegovy, on the other hand, is specifically FDA-approved for chronic weight management.

Zepbound, a newcomer to the market, is another GLP-1 receptor agonist with an additional twist. It also targets another gut hormone, GIP, that further enhances feelings of fullness and reduces appetite. Early studies suggest Zepbound may lead to even greater weight loss than Wegovy.

Mounjaro, another Eli Lilly product, joins the party as a dualincretin medication. Like Zepbound, it targets both GLP-1 and GIP receptors, offering similar weight loss benefits. Interestingly, Mounjaro is actually FDA-approved for type 2 diabetes, but like Ozempic, its weight loss effects are driving its use in that area as well. Studies suggest Mounjaro might be as effective as Zepbound in terms of weight loss.

This rise in weight loss injectable use is projected to continue. Analysts predict the weight loss drug market could reach $100 billion by the end of the decade, with millions of patients potentially using these medications. However, challenges remain. The high cost and limited insurance coverage are barriers for many. Additionally, long-term side effects of these medications are still being studied.

While these injectable drugs offer a promising new tool for weight management, they are not a magic bullet. They are most effective when used in conjunction with a healthy diet and exercise program.

Novo Nordisk (NVO) is a global healthcare company headquartered near Copenhagen, Denmark, with a rich history dating back to 1923. Their founding story is intertwined with the discovery of insulin, a revolutionary treatment for diabetes.

The company’s mission is “to drive change to defeat serious chronic diseases,” and they have become a leader in the diabetes care space. They develop and manufacture a wide range of diabetes medications, including injectable insulins and GLP-1 receptor agonists like the popular Ozempic and Wegovy mentioned earlier.

Beyond diabetes, Novo Nordisk is expanding its reach into other chronic diseases. They offer treatments for obesity, such as Wegovy, and medications for hemophilia and other rare blood disorders. Their research and development efforts continue to push boundaries in these areas.

    Novo Nordisk employs over 64,000 people worldwide and distributes its products in over 170 countries.

    The stock trades at 44 times trailing earnings and 31 time forward earnings. Quarterly revenue growth year-over-year was 23.6%, with earning growth over the same period at an incredible 30.7%.

    Novo pays a dividend semi-annually, with an estimated yield of 1.31%.

    Eli Lilly and Company (LLY), headquartered in Indianapolis, Indiana, boasts a rich heritage dating back to 1876. Founded by Colonel Eli Lilly with a vision to “take what you find here and make it better and better,” the company has established itself as a major player in the pharmaceutical industry.

    Eli Lilly is dedicated to turning science into solutions for a healthier world. Their core focus lies in research and development, with a significant portion of their workforce dedicated to this pursuit. They leverage advancements in biotechnology, chemistry, and genetic medicine to tackle some of the world’s most pressing health challenges.

    The company’s product portfolio is extensive, encompassing medications for a wide range of conditions. Here’s a glimpse into their key areas:

    • Diabetes: Eli Lilly has a strong presence in diabetes care, offering medications beyond the newcomer, Mounjaro,discussed earlier.
    • Oncology: They are actively involved in cancer research and development, producing treatments for various types of cancer.
    • Immunology: Eli Lilly develops medications for autoimmune diseases and other conditions related to the immune system.
    • Pain Management: The company offers a range of pain management solutions.
    • Others: Eli Lilly’s product line also includes medications for neurology, endocrinology, and other therapeutic areas.

    With over 44,000 employees worldwide and a strong emphasis on scientific advancement, Eli Lilly remains a force to be reckoned with in the global pharmaceutical landscape.

    Lilly has a nosebleed high trailing price to earnings ratio of 116; but a bit more reasonable forward P/E of 41.5. Quarterly revenue growth grew 26%, with quarterly earnings per share growth at a superior 66.7% year-over-year.

    The company pays dividends quarterly and yields 0.67%.

    If you are looking for a non-pharmaceutical investment option, there is WW International (WW).

    WW International, Inc., formerly known as Weight Watchers International, is a global company headquartered in New York City. Founded in 1963 by Jean Nidetch, WW has a long history of helping people achieve weight loss and wellness goals.

    Shifting Focus: Beyond Weight Loss

    Traditionally, WW was known for its weight loss programs, often centered around group meetings and a points-based system for tracking food intake. However, in 2018, the company underwent a significant rebranding, reflecting a shift towards a more holistic approach to health and wellness.

    This move is reflected in their new name, WW, which purposely avoids mentioning weight. Their current programs encompass aspects like fitness, mindset, and overall healthy habits, not just weight loss on the scale.

    WW’s Offerings Today

    WW offers a multi-pronged approach to wellness, with options to suit different needs and preferences:

    • Digital Solutions: Their mobile app and website provide access to tools for tracking food, activity, weight, and sleep. They also offer educational content and motivational support.
    • Coaching: WW provides online or phone coaching for personalized guidance and support.
    • Wellness Workshops: These in-person group meetings, formerly known as Weight Watchers meetings, foster a sense of community and offer guidance on healthy living.

    Financial Performance

    While they have faced challenges in recent years, they remain a major player in the weight management and wellness industry.

    The stock has taken a major hit in the last seven months, dropping from above $13 a share to now less than two dollars a share.

    The company generated a huge lost for the year; however, it is estimated that it will produce a reasonable profit next year, providing a forward P/E of 7.06.

    Summary

    Novo and Lilly have already had major gains in their stock price. It remains to be seen it this growth will continue, especially with greater acceptance of their drugs.

    Hopefully, one of these companies can provide greater weight to your portfolio.

    Disclosure: Author has a small bullish call position in Novo.