WSTNN, Author at WStNN.com™ WallStreetNewsNetwork® Stockerblog™ WSNN®

Will the Worst Performing Sector Last Year Outperform This Year?

By Fred Fuld III

The worst performing sector in 2024 was Basic Materials, which although was ahead last year, it closed the year up less than a quarter of a percent, grossly underperforming the S&P 500, which was up about 25%.

Of course the winning sectors were the Communications, Financial, and Consumer Discretionary, all of which outperformed the S&P and even the Technology sector.

The Basic Materials sector of the stock market encompasses companies involved in producing, processing, or supplying raw materials essential for manufacturing and construction. This includes businesses that extract natural resources, refine raw materials, or manufacture intermediate goods.

Mining companies are a significant part of this sector, focusing on metals and minerals such as gold, silver, copper, and aluminum. Some also specialize in coal mining, extracting and processing coal for energy or industrial use. The chemical industry is another major component, producing both commodity chemicals like ammonia and chlorine, as well as specialty chemicals tailored for specific applications such as adhesives, coatings, and agricultural products. Fertilizer and agricultural chemical manufacturers, supplying key inputs like nitrogen, phosphate, and potash, also fall within this category.

Forestry and paper companies are essential players, with businesses harvesting wood and manufacturing timber, paper, and packaging materials. Similarly, producers of construction materials, such as cement, sand, gravel, and crushed stone, play a critical role in infrastructure and building projects. The sector also includes manufacturers of plastics and polymers, which supply raw or semi-finished plastics used in various industries, from packaging to manufacturing.

Steel and aluminum producers are another key component, providing essential materials for construction, automotive, aerospace, and industrial equipment. Precious metals and gemstones companies also belong to this sector, focusing on the extraction and refining of gold, silver, diamonds, and other gemstones for use in jewelry and as investment assets. Additionally, some companies produce materials specifically for energy production, such as oilfield chemicals or components for renewable energy infrastructure.

Overall, businesses in the Basic Materials sector are deeply influenced by commodity prices, global economic trends, and the supply-demand dynamics of various industries.

So what are the top stocks in this sector, and will they outperform this year? All of the following companies have a trailing price to earnings ratio under 30, a forward P/E of less than 20, and a relatively low amount of debt.

Idaho Strategic Resources Inc. (IDR)

Idaho Strategic Resources Inc., headquartered in Coeur d’Alene, Idaho, is a vertically integrated junior mining company primarily engaged in the exploration, development, and extraction of gold. The company operates the Golden Chest Mine, located in the Murray Gold Belt of North Idaho, which includes both underground and open-pit mining operations. In addition to gold production, Idaho Strategic Resources is involved in the exploration of rare earth element projects situated in the Idaho REE-Th Belt near Salmon, Idaho. The company emphasizes sustainable mining and milling practices and has a strategic focus on expanding its asset base while investing in future operations.

The stock trades at 24 times trailing earnings and 16 times forward earnings. Earnings per share growth this year were 622% with earnings expected to grow another 18.5% next year. Earnings per share over the trailing 12 months were up 341% on sales growth of 65%. The company has an extremely low market capitalization of $168 million, and should therefore be considered very speculative.

Innospec Inc. (IOSP)

Innospec Inc. is a global specialty chemical company headquartered in Englewood, Colorado. The company operates through three main business segments:

Fuel Specialties: This segment focuses on products that enhance fuel efficiency, boost engine performance, and reduce emissions for various modes of transportation, including automobiles, boats, and airplanes. It also provides products used by oilfield services providers in the extraction of oil and gas.

Performance Chemicals: Catering to the personal care industry, this segment offers a range of products designed for personal care applications.

Oilfield Services: This segment develops and markets products aimed at preventing mud loss during drilling operations.

Innospec places a strong emphasis on research and development, striving to introduce innovative products that meet evolving market needs. The company operates manufacturing, research centers, and facilities across 24 countries, underscoring its global reach.

The stock has a trailing P/E of 20 and a forward P/E of 18. Earnings per share next year are expected to grow by 5.96%. The company, which has a market cap of $2.85 billion, even pays a dividend of 1.35%.

Metallus Inc. (MTUS)

The company makes alloy, carbon and micro-alloy steel products from recycled scrap metal in Canton, OH. Its products are used in industrial, automotive, aerospace & defense and energy end-markets.

This $650 million market cap stock trades at 30 times trailing earnings and 14 times forward earnings. Although earnings per share growth was down for this year, next year earnings are expected to grow by 71.8%

The stock has an extremely favorable price-to-sales ratio of 0.55, and is selling at 91% of book value.

Disclosure: Author didn’t own any of the above at the time the article was written. This article includes stocks with low market caps that should be considered very speculative.

Stocks Going Ex Dividend in February 2025

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.

Citigroup, Inc. (C)	2/3/2025	0.56	2.86%
Constellation Brands, Inc. (STZ)	2/7/2025	1.01	1.84%
Target Corporation (TGT)	2/12/2025	1.12	2.87%
TJX Companies, Inc. (TJX)	2/13/2025	0.375	1.25%
Johnson & Johnson (JNJ)	2/18/2025	1.24	3.35%
Applied Materials, Inc. (AMAT)	2/20/2025	0.40	0.86%
Tyson Foods, Inc. (TSN)	2/28/2025	0.50	3.57%

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

Rise of the Robots: Exploring Growth, Innovation, and Investment Opportunities in Robotics

by Fred Fuld III

The Growth of the Robotics Industry

The robotics industry is undergoing a period of unprecedented expansion, driven by advancements in artificial intelligence, machine learning, and automation. From manufacturing and healthcare to consumer applications and entertainment, robotics is transforming the way we work, live, and interact with technology. A particularly intriguing segment within the field is humanoid robotics, which has seen significant innovation in recent years. These robots are designed to mimic human appearance and behavior, and they have the potential to revolutionize industries ranging from customer service to elder care.

Humanoid Robots: The Face of Future Robotics

Humanoid robots are among the most sophisticated innovations in robotics. These machines are engineered to resemble humans, not just in appearance but also in capabilities, including speech, mobility, and decision-making. Companies like Tesla, Hanson Robotics, and SoftBank are leading the charge, creating humanoid robots capable of performing complex tasks. They are increasingly being employed in roles such as receptionists, tutors, and even therapists. With their ability to interact naturally with humans, humanoid robots offer promising solutions for labor shortages and the growing demand for personalized services.

Investment Potential in Robotics

The robotics industry presents compelling opportunities for investors. The sector is poised for long-term growth, with a market expected to reach over $500 billion by 2030. Key drivers include the increasing need for automation, advancements in AI, and expanding applications across sectors such as healthcare, logistics, and retail. Robotics companies often represent a mix of established players and innovative startups, providing a range of investment opportunities to match different risk profiles.

Below is an analysis of several publicly traded companies that offer exposure to the robotics market:

UiPath (PATH)

UiPath specializes in robotic process automation (RPA), a technology that enables software robots to automate repetitive tasks. The company’s platform allows businesses to increase efficiency by automating workflows, data entry, and other routine processes. UiPath has gained significant traction among enterprises looking to digitize their operations. Its focus on AI-powered automation and a subscription-based revenue model make it an attractive investment for those interested in software-centric robotics.

This $7.2 billion market cap stock is trading at 25 times forward earnings. Annual sales growth for the past five years is in excess of 59% and have increase by 16.5% year-over-year.

Rhythm Technologies (IRTC)

Rhythm Technologies focuses on healthcare robotics, specifically in the domain of cardiac monitoring. The company’s wearable devices use advanced algorithms to detect arrhythmias, providing critical data for physicians. With an aging global population and a growing emphasis on preventive healthcare, Rhythm Technologies is well-positioned to capitalize on the increasing integration of robotics and AI in medical diagnostics and monitoring.

The stock has been generating negative earnings, but is anticipated to have much smaller losses next year. The company, which has a market cap of $3.4 billion, has a substantial amount of debt, with a debt to equity ratio of 10.25.

Intuitive Surgical (ISRG)

A pioneer in robotic-assisted surgery, Intuitive Surgical is best known for its da Vinci Surgical System. The system enables surgeons to perform minimally invasive procedures with greater precision and control. As healthcare providers continue to adopt robotic surgery for its efficiency and improved patient outcomes, Intuitive Surgical’s dominance in this niche market makes it a strong contender for long-term growth.

The company, with a market cap of $211 billion, has a trailing price to earnings ratio of 95 and a forward P/E ratio of 75. Quarterly earnings growth was over 34% year-over-year, on sales growth of 16.8%.

ABB (ABBNY)

ABB is a global leader in industrial robotics and automation technologies. The company’s robotics solutions are widely used in manufacturing, logistics, and energy sectors. ABB’s focus on integrating AI into its robotic systems ensures it remains competitive in the rapidly evolving industrial landscape. Its diverse product portfolio and strong international presence make it a reliable choice for investors seeking exposure to industrial robotics.

The stock has a market cap of $101.6 billion, and trades at 26 times trailing earnings. It even pays a dividend of 1.77%.

Teradyne (TER)

Teradyne specializes in automated test equipment for electronics and is a significant player in collaborative robotics. Its Universal Robots division produces robotic arms designed to work alongside humans in industrial settings. With the increasing adoption of collaborative robots in small- and medium-sized enterprises, Teradyne stands out as a growth-oriented investment in the robotics space.

The stock has a market cap of $22.5 billion, and has a trailing P/E of 44, and a forward P/E of 32.5. Earnings per share are expected to grow by over 34% next year. The dividend yield is 0.34%.

iRobot (IRBT)

Known for its consumer-focused robots, iRobot is the creator of the popular Roomba vacuum cleaner. While its current focus is on household automation, the company continues to explore new applications for its technology. The acquisition of iRobot by Amazon in 2023 has further bolstered its innovation capabilities, positioning it to expand into smart home ecosystems and beyond.

The stock, which has a market cap of $270 million, has been generating negative earnings. Losses are expected to be much lower next year.

Conclusion

The robotics industry offers a rich landscape for innovation and investment. With breakthroughs in humanoid robotics and steady advancements in automation technologies, the sector is set to play a crucial role in shaping the future. Investors have a unique opportunity to capitalize on this growth by exploring companies like UiPath, Rhythm Technologies, Intuitive Surgical, ABB, Teradyne, and iRobot. As robotics continues to integrate deeper into our daily lives, the potential for financial returns and societal benefits makes this an exciting area to watch.

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

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Powering the Future: Nuclear Energy’s Comeback and Top Stocks to Watch

by Fred Fuld III

The Growth of the Nuclear Power Industry and Promising Investment Opportunities

As the world transitions to cleaner and more sustainable energy solutions, nuclear power is experiencing a resurgence as a key player in the energy sector. Known for its ability to generate vast amounts of electricity with minimal carbon emissions, nuclear energy has become a cornerstone in global strategies to combat climate change. The nuclear power industry is expected to grow significantly in the coming decades, fueled by technological advancements, policy support, and the increasing recognition of its role in achieving net-zero emissions. For investors, this represents a compelling opportunity to capitalize on the growth of the industry. Here, we delve into three nuclear stocks with promising potential: NuScale Power Corporation (SMR), Oklo Inc. (OKLO), and NANO Nuclear Energy Inc. (NNE).

The Rising Importance of Nuclear Power

Nuclear energy has several advantages over traditional fossil fuels and even some renewable energy sources. It provides a stable and reliable energy output, is not subject to weather variations like solar or wind, and has a much smaller land footprint. As countries around the globe set ambitious climate goals, nuclear power is being reconsidered as a viable and essential part of the energy mix.

In the United States, initiatives like the Department of Energy’s Advanced Reactor Demonstration Program are spurring innovation in nuclear technology. Globally, nations such as China, France, and South Korea are ramping up their nuclear capacity, signaling strong long-term demand for nuclear solutions.

NuScale Power Corporation (Ticker: SMR)

NuScale Power is a pioneer in small modular reactor (SMR) technology. SMRs are a game-changer for the industry, offering a more flexible and cost-effective approach to nuclear power generation. NuScale’s innovative reactor design has already received approval from the U.S. Nuclear Regulatory Commission, positioning the company as a leader in this emerging market. With projects underway in the U.S. and international interest from countries like Romania and Poland, NuScale is poised to become a major player in the global energy landscape.

The company is debt-free, however it has been generating negative earnings.

Oklo Inc. (Ticker: OKLO)

Oklo is at the forefront of micro-reactor technology, focusing on creating smaller, more efficient reactors capable of utilizing recycled nuclear fuel. The company’s approach aligns with the growing emphasis on sustainability and waste reduction in the energy sector. Oklo’s Aurora micro-reactor is designed for off-grid and remote applications, making it an attractive solution for industries and regions with limited energy infrastructure. With its unique value proposition and focus on innovation, Oklo represents a high-growth opportunity in the nuclear sector.

The company has been generating losses, however the losses are expected to be significantly less for the new year. It has no long term debt.

NANO Nuclear Energy Inc. (Ticker: NNE)

NANO Nuclear Energy Inc. is an emerging player leveraging advanced technologies to redefine nuclear power. The company is focused on developing compact and portable nuclear solutions that cater to diverse applications, including disaster recovery, military, and space exploration. By addressing niche markets and leveraging cutting-edge technology, NANO Nuclear Energy has positioned itself as a disruptor in the industry. Its commitment to safety and sustainability further enhances its appeal to investors and stakeholders.

The company has been generating losses, and does have a small amount of debt, both short term and long term.

Why Invest in Nuclear Stocks?

Investing in nuclear energy companies provides exposure to an industry poised for significant growth. As governments and corporations alike seek to decarbonize their operations, nuclear power’s role in providing reliable and clean energy is becoming increasingly vital. Companies like NuScale, Oklo, and NANO Nuclear Energy are well-positioned to benefit from this trend, thanks to their innovative technologies and strategic initiatives.

Conclusion

The nuclear power industry is on the cusp of a transformative era. With advancements in technology and growing global recognition of its importance, nuclear energy is set to play a critical role in the sustainable energy transition. For investors, companies like NuScale Power Corporation, Oklo Inc., and NANO Nuclear Energy Inc. offer exciting opportunities to participate in this growth story. As always, it is important to conduct thorough research and consider the risks before investing in any stock. However, the future of nuclear power looks brighter than ever, making it a sector worth watching closely.

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

Stocks Going Ex Dividend in January 2025

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.

Morningstar, Inc. (MORN)	1/3/25	0.455	0.53%
Dollar General Corporation (DG)	1/7/25	0.59	2.97%
Oracle Corporation (ORCL)	1/9/25	0.40	0.83%
AT&T Inc. (T)	1/10/25	0.2775	4.88%
AbbVie Inc. (ABBV)	1/15/25	1.64	3.74%
Lowe’s Companies, Inc. (LOW)	1/22/25	1.15	1.69%
Pfizer, Inc. (PFE)	1/24/25	0.43	6.53%
Clorox Company (CLX)	1/29/25	1.22	2.97%

Dividend Definitions

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

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.

Disclosure: Author owns PFE.

Top Quantum Computing Stocks Worth Considering

by Fred Fuld III

Quantum computing represents a transformative leap in technology, poised to revolutionize industries by solving complex problems far beyond the capabilities of classical computers. Unlike traditional bits, which are limited to a state of 0 or 1, quantum bits, or qubits, can exist simultaneously in multiple states due to the principles of superposition and entanglement. This allows quantum computers to process a vast number of possibilities concurrently, offering unprecedented computational power.

Quantum computing can be used by many industries, including artificial intelligence, analyzing big data, the security industry, finance, military, drug design, and aerospace.

The quantum computing market is on the cusp of significant expansion. Projections indicate that the global market size will grow from approximately $1.16 billion in 2024 to over $12.62 billion by 2032, reflecting a compound annual growth rate (CAGR) of 34.8%.

This rapid growth is driven by advancements in quantum technology and increasing investments from both private and public sectors. Notably, venture capital investments in quantum computing reached $1.2 billion in 2023, underscoring sustained investor confidence in the field

Several companies are at the forefront of this burgeoning industry:

D-Wave Quantum Inc. (QBTS): D-Wave is a pioneer in quantum computing, known for developing some of the earliest commercial quantum computers. The company’s focus is on quantum annealing, a specific approach to quantum computing aimed at solving optimization problems. The stock has a market capitalization of $2.2 billion and is currently generating negative earnings. Revenues have increased by 14% year-over-year. The company is debt free.

IonQ Inc. (IONQ): IonQ specializes in trapped-ion quantum computing technology, which offers high-fidelity qubits and the potential for scalable quantum systems. The company has garnered significant attention for its technological advancements and strategic partnerships. The company has a market cap of $9 billion and is currently not currently profitable. IonQ had a revenue increase of almost 90% year-over-year.

Quantum Computing Inc. (QUBT): This company focuses on providing software tools and applications designed to leverage the capabilities of quantum computers for complex problem-solving across various industries. On December 17, 2024, Quantum Computing Inc. announced a contract with NASA’s Goddard Space Flight Center for its imaging technology, leading to a significant surge in its stock price. The company has a market capitalization of $2.6 billion and is currently generating negative earnings. Sales jumped 35.6% year-over-year.

Rigetti Computing, Inc. (RGTI): Rigetti is known for its full-stack approach to quantum computing, integrating hardware and software solutions. The company aims to make quantum computing accessible to a broader range of applications and industries. The company has a market cap of $3 billion and is currently not currently profitable. Unfortunately, sales dropped 19% year-over-year.

Investing in the quantum computing industry offers significant potential rewards, given the anticipated growth and transformative impact of the technology. However, it’s important to note that many companies in this sector are still in developmental stages and may not yet be profitable, as reflected by negative P/E ratios. Investors should conduct thorough due diligence, considering both the promising prospects and inherent risks associated with emerging technologies.

Top Biotech Short Squeeze Stocks

by Fred Fuld III

A short squeeze is a phenomenon that occurs in financial markets when investors who have sold shares of a stock short (i.e., betting that the stock price will fall) are forced to buy those shares back at a higher price than they expected. This can happen when the stock’s price rises sharply, causing losses for short sellers who need to buy the stock to cover their position and limit their losses.

As more and more short sellers try to buy the stock to close out their positions, this increased buying activity can drive the stock price even higher, creating a feedback loop that can lead to a rapid and dramatic increase in price. This can create a challenging situation for short sellers, who may be forced to buy back the stock at a loss, or risk even greater losses if the stock continues to rise. A short squeeze can also create opportunities for long investors who have purchased the stock, as they may be able to sell their shares at a higher price to short sellers looking to cover their positions.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase/Decrease ~ This is the percentage increase in in the number of short sellers from the previous month.

Investing in biotechnology stocks offers a unique opportunity for individuals looking to gain exposure to one of the most dynamic and innovative sectors of the market. The biotechnology industry is at the forefront of medical advancements, driving breakthroughs in treatments and therapies that can transform lives. However, like any investment, it comes with its own set of risks and rewards.

The following are some heavily shorted biotech stocks that may be worth considering.

Biotechnology companies often work on cutting-edge solutions to address unmet medical needs, making their stocks particularly attractive to investors with a long-term outlook. For instance, Phathom Pharmaceuticals Inc. (PHAT) is a clinical-stage biopharmaceutical company dedicated to developing treatments for gastrointestinal diseases. Their lead product candidate, vonoprazan, is designed to treat acid-related disorders, offering potential advantages over traditional therapies. If successful, Phathom’s innovations could capture significant market share, making it a compelling choice for investors willing to bet on novel therapies with strong commercial potential. The stock has a Short Interest Ratio (Days To Cover) of 10.7, which means it would take over ten days for short sellers to cover their short position. Plus, 48% of the shares are short.

Another company in the biotech space is CervoMed Inc. (CRVO), which focuses on developing treatments for neurodegenerative diseases, including Alzheimer’s and Parkinson’s. As the global population ages, the demand for therapies to combat these debilitating conditions is expected to rise dramatically. CervoMed’s pipeline positions it to address these needs, although the path to market approval for such treatments can be fraught with regulatory and clinical hurdles. Investors who believe in the company’s science and potential market opportunity may find CRVO a high-risk but high-reward prospect. The company has short interest of 42.7%.

Cassava Sciences Inc. (SAVA) also operates in the neurodegenerative disease space, with a focus on Alzheimer’s disease. Its lead drug candidate, simufilam, has generated considerable attention, with the company claiming it can improve cognitive function in patients. While the promise of treating Alzheimer’s is enticing, Cassava has faced controversy and scrutiny over its research methodologies, leading to heightened volatility in its stock price. Investors in SAVA must weigh the potential for groundbreaking success against the risk of regulatory setbacks and scientific criticism. The short interest rate is 41.3%.

Molecular Templates Inc. (MTEM) represents a different facet of biotechnology, specializing in targeted cancer therapies. The company’s proprietary engineered toxin bodies (ETBs) platform seeks to deliver highly specific treatments that can minimize side effects and maximize efficacy. While Molecular Templates has shown promise in early-stage trials, like many biotech companies, it relies heavily on continued funding and successful trial outcomes to advance its pipeline. Investors must be prepared for the inherent unpredictability of clinical trial results and the financial pressures faced by smaller biotech firms. The company has short interest of 41.2%.

Despite the exciting potential of these companies, investing in biotechnology stocks carries significant risks. The industry is heavily regulated, and the path from research to market approval is often lengthy and uncertain. Many biotech firms operate without consistent revenue streams, relying on external funding or partnerships to sustain operations. A failed clinical trial or regulatory rejection can lead to substantial stock price declines.

Moreover, the highly speculative nature of biotechnology stocks can result in dramatic volatility. While success stories abound, such as breakthrough drugs that yield massive returns for investors, the failure rate in drug development is high. Investors should diversify their portfolios and only allocate capital they can afford to lose to this high-risk sector.

In conclusion, biotechnology stocks like Phathom Pharmaceuticals, CervoMed, Cassava Sciences, and Molecular Templates offer compelling opportunities for those willing to navigate the inherent risks. Their work addresses some of the most pressing medical challenges of our time, and successful innovations can result in both societal benefits and financial gains. However, potential investors must perform thorough due diligence and remain mindful of the risks, balancing their enthusiasm for scientific breakthroughs with a clear-eyed view of the sector’s challenges.

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

How to Invest in Starlink and SpaceX Before They Go Public

by Fred Fuld III

Many investors are interested in jumping on the Elon Musk bandwagon by investing in the companies he is involved with, other than Tesla (TSLA). With the success that Musk has been having with rockets and satellites, many investors see the growth potential in those areas.

Fortunately, there are a few ways to participate in the growth of those companies, even though they are not yet public.

Before I cover those ways, I want to relay a story to you about Apple (AAPL). Why Apple you may ask? Well let me explain.

Buying Apple Before It Went Public

Many, many years ago, before Apple went public, I was using an Apple II computer with the VisiCalc spreadsheet program to create financial planning worksheets. I couldn’t believe that calculations could be done so easily on a small machine and then printed out. I was working for an investment management firm at the time and wanted to invest in this little Apple Computer company. (That was the name of the company before it was changed to Apple Inc.)

Unfortunately, it wasn’t publicly traded. But fortunately, I read in a Forbes article that a publicly traded venture capital company called the Nautilus Fund, which was a closed end fund, had an equity interest in Apple. The fund held share of mostly public companies but also some shares of a few private companies. So to make a long story short, I bought some shares of the Nautilus Fund, Apple went public, and Apple shares were spun off to the Nautilus Fund shareholders. The rest is history.

Investing If Not Accredited

So you can see why investors, including myself, want to find some way to get access to Starlink and SpaceX shares.

If you are an accredited investor, you are probably aware of the services available to you for buying shares in private companies, and where there might be a minimum investment of $25,000. These services include Hiive, Forge, Microventures, and even NASDAQ Private Market.

An individual accredited investor is someone who has a net worth over $1 million, excluding primary residence (individually or with spouse or partner) and/or has an income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year. There is one other qualification that can allow you to meet the accredited requirement. If you are an investment professional with a Series 7, a Series 65, or a Series 82, then you may qualify. There are different rules for organization investors.

But if you are not an accredited investor, there are still ways for you to participate.

First, let’s discuss Starlink and SpaceX and their connection to each other.

SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, is a private aerospace manufacturer and space transportation company founded by entrepreneur Elon Musk in 2002. Musk established SpaceX with the ambitious goal of reducing space transportation costs to make space exploration and colonization more accessible, ultimately aspiring to enable human settlement on Mars.

Headquartered in Hawthorne, California, the company quickly gained attention for its innovative approach to rocket design and its focus on reusability, a concept that has transformed the aerospace industry.

SpaceX made history in 2008 when its Falcon 1 rocket became the first privately developed liquid-fueled rocket to reach orbit. This success was followed by a series of groundbreaking achievements, including the development of the Falcon 9 rocket, which features reusable first-stage boosters, and the Dragon spacecraft, capable of carrying cargo and crew to the International Space Station (ISS).

In 2012, Dragon became the first commercial spacecraft to dock with the ISS, marking a significant milestone in public-private partnerships in space exploration.

In 2020, SpaceX achieved another historic milestone with its Crew Dragon spacecraft, which carried NASA astronauts to the ISS as part of the Commercial Crew Program. This made SpaceX the first private company to launch humans into orbit.

Beyond crewed missions, the company has developed the Starship rocket, intended for deep-space missions and capable of transporting cargo and passengers to the Moon, Mars, and beyond.

SpaceX has also revolutionized global communications with its Starlink project, a satellite internet network designed to provide high-speed internet access worldwide. By combining technological innovation with a vision for humanity’s future in space, SpaceX continues to play a pivotal role in advancing aerospace technology and shaping the future of space exploration.

Starlink

Starlink Services, LLC, a subsidiary of SpaceX, was established to provide high-speed satellite internet to underserved and remote regions across the globe. Launched in 2015 as part of Elon Musk’s vision to create a global broadband network, Starlink operates a constellation of low Earth orbit (LEO) satellites that communicate with ground stations and user terminals to deliver high-speed internet access. Its mission aligns with SpaceX’s broader goals of advancing space exploration and connecting humanity, particularly in areas lacking reliable internet infrastructure.

Starlink officially began beta testing its services in October 2020 under the program “Better Than Nothing Beta,” offering Internet speeds between 50 Mbps and 150 Mbps. It quickly garnered attention for its ability to provide connectivity in rural and remote areas, where traditional cable or fiber infrastructure is often unavailable. The service expanded rapidly, reaching customers in over 50 countries by 2023. Starlink has since developed specialized products, including maritime and aviation solutions, to cater to various industries beyond residential consumers.

Known for its user-friendly hardware, Starlink employs a compact satellite dish and modem for easy setup. Its advancements in satellite technology have included innovations like phased-array antennas and laser inter-satellite links to improve latency and bandwidth.

By leveraging a network of thousands of satellites, Starlink aims to overcome the limitations of geostationary satellites, providing lower latency and more stable connections for applications like video conferencing, gaming, and remote work. As of recent reports, Starlink continues to grow its satellite constellation and improve its service capabilities, making it a key player in the global push for universal Internet access.

Ways to Invest

Alphabet (GOOG) (GOOGL), more commonly referred to as Google, has a division called Google Ventures, which invested in SpaceX almost ten years ago, giving it a reported 7.5% ownership of the company. However, Google is such a huge company that the value realized from the growth of SpaceX will have a very small effect on Google’s stock.

The same thing is true of Bank of America (BAC), which also invested in SpaceX almost seven years ago, in the amount of $250 million.

Some articles suggest investing in competitors of SpaceX, but be careful. Look what happened to all the new electric car competitors to Tesla (TSLA). Fortunately, there are some other alternative ways to jump on the SpaceX bandwagon.

There is a closed-end fund called ARK Venture Fund (ARKVX), which reportedly has over 10% of it’s assets in SpaceX, in addition to ownership of shares in a couple more Musk companies, X and xAI.

At the time this article was written, an individual investor would have to buy the stock through SoFi. As a matter of fact, for a limited time, SoFi is offering $25 worth of free stock including fractional shares if you sign up through THIS LINK. There are dozens of choices of free stock that you can choose from, even Berkshire Hathaway (BRK-B) and SoFi (SOFI).

According to the fund prospectus:

“Unlike an investor in many closed-end funds, Shareholders should not expect to be able to sell their Shares regardless of how the Fund performs. An investment in the Fund is considered illiquid.”

It also says, “Unlike many closed-end funds, the Shares are not listed on any securities exchange. The Fund intends to provide liquidity through quarterly offers to repurchase a limited amount of the Fund’s Shares (expected to be 5% of the Fund’s Shares outstanding per quarter).”

The fund has a management fee of 2.75%. The price of the fund has gone up by 27.26% over the last twelve months.

There is one other closed-end fund that owns SpaceX, called Destiny Tech100 Inc. (DXYZ),which trades on the New York Stock Exchange. It currently has 22 companies in its portfolio with SpaceX making up the largest share at 36.9%. Other stocks in the portfolio include Axiom Space, OpenAI, Instacart, Stripe, and Discord. The company has a management fee of 2.5%. In the last six months, the stock has gone up by 189%.

Any of the above ways will give you some participation in the growth of SpaceX or Starlink, but there is one more play in Starlink.

A company called KVH Industries (KVHI) is a Starlink authorized hardware and airtime reseller. This is a microcap stock with a market cap of $108 million, and is therefore extremely risky. The stock, which is currently generating negative earnings, has a favorable price to sales ratio of 0.91, and is selling for 76% of book value.

If you are considering investing in SpaceX or Starlink, even indirectly, you may think your portfolio will go to the moon (or Mars). Just be aware that there are extensive risks involved.

Disclosure: Author owns TSLA, KVHI, and DXYZ.

Stocks Going Ex Dividend in December 2024

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.

Nike, Inc. (NKE)	12/2/2024	0.40	2.07%
PepsiCo, Inc. (PEP)	12/6/2024	1.355	3.35%
The Travelers Companies, Inc. (TRV)	12/10/2024	1.05	1.60%
Thermo Fisher Scientific Inc (TMO)	12/13/2024	0.39	0.30%
Phillips Edison & Company, Inc. (PECO)	12/16/2024	0.1025	3.13%
Southwest Airlines Company (LUV)	12/26/2024	0.18	2.25%
Xerox Holdings Corporation (XRX)	12/31/2024	0.25	11.06%

Dividend Definitions

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

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.

Disclosure: Author owns PEP.